Square Payroll review

Square Payroll is the natural choice when your staff already clock in on Square POS. Hours and direct tips flow from the POS or the Square Team App into payroll, where overtime is calculated and labor costs are reported alongside wages and tips. Full-service payroll costs $35 a month plus $6 per person paid and includes unlimited pay runs, auto payroll, off-cycle payments, multistate payroll, next-day direct deposit, and automated federal and state tax filings. Staff can choose to be paid into a bank account or Cash App. For businesses that only pay contractors, a separate plan charges $6 per person paid with no base fee, though it drops tax filings and auto payroll. Square also lets seasonal businesses go inactive without paying. Outside the Square ecosystem the advantages shrink: scheduling is basic and HR tools are thin compared with Gusto or OnPay, so it fits counter-service businesses better than offices.

Who it is for

Shops, cafes and salons already using Square POS that pay hourly staff with tips.

Price

Full-service $35 a 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

• Timecard import from Square POS and the Square Team App
• Direct-tip tracking, overtime calculations and labor-cost reporting
• Automated federal and state tax payments and filings
• Pay by check, direct deposit or Cash App, with next-day direct deposit
• Contractor-only plan at $6 per person paid with no base fee

Strengths and weaknesses

• Strength: Lowest base fee among the full-service plans here
• Strength: Contractor-only option suits businesses with no W-2 staff
• Strength: Free seasonal inactivity for businesses that pause
• Weakness: Most useful if you already run Square POS
• Weakness: Scheduling only looks up to 10 days out
• Weakness: Contractor-only plan has no auto payroll or off-cycle payments

Key facts

• Plans: Full-service $35 + $6 per person; contractor-only $6 per person
• Contract: No commitment, no long-term contracts
• Paper W-2/1099 mailing: $3 per mailed form per year
• Multistate payroll: Included on full-service

Where it ranks

Square Payroll is No. 3 in our Best Payroll Software for Small Business verdict.