Solved: Payroll withdrawal summary: composition of Square ...

twentysixcafe · ‎08-25-2018

I've just run my first payroll, and I'd like to know what the withdrawal summary means when it lists "Debited by Square for Tax Paid on Pay Date" and "Debited by Square for Tax Paid Monthly / Quarterly."

I understand that the "Debited by IRS" line item consists of the EFTPS payment for employee federal income tax, social security and medicare. So what do the other two line items consist of? Which one is state and which one is city? What else do these amounts consist of?

Helen · ‎08-28-2018

Great question @twentysixcafe! I'm happy to clarify:

Debited by Square for Tax Paid on Pay Date: These are the state taxes due each pay run.
Debited by Square for Tax Paid Monthly / Quarterly: This line item incorporates both Federal Unemployment Taxes and state-specific unemployment taxes.

There's more information about this in our Support Center in this article Payroll Tax Summary but if you have any other questions please let me know.

️ Helen
Seller Community Manager

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Helen · ‎08-28-2018

Great question @twentysixcafe! I'm happy to clarify:

Debited by Square for Tax Paid on Pay Date: These are the state taxes due each pay run.
Debited by Square for Tax Paid Monthly / Quarterly: This line item incorporates both Federal Unemployment Taxes and state-specific unemployment taxes.

There's more information about this in our Support Center in this article Payroll Tax Summary but if you have any other questions please let me know.

️ Helen
Seller Community Manager

Did you find help in the Seller Community? Mark a Best Answer to help others.

twentysixcafe · ‎08-28-2018

Thanks Helen! I am glad I checked and did not independently pay fed & state unemployment taxes on my own.

papascatcafe · ‎12-09-2018

Why are my total taxes higher than when I was using my previous accountant?

Tom · ‎12-11-2018

Thanks for surfacing this, @papascatcafe. I hope I can offer some information that will help clear this up. Employer-paid taxes should be the same based on gross wages. If the wages are not equal to your accountant's figures, you may need to compare or review further with your accountant. If the employee withholding amount is different, that would be a function of the employee's withholding details. The amount withheld does not equate to the amount of tax due.

️ Tom | he/him
Seller Community Manager | Square, Inc.
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Payroll withdrawal summary: composition of Square debits