Square Payroll Tax FAQs
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 send copies of Form 1099-NEC 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?
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.
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.