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Daycare Payroll: 2011 Tax Changes

2011 changes coming…

With Federal Social Security changes on the way, you have peace of mind knowing that Daycare Payroll from Procare Software® will handle these changes with ease.  Each year, new tax table formulas are offered for download shortly after the beginning of the year. Procare makes these changes available as soon as possible once we can confirm the final settings from each state and the federal government. In many cases state and federal regulations are not finalized until the very last minute.

When do I need to have the new formulas on board?

Relax, there is no rush. Since income tax withholding amounts are only estimates, don’t worry if you need to do your first payroll or two of the new year using tax tables from last year. The difference over a couple of paychecks is negligible and will be made up when each employee files their own tax returns the following year. So, it’s fine to use the prior year’s tax tables until the new tables are ready.

What about changes to the Social Security rate?

When the IRS officially incorporates the reduced rate for employee Social Security contributions to their tax tables and formulas, Procare will incorporate those changes and make available a new tax table download that reflects those changes.  We anticipate amounts withheld at the older, higher rate will be accounted for as part of the year end processing of W2’s and perhaps as part of the federal income tax filing process.

How do I get the new tax tables?

For Procare v10 start at the Procare Home screen:

  1. Go to Configuration >  System
  2. Scroll down to the Payroll section > dbl-click Payroll Formulas.
  3. Then click the Download & Update button and follow the on-screen prompts.

Procare Tax Download PasswordNote: If you have previously installed tax tables for another year you’ll need a PASSWORD for the new year. This will appear on the Procare News tab of your Procare Home screen sometime during the first week of January. The password shown in the image is just an example.  See Support Article – Download New Tax Tables for details.

Until next time, Happy New Year!

-Doug

If you have questions or comments about this article (or suggestions for another article) I’d be happy to hear from you. Drop a note to doug@procaresoftware.com

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