Square Payroll Review
by Block, Inc.
Square Payroll is full-service and contractor-only payroll from Square, part of Block, Inc. It pays and files federal and state payroll taxes, imports time cards and tips from Square POS, and costs $35 a month plus $6 per person paid.
Best for
- Square POS sellers that import time cards, tips and commissions into payroll
- Small employers that want month-to-month payroll at a published price
- Businesses that pay only 1099 contractors and want no base fee
Not ideal for
- Employers with staff who work in more than one tax jurisdiction
- Owners who want several EINs run from one payroll account
- Buyers who want health insurance and a 401(k) included in the payroll fee
Also listed in
How we evaluated Square Payroll
This review rests on the 26 facts this page shows, each checked against the source listed under “Sources”, most recently on . We did not test the product hands-on: the score uses only those verified facts, as our methodology explains; third-party ratings, where we quote them, never count in the score.
Our verdict
Square Payroll fits small US employers, above all Square POS sellers, that want full-service payroll at a low published price with no contract. It costs $35 a month plus $6 per person paid, and a contractor-only plan costs $6 per contractor paid. Tax filing in every state, unlimited pay runs and time card and tip import are included. It is less suited to employers whose staff work in several tax jurisdictions and to buyers who want benefits inside the payroll fee.
Strengths
Low price, no contract, free setup
Full-service payroll costs $35 a month plus $6 per person paid. At 10 people that is $95 a month at list price. There is no long-term contract, setup is free, and billing starts when you pay your first employee.
Evidence: Contract term: Monthly1
Taxes filed, with a penalty promise
Square calculates, pays and files federal and state payroll taxes, plus W-2 and 1099-NEC forms, in all 50 states and DC. If a Square Payroll error leads to a tax notice, Square covers the penalties and fines.
Evidence: Automatic tax filing: Yes1
Built into Square POS
Time cards, direct tips and commissions from Square POS or the Square Team App import into each pay run.
Evidence
Key features: Unlimited pay runs, Auto payroll and off-cycle payments, Multiple pay rates, commissions and tips, Multi-state payroll, Time card and tip import from Square POS and the Square Team App, Free Square Shifts time cards, scheduling and tip tracking for subscribers, Labor-cost reporting, Free seasonal inactivity, Benefit deductions and post-tax garnishment withholding (you remit garnishment payments), New-hire reporting, Pay by direct deposit, check or Cash App1
Flexible payday timing
Standard payroll is due four business days before payday. Approved accounts can switch to two-day payroll, and with Instant Payments from a Square balance you can run payroll one business day before payday.
Evidence
Direct deposit speed: Next business day with Instant Payments from a Square balance; two-day payroll for approved accounts; four business days as standard3
Contractor-only plan with no base fee
Businesses with no W-2 staff pay $6 per contractor paid each month and no base fee. Square generates and files Form 1099-NEC for them.
Evidence: Contractor payments: Yes4
Weaknesses
Benefits come from partners and cost extra
Health insurance runs through SimplyInsured, the employer pays at least 50% of premiums, and it is not offered in HI, MN, ND, SD, VT or DC. Vestwell's most popular 401(k) plan costs $125 a month plus $8 per participant.
Evidence
Benefits offered: Medical, dental and vision insurance through SimplyInsured (employer pays at least 50% of premiums; not available in HI, MN, ND, SD, VT or DC)5
You send garnishment payments yourself
Square Payroll withholds wage garnishments from each paycheck and leaves the money in your bank account; you pay it to the agency after every payroll.
Evidence: Deductions and garnishments: No6
Limits on multi-jurisdiction payroll
Square does not support one employee who works in more than one tax jurisdiction, courtesy withholding, or several EINs in one payroll account.
Evidence
US states supported: All 50 states and the District of Columbia7
Some services are paid extras
Mailing paper W-2s and 1099s costs $3 per form each year. Fixing past tax forms is a paid add-on, and so is workers' compensation, which comes through a partner.
Evidence
Extra costs: Paper W-2 and 1099 mailing: $3 per mailed form a year, only if you opt in, Tax form amendments: paid service, priced by estimate for each case, Workers' compensation: pay-as-you-go policy from NEXT Insurance, quoted per business, Health insurance (SimplyInsured): premiums, with the employer paying at least 50%; not offered in HI, MN, ND, SD, VT or DC, 401(k) (Vestwell): most popular plan $125 a month + $8 per participating employee; participants pay from 0.2% a year, Early pay to a debit card: 1.75% of net pay, paid by the employee (free with Cash App)1
Weekday specialist hours
Payroll specialists answer Monday to Friday, 6 a.m. to 6 p.m. Pacific time.
