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Square Payroll

Square Payroll

Make payroll a breeze and focus on running your business.

#3 dans Payroll
2 min read · Updated 10/5/2025
Square Payroll homepage screenshot

At a glance

Quick overview for Square Payroll: rating, pricing summary, key features, and highlights.

Ciroapp review

4.5
Excellent payroll for Square ecosystem users.

We found Square Payroll offers robust, full-service compliance that perfectly complements the existing Square ecosystem. Its straightforward, usage-based pricing structure minimizes complexity for small businesses managing both W-2 employees and 1099 contractors. Overall, this is a highly reliable and efficient payroll solution, especially for companies already integrated with Square’s Point of Sale and payment tools.

Pros

  • Pro:Automated federal and state tax payments and filings are included.
  • Pro:Seamless integration with existing Square POS simplifies time tracking and data import.
  • Pro:Clear pricing structure includes a budget-friendly Contractor-only option ($6 per person).
  • Pro:No long-term commitment required, offering flexible usage terms.

Cons

  • Con:The Full-service plan requires a $35 base fee, even for one employee.
  • Con:Mixed experiences regarding general customer support responsiveness were reported.
  • Con:Some users reported issues with account security, such as accounts being flagged for fraud.
Range: $6/month - Usage basedMonthly subscription, Per seat pricing
This section is a summary. Detailed sections about features, use cases, pricing, and reviews follow below.
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Square Payroll review, pricing, features, pros & cons

Are you tired of payroll taking up valuable time? Dealing with taxes and compliance can be a significant headache when running your business. ✨

Square Payroll helps streamline the entire process. It lets you easily run payroll and stay ahead of compliance so you can focus on growing your business.

What is Square Payroll?

Square Payroll is a dependable, full-service payroll solution designed to pay your employees and protect your business. It effectively helps ensure everyone is happy and productive.

It works well for various types of businesses. You can use it whether you run a retail store, a food and beverage spot, or a home repair service. The system operates right from your online Square Dashboard, making payroll faster and easier. You can even choose a specific contractor-only option if that fits your needs. ✅

Square Payroll Key Features

✨ Seamless Integration and Quick Data Import

It’s easy and fast to pay your team since Square Payroll integrates with your existing tools. You can run payroll right from the Payroll section of your online Square Dashboard. This setup minimizes administrative work and helps you process payments quickly.

Crucially, you can import important data like timecards and employee tips directly from your Square POS. For retailers, the system also automatically tracks and applies commission rates across your team. This instant data access ensures accuracy and significantly speeds up pay runs.

✨ Automated Tax Filing and Compliance

Dealing with taxes and compliance can be a significant headache, but Square Payroll handles the hard stuff for you. The service automatically manages your federal and state tax filings and payments at no additional charge. This automation includes all required quarterly and annual compliance filings.

When the year ends, Square takes responsibility for generating, preparing, and filing important tax documents. We automate the filing of W-2s for your employees and Form 1099-NEC for your contractors. This means you can stay ahead of compliance effortlessly.

💡 Flexible Speed and Payment Options

You have full control over how quickly you pay your team. With standard Two-Day Payroll, you submit your pay run up to two business days before payday. If you need funds faster, the Instant Payments option allows you to use your Square balance to run payroll as little as one day before the pay date.

Square offers unlimited pay runs each month. There is no extra charge for running off-cycle payments when necessary. You can pay your team via standard direct deposit, a manual check, or through Instant Deposit via Cash App for contractors.

✨ Dedicated Support for Contractors

Square Payroll offers a specialized service for businesses that rely on 1099 contractors. This option helps you avoid complicated paperwork and ensures rapid payment. After contractors complete simple onboarding, you can pay them through the Payroll section of your Dashboard.

At tax time, the system is designed to streamline compliance for these workers. Square will automatically generate, prepare, and file Form 1099-NEC online for you. This simple process facilitates digital delivery of the required tax documents to your contractors.

✨ Offer Comprehensive Employee Benefits

It’s easy to offer competitive benefits that support your team’s well-being and future. You can choose from various health insurance options, including medical, dental, and vision plans. Enrollment is designed to be simple and hassle-free for both you and your employees.

