Huge unemployment insurance bill because of mis-reported Q1 wages - anyone else?

[KingstonBread]

For Square payroll users: Anyone else get a large bill from the state (in my case NY) for unemployment insurance because of mis-reported Q1 wages?  I'm talking hundreds of thousands of dollars "owed" because my payroll was supposedly reported (via the form that Square files quarterly) in the tens of MILLIONS rather than in the thousands where it should have been. I own two businesses, with Square payroll for both, and it happened to BOTH COMPANIES. I asked the state, and they said my payroll company gave them these numbers.  I called Square support on Monday and they told me they're looking into it. But it's been over 72 hours and I haven't heard anything back, and I have two bills here totaling literally a million dollars. Obviously very anxious for a response, and to get this resolved. But also curious if this is widespread, since it happened to both of my businesses!?

[TheRealChipA]

Hey there @KingstonBread.  So, wow.  That’s not the kind of surprise anyone needs, ever!  72 hours is not crazy to investigate this, but I understand your anxiousness.  I checked the form that Square filed for me in Kentucky Q1 and it was spot on.  While you are waiting, I’m wondering — did you go to your Tax Forms page in your Square Payroll web dashboard and view the PDF of the form that was submitted?  Did it show the numbers that NY is claiming it shows?  This could also be as simple as some keyboard jockey (or code jockey) in NY making a mistake when entering/transferring the numbers from Square’s form.

If what Square is showing on your dashboard doesn’t match what NY is claiming they received, then this is more than likely an NY problem and you can contest the bill.  But, if not, I hope it is resolved soon.

[KingstonBread]

Hi Chip, thank you for your thoughts! I mentioned the 72 hours thing because I was told when I called last Monday afternoon that I would hear back in 24 to 48 hours.  My account rep has since reached out and the general support team has emailed to ask me about my uninsurance rate (not the issue here), but no one from the payroll/tax department has called or emailed to answer the question as to what wages they reported.  I did download that form from my dashboard and it appears correct on both accounts there.  But that's also not an official form, and there's no way to know what was actually submitted to the state.  It's of course possible that the state messed up instead of Square, but when I called the state they told me they were looking at the numbers square submitted. So I have to start there, and just need someone to tell me where the mistake happened. It's been over a week now, still waiting 😞 

[LaurenSQ · Accepted solution]

HI @KingstonBread thank you for reaching out and I'm sorry it has taken the Support team a while to get back to you about this issue. The Square Payroll team has been in communication with New York Department of Labor (NY DOL) this week and last and finally received confirmation of the issue. 

NY DOL confirmed the notices originated because the NY DOL recorded a taxable wage amount higher than the amount reported by Square Payroll, which has resulted in a notice of an underpayment of taxes due. Please be assured, Square Payroll submitted your taxable wages with the values shown in your Q1 2025 Form NYS-45 within the Square Payroll dashboard. 

Square Payroll is partnering with the NY DOL to resolve the discrepancy so that all records align. We will keep you informed through email if any action is needed on your part. However, at this time no action is required from you. Thanks for your patience and please reach out if you have any other questions. 

[KingstonBread]

Thank you so much for the update! Yes, I heard back yesterday and it was quite a relief.  I guess when I called the DOL last week they were not yet aware of the issue, and the person I spoke with then was insistent that the numbers had been submitted incorrectly.  When I called them back yesterday they knew what I was talking about, and they added my businesses to the list they are making of affected accounts. I appreciate the follow-up! 

[calebsavage]

We have been affected by the same issue, and were able to reach someone at the NY State Department of Labor (via the 888 phone number on the bottom of the letter) who confirmed that this is a widespread problem which they are working to resolve and no action is currently required on our part. The amount is off by two decimal places and receiving the notice was quite a shock.