Paying Employees in Different Tax Jurisdictions
With Square's online Payroll services, you can set up locations spanning multiple states and localities and leave the tax calculations to us. You can also add work locations for employees who work from home to make sure that you correctly pay unemployment tax to those employee's home states.
Square Payroll supports payroll tax calculations and filings across all 50 states and the District of Columbia.
Enable Multiple Tax Jurisdiction Support for Your Team
To set this up for your business:
Log in to your online Square Dashboard and click on Payroll > Payroll Team.
Select Add Team Member or click on an existing team member's profile.
Under the Employee Info section, click Work Address > Create New to add work locations for your team members.
Next, head over to the Tax Info tab to add your state tax account numbers and unemployment insurance rate to the additional locations or jurisdictions you'll process payroll in. Note: You must provide the state tax information for your business’ additional locations or you won’t be able to process payroll for employees in those states.
Press Save and repeat this process for each W-2 employee.
For each state or tax jurisdiction that you process payroll in, Square Payroll will remit your tax payments and complete your tax filings to the applicable tax agency on your behalf. This is in addition to the federal tax payments and filings that Square Payroll will remit on your behalf to the IRS.
You can view each tax filing that Square Payroll files on your behalf in the Tax Forms tab of your online Square Dashboard, and you will receive notifications once your monthly, quarterly, or annual tax filings are posted to your account. You can also view the taxes Square Payroll remits on your behalf in the Withdrawal Summary of each payroll run, on your team’s paystubs, and in your Square Payroll Reports.
Learn more about tax filings and payments with Square Payroll.
Unsupported Tax Situations
Square Payroll currently supports W-2 employers in adding new or existing work locations across local or state tax jurisdictions and paying W-2 employees in those locations with the correct taxes calculated, withheld, and remitted to the correct state agency.
At this time, Square Payroll does not support the following features or methods regarding multiple tax jurisdictions:
Paying one employee that works in multiple tax jurisdictions.
Courtesy withholding for employees.
Support for withholding, paying, and filing taxes for multiple EINs under one Square Payroll account.
Closing a business location in one tax jurisdiction and opening in another jurisdiction with the same EIN.
Learn more about Square Payroll features in our Support Center.