Square Payroll Review 2026

Name: Square Payroll Review 2026
Item: Square Payroll
Rating: 4.2
Author: Krystine Carneiro

On this page13 sections

Ratings and complaints
Square Payroll vs. competitors
Pricing
Step by step
Square Payroll legitimacy and licensing
Square Payroll pricing explained
What Square Payroll includes
Limits to know before you switch
Square Payroll complaints and how to avoid them
Canceling Square Payroll
What customers say
Alternatives
FAQ

Our verdict

Square Payroll fits best if you already run Square POS, because timecards and tips import straight into payroll. It is a legitimate, low-cost payroll service from Square, Inc. (Block), and it's one of the cheapest full-service options with a published price: $35 a month plus $6 per person, with multistate payroll, automated tax filings and no contract. The tradeoffs are thinner HR tools than Gusto or OnPay, health and 401(k) benefits only as add-ons through partners, and phone support limited to weekdays from 6am to 6pm Pacific. Square says it covers tax penalties caused by its own errors, but not ones caused by wrong information you enter.

Your options

Deel Alternative Companies hiring a mix of contractors and employees across several countries that want one platform and one invoice.

Visit site
Paychex Alternative U.S. businesses with roughly 10 to several hundred employees that want one provider for payroll, HR support, benefits and possibly a PEO.

Visit site

Price: Full-service payroll $35 a month plus $6 per person paid; contractor-only $6 per person paid, as listed October 2026¹
Coverage: Payroll tax calculations and filings in all 50 states and the District of Columbia²
Tax filings: Federal and state payroll taxes paid and filed for you, including Form 941 and state unemployment; Square is an IRS-certified reporting agent³
Penalty coverage: If a tax agency sends a notice because of a Square Payroll error, Square says it covers the penalties and fines³
Direct deposit: Four-day standard, two-day by application, next-day available; employees using Cash App can get paid instantly¹
Contract: No commitment or long-term contract; free seasonal inactivity on full-service payroll¹
Support: Payroll specialists by phone weekdays 6am to 6pm PT¹
Extra fees: $3 a year per mailed paper W-2 or 1099; workers' comp, health insurance and 401(k) are add-ons¹

Square Payroll ratings and complaint records

BBB A+ Square, Inc., Oakland, CA (covers all Square products); accredited since April 2021; 3,146 complaints in the last 3 years View source
Trustpilot 3.6 out of 5 Square US overall, 7,499 reviews across all products; 13% one star View source
App Store 4.7 out of 5 Square Team app (used to run payroll and view pay), about 41,000 ratings View source

Pros

$35 base fee is lower than most published full-service plans
Multistate payroll included
Timecards, tips and commissions import from Square POS
No contract and free seasonal pause
Square covers penalties caused by its own filing errors

Cons

Phone support only on weekdays, 6am to 6pm PT
Health, 401(k) and workers' comp cost extra through partners
Can't pay one employee who works in several tax jurisdictions
No support for multiple EINs under one account
Payroll lives inside your Square account, so account problems can affect it

Best for: Restaurants, shops and service businesses already on Square POS that want low-cost payroll with tax filing and no contract.

Skip it if: You need full HR, built-in benefits administration, several EINs under one login, or weekend phone support.

Square Payroll vs. competitors

Square Payroll compared with competitors
Company	Base per month	Per person	Multistate on base plan	Phone support	Next step
Square Payroll	$35	$6	Yes	Weekdays 6am to 6pm PT
Gusto Simple	$49	$6	No, Plus ($80 + $12) adds it		Visit site
OnPay	$49	$6	Yes	Weekdays 9am to 8pm	Visit site
QuickBooks Workforce Payroll	Now QuickBooks Workforce; $50	$7			Read review

Payroll software we reviewed

Square Payroll This review Best for: Restaurants, shops and service businesses already on Square POS that want low-cost payroll with tax filing and no contract.
Deel Best for: Companies hiring a mix of contractors and employees across several countries that want one platform and one invoice.

Visit site Read review
Paychex Best for: U.S. businesses with roughly 10 to several hundred employees that want one provider for payroll, HR support, benefits and possibly a PEO.

Visit site Read review
Gusto Best for: Small businesses that want to run their own payroll online with taxes filed for them and clear monthly pricing.

Visit site Read review
Patriot Software Best for: Small US businesses with simple payroll that want low published prices and human support.

Visit site Read review
Multiplier Best for: Startups and mid-size companies hiring a handful of full-time employees abroad without setting up local entities.

Visit site Read review
Remote Best for: Startups and mid-size companies hiring a handful to a few hundred people abroad that want published prices and an EOR that owns its local entities.

