Nonresident Aliens with a J1 Visa do not pay Social Security or Federal Taxes. Every other payroll system I've talked to supports this. I don't want to leave Square Payroll but without this support I may have to.
Hi @bjp, that’s an excellent feature request. We appreciate you sharing your business use case and why it would be valuable for you. If you know of any fellow Seller Community members who would like to see this built out as well, feel free to tag them in your post so they can share their thoughts as well! The more sellers chime in to the request, the more likely it is to catch our product team's eye.
Square Payroll offers a great system for employers and we’ve been very happy using it for the past year as a convenient and fairly affordable service. That being said, it is very surprising that Square Payroll does not support the hiring of Non Resident Alien on a J1 Visa. As stated above, they are not subject to paying social security, unemployment and Medicare taxes but are subject to Federal and State taxes. Upon inquiring with Square Payroll we were recommended to add them to the payroll system as contractors instead of employees as there is currently no way to remove some non applicable taxes, but this is not appropriately legal. They should be on a W2 with Square filling a 1040NR on our/their behalf. Please Square Payroll expend your services by covering this essential requirement. As a seasonal business we heavily rely on the hiring of J1 Visa students who are available beyond the regular summer season and allow us to extend our operation into the shoulder seasons. It is also somehow quite embarrassing to deny them employment with so many of them inquiring, due to the restriction we are facing whilst using Square Payroll.
I would love to see this feature, though for a slightly different reason. Parents hiring their minor children can pay them but they are exempt from Social Security and Medicare. There is no way to do this currently.
We're excited to announce that support for exempting employees on J-1, F-1, and M-1 visas from federal taxes is now rolling out to Square Payroll users. You can see our recent post about this update here. If you're currently subscribed to Square Payroll you should receive an email this week with further details about how to add or update your employees with this setting.