New Square INC PAYR TAX line in bank account?

drjay · ‎03-13-2020

Hello, I used Square payroll for all of 2019. Never was there a line on my bank account statement which said Square PAYR TAX. These lines have appeared for January and February thus far.

I'm guessing it's payroll tax, but it's not listed anywhere in the payrolls I ran under total employer taxes. What is this tax and why is it not accounted for in payroll?

The other interesting thing is if I add up the IRS USATAXPYMT and EDD they are much larger numbers than what payroll reports for Employer taxes.

I don't understand these discrepancies.

nika · ‎03-17-2020

Hey @drjay! I checked in with our Payroll team on this one.

These taxes should align with the amount that you're seeing under your payroll withdrawal summary for "By Square for Tax Paid Monthly / Quarterly". These are taxes that Square Payroll collects and then pays on behalf of you, the employer. In this case, all of these taxes have wage caps of $7,000 so once an employee earns $7,000 of wages in a calendar year, they are not collected calculated and collected.

Given the wage caps, it is very likely that these taxes were not collected at the end of 2019 and now you're seeing these taxes again on the Jan and Feb payroll runs. More info on this here.

If you have other questions about this, though, give our Payroll team a call.

Bea_
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drjay · ‎03-19-2020

Oh, that makes sense. Thanks a lot!

nika · ‎03-22-2020

@drjay Of course! Happy to help!

Bea_
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drjay · ‎04-22-2020

Hi Nika,

I was still hoping to find out the answer to the other part of my question.

But I just found it out, nevermind. Can't seem to delete this.

jlc1 · ‎03-16-2022

whats the difference between the PAYR TAX and employer taxes?

JJ_ · ‎03-18-2022

This sounds like a good question for our Payroll team, @jlc1

They can take a look at your account with you to help shine a light here, as they are able to look at your account alongside you in order to answer your question. Please reach out by phone or email when you have a moment by logging into your Square account and heading here.

P.S. Welcome to the Seller Community ✨

JJ
Community Moderator, Square
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