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Square Payroll Review

Review Updated
Ben Gran
By: Ben Gran

Our Small Business Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Square is a leading provider of point of sale (POS) software and payments solutions for small businesses. Square built up a big following by making it easier for restaurants, retailers, and small professional services companies to accept card payments and process online payments, just like the biggest brands on Earth.

But did you know that Square also offers payroll software? Square Payroll can help you run payroll, handle taxes, manage compliance, and unlock other must-have solutions -- and it integrates with Square POS.

Let's take a closer look at how Square Payroll works, and if it could be a good fit for your small business.

Ratings Methodology
Square Payroll
Learn More for Square Payroll
Rating image, 4.10 out of 5 stars.
4.10/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line: Square Payroll makes payroll processing easy. Designed to work with other Square applications, you can be up and running in minutes with this easy to use payroll application.
  • Ease Of use
    Rating image, 4.50 out of 5 stars.
    4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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    Rating image, 4.00 out of 5 stars.
    4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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    Pricing
    Rating image, 4.00 out of 5 stars.
    4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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    Rating image, 3.50 out of 5 stars.
    3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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    • Integrates with QuickBooks Online
    • No monthly subscription fee required to pay contract employees
    • Tracks tips for restaurant employees
    • Reporting options are minimal
    • Not suitable as a stand-alone payroll option
    • Not suitable for larger businesses

Who is Square Payroll for?

Square POS software is a great solution for restaurants, coffee shops, small retailers, contractors, and anyone else who needs to accept payments by credit card in real life or online. The same small businesses that love Square POS and payments systems might also like Square Payroll.

Square Payroll

Square Payroll has unique features that make it a good fit for restaurants and retail businesses, like importing tips and time cards. And Square Payroll teams up with other Square tools, as part of the Square Staff suite of solutions, so you can schedule shifts, track workers' hours, communicate with your team, and more -- all within the Square ecosystem.

Square Payroll is also one of the lowest-cost payroll solutions we've seen: the price is just $35 per month, plus $6 per person per month, for full-service payroll. Does your business only work with contractors, not employees? If so, you can also choose an even lower-cost option from Square: Contractor-only payroll for just $6 per person per month.

If you are a fast-growing business that is hiring lots of employees and needs more advanced support for human resources, recruitment, and human capital management (HCM), Square Payroll might not be right for you. But if you want a simple, low-cost payroll processing solution that is a good fit for small businesses that work with contractors, Square Payroll can be a great choice.

Square Payroll features

Square Payroll's low-cost Full-service payroll offers several attractive features. It offers automatic payroll (which can help you save time each month) and can work with employees or contractors.

Let's look at a few of the best features and capabilities of Square Payroll.

Automatic payroll

Square Payroll offers auto payroll, which lets you automate payday by setting payroll in advance. This can help save time and offers a lower-touch experience for busy small business owners -- you can even run payroll on the go from the Square Team mobile app.

Flexible payments

"Payday" doesn't have to be just one day per month. Square Payroll lets qualifying businesses pay people up to two days early with two-day payroll, or you can use Instant Deposit via Cash App to pay people sooner than payday.

Square Payroll

You can also use Square Payroll to:

  • Pay employees or contractors
  • Pay based on hourly, salary, or custom amounts
  • Pay via check, direct deposit, or Cash App

And you get unlimited pay runs per month.

Automated tax filings

One of the most important features of any payroll software is the tax filings, and Square Payroll has it covered. You get automatic calculations, withholdings, and filings of federal and state payroll taxes. Square Payroll also handles quarterly and annual tax filings, like the annual W-2 and 1099-NEC forms that your workers need to file their tax returns.

Square Payroll

State-specific support

If you do business with employees or contractors in multiple states, Square Payroll can help. This payroll software helps you with multiple tax jurisdictions and can file new hire reports at the state level, in keeping with various state laws and regulations.

