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LeadChange Group

Square Payroll vs Gusto

Square Payroll7.7/10

Gusto8.1/10

Scored in Payroll Software

The short answer

Square Payroll costs $35 a month plus $6 per person paid and imports time cards and tips from Square POS and the Square Team App. Gusto’s Simple costs $49 a month plus $6 per person and adds benefits administration, hiring and onboarding and HR tools.

By LeadChange Research TeamUpdated Based on 14 sources, most recently checked

Square Payroll

Starting price
$35/mo + $6/employee/mo1
Best for
Square POS sellers that import time cards, tips and commissions into payroll

Choose Square Payroll if

  • You use Square POS: time cards and tips import into payroll.
  • You close for part of the year: seasonal inactivity is free.
  • You pay only contractors: $6 per contractor a month, no base fee.
  • You pay staff in several states on the entry plan.

Square Payroll pricingSquare Payroll competitors

Gusto

Starting price
$49/mo + $6/employee/mo2
Best for
US small businesses that want payroll tax filing on every plan

Choose Gusto if

  • You want benefits administration and HR in the payroll account.
  • You want 401(k), HSA, FSA and commuter benefits.
  • You use apps such as Xero, Slack or Salesforce: Gusto lists 154 integrations.
  • You want a dedicated account partner (Premium).

What Gusto costsGusto competitors

LeadChange Score: editorial assessment based on public information.

Scorecard

Square Payroll wins 2Gusto wins 21 tie

Square Payroll vs Gusto by dimension
DimensionSquare PayrollGusto
PricingSquare Payroll costs $35 a month plus $6 per person, with multi-state payroll included. Gusto’s Simple costs $49 plus $6 and covers payroll in one state; multi-state payroll starts on Plus at $80 plus $12.$35/mo + $6/employee/mo$49/mo + $6/employee/mo
CapabilitiesBoth run unlimited payrolls with tax filing and pay contractors. Gusto adds benefits administration, hiring and onboarding, HR and money management; Square adds tip import, scheduling and labor-cost reports, with benefits through partners. Unlimited payroll runs, Automatic tax filing, Direct deposits or printable checks, Payroll on AutoPilot, Employee self-onboarding, PTO policies, Time tracking synced to payroll27 of 12 core capabilities11 of 12 core capabilities
IntegrationsGusto lists 154 integrations, including QuickBooks, Xero, Slack and Clover. Square Payroll connects to Square POS, the Square Team App and QuickBooks Online. 15437 documented8 documented (vendor says 154)
Fit and supportBoth are built for small businesses. Square’s payroll specialists answer Monday to Friday, 6 a.m. to 6 p.m. PT; Gusto answers Monday to Friday, 6am to 6pm MST. Small businesses4Small businessesSmall businesses
SecuritySquare Payroll states SOC 2 Type II and ISO 27001. Gusto states HIPAA compliance and supports single sign-on. Yes5SOC 2, ISO 27001SOC 2 (type not stated)

Square Payroll or Gusto: what matters most to you?

We match on verified product facts for this need, never on who pays us.

Key differences

Where Square Payroll and Gusto differ (5)
AttributeSquare PayrollGusto
Mobile appsSquare Team App1iOS (Gusto Mobile), Android (Gusto Mobile)6
Support channelsPhone, chat1Phone, email, chat, online help center, dedicated account partner (Premium)7
Founded2009820129
HeadquartersOakland, California, US10San Francisco, California, US11
OwnershipPublicly traded8Private9
Show 6 attributes where they are the same
Where they are the same (6)
AttributeSquare PayrollGusto
Pricing modelBase fee + per employee1Base fee + per employee2
Price transparencyPublished4Published2
Contract termMonthly1Monthly2
Best forSmall businesses4Small businesses9
Automatic tax filing12
Contractor payments122

Analysis by dimension

Pricing. Square Payroll costs $35 a month plus $6 per person, with multi-state payroll included. Gusto’s Simple costs $49 plus $6 and covers payroll in one state; multi-state payroll starts on Plus at $80 plus $12.

Capabilities. Both run unlimited payrolls with tax filing and pay contractors. Gusto adds benefits administration, hiring and onboarding, HR and money management; Square adds tip import, scheduling and labor-cost reports, with benefits through partners.

Integrations. Gusto lists 154 integrations, including QuickBooks, Xero, Slack and Clover. Square Payroll connects to Square POS, the Square Team App and QuickBooks Online.

Fit and support. Both are built for small businesses. Square’s payroll specialists answer Monday to Friday, 6 a.m. to 6 p.m. PT; Gusto answers Monday to Friday, 6am to 6pm MST.

Security. Square Payroll states SOC 2 Type II and ISO 27001. Gusto states HIPAA compliance and supports single sign-on.

Neither one?

Patriot Payroll

Patriot Payroll has the highest LeadChange Score in Payroll Software after excluding these two (8.7/10).

From $37/mo + $5/employee/mo (Full Service Payroll plan)13

Patriot Payroll review

Frequently asked questions

How much is Square Payroll per month?

Square Payroll costs $35 a month plus $6 per person paid, so 10 employees cost $95 a month; contractor-only payroll costs $6 per contractor with no base fee. Gusto Simple costs $49 plus $6, or $109 for 10 employees.

Is Square good for payroll?

Square Payroll suits businesses that already sell with Square: it imports time cards and tips from Square POS, offers free time cards and scheduling through Square Shifts and lets employees take pay in Cash App. It is less suited to companies that want benefits administration from the payroll vendor: health insurance and 401(k) come through partners.

