Square Banking Q&A: Let's talk about how Square Savings can help you prepare for tax season💰

[Tom]

Hi Seller Community,

With the 2022 tax season in the rearview mirror for many of us, we're eager to catch your questions and get your feedback on how Square Savings can help you stay on top of taxes in the year ahead!

Whether you pay your business taxes monthly or quarterly, Square Savings offers automated saving, which helps to take the guesswork out of withholding amounts, and folders, which help to organize and keep money set aside for taxes.

We were grateful to have @jmonfort from the Square Banking team address your questions and share solutions for automating healthy habits with Square Savings on Wednesday, May 4th.

A few example questions:

• How do folders in Square Savings accounts work?
• What’s the benefit of setting up an account with Square Banking versus my existing bank account?
• If I could do "_______" with Square Savings, that would help me run my business much more smoothly.

Note: We can't share specific details on our product roadmaps, though this information will be helpful as we continue to make improvements.

Block, Inc. is not a bank. Banking Services provided by Square Financial Services, Inc. and Sutton Bank, Members FDIC.

[jmonfort]

Yes, you can set money aside for whatever you need/want. You have 24/7 access to manage your business savings, and you can instantly transfer funds to your Square Checking in order to spend it on your Square Debit Card immediately—for free. You can make standard, cost-free ACH transfers to external bank accounts and expect funds to settle within 1-2 business days. Please note: ATM withdrawals are not enabled for Square Savings, however, you may use ATM withdrawals through Square Checking.

[WhiskeyMafia]

Can employees of my business sign up with square savings if they are on square payroll?

[jmonfort]

Square Savings is currently only a business savings account so we do not support personal accounts at this time.

[CigarVillage]

Why incorporated businesses cannot set up or open a Square Savings account?

[jmonfort]

Good news, we currently support sole proprietors, LLC, S-Corp, C-Corp, partnerships and Cooperatives! You can open a Savings account here.

[allbutcute]

Why can't  I qualify for a square savings account?

[roseslate75]

I’ve been with Square for 8 years.  I recently tried to set up a savings account with you….offer was sent to me via email.  Filled out the form.  Was told my business doesn’t qualify at this time.  May I ask why?  

Rose

[YourWellFirst]

I’m a sole proprietor LLC. When will my business be eligible for the savings account?

[jmonfort]

Good news, we currently support sole proprietors, LLC, S-Corp, C-Corp, Cooperative, and partnerships. You can apply here.

[Chicagosports]

I applied for Square Savings but it was denied. What are the requirements to be accepted for Square Savings.

[Lesliealanis81]

It says my business is not Eligible to have a savings account, can you tell me why?

[thecrackedpot1]

I'm offered this, but then told that my business isn't eligible. I could certainly use this service.

[Klp3]

How do we transfer what we’ve saved into our bank account? 

[jmonfort]

From your Savings Dashboard, you can transfer money out of your Savings account by clicking “Transfer out”. From there, you can select the amount and destination for the funds. View the tutorial on transferring here.

[bgeRGHEhgedb]

Why can't I save more than 60%? I want to use it following the "Profit First" savings strategy.

[jmonfort]

Thank you for the feedback! We expected sellers would need at least 40% in their Checking account to cover operating expenses and fees, but we’ll revisit if we should increase the limit. Stay tuned!

[1959courtney]

How do I move the money in Savings into my checking account? I need access to those funds.

[jmonfort]

Hi Courtney. From your Savings Dashboard, you can transfer money out of your Savings account by clicking “Transfer out”. From there, you can select the amount and destination for the funds. View our tutorial on transferring here.

[Doran]

So I started a folder for sales tax and another for retail replenishment.  I have a few questions.

1. Can I turn them off during slow weeks and then restart them?  Or pause?  Do I have to manually restart or can I automate it?

2.  How do I access the funds when it comes time to pay sales tax or buy more products?

[jmonfort]

Hi Doran, great questions. Yes, you can adjust or pause your automated savings at any time. Simply click on the folder, and toggle automated savings on/off to pause, or click the percentage amount to adjust.

When you need to access funds, transfer them from your folder to your general savings, and then transfer the money into your Square Checking or external checking account. You can watch our tutorial on transferring here.

[SAPB]

Been with Square a LONG time...my business isn't eligible but no one...and i mean no one, can tell me why.  I'm sure it's a good program...would be nice if we could use it too.  VERY FRUSTRATED in Texas!!