Square Payroll
Last Updated
Key Takeaways
Generated from the text of customer reviews
Square Payroll is a payroll and tax-filing platform built into Square's Point-of-Sale (POS) ecosystem. Small business owners and office managers use it daily, with food and beverage, retail, and wellness businesses benefiting most. Reviewers praise its simple setup, while some cite slow customer support. Recent updates include attaching receipts to credit card transactions and barcode layout customization.
Our Verdict
Square Payroll works best for small to midsize businesses already using Square's POS or team-management tools. Its tax filing and direct deposit features suit teams with straightforward payroll needs. Pricing stays reasonable for smaller headcounts but rises per employee as teams grow. We recommend it for hourly-heavy businesses seeking dependable payroll without a dedicated finance team.
Overall Rating
Based on 35 users reviews
4.7
Rating Distribution
Positive
91%
Neutral
9%
Negative
0%
Starting Price
$6
per person per month
Square Payroll Specifications
- Employee Information Management
- Employee Onboarding
- Attendance and Time Tracking
- Leave Management
What Is Square Payroll?
Square Payroll is a payroll processing and tax compliance platform built for small and midsize businesses. It enables businesses to calculate wages, withhold taxes, and file federal and state payroll tax forms from a single system. Owners can pay W-2 employees and 1099 contractors by direct deposit, check, or Cash App, with unlimited pay runs each month at no added cost.
The platform also supports multistate payroll, so businesses with staff working across different tax jurisdictions can stay compliant without hiring outside help. Employees can view pay stubs, tax forms, and estimated earnings directly through a mobile app, reducing the number of payroll-related questions that land on a manager's desk.
What Is Square Payroll Best For?
The software stands out with its ability to automate recurring payroll processing. Businesses can set payroll to run automatically for their employees every pay period, removing the need to manually initiate each payroll cycle. This feature is particularly useful for businesses with consistent pay schedules that process payroll regularly. This can save payroll teams time and reduce the work involved in running payroll each pay period.
How Much Does Square Payroll Cost?
Square Payroll cost starts at $6/person/month for the 'Contractor-Only Payroll' plan, which includes auto-payroll, simple onboarding, and unlimited pay runs per month, among other features. It also offers a Full-Service Payroll plan that costs $35/person/month.
In addition to the base subscription costs, organizations should account for the following potential expenses:
- Paper W-2/1099 Mailing: $3/form annually (digital delivery is included free)
- Health Insurance (via SimplyInsured): Plans start around $190/employee/month
- Workers' Compensation (via AP Intego, Pay-As-You-Go): Roughly $50–$100/month for a small team, though this scales with total payroll, industry classification, and state, since premiums are calculated per $100 of wages paid
- Retirement Plan Administration (via Vestwell): $125/month + $8/participating employee, plus a participant account fee starting around 0.2%
- Square Team App Communication Tools: Approximately $2–$2.50/team member/month
- HR Expert Add-On (via Mineral): Approximately $45–$60/location/month
Disclaimer: The pricing is subject to change.
Square Payroll Integrations
The software supports integration with multiple tools, including QuickBooks Online.
How Does Square Payroll Work?
Here's how you can get started with the software:
- Use your credentials to log in to the platform and access the main dashboard
- Set up employee and contractor profiles with pay rates and tax information
- Import timecards and tips directly from Square Point of Sale or the Team App
- Configure pay schedules, benefit deductions, and multistate tax settings
- Run payroll manually or set up automatic pay runs each period
- Review calculated wages, taxes, and deductions before submitting the pay run
- Distribute pay stubs and digital tax forms through the Team App
- Track labor costs and payroll history through built-in reports
Who Is Square Payroll For?
Square Payroll serves the following:
- Food and beverage
- Retail
- Beauty and salons
- Fitness
- Professional services
Square Payroll Use Cases
Based on our analysis of user reviews and Square Payroll features, we have identified key scenarios where this software is a good fit for small business owners:
Retail Teams Paying Staff On Commission
Retail businesses that pay sales associates a mix of hourly wages and commission can set multiple pay rates within a single payroll run. Square Payroll calculates each rate separately, so owners don't have to build spreadsheets to track commission alongside base pay. This capability suits stores where staff earn different rates depending on the shift or product line.
Contractor-Only Businesses Avoiding Full Payroll Overhead
Businesses that work exclusively with freelancers or 1099 contractors can use the contractor-only plan to pay people and file Form 1099-NEC without paying for full employee payroll features. This fits agencies, studios, or seasonal operations that scale their contractor base up and down throughout the year. Reviewers laud its embedded 1099 forms, which make adherence to state compliance and local regulations easy.
Multi-Location Employers Managing Staff Across State Lines
Employers with locations or remote staff in more than one state can rely on Square Payroll's multistate support to handle tax withholding and filings per jurisdiction. This use case fits home-and-repair or franchise businesses whose crews cross state lines for jobs, since the software tracks each employee's correct work-location taxes. Reviewers particularly appreciate its ease of setting up the first payroll and adding tax information.
Small Teams Wanting Payroll And Scheduling In One Place
Small business owners without dedicated HR staff can use Square Payroll alongside Square's scheduling tools to manage shifts and pay from the same dashboard. This works well for salons, gyms, or small offices where one person handles both scheduling and running payroll each week.
Is Square Payroll Right For You?
Square Payroll suits small and midsize businesses that want payroll, tax filing, and team management handled through one dashboard rather than several disconnected tools. Its payment infrastructure holds PCI Data Security Standard Level 1 and ISO 27001 certification, helping agencies ensure that employees' wages and tax payment data remain secure.
