Square Payroll
Affordable full-service payroll for small businesses, especially Square POS users
How it works
Square Payroll is a full-service payroll solution from Block, Inc. (formerly Square). It supports both W-2 employees and 1099 contractors with automatic federal, state, and local tax calculations, filings, and payments. The platform offers unlimited pay runs, next-day direct deposit, multistate payroll support, tip importing, commission tracking, PTO and sick leave management, and automatic W-2 and 1099-NEC preparation and mailing. It integrates deeply with Square POS to automatically import timecards and tips, and offers employee self-onboarding with digital I-9 and W-4. Square Payroll is managed through the Square Team mobile app on iOS and Android. There is no long-term contract and no fee for seasonal inactivity.
Is it right for you?
Consider if you
- Square POS users who want seamless timecard, tip, and commission import into payroll
- Small businesses wanting the most affordable full-service payroll with automatic tax filing
- Restaurants, retail shops, and service businesses with hourly workers and tip reporting
Skip if you
- Businesses needing robust HR tools beyond payroll (no performance reviews, ATS, etc.)
- Companies with complex multi-state payroll configurations or union rules
- Those outside the Square ecosystem who want broad third-party integrations
Your money and data
Square Payroll is part of Block, Inc. (NYSE: SQ), a publicly traded company with comprehensive security infrastructure. Payroll tax payments are calculated, filed, and remitted to federal, state, and local agencies on the employer's behalf. Payroll funds are held in segregated accounts separate from Block's operating accounts. Square is PCI-DSS Level 1 certified (the highest level) for payment processing. The platform uses encryption for all data in transit and at rest and carries insurance bonds required for payroll tax processing.
Pros & Cons
Pros
- Most affordable full-service payroll with automatic tax filing and payments included at no extra cost
- Unlimited pay runs per month with no penalty for pausing (free seasonal inactivity)
- Deep Square POS integration: automatic timecard import, tip tracking, and commission calculation
Cons
- Limited HR add-ons: no performance management, applicant tracking, or learning management
- Basic reporting compared to Gusto or ADP; limited custom report options
- Best value only when used with other Square products; limited third-party integrations
Pricing details
Employees + Contractors: $35/mo base + $6/person paid per month. Contractors Only: $6/person paid per month (no monthly base fee). Includes: unlimited pay runs, direct deposit, all tax filings and payments, W-2 and 1099-NEC prep and mailing, multistate support, employee self-onboarding portal, mobile app access. No setup fees. No long-term contracts. Cancel anytime. Free seasonal inactivity (no penalty for pausing). U.S. only.
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