Federal withholding

[BMO-CBS]

Being a sole proprietor, I was looking for an option to be able to set a federal withold for tax purposes...when I filed my 2017 taxes, I noticed that there is a box available to do so...but I don’t know how to set it up through square...do I need to purchase the monthly subscription of “payroll” for this feature even if it’s just for myself? 

[VanKalkerFarms]

yes, to use Square Payroll you would have to sign up to use the service.  It is $29 per month plus $5 per month per employee and files all your tax filings and deposits.

there are lots of services that do this and I would say most if not all have a base price per month.  we don't use Square payroll because it wasn't offered 4 years ago in our state and pay a per month and per employee fee as well, but it is worth it to eliminate that extra step of all the payroll paperwork.

[Corptaxgal]

I agree.  I have a lot of sole proprietors that can’t seem to save the money to pay their federal taxes.  I wish there was a

way for square to withhold a

percentage and send to the feds or withhold and report the withholding in the 1099-k.

a lot of people get in trouble with their taxes as they spend their money and don’t save for taxes

[Joe]

Hi there, @Croptaxgal - thanks for dropping us this suggestion. We agree, this would be a big benefit to our Sellers. While Tax Withholding isn't currently available, I've made sure to tag some of our Product Engineers here so they can keep tabs on the volume of our Sellers asking for this feature.

Any future updates on this feature will be updated here! Thanks so much for your patience. 

[Olson74]

Is there a way to have square take out federal taxes that would reflect on my 1099k at the end of the year? A percentage maybe.  I do not use square payroll. Can anyone help? 

[JustinC]

@Olson74  - Welcome to the Community!

I've merged you to a thread where another Seller asked a similar question. Right now, this is a feature request - Square does not have the ability to withhold funds for federal taxes.

Tracking  this request here so we can easily find you if anything changes. Thanks for you patience.  

[Olson74]

Thanks for the help! I appreciate it!  This would be an amazing feature to add and would be extremely helpful for me personally. 

[VanKalkerFarms]

If I may ask @Olson74, why would you want someone to hold your Federal income tax payments?  Is it you don't think you will hold that money so it is available come tax time?  If you put aside the percentage you believe you will be liable for, based on previous years, into an investment or interest-bearing checking account you could be making money on interest or the investment during the 3-15 months that it is being held before payment is due. If another company sets it aside for you they will be the ones making money off the money they are holding for you.

[JaneC1416]

I used to use intuit for payroll and switched to square.  How do I change the federal/ state withholding amounts?