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Square Payroll Review

Simple payroll from Square, built for small teams and hourly workers

Square Payroll is a straightforward payroll solution built for small businesses, restaurants, retailers, and service companies already using Square for payments and point-of-sale. The platform's deep integration with Square POS automatically imports hours worked from the timeclock, eliminating manual data entry for hourly employees. Payroll runs process in minutes, with automatic calculation of federal, state, and local taxes plus direct deposit or checks. Full-service tax filing handles quarterly and annual returns including W-2s and 1099s, with penalty protection guarantees. Square Payroll supports tipped employees, commission earners, and different pay rates for multiple roles — essential for restaurant and retail operations. The employee app gives workers access to pay stubs, tax documents, and a Square savings account for faster access to wages. Team management features track schedules, availability, and time-off requests within the same platform. The contractor-only plan at $6/contractor is particularly attractive for businesses using exclusively independent contractors, offering the most affordable full-service 1099 payroll available. Benefits integrations cover health insurance through SimplyInsured and 401(k) through Guideline. For businesses already embedded in the Square ecosystem, Payroll's native integration eliminates reconciliation overhead. Standalone users benefit from a clean, approachable interface that requires no prior payroll experience.

5-Dimension Score

5-dimension score radar chartAccuracy4.5Speed4.5Ease of Use5.0Pricing4.0Compliance4.5
Last reviewed May 25, 2026Read our methodology →

Information

  • Websitesquareup.com
  • $35/month + $6/employee/month for W-2 employees; contractor-only plan $6/contractor/month
  • Published date2026/05/25

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