Square Payroll review

Square Payroll is the shortest path to compliant payroll for a business already running on Square. Full-service payroll costs $35 per month plus $6 per person paid, with unlimited pay runs and no long-term contract, and Square automates federal and state tax filings and payments at no additional charge. The tie to Square POS is the main reason to choose it: direct tips and timecards import from the register, commission rates are tracked across your team and employees with several pay rates are handled. You can set up locations across states, including remote employees' home states for unemployment tax. Two-day payroll is standard, and instant payments let you run payroll one day before payday using funds in your Square balance. Contractor-only payroll costs $6 per person paid and files Form 1099-NEC. Benefits are less developed than on HR-first platforms, and mailing paper W-2s or 1099s costs $3 per form.

Who it is for

Restaurants, shops and service businesses that already take payments with Square.

Price

Full-service $35 per month plus $6 per person paid; contractor-only $6 per person paid.

For full-service payroll, the cost is $35 per month, plus $6 per person paid per month.
Quoted from the vendor pricing page on November 6, 2026.

Key features

• Federal and state tax filings and payments at no added charge
• Unlimited pay runs with no long-term contract
• Tips and timecards imported from Square POS
• Multi-state locations, including remote employees' home states
• Two-day payroll, or one day ahead using your Square balance

Strengths and weaknesses

• Strength: Low base fee with no contract
• Strength: Tips and commissions flow from POS into payroll
• Strength: Contractor-only option costs $6 per person paid
• Weakness: Benefits options are thinner than Gusto or Rippling
• Weakness: Mailed paper W-2s and 1099s cost $3 per form
• Weakness: Best fit only if you already run Square

Key facts

• Starting price: $35 per month plus $6 per person paid
• Contractor-only payroll: $6 per person paid per month
• Payroll timing: Two business days ahead, or one day with Square balance
• Accounting sync: QuickBooks Online integration
• Contract: None

Where it ranks

Square Payroll is No. 5 in our Best Payroll Software verdict.