Square Payroll Pricing and Tax FAQs

How much does Square Payroll cost?

Square Payroll’s fee is $25 per month plus $5 per employee or contractor that you pay that month. This price is inclusive of all Square Payroll services. For more information, visit Square Payroll Pricing.

Do I have to pay for employees that I don’t pay in a given month?

We only charge you employee and contractor fees for the workers that you pay in a given month. If you don’t pay any employees or contractors in a given month, you are only charged the monthly subscription fee. For further information on pricing, visit Square Payroll Pricing.

Taxes and Forms with Square Payroll

Does Square Payroll handle my employer tax filings?

Yes. Square Payroll generates and files your state and federal tax forms on your behalf.

Does Square Payroll handle my tax payments?

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.

Do you charge extra for tax filings and payments?

No. Federal and state payroll tax filings and payments are included in our monthly subscription fee.

What forms do you file for my contractors?

At the end of the calendar year we will send copies of Form 1099-MISC to each of your contractors and file this form with the IRS on your behalf.

What is a semiweekly tax depositor? How do I know if I’m a semiweekly tax depositor?

Businesses are required to deposit federal taxes on either a monthly or semiweekly basis. Monthly depositors pay taxes each month. Semiweekly depositors pay taxes after every paycheck. If you are a new business, you will be on a monthly deposit schedule for your first calendar year.

At the end of each calendar year, the IRS sends a letter titled “Your Federal Tax Deposit Requirements.” This letter will indicate whether you are required to deposit taxes under the monthly deposit schedule or the semiweekly deposit schedule.

You also have the option of contacting the IRS at 800-829-4933 to ask whether you are a semi-weekly tax depositor for the current year.

Contact us if you need your tax deposit schedule changed from monthly to semi-weekly as you may incur penalties and fines if taxes are deposited late or incorrectly.

Can I enter Form W-4 information for employees myself?

As an employer, you are able to enter Form W-4 information for both manual check and direct deposit employees. Direct deposit employees have the ability to update their W-4 information from their employee dashboard.

Do you generate Form W-2 for each of my employees?

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.

Do payroll taxes get withheld monthly, at the end of the quarter, or with each pay cycle?

Payroll taxes are withheld each time you process payroll. This ensures that we have the correct amounts when we make tax payments on your behalf.

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