Microsoft Dynamics GP January 2026 Hotfix Now Available

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Terry R Heley Microsoft Employee

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I hope the new year is treating you well so far.

To address some year-end changes in Payroll and Payables, we’re publishing a January Hotfix.
This release is targeted—only apply it if one of the issues below are relevant to your business.

Microsoft Dynamics GP (version 18.8.1941)

MicrosoftDynamicsGP18-KB5054794-ENU.msp

With the 18.8.1941 January Hotfix release the following items are resolved:

-Support for SQL Server 2025 with Dynamics GP is compatible. (Analysis Cubes installer will not be supported on SQL Server 2025)
- Payroll W-2 OMB Number Has Changed for 2025 year (only prints on the form with lines and boxes)
- Payroll 1096 summary form and Payroll 1099-R for pension employees had alignment issues
- Payroll W2 New box 12, code II, for Medicaid waiver payments added to the EFW2 electronic file
- 1099-MISC Golden Parachute moves to 1099-NEC for 2026
There was a change announced in April 2025 around reporting requirements for Excess Golden Parachute Payments.
These payments must now be reported in Form 1099-NEC Box 3, they were previously reported on the 1099-MISC form Box 14.
Form changes were made and if you have vendor information in this box it will be updated during Dynamics Utilities process.

Download links:

Microsoft Dynamics GP Service Packs