Square is a provider of payroll as well as point-of-sale (POS) systems, invoicing services, customer relationship management (CRM) tools and other business technologies. Square caters to a variety of business types, including restaurants, retail establishments, salons and professional service firms.
Square sells two payroll plans: a full-service option with a monthly flat rate of $35, plus an additional $6 per employee per month, and a contractor-only option that’s $6 per month per contractor on the payroll. This pricing is in line with many other payroll options geared toward small and medium-sized businesses (SMBs).
Square
- Trial Period:
- N/A
- Time Tracking:
- Add-on
- Tax Filing And Support:
- X
- Benefits Administration:
- X
Businesses that want to integrate payroll with Square’s other products
Contractor-only firms
Businesses with tipped employees
Companies looking for extensive HR tools with their payroll
Employers wanting to avoid paying extra for benefits
Customers who want a free trial
Square
- Trial Period: N/A
- Time Tracking: Add-on
- Tax Filing And Support: X
- Benefits Administration: X
Businesses that want to integrate payroll with Square’s other products
Contractor-only firms
Businesses with tipped employees
Companies looking for extensive HR tools with their payroll
Employers wanting to avoid paying extra for benefits
Customers who want a free trial
Square’s contractor-only payroll plan doesn’t carry a flat rate but charges $6 per month per person on the payroll. It’s designed for businesses that work entirely with contractors and covers basic payroll needs.
The more robust full-service option can suit businesses needing to pay both 1099 and W-2 workers. This plan costs $35 per month in addition to the $6 monthly charge per employee.
Contractor-Only
- Unlimited payroll runs each month
- Payment via check, direct deposits or Cash App, with the option to split direct deposits between more than one bank account
- Employer and employee access to Square Team app
- Self-onboarding for employees
- Importing of timecards
- Automatic payroll tax calculations for multiple jurisdictions
- Digital 1099s
- Digital pay stubs
- Reporting on payroll, including custom reports
- Access to customer support, including live support during account setup
- Ability to integrate with QuickBooks Online
Full-Service
- Automatic payroll runs
- Off-cycle payments
- Payroll in multiple states
- Multiple pay rates
- Two-day, four-day and next-day direct deposits
- Tracking and importing of tips given to employees
- Overtime calculations
- Reports on labor costs
- Automated filing of federal and state payroll taxes
- Digital W-2s and 1099s
- Alerts on federal and state compliance updates
- Reporting on new hires
- Benefits, post-tax and garnishment deductions from employee paychecks
- Employee health insurance and retirement benefit add-ons
Certain add-ons are also available with both plans like workers’ compensation insurance and an amendment service to correct errors on submitted tax forms. Health insurance and 401(k) benefit plans are only available as add-ons with the Full-Service plan.
Either Square plan covers the basics of payroll and offers enough flexibility to adapt to different business types. Certain extra features beyond payroll, like tax preparation and benefits administration, may only be available with the Full-Service tier or as a paid add-on.
There is no limit to the number of times employers can run Square payroll every month, whether you have the full-service or contractor-only plan. Square also gives you the flexibility to pay a salary, hourly rate, or custom amounts and to send payments via direct deposit, check or Cash App.
The Square App allows employers to run payroll from any location. Under the full-service plan, it’s also possible to set up automatic payments.
Both the Contractor-Only and Full-Service plans can automatically calculate payroll taxes, though only the Full-Service option handles actual filing for you. Square files both federal and state payroll taxes in every jurisdiction where you pay employees.
Square’s Full-Service payroll calculates employee benefits deductions and contributions. If you want to offer employees benefits like health insurance plans, workers’ compensation and 401(k) funds through Square’s partner providers, you can purchase these as add-ons to your payroll plan.
The Square Team app allows employees to import timecards or clock in and out to calculate hours worked when processing payroll. Square’s full-service payroll can also factor in overtime pay and direct tips. Additionally, Square offers a scheduling software – Square Shifts – that integrates with its payroll.
Square’s online customer support center can direct you to articles, videos, and guides covering a range of topics and frequently asked questions. For more personalized support, you can use the web chat feature, email the Square team (expect a response within 24 to 48 hours), or call Square Support on Monday through Friday between 6 a.m. and 6 p.m. PST. Square’s Seller Community page also allows you to connect with other customers for help and advice.
Square partners with an HR management platform called Mineral, which provides its Full-Service payroll subscribers with a limited range of HR features. The HR Experts tool from Mineral connects employers with expert advisors, supplies templates for HR and hiring documents and sends compliance alerts on changing employment laws.
