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Square Payroll Tax Filings and Payments

Square’s online payroll service handles your federal and state tax filings and payments on your behalf at no additional charge. Once these forms are filed with the appropriate agencies, you can download, save, and print each document by going to Staff > Payroll > Tax Forms in Square Dashboard.

Team members, both W-2 employees and 1099 contractors, are also provided with digital copies of their tax forms. They can access their Form W-2 or Form 1099-NEC through their online Team Member Dashboard or through the Square Team app. Remember, you are still required to provide your team members with a physical copy of their Form W-2 or Form 1099-NEC unless they consent to electronic-only delivery. Alternatively, you can opt in to having your team's W-2s and 1099-NECs mailed in your Payroll Settings tab and Square Payroll will mail paper copies of these tax forms to your team members.

Federal payroll tax forms

Square Payroll calculates, withholds, and files all federal payroll taxes on your behalf. Here’s a breakdown of each tax form we handle:

Federal Tax Forms Filed Payroll Tax Agency
IRS Quarterly
  • Form 941
Internal Revenue Service
IRS Annual
  • Form 940
  • Form 944
  • Form 1099-NEC (Contractors only)
Internal Revenue Service
SSA Annual
  • Form W-2
  • Form W-3
Social Security Administration

Note: Square Payroll prepares and files your tax forms electronically. Completed tax forms are stored as PDF files and are not formatted the same way as similar forms you might find online. They do, however, provide you with all the information we file with tax agencies on your behalf.

Quarterly federal tax filings are due on the last calendar day of the month following the end of the quarter:

  • First quarter (Q1): Due April 30, for the period from January 1 to March 31

  • Second quarter (Q2): Due July 31, for the period from April 1 to June 30

  • Third quarter (Q3): Due October 31, for the period from July 1 to September 30

  • Fourth quarter (Q4): Due January 31, for the period from October 1 to December 31

Annual filings are always due by January 31 for the previous calendar year.

Federal filing frequency

Square Payroll files either a Quarterly Form 941 or Annual Form 944 based on the federal filing frequency provided. If the federal filing frequency on your Square Payroll account does not match the frequency assigned by the IRS, you will need to update your account settings by following these steps:

  1. Sign in to your Square Dashboard and select Staff & payroll > Payroll > Settings > Tax Info.

  2. Select your filing frequency for the current tax year from the drop-down list.

  3. If you were notified that your filing frequency is changing for the upcoming tax year, click Add Filing Frequency to schedule a new filing frequency effective January 1 of next year.

  4. Click Save.

If you make any changes for the current year, we retroactively file any outstanding tax forms due on or after January 1 of the current year. 

To reconcile any outstanding tax forms due for previous tax years, contact the IRS or follow the instructions on the notice. You are responsible for any penalties the IRS applies to your account if the federal filing frequency is updated after the deadline on the notice. You can contact the IRS at 800-555-4477.

Federal payroll taxes and payments

Every time you process a pay run, Square Payroll calculates and withholds federal and state taxes. These amounts are then debited from your bank account and used to pay taxes on your behalf. You can find specific tax amounts due per run in the Withdrawal Summary. Square Payroll deposits all federal tax payments using The Electronic Federal Tax Payment System (EFTPS) on a semi-weekly deposit schedule, with the exception of Federal Unemployment Tax payments that are deposited on a quarterly basis.

To ensure timeliness of your tax payments, Square Payroll deposits all federal tax payments on a semi-weekly deposit schedule using the Electronic Federal Tax Payment System (EFTPS), with the exception of Federal Unemployment Tax payments that are deposited on a quarterly basis. Semi-weekly tax payments are made within three days of your pay date. For more information, visit irs.gov.

There are three types of federal payroll taxes:

Federal income tax withholding:

  • This is an employee tax and the amounts withheld are determined by federal income tax tables employee earnings, and the allowances on the employee’s Form W-4.

  • These taxes are debited directly by the IRS and are labeled as “USATAXPYMT” on your bank statement.

Social Security and Medicare tax:

  • Both employees and employers pay Federal Insurance Contributions Act (FICA) taxes, which includes social security (6.2%) and medicare (1.45%) taxes. The employer matches their employees’ portion of FICA taxes.

  • Square Payroll calculates and withholds these taxes from an employee’s paycheck. The employer and employee portion of this tax are debited directly by the IRS and are labeled as “USATAXPYMT” on your bank statement.

Federal Unemployment Tax (FUTA):

  • The Federal Unemployment Tax Act (FUTA) rate is 6% and it applies to the first $7,000 of employee’s wages each year. Employers contribute the entire amount due for (FUTA) taxes—this tax is not withheld from the employee.

State payroll tax forms

Square Payroll also files payroll taxes to state agencies, including state income taxes and state unemployment taxes (SUTA) where applicable. These taxes vary by state, county and city.

Click on your state below to view which tax forms we handle in that state:









District of Columbia





















New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota





Rhode Island

South Carolina

South Dakota







West Virginia