Square Payroll Tax FAQ
Taxes and Forms with Square Payroll
Yes. Square Payroll generates and files your state and federal tax forms on your behalf.
Yes. Square Payroll calculates and withholds payroll taxes each time you run payroll. Square Payroll pays these taxes to your state employer tax agency and federal government when they are due. You can view a breakdown of your tax calculations and debits for each pay run in the History & Reports section of your Square Payroll dashboard and selecting a pay run.
No. Federal and state payroll tax filings and payments are included in our monthly subscription fee.
At the end of the calendar year we will generate copies of Form 1099-NEC for each of your contractors and file this form with the IRS on your behalf. Contractors can access a digital copy of their Form 1099-NEC through their online Team Member Dashboard or through the Team App on a mobile device. Remember, you are still required to provide your contractors with a physical copy of their Form 1099-NEC unless they consent to electronic-only delivery. Alternatively, you can opt in to Paper Mail and Square will mail paper copies of Form 1099-NEC to your contractors. Paper copies of Form 1099-NEC incur a fee of $3 per employee or contractor.
The IRS has two deposit schedules for employment taxes, monthly or semi-weekly. To ensure timeliness of your tax payments, Square Payroll sends your payment information over to the IRS on the more frequent semi-weekly tax payment schedule. Semi-weekly tax payments are made within three days of your pay date. For more information, visit irs.gov.
Note: The deposit schedule is different from your federal filing frequency. Visit Square Payroll Tax Filings and Payments for more information.
As an employer, you are able to enter Form W-4 information for your employees. If you enable Online Access, your employees will also have the ability to update their W-4 information from their employee dashboard.
Square Payroll will generate W-2s for each employee that you paid in the past year. For more information on W-2’s, visit Understanding and Distributing Your W-2s. Employees can access their digital Form W-2 through their online Team Member Dashboard or through the Team App. Remember, you are still required to provide your employees with a physical copy of their Form W-2 unless they consent to electronic-only delivery. Alternatively, you can opt in to Paper Mail and Square will mail paper copies of Form W-2 to your employees. Paper copies of Form 1099-NEC incur a fee of $3 per employee or contractor.