Launching your Square payroll starts by signing up online. The process includes:
1. Open a Square account. Hit the “Get started” button on the Square payroll page. On the following page, create your Square account by entering your email address and password and agreeing to the terms, privacy policy and e-sign consent. If you already have a Square account, you can just sign in.
2. Enter business information. Square will prompt you to answer a series of questions about your business, including its name, the business type (e.g., LLC, corporation, nonprofit), address, number of employees, types of workers (salaried workers, contractors or both), current payroll system and when you wish to start running payroll.
3. Finalize the account and set up two-step verification. Square will ask for the best phone number to reach you and how you’d like to receive two-step verification codes for secure logins.
4. Provide payment details. You can start your Square subscription by entering your credit or debit card information. If you want to cancel, you can do so on the Pricing and Subscriptions page of the Square Dashboard.
Company | Monthly Fee | Direct Deposit | W2 | 1099 | Tax Services | HR Add-Ons | Learn More |
|---|---|---|---|---|---|---|---|
$39 per month + $5 per employee $39 per month + $5 per employee | X X | ||||||
$50 per month + $6 per employee $50 per month + $6 per employee | X X | ||||||
Custom pricing Custom pricing | X X | ||||||
Custom pricing Custom pricing | X X | ||||||
$49 per month + $6 per employee $49 per month + $6 per employee | X X |
Square vs. Gusto
Gusto sells three full-service plans and, unlike many competitors, includes brokered health insurance with all of them. If you’re looking for a payroll plan with employee health benefits built into it, you may be a good candidate for Gusto, since Square’s sole full-service plan requires you to pay extra for this feature.
Like Square, Gusto also offers a contractor-only option.
But whereas Square only charges for each contractor on the payroll, Gusto’s version carries a monthly base rate of $35 in addition to $6 per person paid per month. This could make Square a more budget-friendly option for firms that need to only pay contractors.
Square vs. Intuit QuickBooks
Like Square, Intuit QuickBooks might not be known primarily for its payroll services. Given the popularity of its accounting software, QuickBooks Online, it could make an ideal choice if you want a solution that seamlessly merges payroll and accounting. At the same time, Square offers convenient integrations between payroll and its other business tools, namely its POS system.
QuickBooks only offers full-service plans, starting at $50 a month plus $6 per person per month, making it pricier than Square’s $35 monthly rate and $6 per person per month fee. That said, QuickBooks is known to offer steep, limited-time discounts. Neither Square nor QuickBooks includes health insurance or benefits in any package, so you’ll have to purchase these as add-ons from either provider. QuickBooks’ HR features are a bit more robust, though, in its higher-tier plans.
QuickBooks doesn’t have a contractor-only plan, which could make Square a better choice for organizations that don’t need to pay full-time employees.
Square can be a convenient option for SMBs that already rely on the company’s other services, like its POS system, and want to link it with their payroll. Meanwhile, Square’s ability to track and import tips can be helpful for businesses in industries that involve tipping, like restaurants.
Square is also straightforward and user-friendly, supporting most payroll-related and time-tracking functions in its mobile app, Square Team. However, employers hoping to avoid extra costs for employee benefits with their payroll package could be better served by a different provider.
Square has a mobile app called Square Team. It’s available on Apple iOS and Android devices and accessible to employers, employees, and contractors.
Yes, Square integrates with QuickBooks. You can even use the Square by Commerce Sync app to automatically send your Square payment processing data to QuickBooks Online.
Square protects personal information by encrypting all customer information, complying with PCI regulations, using industry-standard best practices for security, and monitoring servers around the clock.
Square offers customer support via web chat, phone, and email. You can access the chat either through the Square website’s support center or in the app. The phone line is available on weekdays from 6 a.m. to 6 p.m. PST. You can also support Square’s online support center and community forum for information, instructions, and other helpful resources.
Square doesn’t claim responsibility for legal and/or tax compliance, according to its terms of agreement. The platform helps in filing taxes and can send compliance alerts as part of its Full Service plan. But it’s ultimately up to users to provide the correct information and follow up to ensure compliance with tax, federal, state, wage, and hour laws.
Square doesn't specify an exact schedule for updating its payroll software. However, Square releases software updates for its POS systems like Register, Terminal, and Handheld every two weeks, so you might expect somewhat regular updates to its payroll product as well.
