thread Re: Is there an option in Payroll to collect several state taxes? in Archived Discussions (Read Only)

Is there an option in Payroll to collect several state taxes?

SarahCA — Mon, 08 Nov 2021 07:16:03 GMT

We are seeking to hire someone in another state. We are required to collected state taxes from the employer in both states.

Does Square Payroll offer the ability to collect/report state taxes and remit to the tax authorities of each state? We are not seeing this as possible from our perspective.

Re: Is there an option in Payroll to collect several state taxes?

Valentina — Mon, 08 Nov 2021 22:34:31 GMT

I bubbled this up to our Payroll team, @SarahCA.

They think that you may be referring to ER level (EX: state unemployment, disability, or workers comp) taxes for both states.
If you are referring to ER level taxes, we can support them.

However, if you are referring to EE level - state income tax - taxes...
No, we do not have courtesy withholding, so we wouldn't support this.

P.S. Welcome to the Seller Community ✨

Re: Is there an option in Payroll to collect several state taxes?

SarahCA — Fri, 19 Nov 2021 06:14:55 GMT

I think this would be a logical move for Square to develop this as COVID-19 has created a new normal - hiring remote workers that are likely from any state.

I would like to see Square offer this service in payroll as we are going to be hiring a remote worker 2022 and would hate to leave Square payroll over this single issue. We love to stay but it would be a nightmare to have 2 payroll services to run this simple task.

Also, I think Square could help small businesses better with other tax related things like filing their sales use taxes with the state. For instance, we have a reseller permit and when we re-applied we assumed that Square was filing these reports with the state (Square was not) and we were denied a re-seller permit. We simply had to file the correct tax document with the tax authority and poof we were approved for our re-seller permit. So, really Square could also consider offer more than just the basic payroll services and offer more extensive services related to taxes (as Square does collect the sales taxes!).