Additionally, you can support long-term goals by enabling 401(k) retirement plans. These are modern plans that feature affordable, transparent pricing built right into the Square system.

✨ Multistate and Complex Compensation Handling

Square Payroll is built to manage complex business needs, including those spanning different regions. You can set up locations across multiple states and localities, and we handle the correct tax calculations for you. This support ensures you pay unemployment tax accurately, even when employees work from home.

We easily support businesses that utilize various pay structures. This means you can handle multiple pay rates, bonuses, commissions, and tips for different members of your team with confidence.

✨ Simplified Accounting and Bookkeeping

Save time and make sure your financial documentation stays accurate. Square Payroll syncs your data automatically with your accounting systems. This seamless connection with QuickBooks Online makes bookkeeping simple and helps free up valuable administrative time.

Use Cases

🍔 Streamlining Food Service Payroll and Tips 🍔

Running payroll in the food and beverage industry requires handling variable hours and tips quickly. Collecting time cards, tips, and commissions manually is time-consuming and often causes errors. Square Payroll connects directly to your Square POS system for seamless data management. It automatically imports employee timecards and direct tips from the POS.

You can review all earnings right from your online Dashboard before running payroll. This strong integration ensures accurate paychecks and saves hours every pay cycle. It lets your manager focus on customer service instead of spreadsheets.

🛡️ Worry-Free Tax and Compliance Management 🛡️

Problem: As a growing small business owner, handling federal and state tax filings takes valuable focus away from operations. This compliance work often feels stressful and prone to costly mistakes.

Approach: Square Payroll is a full-service solution that takes care of the hard stuff for you. It automatically files and pays federal and state payroll taxes on your behalf.

Outcome: The platform manages mandatory reporting throughout the year. At year-end, it prepares and files the necessary W-2 and 1099-NEC forms too. You maintain compliance without manual data entry or tracking deadlines.

🤝 A Dedicated Pay System for 1099 Contractors 🤝

If you rely exclusively on freelance talent, the Contractor-only option simplifies your payment process. This budget-friendly plan avoids the base fee of the full-service plan, costing just $6 per person paid. It supports unlimited pay runs and provides flexible payment options like instant deposits via Cash App.

This plan takes away the complicated paperwork required for independent contractors. Square Payroll for Contractors will digitally prepare, generate, and file Form 1099-NEC online at the close of the year.

💚 Integrating Essential Employee Benefits 💚

To attract and retain quality staff, small businesses need to offer strong benefits packages. Square Payroll helps you easily provide attractive options like medical, dental, and vision health insurance. You can also support your employees’ long-term future with integrated 401(k) retirement plans.

These benefits automatically sync with your payroll runs. This simplifies deduction management and enrollment, making it much easier for you to offer high-value workplace perks.

🗺️ Managing Complex Multistate Payroll 🗺️

It can be confusing if your business has multiple locations or employs remote staff across state lines. Correctly calculating and paying state and local taxes, like unemployment tax, requires specific knowledge. Square Payroll allows you to set up locations spanning multiple states and localities easily. You can also add work locations for employees who work from home.

Square handles the complex multi-state tax calculations for you automatically. This ensures you pay the correct unemployment taxes based on the remote employee's home state.

🚀 Running Payroll On a Tight Deadline 🚀

Sometimes you need to process payroll faster than the standard schedule allows. Square offers flexible payment speed options to meet urgent needs. You can choose Two-Day Payroll, submitting your data up to two business days before the team’s pay date. For the quickest option, use Instant Payments with your existing Square balance. This fast solution lets you run payroll as little as one day prior to payday.

Tip: You get unlimited regular and off-cycle pay runs each month at no extra cost, giving you total payment flexibility.

Pricing Overview for Square Payroll

Pricing range
$6/month - Usage based
Pricing types
Monthly subscription, Per seat pricing

Square Payroll offers two straightforward monthly plans: Full-service payroll for teams with employees, and a cost-effective Contractor-only option. Pricing for both plans utilizes a base fee structure plus a low monthly fee for every person you pay.

