Will Square have payroll tax deferral options through the CARES Act and the new executive order?

[shannonfrazier]

The title of this post has been edited from it's original: "Payroll Question??"

When will square payroll gives us the options available for payroll tax deferral through the Cares Act and the presidents new executive order??

[nika · Accepted solution]

Hi @shannonfrazier- Good question.

Square Payroll does not currently have the ability to automatically apply the CARES Act deferral of employer’s portion of Social Security tax to your account. However, if you would like to take advantage of this tax program, Square Payroll can turn off the debit and collection of your federal employment taxes which will allow you to apply for the tax credits and file the necessary tax forms with the IRS. If you are interested in taking advantage of this tax deferral, please contact our Payroll Team to ensure this option works for you.

In regards to the president's executive order which allows the deferral and possible tax forgiveness of federal employment tax beyond the existing deferral of employer social security tax as outlined in the CARES Act, our team is diligently working with our contacts at the IRS as well as the American Payroll Association to provide our customers with a clear and concise understanding of the changes.
The Secretary of the Treasury has also been tasked with issuing guidance to implement this memorandum.

As soon as more information becomes available, we will be sure to follow up.

[wishonmain]

Will square payroll offer the deferral under the President’s executive order?  I don’t want the deferral nor do my employees as it will just create a higher bill in 2021.  Also if an employee leaves then the employer is liable to pay their deferred taxes.

[ashc]

Hey @wishonmain,

I reached out to our Payroll team directly to see if there were any updates to share. 

We are still evaluating the required changes to our system based on the most recent guidance to support the executive order to deferral the payment of the employee's portion of social security.

However, if we are able to support this deferral, this will be optional and no employers or their employees will be automatically opted into the deferral. If Square Payroll is able to support this, the employer would have the ability to opt their employees into the program.