Serving more than 4.5 million businesses globally, including Ben & Jerry’s, H Mart, and Rawlings, the software has established a broad presence across businesses of different sizes and industries. Moreover, the platform has recently collaborated with Whit’s Frozen Custard for better resource management.
Not sure if Square Payroll meets your requirements? Contact us at (661) 384-7070 for further guidance.
Square Payroll Features
Employees Onboarding
Square Payroll helps businesses manage onboarding for employers and new hires alike. Employees receive an invitation to enter their own personal information, banking details, and tax forms directly, cutting down on paperwork that owners would otherwise collect by hand. Submitted details flow straight into payroll, adding new team members within a few steps.
New-Hire Reporting
Square Payroll allows teams to report new hires to the appropriate state agency once an employer adds someone to payroll, following state reporting regulations. This capability helps remove a compliance task that owners would otherwise track and file separately in every state where they employ staff. It also assists in keeping a growing business aligned with reporting deadlines without extra paperwork.
Team Scheduling
The software's scheduling tools let owners create, publish, and adjust shifts for their entire staff from the same dashboard used to run payroll. Because scheduling and pay share one system, users can carry planned hours into payroll calculations. This feature benefits restaurants and retail stores that build shifts by the week.
Time Tracking
Through the 'Square Team App', employees can clock in and out, track hours worked, and view estimated earnings and pay stubs from their phones. Owners can also avoid running a separate time clock system, since logged hours sync directly with payroll, suiting hourly staff working variable shifts across locations.
Instant Deposit
Eligible team members who use 'Cash App' can access pay up to two calendar days before the scheduled payday through Square Payroll's 'Instant Deposit'. Instead of waiting for a standard bank transfer to clear, employees can see funds available sooner in qualifying states. This approach also helps ease cash-flow pressure for hourly workers living paycheck to paycheck.
Multiple Tax Jurisdictions
For every state or locality where a business processes payroll, Square Payroll allows firms to remit tax payments. It also empowers managers to complete filings with the applicable tax agency on the employer's behalf. This capability is helpful for businesses with employees working remotely or across state lines, as it removes the need to track separate filing calendars by hand.
Pros And Cons of Square Payroll
Pros
W-2 preparation reduces administrative workload during tax season
Easy deployment and customization support faster payroll setup
Automated tax forms assist teams in simplifying employee payment administration
Accurate reporting gives teams clearer payroll oversight
Automated data entry helps reduce manual payroll errors
Cons
Limited calendar visibility can complicate timecard reviews
Fewer pay-history filters can slow payroll data analysis
Delayed bug fixes can prolong issues and reduce operational efficiency
Square Payroll Pricing
Contractor-Only Payroll | Full-Service Payroll |
|---|---|
$6 per person per month | $35 per person per month |
|
|
Disclaimer: The pricing details were last updated on Oct 12, 2026 from the vendor's website. Please contact us for a tailored pricing list.
Square Payroll Reviews
Total 35 reviews
4.7
All reviews are from verified customers
Rating Distribution
5
Stars77%
4
Stars14%
3
Stars9%
2
Stars0%
1
Stars0%
Share your experience
Apparel & Fashion, N/A employees
More than a year
“Super easy and reliable tool”
Pros
I am not gonna lie this software is super user-friendly. I've had a few questions here and there and their customer support actually helped me out quickly. It just makes processing payments fast and keeps everything simple for me.
Cons
There's nothing I dislike about it. It's super convenient and user-friendly for both me and my clients. I feel like I've got good options to use without it being complicated.
Rating Distribution
Ease of use
10
Value for money
10
Customer Support
10
Functionality
10
Retail, 11-50 employees
More than a year
“Big time saver tool”
Pros
I love how Square Payroll simplifies shift tracking and payroll. Staff can easily clock in and out, receive automatic tip and commission payouts and even request time card edits, all from their phones. The system also handles new hire paperwork, tax filings and vacation requests, It literally saves me hours of admin work.
Cons
I just wish Square Payroll and Shifts actually linked with the Appointments system. Right now I gotta do the schedule twice which is kinda annoying.
Rating Distribution
Ease of use
9
Value for money
9
Customer Support
9
Functionality
9
Consumer Services, 1-10 employees
Less than a year
“Organised and Efficient payroll tool”
Pros
I used to dread payroll but now it's a three minute task. Everything from wage tracking to tax submission is automated and accurate which has completely eliminated the stress I once felt.
Cons
Setting it up was a bit rough at first. I felt a little lost with the tech stuff but their team really walked me through everything and answered all my questions.
Rating Distribution
Ease of use
9
Value for money
9
Customer Support
9
Functionality
9
Frequently Asked Questions
Does Square Payroll have a mobile application?
Yes, it offers a mobile app for both Android and iOS devices.
What other apps does Square Payroll integrate with?
The platform supports integration with QuickBooks Online and POS systems.
What types of pricing plans does Square Payroll offer?
The software offers two plans: Contractor-Only Payroll ($6/person/month) and Full-Service Payroll ($35/person/month). You can request a personalized Square Payroll price quote now.
Does Square Payroll offer an API?
Yes, it offers an API.
Who are the typical users of Square Payroll?
Various businesses, including retail, professional services, beauty and salons, food and beverages, and fitness, benefit from Square Payroll.
What language does Square Payroll support?
Square Payroll software is primarily available in English and Spanish.
What level of support does Square Payroll offer?
The platform offers support via online chat, phone, and email.