how I can pay private contractors through my Square account?

[Matt04]

Hello. Spent one and a half hours on the phone with four different Square service representatives. Very confusing. Trying to figure out how I can pay private contractors through my Square account. Anyone. Please help?

[HC_Charlie]

Hello @Matt04 thanks for your post. Do you have a Square Checking or Savings account? or do you just use Square to process credit card payments. If you do not have a Checking or Savings account, I do not think you'd be able to send payments to other people. The Square account you use to process credit card payments can send payments to you only, and you are not able to send money out. However, you should have an external banking account where Square sends your money deposits, and you then could write a check from that external banking account to pay your contractors.

[Summer2024 · Accepted solution]

Hi @Matt04 ! 

With Square Payroll, you can pay contractors on your schedule. The contractors can clock in and out from the Square Team app, and import their hours. They will be notified when they’re paid and can view their payment histories in their online accounts.

Contractors must have their personal information completed before they can be paid. You cannot pay your contractor until their personal information has been entered. You can either provide their email address so the contractor can enter in their personal information or you can manually provide this information yourself.

To add an independent contractor to your Square payroll and team, Sign in to your Square Dashboard and select Team members. Select the team member you want to add to payroll. When the team member panel opens, select Payroll > Add to Payroll. Select Contractor as the employment type.

To run payroll for contractors : 

1. Sign in to your Square Dashboard and select Staff & Payroll > Payroll > Run payroll.

2. Select Pay Contractors.

3. Select your Pay Period dates. If you choose a pay period in a previous year, the payment will be included in the current year’s Form 1099-NEC.

4. Choose your payment method: Use Default Payment Method or Pay All by Check. If you want to record a payment you already made or want to write checks for all contractors, choose Pay All by Check.

5. Select your contractor(s) and enter their pay or hours worked. 

6. If you are using Square Shifts timecards (or a supported third-party timecards application) and/or commission tracking, select Import time and wages to import your contractor’s hours and commissions for the pay period. Alternatively, you can manually enter commissions in the Amount column.

7. Select Continue.

8. Review the contractor payment details and select Submit Payment. Contractors paid by direct deposit will receive pay four business days after you send the payment.

I hope this helps!