Payroll Employee Benefits
With Square’s online payroll services, as well as Team Management's paid subscription service, Team Plus, you can enroll your employees in benefits or add your existing benefits to Payroll.
Square Payroll and Team Plus both offer integrated benefits within the Benefits tab of your online Payroll dashboard. These benefits are simple to set up and automatically sync with Payroll. Square Payroll currently offers integrated benefits for:
Add Existing Benefits
If you already offer benefits to your employees, you can add taxable benefit deductions and contributions on your Payroll employee’s profile. Square Payroll and Team Plus currently support these benefit types:
Health Savings Account (HSA)
Health Insurance (Section 125 Plan)
Flexible Spending Account (FSA)
Dependent Care Flexible Spending Account (FSA)
401K Retirement Plan
Roth 401K Retirement Plan
403B Retirement Plan
Roth 403B Retirement Plan
457(b) Deferred Compensation Plan
Roth 457B Deferred Compensation Plan
With direct-to-employee benefits, payroll employees and contractors have the option to choose a benefits provider for remote health care, health insurance, retirement savings, and tax withholding assistance. These benefits are accessible to payroll team members at affordable rates directly through their online account.
As post-tax deductions, direct-to-employee benefits are not employer-sponsored benefits, come at no additional cost or action to the employer, and do not impact employer tax payments or filings. Employees have the option to choose a plan directly with the benefits provider that best fits their needs at a Square Payroll discounted price.
To get started with direct-to-employee benefits:
1. Log in to the Square Team dashboard or Square Team App from a mobile device. If you do not have the app, you can download it from the App Store for iOS devices or from Google Play for Android devices.
2. Once you’re logged in, tap More > Benefits.
3. On the Benefits tab, you’ll see a list of direct-to-employee benefits. Press on the benefit type to learn more.
As a part of direct-to-employee benefit offerings, Square Payroll has partnered with Grid to assist with efficient tax reporting for employees. Grid optimizes W-4 tax withholdings by helping employees set up tax elections correctly so that they can get their maximum net pay in each paycheck, instead of having to wait to receive their tax return at the end of the year.
Learn more about Grid on their website.
In select states, eligible employees can be given the option to access a portion of their wages early with On-Demand Pay Employees can choose to access their earnings before pay day by sending their funds to Cash App for free or to a linked debit card or direct deposit bank account for a 1% fee. When your employees clock out, they will receive an email with a summary of their hours worked and wages earned for that shift and along with the amount of funds they are able to access early.
Read the On-Demand Pay FAQ for additional information.
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