What are the downsides of Gusto payroll compared with Square?

Next to Square Payroll, Gusto’s base fee is $14 a month higher and Simple covers one state; a team in two states needs Plus, at $80 a month plus $12 per person. Gusto also charges a $100 processing fee if funds are short at the payroll debit deadline.

Do Square Payroll and Gusto pay tax penalties caused by their errors?

Square pays the penalties and fines in a tax notice when a Square Payroll error caused them. Gusto’s payroll terms cover penalties that arise from its own late filing or remittance, but not those caused by inaccurate or incomplete payroll data.

How fast is direct deposit with Square Payroll and Gusto?

Square pays the next business day with Instant Payments from a Square balance, in two days for approved accounts and in four business days as standard. With Gusto, new accounts pay in four days, then in two once 15 days pass with a successful debit; Plus and Premium include next-day pay.

Do Square Payroll and Gusto include health insurance?

Square offers health insurance through SimplyInsured, with the employer paying at least 50% of premiums, and 401(k) through Vestwell from $125 a month plus $8 per participant. Gusto offers health, dental, vision, life and disability plans, 401(k), HSA, FSA and commuter benefits in its own account.

Is Square Payroll cheaper than Gusto?

Yes, at list price: for 25 employees Square Payroll comes to $185 a month and Gusto to $199 on their lowest published plans, before add-ons. Square Payroll pricing lists every plan.

Who are Square Payroll’s biggest competitors?

Square Payroll ranks #4 of 15 in our payroll software ranking. Besides Gusto, the highest-scored are Patriot Payroll, QuickBooks Payroll, and OnPay. Every alternative, matched to the reason you might switch: Square Payroll alternatives.

How this page was made

  • What it is built from

    39 verified facts, each checked against the vendor's own pages or another primary source, most recently on Nov 12, 2026.

  • Method

    Scored and compared with the LeadChange methodology, version 1.5. Read the methodology

  • Independent review

    Not reviewed yet by our independent reviewer. How we review

  • Hands-on testing

    We have not tested either product hands-on: this page uses public information only.

  • Who made it

    The LeadChange Research Team, following a written research process. No named expert has reviewed this page. About us

  • Independence and errors

    Who pays us never changes a score or a rank. If something here is wrong, tell us and we correct it publicly. Request a correction

Square Payroll or Gusto? Your answer in 3 questions

Your team size, what matters most and your role: see which one fits more of your answers, from verified facts and list prices.

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Square Payroll vs Gusto

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Sources

The 14 pages this page's facts come from. The date beside each is our last check of the facts taken from it (the oldest, when they differ). The numbers beside the figures above link here.

Quotes from the sources
  1. Square squareup.com/us/en/payroll/pricing“For full-service payroll, the cost is $35 per month, plus $6 per person paid per month.” “Manage your team and run payroll anytime, from anywhere, with the Square Team App.”
  2. Gusto gusto.com/product/pricing“Simple Run basic payroll in one state. $49/mo + $6/mo per person” “Unlimited payrolls per month Tax filings and payments Basic PTO policies and holiday pay”
  3. Gusto gusto.com/product/integrations“Showing 1–20 of 154”
  4. Square squareup.com/us/en/payroll/small-business“Square full-service payroll and team management solutions were designed with small businesses in mind.” “Transparent pricing with no hidden fees or long-term commitments.”
  5. Square trust.squareup.com“SOC 2 Type II” “ISO 27001:2022”
  6. Gusto Payroll (Gusto)“Yes, you can run payroll, check payroll status, add and view team members and manage your team all from the Gusto mobile app. Download the iOS app here and the Google Play app here.”
  7. Gusto gusto.com/about/contact“Our sales and support teams at Gusto are available to help you via phone, email, and chat Monday through Friday 6am – 6pm MST. For expedited support, sign in to your Gusto account.”
  8. Block, Inc. investors.block.xyz/resources/investor-faqs/default.aspx“Block, Inc. was incorporated in June 2009 in Delaware.” “You’ll find our stock under the symbol XYZ on the New York Stock Exchange (NYSE)”
  9. Gusto gusto.com/about“Launched in 2012 as ZenPayroll, Gusto serves more than 500,000 businesses nationwide.” “We’re proud to have support from General Catalyst, T. Rowe, Capital G, and other prominent investors.”
  10. Square squareup.com/us/en/legal/general/privacy“your Square entity is Block, Inc., 1955 Broadway, Suite 600, Oakland, CA 94612, United States.”
  11. Gusto gusto.com/about/privacy“Gusto, Inc. Attn: Legal Privacy 525 20th Street San Francisco, CA 94107”
  12. Square squareup.com/us/en/payroll“Square Payroll for Contractors will generate, prepare, and file Form 1099-NEC online for you.”
  13. Patriot Software patriotsoftware.com/pricing“Basic Payroll is $17/month + $4 per worker paid; Full Service Payroll is $37/month + $5 per worker paid.”
  14. Gusto gusto.com/security“We follow HIPAA guidelines to safeguard our customers’ protected health information (PHI). Additionally, we maintain business associate agreements (BAAs) between employers and Gusto, along with any third parties, like insurance companies.”

What the LeadChange Score means

A 0–10 editorial assessment built only from verified facts, across six weighted dimensions: capabilities, pricing, integrations, security, fit and support, and data confidence.

Payments, commissions and lead fees are never inputs.