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[Improvement] Payroll tax exemptions for family members and J-1 visa holders

Square Payroll recently launched support for federal and state payroll tax exemptions for employees who are J-1 visa holders or family members of a business owner or officer. 


W-2 employees who hold a J-1, F-1, or M-1 visa and employees who are the spouse, parent, or child of the business owner may qualify for federal and state tax exemptions because of their status. Most commonly, these employees may be exempt from Social Security, Medicare, Federal unemployment, or State unemployment taxes. Please consult your CPA or tax advisor if you have questions regarding an employee's exemption eligibility.


To exempt an employee from the applicable payroll tax:

  1. Head to your Square Dashboard and visit  Team > Team members.
    Add the employee or select the individual from the list. 
  2. From the team member profile panel, select Payroll > Taxes
  3. Under Roles & Exemptions, record the employee’s role (e.g., Child of Owner or Officer), then select the relevant tax exemptions from the checklist.

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