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Federal tax not deducted

I ran my first payroll for 2 employees.  Both are claiming zero, however no federal tax was withheld from either person, only Social Security and Medicare.  Did I set something up incorrectly?

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Super Seller Alumni

Just a quick question.  When I started using square payroll, I noticed that it didn't specify that a certain tax was being taken out.  I was told to look at the employee's paystub.  Have you tried that?  The paystubs show everything.  

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I did, no federal tax is listed.

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Super Seller Alumni

Are you sure that you don't have them listed as a 1099 employee?

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They are both employees, no contractors. 

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The only thing that I can see that may have caused an issue was I paid both as "additional pay" because they are commission based.  I paid nothing on an hourly or salary rate.

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Hello @heavenlycolors! Even if you ran it as "additional pay", all taxes would be withheld according to the employees withholding info. 

 

In this case I recommend reaching out to our Payroll Support Team so they can take a closer look at your account and make sure everything is in order. 

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