Where Should I Add An Employees Pension?

[#1]

The title of this thread has been edited by a Square Moderator from the original: where to add pension

Hello!

I have a new employee that is retired and is receiving a pension from her pervious carrer. I need to add her pension amount somewhere so the taxes get taken out correctly but I cannot figure out where to put that information. I tried putting it under withholding but that did not seem to work.

thanks!

Monique 

[#2 · Accepted solution]

Hi @Sidetracksgifts, thank you for reaching out!

I just checked in with our Payroll team and they said that this situation is not something that Square Payroll currently supports as a specific tax setting. 

They did say that their understanding on pension income from a previous employer is typically handled separately from wages earned at a new job. They would recommend your employee/you reach out to a tax professional if you are unsure. A possible workaround could be to adjust your employees withholdings on their W-4, but since we are not tax professionals, we would recommend reaching out to one.

I hope this helps a bit! Please let me know if you end up having any other questions in the meantime.