Plans & Pricing

Full-service payroll

Monthly$35 + $6 per person paid
Base fee of $35/month applies.
  • Automated federal and state tax payments and filings
  • Unlimited pay runs and off-cycle payments
  • Auto payroll
  • Multistate payroll support
  • Labor-cost reporting and Overtime calculations
  • Benefit deductions and company contributions
  • Two-day, four-day, and next-day direct deposit options
Get started

Contractor-only payroll

Monthly$6 per person paid
No base fee; limited features compared to Full-service (e.g., no Auto payroll or state tax filing automation).
  • Automated payroll tax calculations
  • Digital delivery of 1099s
  • Unlimited pay runs
  • Instant Deposit via Cash App
  • Split direct deposits to multiple bank accounts
  • Multiple tax jurisdiction support
  • Live support for account setup
Get started

Square Payroll costs between $6 and usage-based pricing per month with two plans: Full-service payroll starting at $35 plus $6/person/mo, and Contractor-only payroll at $6/person/mo.

This simple pricing structure makes it easy to understand your monthly commitment. You pay a set base fee for the Full-service option, then just $6 for every employee or contractor you pay across both plans.

Full-service payroll

Price: $35/mo + $6 monthly fee per person paid Websites Supported: Not explicitly stated Best For: Businesses with W-2 employees needing full tax automation and compliance features. Refund Policy: Not explicitly stated Other Features:

  • Automated federal and state tax payments and filings
  • Unlimited pay runs and off-cycle payments
  • Auto payroll capability
  • Labor-cost reporting and overtime calculations
  • Handle multistate payroll and multiple pay rates

You should choose the Full-service plan if you have employees and require total compliance management. This plan handles complicated issues like tax filings and benefit deductions for you automatically. It’s perfect for growing businesses that want to focus on their operations, not paperwork.

Contractor-only payroll

Price: $6/mo per person paid Websites Supported: Not explicitly stated Best For: Businesses that exclusively hire 1099 contractors. Refund Policy: Not explicitly stated Other Features:

  • Unlimited pay runs per month
  • Digital delivery of 1099s
  • Instant deposit via Cash App for contractors
  • Automatic payroll tax calculations
  • Split direct deposits to multiple bank accounts

Pick the Contractor-only plan if you only pay contractors and do not need W-2 employee features. This budget-friendly option quickly pays your 1099 workers and provides required end-of-year tax forms digitally. It's a great choice for lean operations who rely on freelance talent. 🚀

Square Payroll does not require a long-term commitment. Both plans offer flexible terms, meaning there are no long-term contracts required and you are free to cancel anytime. Add-ons like Workers’ compensation, Paid amendment services, and Health/401(k) benefits are also available for an additional cost.

User Reviews

Square users generally report a great experience, often praising the platform’s simplicity and user-friendliness for managing daily operations. Reviewers frequently highlight the ease of accepting various payment methods, efficient invoicing, and reliably fast money processing.

Many small business owners appreciate that Square is designed to minimize administrative stress. Customer support receives mixed, yet often positive, feedback; many reviewers mention quick resolution and helpful staff.

However, others express concerns about high transaction fees compared to competitors. Specific feedback regarding the dedicated Payroll product is limited within the general Square reviews, primarily focusing on the POS system.

One serious concern raised was an operational issue involving a payroll account being flagged for potential fraud, forcing a provider switch. Overall, the sentiment remains strong due to the platform's reliability and ease of setup, making it highly recommended for business management.

🌟

What users say elsewhere

Sarah W.
· Trustpilot
5.0 / 5

The app is incredibly user-friendly, and I love how simple it is to set up and manage. Square truly made running my business much smoother, allowing me to focus on growth.

Alex D.
· Trustpilot
5.0 / 5

Square is consistent and reliable at transferring customer payments quickly to my account. Using it is a straight forward process that makes managing our transactions easy.

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Why use Square Payroll?

Stop wasting precious energy on manual processes; let Square automate your team payments. This service makes payroll simple by connecting directly to the tools you already use, minimizing stress and administrative errors.

