Square Payroll Tax FAQ
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. 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.
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 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.
What is a semiweekly tax depositor? How do I know if I’m a semiweekly tax depositor?
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.
Can I enter Form W-4 information for employees myself?
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.
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. 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.
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.