Payroll Set-Up Instructions: New Employers

If you’re new to payroll (i.e. you haven’t paid payroll taxes before), you need the following information to sign up:

• Federal Employer Identification Number (EIN)

• State Employer Tax Information

• Business type

• Legal business name and address (as registered with your EIN)

• Bank account details for payroll withdrawals

New Employer Payroll: Step-by-Step Sign-Up Instructions

If you have paid employees and payroll taxes this year under the EIN you’re using for enrollment, see Switching Providers.

1. Sign up for Square Payroll. If you don’t have a Square account, create one by entering your email address and a password. If you already have a Square account, sign in.

2. Enter your business information. If you run payroll for employees across different states or multiple tax jurisdictions, provide each location’s address and your state tax account information for each tax jurisdiction. For assistance, visit our list of state payroll tax resources or learn how to register with your state tax agency.

3. Enable two-step verification to protect your account from unauthorized access and to add an additional layer of security.

4. Link the bank account you wish to use for Square Payroll. If you are signing up with an existing Square account, you can choose to use your existing linked bank account, link a separate bank account exclusively for Square Payroll, or use Instant Payments to have your team member’s direct deposit debits come from your stored balance. Note: You will still need to link a traditional bank account for your tax debits. For help linking your account, visit Link and Edit Your Bank Account.

5. After confirming your bank details, Square Payroll will deposit and then withdraw two small amounts from your bank account. This action is a security measure to ensure that the account you linked belongs to you. Click for more information on security deposits.Note: You cannot process payroll until you have confirmed the security deposit amounts.

6. Choose your payroll schedule and set up your first Square Payroll pay period. You can update your pay period and/or pay schedule before processing your first payroll. Read more about Square Payroll’s payment schedule.

7. Authorize Square Payroll as your Reporting Agent and, if your state requires it, provide us with Power of Attorney (POA). You will see a notification on the Payroll Overview page of your Square Dashboard that enables Square Payroll to complete this process for you. This authorizes us to pay and file taxes on your behalf and will be submitted to the IRS. The information entered must match your EIN data.

8. Review and submit the information you entered.

   Note: It’s extremely important that your information is accurate and up-to-date. We may be unable to make tax payments or filings if the information you provide does not match what is on record with the IRS or your state employer tax agency.

You’re all set up! When you’re ready, add your employees and verify the amounts we deposited into your bank account.