Evidence
Support hours: Payroll specialists: Monday to Friday, 6 a.m. to 6 p.m. PT1
Price at a glance
Square Payroll cost at 10 to 100 employees
- Payroll Software: published starting price$35/mo base + $6/employee/mo
| Employees | Payroll Software: published starting price |
|---|---|
| 10 | $95/mo |
| 25 | $185/mo |
| 50 | $335/mo |
| 100 | $635/mo |
The published starting price only: plan tiers, add-ons and other products are quoted on top.
Quick answers
- How much does Square Payroll cost per month?
- Full-service payroll costs $35 a month plus $6 for each person paid that month. Contractor-only payroll costs $6 per contractor paid, with no base fee.Based on Starting base fee: $35/mo1
- What does Square Payroll cost for 10 employees?
- At 10 people paid, full-service payroll costs $95 a month, or $1,140 a year at list price. Benefits, workers' comp and paper forms are extra.Based on Extra costs: Paper W-2 and 1099 mailing: $3 per mailed form a year, only if you opt in, Tax form amendments: paid service, priced by estimate for each case, Workers' compensation: pay-as-you-go policy from NEXT Insurance, quoted per business, Health insurance (SimplyInsured): premiums, with the employer paying at least 50%; not offered in HI, MN, ND, SD, VT or DC, 401(k) (Vestwell): most popular plan $125 a month + $8 per participating employee; participants pay from 0.2% a year, Early pay to a debit card: 1.75% of net pay, paid by the employee (free with Cash App)1
- Does Square Payroll cost less than ADP?
- Square publishes its price: $35 a month plus $6 per person paid. ADP does not publish prices for its RUN payroll packages and quotes each business, so ask ADP for a written quote at your headcount and compare it with Square's list price.Based on Price transparency: Published2
- What extra fees does Square Payroll charge?
- Mailing paper W-2s or 1099s costs $3 per form a year; tax form amendments and workers' compensation are paid add-ons. Health insurance through SimplyInsured and a Vestwell 401(k) are billed by those partners.Based on Extra costs: Paper W-2 and 1099 mailing: $3 per mailed form a year, only if you opt in, Tax form amendments: paid service, priced by estimate for each case, Workers' compensation: pay-as-you-go policy from NEXT Insurance, quoted per business, Health insurance (SimplyInsured): premiums, with the employer paying at least 50%; not offered in HI, MN, ND, SD, VT or DC, 401(k) (Vestwell): most popular plan $125 a month + $8 per participating employee; participants pay from 0.2% a year, Early pay to a debit card: 1.75% of net pay, paid by the employee (free with Cash App)1
Coverage of core payroll software capabilities
Each core capability we evaluate in Payroll Software, checked against Square Payroll’s own documentation. “Not verified yet” means we have not confirmed it either way, not that it is missing.
7 verified of 12 core capabilities
Payroll Software
- Gross-to-net calculation · not verified yet
- Payroll tax filing4
- Overtime and regular rate · not verified yet
- Multi-state payroll1
- Deductions and garnishments6
- Off-cycle runs1
- Direct deposit and pay options8
- Time and benefits integration9
- Accounting and GL export4
- Reports and audit trail · not verified yet
- Employee self-service · not verified yet
- Year-end forms4
Specifications
Square Payroll integrations
Native integrations
Partner and marketplace apps
Named by the vendor
- Square POS
- Square Team App
Square Payroll integration coverage
The 10 apps that payroll software products document most often, and whether Square Payroll documents each.
2 of the 10 most-connected apps documented by Square Payroll; median of the 23 products compared: 3
- QuickBooks · documented by 15 of 23
- Checkr · documented by 7 of 23
- Vestwell · documented by 7 of 23
- Sage Intacct · documented by 6 of 23
- Xero · documented by 6 of 23
- Employee Navigator · documented by 5 of 23
- Indeed · documented by 5 of 23
- Okta · documented by 5 of 23
- Clover · documented by 4 of 23
- Deputy · documented by 4 of 23
Integrations each vendor documents (native, marketplace, Zapier, API or named by the vendor), 23 live payroll software products. Not documented does not mean not possible.
