Looking to switch to Square Payroll? While it’s easiest to switch at the start of a quarter, Square Payroll makes it simple to switch any day in three easy steps.
Step 1: Set Up Your Square Payroll Account
To set up your business with Square Payroll, all you need is your:
- Employer Identification Number (EIN)
- State Employer Tax Information
- Business Type
- Business Name and Address (as associated with your EIN)
- Year-to-date (YTD) gross pay for each of your employees
- Employee e-mail addresses (for direct deposit employees only)
- Employee details for former employees paid this year*
- Payroll reports from your prior payroll provider (click for detailed steps on accessing reports from ADP, Intuit, or Paychex)**
It is important that the YTD gross pay entered matches the final amounts paid through your former payroll provider.
*This information is needed to accurately file W-2s for these employees. Square Payroll does not contact employees who no longer work for your business.
**It’s important that this information is accurate and up-to-date, as the amounts will affect employee and employer taxes
You do not need to enter information for independent contractors or wages paid to your employee by a business with a different EIN.
Step 2: Close Your Old Payroll Account
After you set up your Square Payroll account, make sure you do the following:
- Save copies of all old tax documents. This includes breakdowns of your QTD and YTD gross pay and prior state and federal tax filings.
- Maintain your employee records. Square Payroll will generate W-2’s for all employees that have worked for you in the calendar year, including those who are not currently working for you. We need to have your employees’ addresses, social security numbers (SSN), and YTD gross pay and tax breakdowns to ensure that their W-2’s are accurate.
- If you’re switching in the middle of a quarter, clarify which tax payments and filings your former payroll provider will be making on your behalf. Upon switching, quarterly taxes collected but not submitted to the IRS and/or state should be refunded to you (SUI, FUTA, and ETT). Square Payroll will re-collect and submit those specific taxes on your behalf. Federal and state income taxes collected by your previous provider should be paid by your prior provider; please contact us if they are not so we can be sure your payments are up-to-date.
Step 3: Run Payroll with Square
After you’ve enrolled with Square Payroll, closed out your service with your former payroll provider, and saved copies of all necessary documentation, you’re all set to pay your employees.