Square Payroll — Independent Software Review

Run payroll, pay taxes, and stay compliant

Compliance Transparency Index

Grade: D — Score: 20/100

Best For

• Businesses already using Square POS and wanting payroll tied to timecards and tips.
• Teams that need automated payroll tax filings and year-end forms.
• Employers with multiple locations or multiple state payroll needs.
• Businesses that pay contractors and want a lower-cost contractor-only option.

Not Ideal For

• Buyers who need a published free trial before purchase.
• Organizations that need every pricing component and add-on amount published in advance.
• Teams that do not want to use Square's dashboard workflow.
• Businesses that need a payroll product outside Square's payment and business suite.

Operational Overview

Pricing Structure

Full-service payroll: $35/mo + $6 monthly fee per person paid

• Unlimited pay runs per month
• Employee and contractor payroll
• Automated tax filings and payments

Contractor-only payroll: $6/mo per person paid

• Generate, prepare, and file Form 1099-NEC online
• Contractor payroll only
• Runs from the Square Dashboard

Alternative Consideration

Consider switching to Gusto: Square provides a resource comparing Square Payroll vs. Gusto.

Frequently Asked Questions

Can Square Payroll run unlimited pay runs for Square Payroll customers each month?

Yes. The reviewed Square Payroll pages say you get unlimited pay runs per month. The same pages also say you can make no commitment and cancel anytime.

Does Square Payroll let Square Payroll users import timecards and tips from Square POS?

Yes. Square Payroll is integrated with Square POS, and the vendor says you can import timecards and tips before processing payroll. Square also says payroll is managed in the Payroll section of the online Square Dashboard.

Does Square Payroll file payroll taxes for Square Payroll customers?

Yes. Square Payroll says it helps with filing taxes and staying ahead of compliance, and the product details state that it handles federal and state tax filings and payments. The reviewed pages also say year-end W-2 and 1099-NEC filing is automated at no additional charge.

Can Square Payroll support Square Payroll businesses with employees in multiple states?

Yes. Square Payroll documents support for locations spanning multiple states and localities, with tax calculations handled by the platform. It also notes that you can add home work locations so unemployment tax is handled for the employee's home state.

What payment methods does Square Payroll support for Square Payroll runs?

Square Payroll supports direct deposit, manual check, and Cash App payments. The product pages also mention faster payroll options, including Two-Day Payroll and Instant Payments when you use a Square balance.

Can Square Payroll customers use QuickBooks Online with Square Payroll?

Yes. Square Payroll says bookkeeping can be easier by syncing data automatically with QuickBooks Online. The reviewed feature set also lists QuickBooks Online syncing as an optional bookkeeping add-on.

Is there a contractor-only option in Square Payroll for Square Payroll users who only pay contractors?

Yes. Square Payroll offers a contractor-only payroll plan priced at $6 per month per person paid. The reviewed pricing says that plan is for contractor payroll only and includes generating, preparing, and filing Form 1099-NEC online.

Can Square Payroll users cancel Square Payroll anytime without a long-term contract?

Yes. Square states that there is no commitment and no long-term contract required. The reviewed pages also say you can cancel anytime.