As 2025 draws to a close, we want to share what you can expect from Microsoft Dynamics SL and Microsoft Dynamics GP as you prepare for 2026. Dynamics GP will continue to receive year-end updates, while Dynamics SL has entered extended support, which brings important changes for customers still using the platform.

Microsoft Dynamics SL

Dynamics SL will not receive a 2025 year-end update. Microsoft has ended regulatory and functional updates for SL, and the latest version is now in extended support, which will continue through July 11, 2028.

Organizations continuing to use Dynamics SL should note:

• No tax table updates– Federal, state, and local tax changes must be updated manually.
• No form or report changes– Updates to W-2, 1099, or other regulatory forms must be handled through custom report modifications.
• Electronic filing compliance– IRS electronic filing requirements still apply. Customers must ensure SL-generated files meet current IRS standards, which may change annually.

Microsoft will continue to deliver security patches during extended support, but will no longer provide new features, functional enhancements, or compliance-driven updates. As a result, organizations running payroll or Accounts Payable in Dynamics SL should plan for increased operational effort and compliance risk going forward.

Microsoft Dynamics GP

Dynamics GP remains actively supported, and the 2025 Year-End Update includes the October 2025 Feature Release (Version 18.8).

There are no major changes to W-2, W-3, or 1099 form layouts for 2025 reporting. However, GP versions 18.6 and newer now support printing 1099 forms with lines and boxes, eliminating the need for pre-printed forms. The update also includes regulatory fixes, such as updates related to Fixed Asset luxury auto depreciation, along with payroll-related fixes:

• Medicaid waiver payments in Box 12 (Code II) are not printing on payroll W-2s
• A missing string issue on the Payroll 941 Preparation report after installing version 18.8

Please note that under the Taxpayer First Act, electronic filing is required for W-2s and 1099s once filing thresholds are met. Dynamics GP does not file Payables 1099s electronically (only payroll allows electronic W-2 filing). If you have more than 10 forms, the IRS requires electronic submission.

The IRS offers a free 1099 e-filing option through IRIS. Review size limitations and eligibility to determine whether it will work for your organization: E-file Forms 1099 With IRIS | Internal Revenue Service (irs.gov)

Before applying the update or closing the year, it is critical to back up the DYNAMICS database and all company databases. We also recommend verifying employee and vendor information—such as Social Security numbers, addresses, and tax withholdings—to help prevent filing errors or penalties. In accordance with the Modern Lifecycle, the only supported upgrade path is from a release that is one year older than the current release.

As a reminder, it is essential to thoroughly test the update, especially if you have customizations, third-party/ISV solutions, or unique business processes.

Microsoft Dynamics AX & NAV

If you are currently using Microsoft Dynamics AX or Microsoft Dynamics NAV, please contact our team to discuss your support status and long-term planning options.

Planning Ahead

Microsoft has announced that Dynamics GP product enhancements will end in September 2029, with security updates ending in April 2031. Combined with Dynamics SL, which is already in extended support, many organizations are evaluating long-term ERP strategies, including migration options such as Dynamics 365.

Support from Queue Associates

Your continued support is our priority, and we hope this update clarifies the upcoming changes. As always, the Queue Associates Helpdesk is here to assist with any questions. Please contact us at (212) 269-1313 x1 or click below to email us.

All the best,

Queue Associates