New Year, New Payroll: Why This is the Best Time to Switch - Event Recording

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Watch the recording from the Live Demo and Q&A hosted on November 21, 2024.

Topics covered include:

-> Ease of Use and Integration: Square Payroll offers seamless integration with the Square ecosystem, including time tracking, tips, commissions, and third-party benefits like health insurance and retirement plans, all designed to save businesses time and simplify payroll management.

-> Compliance and Tax Automation: Automated tax handling, digital W-2 and 1099 forms, and access to HR resources ensure businesses stay compliant while avoiding costly payroll mistakes.

-> Flexibility and Cost Efficiency: Unlimited pay runs, flexible payout options, and the ability to pause services during the off-season make Square Payroll an adaptable and affordable solution for businesses.

Short on time? Skip straight to the demo.

For your convenience, we've included links additional resources referenced during the live event below:

-> Learn more: Why the New Year Is the Best Time to Switch Payroll Providers (and How)

-> To get started with Payroll: Head to the online Square Dashboard

More responses to your questions:

Many of you submitted questions during registration as well as live during the webinar. We had over 400 questions in total. If we didn't get to your question live, we've answered more of them below!

1. Payroll Setup and Configuration

• Can I pay the same person different wages for different job roles?
  Yes, Square Payroll allows for different pay rates for the same employee based on job roles. You can assign different rates when setting up roles or entering hours.
• Does Square allow custom pay schedules for different employees?
  Yes, you can set custom pay schedules, such as weekly, biweekly, or monthly, tailored to different employees.
• Can I retroactively add hours or pay adjustments to a past pay period?
  Square allows for retroactive pay adjustments by adding the missed hours or amounts in the next payroll run.

2. Contractor and Seasonal Employee Management

• Does Square Payroll charge for months when contractors are not paid?
  If you are on the Contractor-only plan, then Square only charges for contractors in the months they are paid. If you have the Full-service plan then you will still pay the $35 per month even if no employees or contractors are paid.
• As a seasonal employer, is there a provision to start and stop the payroll app?
  Yes, you can pause your subscription to accommodate seasonal fluctuations. 
• How does Square handle one-off contractor payments versus recurring ones?
  One-off payments are simple. You manually enter the payment amount, and Square processes it without requiring ongoing schedules.

3. Taxes and Compliance

• Does Square Payroll handle federal, state, and local tax filings?
  Yes, Square Payroll handles automatic tax calculations, withholdings, and filings for federal, state, and some local taxes. There are some local taxes Square does not support filing, but the taxes are still calculated at the pay stub level and sellers will receive monthly reports to help them when it comes to file and pay.
• Does Square Payroll handle multi-state tax filings for remote workers?
  Yes, Square supports multi-state tax filings as long as the employee details and state tax information are correctly entered. As long as you set up a work location in that state and provide us with the account details, we can pay taxes for a team spread across multiple states. 
• If we receive updates to state UI percentages, does Square update this automatically?
  Yes, Square regularly updates state tax rates and unemployment insurance rates for accuracy.
• Can Square help resolve tax notices or audits if they arise?
  Square assists with tax notices directly related to filings they manage, but you may need to work with your tax advisor for more complex issues.

4. Employee Benefits and Deductions

• Does Square Payroll support pre-tax deductions for health or commuter benefits?
  Yes, Square supports pre-tax benefits like health insurance, retirement contributions, and commuter benefits.
• Are non-taxed additions to pay, like housing allowances, supported?
  Square Payroll does not support non-taxed pay additions. Wages, bonuses, additional pay (e.g. reimbursements) all get taxed when they're recorded in the run.
• How do child support garnishments work within Square Payroll?
  Square calculates and records the deduction, but does not remit the payment to the state agency unless you work with one of our in-house benefit partners listed within Square Payroll

5. Time Tracking and Hours Integration

• Can Square Payroll integrate with third-party time-tracking apps?
  Yes, Square Payroll can integrate with 3rd party apps to simplify payroll processing.
• How does Square calculate overtime for employees working across multiple locations?
  Overtime is calculated based on combined hours worked across locations, ensuring compliance with federal and state laws.
• Does the system handle split shifts or overlapping shifts for hourly employees?
  No, Square does not currently support split shifts or overlapping shifts for hourly employees.

6. Tips and Service Industry-Specific Features

• Does Square Payroll calculate and divide credit card and cash tips based on hours worked?
  Included in your Square Payroll subscription is the ability to track direct tips that were collected by the employee. The functionality to pool and split tips is part of a Square Shifts Plus subscription that would integrate with Payroll.
• How are service charges distributed to staff through Square Payroll?
  Service charges can be manually added as part of an employee’s wages for accurate distribution.

7. Reporting and Analytics

• Can I generate reports by department, location, or job role?
  Square Payroll includes reporting tools that allow you to filter data by location.
• Does Square offer real-time payroll cost projections before running payroll?
  Not at this time
• Is there a way to track tax payments made on my behalf through Square?
  Yes, Square provides detailed tax payment records and visibility into what has been filed in the dashboard, showing dates and amounts sent to agencies.

8. Costs and Fee Structure

• If I have 10 contractors but only pay them twice a year, do I pay the $6 fee every month or only when they're paid?
  You only pay the $6 fee in months when contractors are paid as long as you are on the Contractor-only plan.
• Does Square Payroll charge extra for processing garnishments or benefit deductions?
  No, there are no additional charges for garnishments or benefit deductions. However, your benefit plans that you register for will be an additional cost. You can easily request a quote through the dashboard.
• Can we get a better monthly rate by bundling Payroll with Shifts Pro or Marketing tools?
  Square doesn’t currently offer bundled discounts for Payroll, but individual subscriptions are competitively priced.

9. Customer Support and Troubleshooting

• Does Square offer live support for payroll emergencies, like failed payments?
  Yes, Square provides live customer support, including assistance with payment issues.
• Is there a dedicated specialist for onboarding new payroll customers?
  Square Payroll has a very clear onboarding process where the product guides you through each step. There are also additional resources provided, though dedicated specialists may vary by account type or size.
• How long does it take to resolve tax filing errors if Square makes a mistake?
  Square aims to resolve filing errors quickly, typically within a few business days, depending on the complexity.

10. International and Multi-EIN Capabilities

• Does Square Payroll support multi-EIN accounts within a single platform?
  Currently, Square Payroll does not support multi-EINs under one account. You’d need separate accounts for each EIN.
• Can I pay international contractors with Square Payroll, and if so, in which currencies?
  Square Payroll doesn’t support international contractor payments directly. 
• Does Square assist with compliance for employees working remotely outside the U.S.?
  Square Payroll does not handle international compliance. You would need to use a global payroll service for that.

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