Sara, thanks so much for the explanation! It seems to be working now. Just one more question though. How can I reduce the border so the square is more adjusted to the circle? I go to image > image size but it changes the size of the whole thing

I've been battling with Photoshop for a few months now. Not doing anything outstanding, but I learn a few new things from time to time that come in very handy.

Oh, and shame on me for not knowing my sigpic was actually a gif as well

Thanks a lot again!