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 Payroll > Tax Forms in Square Dashboard.
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 1099-MISC (Contractors only)
|Internal Revenue Service|
|SSA Annual||Form W-2
|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 payroll taxes and payments
Every time a pay run is processed, 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.
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: