Square Payroll

by Square, Inc

What is Square Payroll?

Square Payroll is Square's payroll service for US small businesses integrated with Square Point of Sale (POS) and Square ecosystem. The service covers full-service payroll with federal/state/local tax filings, hourly and salaried employee processing, contractor 1099 payments, benefits administration (health insurance, retirement plans), workers compensation, time tracking integration with Square POS, and direct deposit. Built for restaurants, retail, services businesses already using Square POS.

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Square Payroll Features

Automated payroll

Direct deposit

Tax filing

Employee self service

Time tracking integration

Benefits management

View All 40 Features

Wage garnishments

Multiple pay rates

Payroll reports

Mobile access

Employee onboarding

Pto tracking

Compliance management

Customizable pay schedules

Contractor payments

Tip reporting

Overtime calculation

Year end reporting

Workers' compensation

Customer support

Attendance management

Document management

Employee self service management

Expense management

Mobile support

Payroll management

Performance management

Recruitment management

Reimbursement management

Time & attendance management

Employee data base

Pay slip

Leave management

Data security

Salary adjustment

Workflow management

Mis reports

On boarding

Pf/esis calculation

Salary information & history

Square Payroll Pricing Plans

Contractor-only

$6 /per person paid per month (no base fee)

No monthly base fee, $6 per contractor paid
Unlimited pay runs per month
Automatic payroll tax calculations
Digital W2/1099 delivery
Cash App, direct deposit, and check payouts
Verified at squareup.com/us/en/payroll/pricing on 2026-06-11

POPULAR

Full-service

$35 /per month plus $6 per person paid

$35 monthly base plus $6 per employee
Automated federal and state tax filings
Auto payroll, off-cycle payments, multistate payroll
2-day and 4-day direct deposit, next-day for eligible accounts
Square Team App, multiple pay rates, benefit deductions

Square Payroll Resources

Square Payroll Screenshots

Square Payroll Payroll Service Homepage Screenshot

Square Payroll Payroll Processing Screen Screenshot

Square Payroll Payroll Confirmation Screenshot

Square Payroll Direct Deposit Setup Screenshot

Square Payroll Payment Notification Screenshot

Description

Square Payroll Field Guide

Best fit for	US small businesses (1-50 employees) already using Square Point of Sale or Square ecosystem needing payroll with federal/state/local tax filings, hourly and salaried processing, contractor 1099, benefits administration, workers comp, time tracking integration, and direct deposit
Industries	US small businesses across restaurants, retail, services, hospitality, food trucks, salons, fitness studios, professional services, and other Square POS-anchored small business sectors
Core capability	Full-service US payroll with federal/state/local tax filings (W-2, W-3, 1099 forms), hourly and salaried employee processing, contractor 1099 payments, benefits administration (health insurance via SimplyInsured, 401k retirement plans), workers compensation, time tracking with Square POS clock-in integration, direct deposit, paid time off (PTO) tracking, tip and gratuity handling for restaurants, multi-state payroll, mobile apps via Square ecosystem
Pricing	Square Payroll pricing: $35 base fee per month plus $6 per employee/contractor per month. Contractors-only plan available at $6 per contractor per month with no base fee. Visit squareup.com/us/en/payroll for current rates.
Differentiator	Square Payroll positions on tight integration with Square Point of Sale ecosystem. Where general payroll vendors require manual hour entry, Square Payroll auto-syncs hours from Square POS clock-in.
Headquarters	Square Payroll is operated by Block, Inc (Square) headquartered in Oakland, California, USA. Block is publicly traded on NYSE (NYSE: XYZ) serving US small businesses with the Square ecosystem.
Customers	Used by US small businesses across restaurants, retail, services, hospitality, food trucks, salons, fitness studios, and professional services already running Square Point of Sale.
Mobile	Native iOS and Android Square mobile apps with payroll plus POS plus team management.

Where Square Payroll Wins

Tight Square POS integration. Auto-syncs hours from Square clock-in.

Affordable transparent pricing. $35 base plus $6 per person.

Tip and gratuity handling. Restaurant tip pooling built-in.

Contractors-only plan. $6 per contractor with no base for 1099-only businesses.

US tax filings included. Federal, state, local handled by Square.

Block Inc NYSE stability. Publicly traded parent.

Where Square Payroll Falls Short

Square ecosystem dependency. Strongest value for Square POS customers.

SMB design center. Designed for 1-50 employees.

US-only. Optimized for US payroll.

Who Should Use Square Payroll?

Square Payroll is the right call when a US small business (1-50 employees) already using Square Point of Sale or planning Square ecosystem adoption needs payroll with federal/state/local tax filings, hourly and salaried processing, contractor 1099, benefits administration, workers comp, time tracking integration with Square POS, tip and gratuity handling, and direct deposit at transparent pricing ($35 base plus $6 per person).

Square Payroll is the wrong call for businesses not using Square POS (evaluate OnPay or Gusto), for mid-market and enterprise (evaluate Paylocity), and for personal task management.

Square Payroll Alternatives

OnPay - US SMB payroll with flat pricing.

Gusto - SMB payroll and HR.

QuickBooks Payroll - Payroll integrated with QuickBooks.

Paychex Flex - SMB-to-mid-market payroll.

ADP - Enterprise payroll and HR.

Homebase - Scheduling plus payroll for SMB.

Justworks - Modern PEO.

What Reddit and LinkedIn Reviewers Say

Discussions on r/restaurateur and r/smallbusiness position Square Payroll among US SMB payroll options alongside Gusto and OnPay.

LinkedIn discussions among US restaurant and retail owners highlight Square Payroll POS integration.

Final Take on Square Payroll

Adjacent reading: Square Payroll buyers also evaluate OnPay and HR software tools for broader category context.

Implementation considerations: US SMB on Square POS deploys Square Payroll in 1-2 weeks via Square ecosystem.

Buyer evaluation tips: Add Square Payroll to existing Square POS at squareup.com/us/en/payroll. $35 base + $6/person.

Verified on 2026-06-10 by the SaaSRat Editorial Team. Vendor facts cross-checked against squareup.com and current 2026 vendor disclosures. About our methodology.

Frequently Asked Questions

How much does Square Payroll cost in 2026?

Square Payroll offers two tiers: Pay Employees and Contractors at $35 per month base + $6 per person per month (W-2 employees and 1099 contractors), or Contractor Only at $6 per contractor per month with no monthly base (1099 only). Vendor-verified on squareup.com/payroll/pricing.

What is the difference between Square Payroll tiers?

Pay Employees and Contractors covers full-service payroll for W-2 employees and 1099 contractors with $35 monthly base. Contractor Only is contractor-only payroll at $6 per contractor per month with no base, ideal for businesses paying only 1099 contractors.

Does Square Payroll integrate with Square POS?

Yes. Square Payroll natively integrates with Square POS for tip data, Square Team for scheduling and time tracking, and Square Banking for instant deposits. The Square ecosystem advantage is the primary reason existing Square customers choose Square Payroll over alternatives.

How does Square Payroll compare to Gusto?

Gusto is stronger on standalone payroll, HR, and benefits depth. Square Payroll is stronger for businesses already using Square POS for the integrated tip handling, scheduling, and banking workflows.

Is Square Payroll good for restaurants?

Yes. Square Payroll is purpose-built for tip-heavy operations with native Square POS tip integration, automatic tip calculations, and restaurant-specific tax handling. Restaurants already using Square POS for orders and payments benefit most from the integrated payroll workflow.

Does Square Payroll handle multi-state payroll?

Yes. Square Payroll covers all 50 US states plus DC, including federal, state, and local tax filing. Multi-state employers benefit from a single platform handling tax registrations, filings, and compliance across jurisdictions.

Is Square Payroll available outside the United States?

No. Square Payroll is US-only with native 50-state payroll. Businesses needing native multi-country payroll for international employees should evaluate Deel, Remote, or Dayforce instead.

How long does Square Payroll implementation take?

Existing Square POS or Square Team customers can add payroll in days since employee data already exists in the Square ecosystem. Standalone payroll-only customers typically launch within 1 to 2 weeks using the guided self-service onboarding wizard.

Does Square Payroll include benefits?

Yes. Square Payroll Benefits offers medical, dental, vision, retirement through Square partner brokers (AP Intego and others). Workers compensation is available pay-as-you-go through AP Intego with rates calculated from actual payroll data.

Is Square Payroll SOC 2 compliant?

Yes. Square Payroll operates under Block Inc (NYSE: SQ) which maintains SOC 2 Type II certification and is recognized by the IRS as a payroll service provider. Compliance documentation is available to clients during procurement.