Hi! I’m hoping someone here has experienced this or can help me figure out what is happening with Square Payroll because I am really frustrated and square support has been entirely useless on this issue for weeks now.
I use Square Payroll to pay several independent contractors. I’ve now had the same issue happen with three different contractors, so this no longer appears to be isolated to one person or one payroll setup, which prior to my last pay period it had been only one specific contractor.
When I run payroll, I import timecards and wages, my contractors input their hours using the square teams app. I look over everything before hitting enter and everything is correct.
Once payroll is submitted, without any information or notice of "why" the contractor’s gross pay is correct based on what I entered. However, somewhere between submitting payroll and the contractor receiving their direct deposit, Square is reducing the payment so their direct deposit is less than the gross pay.
For example, on one payroll:
The contractor is a 1099 independent contractor, so Square is not withholding employee payroll taxes. When I look through the payroll reports/paystub, I also do not see any taxes, deductions, benefits, reimbursements, garnishments, or other adjustments that would explain the difference.
The confusing part is that Square still reports the gross pay as the full amount I intended to pay, while the direct deposit is less, and its not always consistent in how much less, sometimes its a small amount, sometimes a large amount, its completely inconsistent.
Initially, this was only happening with one contractor, Nicole, and I thought there might be something unusual about her individual payroll setup, we actually made an entirely new profile for her to solve this issue months ago, and it did solve it for about 5 months. It has now happened again with Nicole, and with my other contractors Shari, and Linda, which makes me much more concerned that there is a larger issue with how Square is processing our contractor payroll. These 3 contractors don't even do the same work, they are logging different jobs with different pay.
The money is NOT being pulled from our business accounts. The amount being debited for payroll reflects the actual deposit amounts not what gross pay is.. so its not like this money is going somewhere else. Square is just changing the numbers for unknown reason??
I have been in contact with Square Support for weeks regarding the original issue and was told it was being escalated to the engineering team, but I am still waiting for an explanation.
Has anyone else experienced this?
Specifically, I’m trying to determine:
Why would a contractor’s direct deposit be lower than their reported gross pay when there are no taxes or deductions listed?
Is there somewhere else within Square Payroll where an adjustment or withheld amount could be occurring that would not appear on the payroll report/paystub?
Has anyone encountered a bug where Square changes the payout amount after payroll has been submitted?
Is there another report I should be looking at that shows exactly how Square calculated the final direct deposit amount?
If you have experienced this, how was it ultimately resolved?
At this point, because it has affected three separate contractors, I’m concerned about continuing to process payroll without understanding where these missing funds are going.
Any insight would be greatly appreciated!
