Square Payroll
Core HR software
Benefits administration software
Contractor payment software
Payroll software
Employee leave management software
Farm payroll software
Payroll management software
- Features
- Ease of use
- Ease of management
- Quality of support
- Affordability
- Market presence
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$6 per person paid per month
Free Trial unavailableFree version unavailable
Small
Medium
Large
- Accommodation and food services
- Real estate and property management
- Retail and wholesale
What is Square Payroll
Square Payroll is a cloud-based payroll service designed for small businesses to run employee and contractor payroll, calculate taxes, and file required payroll tax forms. It is commonly used by Square merchants that want payroll connected to timecards and payment operations. The product supports direct deposit, year-end forms, and basic employee self-service, with optional add-ons for benefits and HR-related workflows. It is primarily oriented to US-based payroll and compliance requirements.
Tight Square ecosystem integration
Square Payroll integrates with Square Timecards and other Square business tools, which reduces duplicate data entry for hours and wages. This is useful for hourly workforces where time tracking drives payroll. Businesses already using Square for payments can keep payroll operations in the same vendor environment. The integration focus can simplify setup compared with broader HCM suites.
Automated tax filings and forms
The service calculates payroll taxes and supports automated filing and payments for applicable federal and state payroll taxes. It also produces common year-end forms (for example, W-2 for employees and 1099-NEC for contractors). These features reduce manual compliance work for small teams. The workflow is designed for routine payroll cycles rather than complex payroll scenarios.
Employee and contractor payments
Square Payroll supports paying W-2 employees and 1099 contractors from the same system. It includes direct deposit and pay stub access for employees, and contractor payments with associated tax form reporting. This fits businesses that mix employees and contractors (for example, services and hospitality). It provides a single payroll ledger for these worker types without requiring a separate contractor payment tool.
Limited enterprise HR depth
Square Payroll provides basic HR and payroll administration but does not function as a full human capital management suite. Advanced capabilities such as complex org modeling, extensive performance management, and deep workforce analytics typically require other systems. Companies that outgrow small-business HR needs may need additional tools. This can increase integration and reporting effort over time.
Benefits and leave features vary
Benefits administration and leave management are not as comprehensive as specialized benefits or leave platforms. Availability can depend on location and partner offerings, and some workflows may require manual coordination outside the product. Organizations with complex eligibility rules, multiple plans, or detailed leave policies may find gaps. This is especially relevant for multi-state compliance and nuanced accrual rules.
Not suited for complex payrolls
The product is optimized for straightforward US payroll rather than highly customized pay rules. Scenarios such as multiple legal entities, advanced union rules, complex job costing, or industry-specific requirements (including some agricultural/farm payroll needs) may require more specialized payroll systems. Reporting and configuration options can be limiting for complex environments. Businesses should validate support for their specific state, locality, and pay policy requirements.
Plan & Pricing
| Plan | Price | Key features & notes |
|---|---|---|
| Full-service payroll | $35/mo + $6 monthly fee per person paid | Automated federal & state payroll tax calculations, automated tax payments & filings, unlimited pay runs, multistate payroll, timecard import (from Square POS/Team App), two-day/four-day direct deposit (apply), next-day direct deposit, Instant Deposit, digital pay stubs, employee self-onboarding, benefit deduction & company contribution support (add-on benefits such as health insurance and 401(k) available), live Square Payroll specialist support (M–F 6 a.m.–6 p.m. PT). Note: paper W-2/1099 mailing is an annual $3 per mailed form. |
| Contractor-only payroll | $6/mo per person paid | Pay 1099 contractors; Square generates, prepares, and files Form 1099-NEC; contractors can set up direct deposit and view payment history; pay contractors multiple times per month at no extra cost; timecard import supported. Note: paper 1099 mailing is an annual $3 per mailed form. |
Seller details
Block, Inc.
San Francisco, CA, USA
2009
Public
https://squareup.com/
https://x.com/Square
https://www.linkedin.com/company/square/
