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.
- Company size
- Small businesses
- Pricing model
- Base fee + per employee
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
- Household employers and farms: household and agricultural employees are not supported
- Employers with staff who work in more than one tax jurisdiction
- Owners who want several EINs run from one payroll account
How we evaluated Square Payroll
This review rests on 24 facts checked against Square Payroll’s official pricing pages and documentation, most recently on . We did not test the product hands-on: the score and the pros and cons use only those verified facts, as our methodology explains, and third-party ratings are quoted, never scored.
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 household or farm employers, staff who work in several tax jurisdictions, and 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: Monthly
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: Yes
Built into Square POS
Time cards, direct tips and commissions from Square POS or the Square Team App import into each pay run. Subscribers also get free Square Shifts time cards and scheduling. Square POS is not required to use the payroll.
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, New-hire reporting, Pay by direct deposit, check or Cash App
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 standard
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: Yes
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: 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)
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 Columbia
Not for every employer type
Square Payroll is only for businesses that file Form 941 or Form 944. It does not support household or agricultural employees.
Evidence: Best for: Small businesses
Some services are paid extras
Mailing paper W-2s and 1099s costs $3 per form each year. Fixing past tax forms is a paid service quoted per case, and workers' comp is a separate policy from NEXT Insurance.
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)
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. PT
Price at a glance
Starting base fee
$35/mo
Starting price per employee
$6/employee/mo
Pricing model
Base fee + per employee
Price transparency
Published
Contract term
Monthly
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/mo
- 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)
- 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: Published
- What extra fees does Square Payroll charge?
- Mailing paper W-2s or 1099s costs $3 per form a year. Tax form amendments are quoted per case. Health insurance, a Vestwell 401(k) and NEXT workers' comp are billed by those partners. Employees who take early pay to a debit card pay 1.75% of net pay.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)
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.
3 verified of 12 core capabilities
Payroll Software
- Gross-to-net calculation · not verified yet
- Payroll tax filing
- Overtime and regular rate · not verified yet
- Multi-state payroll · not verified yet
- Deductions and garnishments · not verified yet
- Off-cycle runs · not verified yet
- Direct deposit and pay options · not verified yet
- Time and benefits integration
- Accounting and GL export
- Reports and audit trail · not verified yet
- Employee self-service · not verified yet
- Year-end forms · not verified yet
Specifications
Fit
- US states supported
- All 50 states and the District of Columbia
Product
- Modules
- Payroll, Contractor payments, Time tracking, Scheduling, Health insurance and 401(k) through partners, Workers' compensation through a partner
- Mobile apps
- Square Team App
Square Payroll integrations
Native integrations
Square Payroll integration coverage
The 10 apps that payroll software products document most often, and whether Square Payroll documents each.
1 of the 10 most-connected apps documented by Square Payroll; median of the 19 products compared: 3
- QuickBooks · documented by 11 of 19
- Checkr · documented by 6 of 19
- Vestwell · documented by 6 of 19
- Employee Navigator · documented by 5 of 19
- Xero · documented by 5 of 19
- Clover · documented by 4 of 19
- Deputy · documented by 4 of 19
- Greenhouse · documented by 4 of 19
- Indeed · documented by 4 of 19
- Okta · documented by 4 of 19
Integrations each vendor documents (native, marketplace, Zapier or API), 19 live payroll software products. Not documented does not mean not possible.
Where it ranks
- #4 of 10 scoredPayroll Services
- #3 of 10 scoredPayroll Services for Small Business
Square Payroll alternatives
Gusto70% similar
Compare Square Payroll
Security and compliance
- SOC 2 Type IIYes
- ISO 27001Yes
Implementation and support
- Implementation fee
- None
- Support channels
- Phone, chat
- Support hours
- Payroll specialists: Monday to Friday, 6 a.m. to 6 p.m. PT
About Block, Inc.
- Founded
- 2009
- Headquarters
- Oakland, California, US
- Ownership
- Publicly traded
- Parent company
- Block, Inc.
Official profiles
Frequently asked questions
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 that it holds a current SOC 2 Type II report.
Is Square Payroll good for small businesses?
It fits small employers that file Form 941 or 944, especially Square POS users. It files federal and state payroll taxes in all 50 states and DC and includes unlimited pay runs. Household and agricultural employers are not supported.
Do I need Square POS to use Square Payroll?
No. Square does not require you to process payments or use other Square services. POS users can import time cards, tips and commissions into payroll, and it syncs with QuickBooks Online.
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, and 2 more.
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?
It depends on the team. Choose Square Payroll if: you sell with Square POS: time cards and tips import into payroll. Choose ADP RUN Powered by ADP if: you want payroll support by phone or chat 24/7. The full comparison: Square Payroll vs ADP RUN Powered by ADP.
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 household employers and farms: household and agricultural employees are not supported and employers with staff who work in more than one tax jurisdiction.
What does Square Payroll integrate with?
Square Payroll documents integrations, including Square POS, Square Team App, and QuickBooks Online. 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.
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