Square Payroll is a full service payroll provider, handling your federal and state tax filings and payments on your behalf at no additional charge. Square Payroll calculates and withholds all federal payroll taxes. These amounts are then debited from your bank account and used to pay taxes on your behalf. You can find specific tax amounts due per run in the Withdrawal Summary.
Square Payroll is an IRS-certified reporting agent that follows industry-leading data security and privacy standards including HIPAA and PCI compliance. Using the information you provide us, we ensure the accuracy of our tax calculations, payments, and filings so you don’t have to worry about the details. If you receive a notice from a tax agency due to an error made by Square Payroll, we will cover any associated penalties and fines.
Square Payroll generates Form W-2 or Form 1099-NEC for each employee or contractor that you paid in the past year. Square Payroll handles the following tax forms:
Square Payroll prepares and files your tax forms electronically. Completed tax forms are stored as PDF files and are not formatted the same way as similar forms you might find online. They do, however, provide you with all the information we file with tax agencies on your behalf.
Federal payroll tax payments are processed through the Electronic Federal Tax Payment System (EFTPS). You can update your federal filing frequency from your Square Dashboard.
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. You are required to provide your team members with a physical copy of their Form W-2 or Form 1099-NEC unless they consent to electronic-only delivery. Alternatively, you can Square Payroll mail your team's W-2s and 1099-NECs.
Square Payroll deposits all federal tax payments using EFTPS on a semi-weekly deposit schedule, with the exception of Federal Unemployment Tax payments that are deposited on a quarterly basis. Semi-weekly tax payments are made within three days of your pay date. For more information, visit irs.gov.
You can make federal payroll tax payments on your own.
If you are not enrolled in the Electronic Federal Tax Payment System (EFTPS), begin the EFTPS enrollment process. You will only be able to use EFTPS after you receive your PIN in five to seven business days via mail. Call 800-555-4477 if you have any questions on how to set up your EFTPS account.