Customize benefits

If you offer an employer-based retirement plan like a 401(k), or other benefits like health insurance, Square Payroll can help you integrate your employee benefits with a customized package. Medical, dental and vision insurance are available from Square's partner, SimplyInsured. 401(k) plans are offered through Square's partner, Guideline. Contributions and deductions sync automatically as part of your payroll processing.

Square Payroll

Get advanced HR support

Square Payroll offers advanced HR support in the form of its special HR Experts service -- an optional add-on subscription that costs $60 per month. HR Experts is offered via Square's partner, Mineral, and it gives your business access to HR documents, templates, resources, and expert advice. Square Payroll's HR Experts service can help you stay in compliance with employment laws, get answers to your HR questions, and manage any potential HR issues with confidence.

Square Payroll's ease of use

Even those just figuring out how to do payroll will find Square Payroll easy to navigate, and if you get stuck, just access the comprehensive knowledge base for help with any issues that may arise.

Those already using Square applications are familiar with the user dashboard, which provides a summary of your current business activity. You'll be able to sign up and access payroll directly from the dashboard.

You can access payroll directly from Square’s user dashboard.

You can access payroll directly from Square's user dashboard. Image source: Square Payroll.

Once you sign up for Square Payroll, you can begin to enter company information such as your Federal Employer Identification Number (EIN), state tax information, and your business type. Next, you'll need to connect your bank account, which will be used for direct deposit as well as for paying payroll taxes.

Once this information has been entered, you can start entering employee information, including new employees. You have the option to invite all of your employees to complete the setup process, where they can fill out the appropriate tax forms and direct deposit details.

Once your employees complete the initial setup process, they will be able to access their pay stubs directly in Square Payroll, as well as view any sick or vacation time they have available.

Square Payroll's pricing

Square Payroll offers one plan that includes all product features for one low price.

Square Payroll pricing is simple and straightforward.

Square Payroll pricing is simple and straightforward. Image source: Author

Square Payroll pricing is currently $35/month, with an additional $5 fee for each employee, so a business with five employees will pay $60/month total. If you only pay contractors, there is no monthly fee, just a $5 per contractor fee.

Square Payroll's support

Square Payroll support options are good, with telephone support offered during extended business hours. In addition, the application offers a comprehensive, searchable knowledge base that offers numerous articles as well as access to payroll topics.

You can also access numerous payroll categories that provide detailed information and short, instructional videos on features, tax documents, benefits, and employee payroll options.

Benefits of Square Payroll

Those using other Square applications such as Square Payment or Square Point of Sale will see the most benefit from using Square Payroll. While it's possible to use Square Payroll as a standalone application, there are other payroll applications on the market better suited for small businesses that are not using Square for their business.

Square Payroll is a great option for small businesses

For businesses already using Square applications, Square Payroll offers easy payroll processing, and is particularly well-suited for smaller restaurants or other businesses where employees frequently receive tips.

Keep in mind that Square Payroll has a long processing time for direct deposit, which can be an issue for smaller businesses with limited cash flow.

If you're not convinced, or you'd like to see other payroll software applications, be sure to check out The Ascent's payroll software reviews to find the payroll application that suits your business.

How Square Payroll Compares

Online Access Direct Deposit Prepares Federal Tax Forms Employee Access to Payroll Documents
Square Payroll Yes Yes Yes Yes
TRAXPayroll Yes Yes Yes Yes
Wave Payroll Yes Yes Yes
Workday Payroll Yes Yes Yes Yes
Zenefits Payroll Yes Yes Yes Yes

FAQs

  • While Square Payroll can be used as a standalone payroll application, you'll reap more benefits if you're already using or plan to use Square Point of Sale or eCommerce applications.

  • Yes, they do. Square Payroll only offers one plan, which includes filing reports and remitting tax payments to the correct tax agency.

  • Only if you use QuickBooks Online. It does not currently integrate with other accounting applications.

Square Payroll
If you’re stressed over processing payroll and unsure about how the entire payroll process works, check out Square Payroll services and see how stress-free paying your employees can be.Square Payroll
Learn More

Our Small Business Expert

Ben Gran
By: Ben Gran