Is there any information on how Square Payroll will handle the CARES act for Payroll tax deferment?

[tien]

Is there any information on how Square will handle the employer payroll tax deferment?

[isabelle · Accepted solution]

Hey @tien-

Thanks for posting in the Seller Community.

I spoke with a Square Payroll specialist, and they explained that we’re closely monitoring updates about the CARES Act. Square Payroll does not currently have an option to turn off tax collection or defer tax payments when you process payroll but we are looking into ways to support more flexibility for tax payments.

As more information becomes available about the CARES Act and if there are any changes to Square Payroll, we will be sure to keep our sellers up to date through our Support Center and in this thread. Thank you for your patience during this difficult time. 

[Costa]

Everyone knows the CARES act was signed and that the SBA Payroll Protection Loans (not to be confused with the SBA Disaster Loan) is going to be managed through 3rd parties. Is there anyone at Square that can confirm whether or not Square will be one of the financial parties? If I cannot do the program through Square, I will go through my business bank, but I would prefer Square.

I'd like to avoid doing the program through a 3rd party Ive never done business with before. 

[isabelle]

Hey @Costa-

Thanks for posting in the Seller Community. 

Please take a look at my best answer for our current response on the CARES act and Square Payroll. That is the most recent update we have from our Square Payroll team. We will post updates in this thread as we receive them.

Please feel free to give our Square Payroll team a call for more information on whether Square will be included as one of the financial parties. They may be able to provide more information than we have been able to on this platform. Best of luck with everything, and thanks again for posting!✨

[Franz]

I would very much like to get my Employee Retention Credit & I need Square Payroll to enable me to take advantage of this opportunity sooner rather than later, please.

I got this response on May 26th from Square Payroll.

Another week has now gone by & we're still waiting for this to be resolved. 

"Thank you for reaching out. 

Our engineers are wrapping up creating the feature so that you can omit certain taxes from your payruns. We expect that by the end of next week it will be enabled.

At this time, Square Payroll does not plan to file form 7200 on behalf of any employers.

If there's anything else I can assist you with, please let me know.

Best regards,

Monica
Square Payroll
Payroll Support Center
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[Daniels]

Having now reached the end of a year - I'm finding out that I would have qualified for the federal tax credit for employee retention (our industry was substantially restricted by pandemic legislation with gross receipts down over 30% year to year) but sadly it's probably too late to get credits from last year without a lot of amending of payroll tax filings.

So, how do I best make use of the Employee Retention Credit this year?  

And, especially because so many restaurants make use of Square it feels like this credit should be promoted and explained!

I'm hoping Square has made some progress on this since last May's response.

Dan - Butter Bakery Cafe, Minneapolis

[NickS]

This is pretty disappointing. Every business I have talked with had their Form 7200 filed by their payroll company. We are the lone Square Payroll user having to figure it out on the fly. 

[Calapparel]

How is they tax credit working through Square for paying employees?

[ashc]

Hey @Calapparel and welcome to the Community.

I want to make sure I'm understanding your question correctly- are you asking about the SBA Paycheck Protection Program? 

[trendingupward]

I have the same question. I would like to take advantage of the CARES employee retention credit. I would prefer to not have to file for an "advance" on the credit and rather just reduce my tax payments. How can I do that through Square?

[JustinC]

Hey there @trendingupward and @Calapparel  !!

Regarding the CARES ACT, I found the thread you might be looking for. Best Answer at the top! 

[Lisa15]

Any updates on payroll tax deferral when processing with Square? 

[ashc]

Hey @Lisa15,

I'd recommend checking out @isabelle 's best answer or contacting our Payroll team directly for any further questions.