Additional Payroll Terms of Service
Last updated: November 5, 2018
These Additional Payroll Terms of Service (the “Payroll Terms”) govern your use of Square Payroll, which provides payroll calculation, payment and related tax reporting, and other related payroll services (the “Payroll Service”) offered by Square, Inc. (“Square,” “we,” “our,” or “us”). By using the Payroll Service, you agree to be bound by these Payroll Terms, the E-Sign Consent, and the General Terms of Service (“General Terms”) and all other terms, policies, and guidelines applicable to the Payroll Service, including, but not limited to, the Payment Terms. If you are using the Payroll Service on behalf of a business or entity, you represent to us that you have authority to bind that business or entity to these terms, and that such business or entity accepts these terms.
You may only use the Payroll Service in the United States. To use Square Payroll you must submit information we require to provide the Payroll Service, including your company’s tax information, employee and independent contractor wage and payroll information, and other information we may request. You assume sole responsibility for and will ensure that your payroll information, Content, data, documents or materials used, disclosed, entered into or created using the Payroll Service are accurate, reliable and complete, do not violate these Payroll Terms or the General Terms, and comply with the Office of Foreign Assets Control of the U.S. Treasury and all other applicable laws or regulations. You hereby acknowledge and agree that all information you collect and share with Square in connection with the Payroll Service is done in accordance with your legal obligations and complies with all applicable laws.
You are fully responsible for verifying the identity and work authorization of your employees and independent contractors in accordance with applicable law and all of the information you, your employees and independent contractors submit through the Payroll Service, including for any IRS or other penalties due to incorrect, inaccurate, incomplete or outdated information. You are responsible for verifying the accuracy, timeliness, and completeness of any personal, wage, payroll or any other information you, your employees or independent contractors provide or directly input via the Payroll Service or any other method. We are entitled to rely upon, and are not obligated to independently verify, all such information. We will not be liable for any penalty, interest or other liability that results from inaccurate or incomplete information you supply. You may elect to provide your employees or independent contractors with access to a Square Payroll site where they can provide, view and update work related information and elections. You understand and agree that we merely make such Square Payroll site available to your employees or independent contractors on your behalf as a convenience. Employee and independent contractor access to such Square Payroll site does not create any contract, customer or employment relationship between us and your employees or your independent contractors.
In order to use the Payroll Services with regard to your W-2 employees you must complete IRS Form 8655 (Reporting Agent Authorization) naming “Square Payroll, Inc.” as your authorized reporting agent and any other forms or authorizations requested by us. Further, you hereby authorize Square and its affiliates to take actions on your behalf as is necessary to effectuate the Payroll Service. By using Square Payroll, Inc. to pay independent contractors, you hereby authorize Square Payroll, Inc. to make payments and filings, including Form 1099-MISC, on your behalf. You represent and warrant to us that you have obtained all consents necessary to provide us with the information required to provide the Payroll Service, including consent to access your employees’ and independent contractors’ bank accounts to process direct deposits of payments and to debit overpayments and payment errors. You acknowledge and agree that the Payroll Services may not include all payroll features and functionality necessary to run your business and to meet all federal, state, and local payroll reporting obligations applicable to your business. You are responsible for determining whether the Payroll Services meets your business’ payroll and reporting needs, and we are not providing any legal, financial, accounting, tax or other professional advice to you by providing the Payroll Services. For more information about Payroll, visit our Support Center.
You must have a Square Account (as defined in the General Terms) with a linked, verified, ACH-enabled bank account. You authorize Square and other authorized third parties to debit your linked bank account in the amounts necessary to (i) fund your direct deposits, (ii) pay any fees or charges associated with the Payroll Service, (iii) pay your payroll taxes, (iv) pay any debit, correction or reversing entry initiated, and (v) pay any other amount that is owing, including for services provided by us to you unrelated to Square Payroll. You will maintain a sufficient balance in your linked bank account to pay disbursements, fees, payroll taxes or any other amounts due at the time required.
If you have insufficient funds in your linked bank account to pay amounts due at the time required, or if you refuse to pay, we may (i) debit amounts from your Reserve (as defined in the Payment Term), payroll taxes withheld on your behalf, or from any other funding source associated with your Square Account, including but not limited to any funds deposited by you, due to you or other payment instrument registered with us, (ii) refuse to pay any unremitted payroll taxes, (iii) discontinue the Payroll Service, and/or (iv) immediately freeze, suspend, or terminate your Square Account or access to the Service.
Your employees or independent contractors may have the option, in their sole discretion, to instantly deposit their paycheck early. In the event your employee or independent contractor selects the instant deposit option, (1) they will be charged a 1% service fee, and (2) you instruct Square to transmit their paycheck less 1%.
You agree to provide any information to your employees or independent contractors that such employee or independent contractor requests either directly from you, or requests from Square. You agree to indemnify and hold Square harmless from any liability resulting from your failure to respond to such request for information.
Important Tax Information: Please be aware that you are responsible for the timely filing of tax returns and the timely payment of taxes for your workers, even if you have authorized us to file the returns and make the payments. Therefore, the Internal Revenue Service recommends that you enroll in the U.S. Treasury Department’s Electronic Federal Tax Payment System (EFTPS) to monitor your account and ensure that timely tax payments are being made for you. You may enroll in the EFTPS online at www.eftps.gov, or call (800) 555-4477 for an enrollment form. State tax authorities generally offer similar means to verify tax payments. Contact the appropriate state offices directly for details.