Can you use Square Payroll for independent contractors?

[barbieredevino]

I own and operate a Barbershop and pay the people that work with me on a commision based income, basically making them a 1099 employee. Id really like to start using the payroll to handle this, but cant find any conclusive information. If you guys are not set up for it is it something thats being looked into?

Thank You  

[kristenlewis]

We don't have empolyees, however I am interested in using square payroll to pay our contractors who work for us on a weekly basis. Is this possible?

[Nicole]

At this time you are unable to pay independent contractors through Square Payroll. It is intended solely for employees, not independent contractors (also known as 1099 Contractors). I am more than happy to bring this back to our product team as a requested feature! 

[Sean]

I can definitely see how this would be a useful feature for your business, as well as many others. Having said that, Square Payroll is only intended solely for employees at this time (not independent contractors). 

I can't speak to the inclusion of this feature in the future, but I will be sure to share your request with our Product Liaison Team! 

PS) If my answer solved your problem, would you mind marking it as "Best Answer"? That'll help the rest of the community find what they're looking for. If not, just write back, and I'll continue to help. Thanks!

[PPS_IX_Security]

Having the ability to enter independent contractors (1099 forms) with the W2 Tax information would be outstanding! Is there any plans in the near future to include this service. If not, can you recommend a service that will work with the square?

[Sean]

@PPS_IX_Security - While this is definitely a popular feature request from our sellers, I can't speak to potential feature releases. As for workarounds, I'm not familiar with any 3rd party options. Hopefully someone else in the community has some experience with this topic and shares their thoughts! 

[GlamSquadKW]

I have this same question. I noticed in another thread how some are paying commission only, and the solution did have a workaround.  I'm curious if I could use the commission feature only, and enter the withholdings as "0", and just not supply a W2 at the end of the year, but instead use another system to issue a 1099 based on the payments made.  At least I'm only having to generate 12 1099's manually, rather than all the work that currently goes into processing payroll from three different systems.  Would that technically work?  

[Sean]

@GlamSquadKW - Since Square Payroll is intended solely for employees, not independent contractors (also known as 1099 Contractors), this would not work. However, I'll be sure to let you know if this feature becomes avilable in the future! 

[Sean · Accepted solution]

Great news everyone! Our Payroll Team has listened and we just launched support for 1099 contractors! 🙌  We know this has been a popular request so I can't wait to hear your feedback after trying it out. Here are some helpful links for getting started:

Add Independent Contractors to Square Payroll

Pay Contractors Through Square Payroll

Square Payroll Contractor FAQs

Enjoy! 

[Grabit]

Sean,

I am having an issue with setting up my payroll for independent contractors. At the moment, I am the owner and the only employee. With that said, I am having hell of a lot of trouble getting my "Unemployment Tax Employer Account Number". I am not liable for unemployment, therefore I do not need an EAN. With that said, I tried to get one, but I am not allowed. This is extremenly frustrating, as I am just trying to set up 23 independent contractors and this small feature is keeping me from continuing further.

[Helen]

Hi @Grabit, I'm so sorry for the frustration this caused. 

I have good news! As of today you can add independent contractors (who receive a 1099-MISC form only) to Square Payroll without an Unemployment Tax Number.

To get started:

1. Navigate to the Payroll section of your Square Dashboard.
2. Click Get Started > Select your state.
3. Click Contractors Only and then click Save & Continue.
4. Follow the prompts to provide information about your business and then add contractors to your payroll.

You'll be able to add independent contractors to Payroll, and you won't need to enter an Unemployment Tax Number at any time. (Please note, you will need to enter your EIN.)

This option is brand new so let us know if you have any questions or feedback! 

[davej]

Can independent contractors onboard themselves as an LLC, rather than an individual?

[Helen]

Hi @davej, it's not possible for contractors to onboard as an LLC (with an EIN) at this time. They'll need to use their SSN instead. If this changes in future we'll update this thread to let you know.

[GroveandBaker]

@barbieredevino We had looked into this scenario also, Gusto does offer that service if Square does not end up providing that option. But I think we all like the idea of everything under the same umbrella.

[IRresumes]

I have a 1099 Contractor and due to AB5 in California, need to switch to paying them through their LLC. How do I do this in Square? Do I put their EIN number in place of their SSN on the payroll information?

"Square Payroll does not currently support filing Form 1099-MISC for contractors that are businesses and use their EIN (not their SSN) for their taxpayer identification number."

The above means that Square won't be able to file the taxes for a contractor who is a business and uses their EIN, right? But can I still pay them through Square?

[JustinC]

Hey @IRresumes  - great question! 

Yes, you can still pay these contractors through Square Payroll, we just won't file a 1099-misc for them if they use their EIN. 

[IRresumes]

@JustinC so under payroll, instead of the SSN, do I just enter their EIN?

Thanks for clarifying.

[JustinC]

@IRresumes - you got it! 💪🙌

[milee]

I do not have any w2 employees , I have contractors and couldn’t find a way to do their payrol on Square . What am I missing? 

[JustinC]

@milee - I found a thread that should guide you in the right direction. Look at the links Sean included in his best answer at the top. 

[ESC1]

One of my contractors was able to start building their own private practice. They asked if I could pay their company for services rendered rather than them as an individual. Is there a way to put in their company instead of their name into my payroll? I only see an option to add first name, last name, etc..etc..

Thank you