Square PayRoll Deducts Unathorized Tax Payments

I recently switched to Square Payroll from a different payroll processor. On my most recent payroll, Square deducted a large sum of money from my bank account as an IRS ACH that they claim is for back taxes that I owed for the payrolls dating back to beginning of the year prior to me utilizing Square Payroll.

 

The result is that I paid double taxes. Obviously my previous payroll processor paid my taxes.

 

A manager from Square named Taylor is claiming that I authorized Square to do this, but it does not say this anywhere in the terms of service that they agreed to. The manager has even acknowledged that Square did not have the adequate documentation to make this calculation. Yet Square refuses to give me my money back, nor will they guarantee that this won't happen on future payrolls.

 

Clearly this has happened to other Square users in the past:

https://community.squareup.com/t5/Archived-Discussions-Read-Only/Does-Square-Payroll-submit-withheld...

 

I've reported them to the Better Business Bureau and have filed IRS Form 14157-A to report fraud/misconduct by a tax preparer.

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Square Champion

Hi @Susq-Botanicals So, I have a couple of questions and thoughts that might explain why this happened, as I've seen it before.  I've seen this happen a couple of times with mid-year switches of payroll providers -- something that is not really recommended unless absolutely necessary.  But, as they say, that horse is already out of the barn, eh?  The couple of times I've helped people who had this happen, it turned out in each case that incorrect historical (YTD) data had been entered and Square was doing what they should do by law and correct historical inaccuracies.

 

Anyway your post doesn't indicate that you are asking for help or insights.  It is written as a complaint/warning only.  Before I insult you intelligence by going further, please let me know.  Also, that post you included doesn't clearly state what you think it does.  That post was written by a user who was asking about what might happen BEFORE it happened.  There is nothing in that post that says they have a complaint.

Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)

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