How to set up your payroll deductions on Square
Good news! You’ve gotten your quote, gotten your team excited about and enrolled in Decent, and now all you have left is to onboard your new and improved health insurance plan onto your payroll platform. Odds are this article is exactly what you’re looking for.
One thing to note before we get going - odds are, we’re not much more familiar with your payroll provider than you are, if you’re working through this process and you hit a snag, please contact your payroll company’s support team for help.
Here’s a step by step guide for if you use Square for payroll:
- Go to Payroll Team in the Payroll section of your online Square Dashboard.
- Select an employee who will have a benefit.
- Click Add Benefit. If you’re creating a benefit for the first time, click Create New.
- Enter a plan name as you’d like it to appear in your employee’s paystubs. For example, Decent Health Insurance. Note: The benefit name can’t be edited retroactively.
- Click Select > choose which type of benefit you’d like to enable for this employee.
- Note: It’s very important that the benefit type is correct, since this determines how your employee’s deductions and employer contributions are taxed and reported on tax forms like Form W-2.
- Specify the amount for your employee’s deductions. a. Calculation Method: Enter the amount or percentage to be deducted per pay period or per month. i. If you choose to deduct a percent of the employee’s paycheck, the amount will be calculated from the employee’s gross pay before taxes. ii. If you choose to deduct a fixed amount per month, Square will determine the amount to be deducted each paycheck based on your payroll schedule. If you pay your employees weekly, Square will divide the amount by four. If you pay your employees every other week, Square will divide the amount by two.
- Specify the details for your company’s contributions towards this benefit. a. Calculation Method: Enter the amount or percentage to be deducted per pay period or per month, if applicable. b. Contributions to Date: Total amount the employer has contributed to this employee’s benefit to date, if applicable. c. Contribution Limit: The annual limit for the total amount the employer can contribute for this employee.
- Click Save.
Note: when you run payroll with Square, you’ll land on an Adjustments screen that details all adjustments to your employee’s pay. This is where you should see the amount you’re withholding for Decent detailed.