Here’s why Square Payroll stands out:

  • Seamless Square Integration: Import timecards, tips, and commissions directly from your Square POS. This integration allows you to process paychecks faster, often right from your dashboard.
  • Automatic Tax Handling: Square takes care of the hard stuff. It manages federal and state tax filings, payments, and automated W-2 and 1099-NEC filings at the close of the year.
  • Simplified Bookkeeping and Benefits: Sync your payroll data automatically with QuickBooks Online for easy accounting. You can also offer your staff health insurance, including medical, dental, or vision, and modern 401(k) retirement plans.
  • Flexible and Clear Pricing: Enjoy unlimited pay runs each month with no extra fees for off-cycle payments. There is no long-term commitment required, so you can cancel the service whenever necessary.
  • Faster Payment Options: Square Payroll offers multiple solutions for quick payments. You can use the standard Two-Day Payroll or leverage Instant Payments, allowing you to run payroll just one day before the pay date using your Square balance. 💡

Ready to transform your workflow with Square Payroll?

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Frequently Asked Questions

Who is Square Payroll best suited for?

Square Payroll is ideal for businesses already using Square Point of Sale (POS) tools, such as retail or food service. It offers robust compliance features and seamlessly integrates with the POS for easy data import. It is optimized for those needing to manage both W-2 employees and 1099 contractors.

What external accounting software integrates directly with Square Payroll?

Square Payroll automatically syncs your payroll data with QuickBooks Online for simplified bookkeeping. Information about direct integrations with other third-party accounting applications is not explicitly stated on the official site.

Does Square Payroll offer a free trial period or a money-back satisfaction guarantee?

No, Square Payroll does not currently offer a free trial or a stated money-back guarantee. However, pricing is flexible, and both plans operate without requiring a long-term commitment.

If I use the Full-service plan, are there limits on how many times I can run payroll?

No, the Full-service plan includes unlimited pay runs each month. You can also process unlimited off-cycle payments without incurring any additional fees.

What specific regions and languages does Square Payroll support?

The service supports payroll processing in several regions, including the United States (English and Spanish), Canada (English and French), Australia, the UK, Ireland, France, Japan, and Spain. You can select your region and language during setup.

How does the pricing structure handle W-2 employees versus 1099 contractors?

The Full-service plan has a $35 base monthly fee, plus $6 for every person paid, regardless of their status. The Contractor-only plan avoids the $35 base fee, charging only $6 per person paid.

What is the specific availability and support window for Square Payroll specialists?

You receive support from Square Payroll specialists, available Monday through Friday. Their operating hours are 6 a.m. to 6 p.m. Pacific Time.

Are there extra fees for providing paper copies of year-end tax forms?

Yes, if you choose to mail paper copies of W2s or 1099s to your team members, this incurs a small annual fee. The charge is $3 per paper form mailed.

Can I receive paychecks faster than the standard two-day direct deposit?

Yes, if you use a Square balance you can access Instant Payments, which allows you to run payroll just one day before the pay date. Instant Deposit is also available for team members using Cash App.

How flexible are the cancellation terms if I need to stop the service?

Square Payroll requires no long-term contracts. You are allowed to cancel the service at any time without facing penalties or cancellation fees.

How quickly can Square Payroll help me switch from my current payroll provider?

The official site confirms that switching is easy. Dedicated payroll specialists are specifically available to help guide you through the migration process and answer any questions.

Does the system help manage employees who work across different state lines?

Yes, the system is equipped to handle multistate payroll and multiple tax jurisdictions. You can input different work locations, and Square will calculate and pay unemployment tax correctly to those states.

Does the Contractor-only plan include automated tax filings or scheduling features?

No, the Contractor-only plan only handles automatic payroll tax calculations and digital 1099 filing. Automated state or federal tax payments and scheduling features are exclusive to the Full-service plan.

Does Square offer workers’ compensation or health benefits through the payroll service?

Square offers paid add-on services for both workers’ compensation insurance and employee benefits. This includes health, dental, vision, and 401(k) retirement plans at an additional cost.

Ready to try Square Payroll? Check out the official site or pricing.
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