Keith discusses the Sqaud rules in detail in Episode 37 of the Order 66 podcast.

At 35:22 when your listening.

Keith, since you're reading this thread, why is damage to minions in a squad handled differently from damage to a minion group? By this I mean why does damage 'spill over' in the later but not in the former?

Probably has a lot to do with reducing GM suicide rates if I had to guess. When you start getting complex like merging multiple minion groups that have already taken wounds into a single squad, tracking wounds gets weird. Being able to just tick off a minion and move forward is way nicer and allows you to essentially ignore a lot of details that can survive being ignored. The stuff about how you can leverage that to get special effects in an encounter is probably just a "feature."

BTW, do you mind pointing to the rules about "squading" up with minion groups? i can't seem to find it and the ideas presented here are supremely good.

Edit: NVM, i found it in the GM kit in Age of Rebellion if any one is interested

I like the squad rules a lot. I think they're very well done. I only have 1 house rule that I use (which depending on how you interpret the rules may in fact be the way it's intended to work anyway), and it's for healing after the battle:

Basically, I consider the minions in the group to be 1 character for purposes of first aid, with a total WT equaling the total of all the minion's WT at the beginning of the combat, current Wounds being the total of all the minions left afterwards; so for a minion group of 5 with WT of 5, who lost 3 minions during the encounter, they're considered to have 10/25. A single Medicine check is made, using the regular rules for determining difficulty (so under half WT = Average difficulty), healing a wound for each success AND advantage gained (let's say, 7 altogether). Since that would be enough to fully heal 1 guy, and partially heal another, 2 minions are back up on their feet after the battle; they were just knocked unconscious, or were to afraid to fight, or whatever. If they were to be a separate minion group again, the one guy would only have 2 out of 5 WT, but for squad purposes, it doesn't matter. The other minion, however, is dead, or at least permanently out of the fight, such as captured, in a coma, etc. For further encounters, the minions' WT is only considered 20, since obviously once losing the 1 minion they can't exactly recover him later (at least not through use of Medicine; if you ruled he ran away or was captured, he could theoretically be recovered through play). I've not done too many squad encounters, but since I've used this players are more willing to sacrifice their minions, gambling that they can be recovered later.