Where it ranks
- #4 of 15 scoredPayroll Software
- #4 of 10 scoredPayroll Services
- #3 of 10 scoredPayroll Services for Small Business
- #7 of 12 scoredPayroll Software for QuickBooks
- #4 of 14 scoredPayroll Software for Small Business
Square Payroll alternatives
Patriot Payroll83% similar
SurePayroll75% similar
Gusto70% similar
Wave Payroll67% similar
Paychex Flex60% similar
QuickBooks Payroll60% similar
Compare Square Payroll
Security and compliance
Implementation and support
About Block, Inc.
Official profiles
Square Payroll: frequently asked questions
Is Square Payroll good for small businesses?
It fits small employers, especially Square POS users. It files federal and state payroll taxes in all 50 states and DC and includes unlimited pay runs.
What is Square Payroll used for?
Square Payroll is a payroll software product built for small businesses. Its modules include Payroll, Contractor payments, Time tracking, Scheduling, Health insurance and 401 through partners, and Workers' compensation through a partner.
Is Square Payroll legit?
Square Payroll is sold by Block, Inc., which was founded in 2009, is headquartered in Oakland, California, US, and is publicly traded. Block, Inc. states SOC 2 Type II compliance.
What are the best alternatives to Square Payroll?
In our payroll software ranking, the highest-scored products other than Square Payroll are Patriot Payroll, QuickBooks Payroll, and Gusto. Compared side by side, by reason to switch: Square Payroll alternatives.
Which is better, Square Payroll or ADP RUN Powered by ADP?
Our Square Payroll vs ADP RUN Powered by ADP comparison sets out when each one fits.
What are the pros and cons of Square Payroll?
Strengths documented on the vendor’s own pages: low price, no contract, free setup, taxes filed, with a penalty promise, and built into Square POS. It is less suited to employers with staff who work in more than one tax jurisdiction and owners who want several EINs run from one payroll account.
What does Square Payroll integrate with?
Documented examples include QuickBooks Online, Square, Vestwell, SimplyInsured, and 3 more. Every documented connection: Square Payroll integrations.
Is Square Payroll secure?
Square Payroll states a SOC 2 Type II report and ISO 27001 certification.
Does Square Payroll have a mobile app?
Yes. Square Payroll lists mobile apps: Square Team App.
How this page was made
What it is built from
26 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
Passed our independent review on Nov 12, 2026. How we review
Hands-on testing
We have not tested Square Payroll 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
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Square PayrollLeadChange Score 7.7
Sources
The 15 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
- Square squareup.com/us/en/payroll/pricing“For full-service payroll, the cost is $35 per month, plus $6 per person paid per month. For contractor-only payroll, the cost is $6 per person paid per month.” “No commitment, no long-term contracts required”
- 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.”
- Square squareup.com/help/us/en/article/6917-square-payroll-pay-your-team-faster-using-your-square-balance“You can also choose to hold on to your funds longer and run payroll as little as one business day prior to your employees’ pay date.”
- Square squareup.com/us/en/payroll“Square Payroll for Contractors will generate, prepare, and file Form 1099-NEC online for you.”
- Square squareup.com/help/us/en/article/6561-payroll-health-insurance-benefits“Square Payroll partners with SimplyInsured to allow employers to offer medical, dental, and vision insurance to their employees. … The company must contribute at least 50% of the premium. … SimplyInsured is currently available in all states except Hawaii, Minnesota, North Dakota, South Dakota, Vermont, and the District of Columbia.”
- Block squareup.com/help/us/en/article/6063-square-payroll-post-tax-deductions-and-garnishments
- Square squareup.com/help/us/en/article/7624-paying-employees-in-different-tax-jurisdictions“Square Payroll supports payroll tax calculations and filings across all 50 states and the District of Columbia.”
- Block squareup.com/help/us/en/article/6456-two-day-payroll
- Block squareup.com/us/en/payroll/retirement-benefits
- Square trust.squareup.com“SOC 2 Type II” “ISO 27001:2022”
- Square squareup.com/us/en/compare/square-vs-gusto“Square’s all-inclusive flat pricing starts at $35 a month plus $6 for every additional person paid – and you don’t start paying until you pay your first employee.”
- 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)”
- Square squareup.com/us/en/legal/general/privacy“your Square entity is Block, Inc., 1955 Broadway, Suite 600, Oakland, CA 94612, United States.”
- Square squareup.com/help/us/en/article/5683-square-payroll-federal-tax-filings“If you receive a notice from a tax agency due to an error made by Square Payroll, we will cover any associated penalties and fines.”
- Square squareup.com/help/us/en/article/6299-sync-square-payroll-with-quickbooks-online“You can save time and simplify your bookkeeping by syncing Square Payroll account data with Intuit QuickBooks Online.”