At the Procare Online Store you may order:

• W2 / 1099 Software for the year that is just ending (or has just ended)
• Tax Table Formulas for the new year

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W2/1099 software will be available for download in early January. At that time, your password to activate the W2/1099 software will appear on the Procare News tab.


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Yes. The W2 program does not print the actual W2 or 1099 forms. It gathers data from the Payroll (and/or Expenses & Ledger) modules and prints the information on pre-printed forms*. Find out where to Order W2 and 1099 Forms and what type of forms you'll need.

*Note: Lines and boxes must be pre-printed on the forms. Do NOT purchase blank forms.

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Federal e-file
Yes. Procare v10 is compatible with federal e-filing requirements. The Procare W2 Software allows you to export a file that may be imported to the Social Security Administration (SSA) website. See: SSA Instructions

State e-file
No. Due to the great variation in state e-filing requirements you cannot directly e-file W2s for your state through Procare. However, if your state requires electronic filing, you may use the Procare W2 software to generate your W2 information then go to website provided by your state and enter the figures manually (or copy & paste).

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If your accountant or payroll service is doing W2’s you'll want to print the following report from Procare v10. From the main screen of Employee Data & Payroll go to Standard Reports > Payroll  > Employee Summary > Employee Earning / Withholding  Summary.


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When using the Procare W2 / 1099 Software there are two options for Social Security and Medicare as follows:


Automatically Corrected (recommended setting)
"Automatically corrected" means the exact amounts that should have been withheld will be used. This is determined by multiplying each employee's taxable earnings, for the entire year, by the appropriate rates for Social Security and Medicare. The results are more precise than adding together withholdings from individual checks. Any differences are accounted for by adjusting the Federal Income Tax withholding. Therefore, don't be concerned if the amounts withheld for Social Security, Medicare, and Federal Income Tax on the W2 vary slightly from the totals on the employee's last pay stub of the year. Typically, the differences will be a matter of cents, not dollars.

Exactly as Entered
"Exactly as entered" means the amounts withheld on individual paychecks throughout the year will be added together and imported exactly the way they were recorded. This result is likely to be slightly over or under the correct amount for the full year.

Special Note for 2011 W2s
In 2011 the employee share of Social Security dropped from 6.2 to 4.2 percent. If you withheld at the old rate, for a portion of the year, the difference may be more significant than a few cents. Using the "Automatically Corrected" option is strongly encouraged in order to have correct withholdings reported. If you over withheld, any extra will be reported in the Federal Income Tax withholding box, resulting in a larger refund (or less owed) when the person files their personal income taxes.


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A small difference between Federal Income Tax, Social Security or Medicare withheld on the W2 versus the employee's last pay stub of the year would be normal if you selected the "Automatically corrected" option (explained above) while importing employee information. However, if the amount were large the reason for the difference is that you have either over or under withheld Social Security and/or Medicare during the course of the year. This can happen if you manually adjust withholdings after they were calculated on the Payroll Check Calculation screen or change the exemption status of a withholding in the Payroll Formula Editor after the check has been posted.

Why does this affect Federal Income Tax?
Since Social Security and Medicare are determined by an exact percentage those numbers are automatically adjusted to be precise. The amount of the correction comes from Federal Income Tax since this is only an estimate of what the employee should have had withheld from their checks. Any differences will be accounted for when the employee files their own personal income tax returns.

What are my options?
If you prefer to use the exact numbers as they are recorded on each check you may do so by selecting the "Exactly as Entered" option and importing the information again. Be aware this will report what was actually withheld as opposed to what should have been withheld and any manual adjustments you may have made will be lost when you re-import the information.

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Yes. You may wish the housing allowance to appear in a specific box on the W2, for example the box for "other". If you are using Procare W2 / 1099 Software you can manually edit W2s for that person as needed. Contact your tax adviser or the IRS to determine how the information should be reported.

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If you have vendors for whom you are required to issue form 1099 you'll want to create tracking items for each 1099 category including Rent, Other Income, and Non-Employee Compensation then assign these tracking items to the appropriate vendors. This allows you to import data to the Procare W2 / 1099 Software for the purpose of printing 1099s. Contact your tax adviser or visit the IRS Web Site for more information about 1099 requirements.

Setup & assign vendor tracking as follows:

1. Create a Tracking Group called something like "1099" with 3 new Tracking Items under the Vendor tab:
   1. 1099 Rent
   2. 1099 Other Income
   3. 1099 Non-Employee Comp.
2. Add the appropriate Tracking to Each Vendor.
3. Follow instructions for using the W2 / 1099 software.

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