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Update Your EIN on Square Payroll

When you update your business type, the IRS may issue your business a new Employer Identification Number (EIN). In this situation, you’ll need to create a new Square Payroll account to pay your team members. When your EIN is updated, tax caps will reset and Form W-2 will need to be filed for each of your W-2 employees through both EINs.

You can create a new account with a new email address by going to www.squareup.com/payroll and click on Get Started. You’ll want to make sure you are signed out of your current Square Dashboard before signing up. If you would like to use the existing email address on your new Square Payroll account, you can edit the email on the prior Square account by going to the Account & Settings tab in your Square Dashboard.

Once you have created a new Square Payroll account, you can close your current account by going to to Payroll > Payroll Settings and click on Close Payroll Account. Select “I have a new EIN” as the reason for closing your account. This will ensure Square Payroll files your final tax forms on the old account for the current quarter as well as file any applicable year-end forms, such as Form W-2, 1099-NEC, and Form 940. Your payroll reports and history will remain on your prior Square Payroll account for your records.

If you are processing payments through Square Point of Sale (POS), you have the option to keep your current POS account or transfer your existing account to your new Square Payroll account. If you prefer to keep the POS account separate or transfer the information over to the new Square Payroll account, you will want to keep the following information in mind:

Prior Payroll Information

Information from the prior Square Payroll account will not be transferred to the new Square Payroll account. When setting up a new Square Payroll account, you will need to enter your business information, bank account, and add employees and 1099 contractors.

Timecards

If you transfer your existing Square POS account to your new Square Payroll account, your Square timecards will sync seamlessly. However, if you decide to keep your Square POS account separate from your new Square Payroll account and you are using Square timecards, you may want to:

  • Have your team members use the Square Team app for timecard tracking so the information syncs with your new Square Payroll account. Team members that are not enrolled in Square Payroll can also use the Square Team app to clock in/out, view their hours worked and timecards, view their estimated pay for the week, and view/edit their team profile.

  • Have a separate device at your location, that is not tied to your prior Square POS account, and can be used by your team members to clock in/out with their four-digit passcode.

  • If you decide to track hours on your previous Square POS or third-party timetracking account, you can manually enter the hours on the Run Payroll screen when processing payroll.

Items

If you have decided to move your Square POS to the new account, you may want to transfer the items between Square accounts. This can be done by using the Import/Export tool. For more instructions, visit transfer items between Square accounts.

Transaction History

Transaction information cannot be transferred between Square accounts. However, you can download your payment history to keep for your records.

Square Capital

For any questions regarding Square Capital, please contact the Square Capital Support team for additional information.

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