Visit site Read review
Paycor, Inc. Best for: U.S. businesses of roughly 10 to a few hundred employees that want payroll, HR and reporting in one platform and are willing to manage a structured setup.

Visit site Read review

See all payroll software, ranked

Square Payroll pricing at a glance

Square Payroll plans, as listed October 2026¹

Feature	Full-service payroll	Contractor-only payroll
Base fee	$35 a month	$0
Per person paid	$6 a month	$6 a month
Example: 10 people paid	$95 a month	$60 a month
Unlimited pay runs	Yes	Yes
Federal and state tax filing	Yes	No (tax calculations only)
Multistate payroll	Yes	No
Auto payroll and off-cycle payments	Yes	No
Benefit deductions and garnishments	Yes	No
Health insurance and 401(k)	Add-on	Not included
Workers' compensation	Add-on	Add-on
Mailed paper W-2 or 1099	$3 per form a year	$3 per form a year

Per-person fees count each employee or contractor paid in the month. Square POS plans, hardware and processing are billed separately.

Square Payroll, step by step

Sign up in your Square Dashboard
Add your business details, federal and state tax IDs, and bank account. Square needs to be registered with your state tax agencies to file for you.
Add your team
Employees and contractors onboard themselves, entering W-4 or W-9 details and bank or Cash App info.
Run payroll
Import timecards, tips and commissions from Square POS or the Team app, or enter hours by hand, then submit by 8pm PT on your due date.
Square files taxes
Square pays and files federal and state payroll taxes and delivers W-2s and 1099s digitally at year end.
Pause or cancel
There's no contract. Seasonal businesses can pause at no cost on full-service payroll.

Square Payroll legitimacy and licensing

Yes. Square Payroll is run by Square, Inc., part of Block, Inc., and Square says it’s an IRS-certified reporting agent that pays and files payroll taxes in all 50 states and D.C. The BBB rates Square, Inc. A+ as an accredited business, with 3,146 complaints in three years across all Square products. Payroll-specific complaints are a small share of those; most involve payments and account holds.

Square Payroll pricing explained

is $35 a month plus $6 for each person you pay that month. A business paying 10 people pays $95 a month. Contractor-only payroll drops the base fee and costs $6 per contractor paid, but it doesn’t file payroll taxes for you since contractors handle their own.

Extras: mailed paper W-2s and 1099s cost $3 per form a year, and workers’ comp, health insurance and 401(k) plans are add-ons with their own premiums. For comparison, Gusto Simple and OnPay start at $49 plus $6, and QuickBooks Workforce Payroll at $50 plus $7, as listed October 2026.

Alternative: DeelVisit site Compare all

What Square Payroll includes

Full-service payroll includes unlimited pay runs, auto payroll, off-cycle payments, multiple pay rates, multistate payroll, overtime calculations, labor-cost reports, new-hire reporting and federal and state tax filing. Employees can be paid by check, direct deposit or Cash App, and Cash App users can get paid instantly. Square imports timecards, declared tips and commissions from Square POS and the Team app, which is the main reason Square sellers pick it.

What customers say about Square Payroll

Recurring themes across the review sites and complaint records listed above, not individual quotes.

Common praise

Easy setup, especially for current Square sellers
Timecard and tip import from Square POS
Low, published price with no contract
Employees can get paid instantly through Cash App

Common complaints

Support that is hard to reach outside weekday hours
Fewer HR and benefits tools than payroll-first providers
Square account holds or closures that also disrupt payroll
Tax notice cleanup when setup information was wrong

Limits to know before you switch

Square’s help center says payroll can’t pay one employee who works in more than one tax jurisdiction, can’t handle multiple EINs under one payroll account, and can’t close a location in one jurisdiction and open in another under the same EIN. You also need to register with each state tax agency yourself before Square can file there. If your federal filing frequency in Square doesn’t match what the IRS assigned, you’re responsible for penalties if you fix it after the IRS deadline.

Square Payroll complaints and how to avoid them

Reviews of Square overall mention hard-to-reach support and account holds. For payroll, the risk is that an issue with your Square account can delay payroll debits or deposits. Run payroll early, before the 8pm PT cutoff on your due date, keep enough in the funding account to cover net pay and taxes, and double check tax IDs and filing frequencies at setup, since Square’s penalty coverage applies to its errors, not to bad data you entered.

Canceling Square Payroll

Square lists no commitment and no long-term contract. Before you leave mid-year, ask Square which quarterly and annual filings it will complete, download your payroll reports, and give your new provider year-to-date totals so W-2s are correct.

Alternative: DeelVisit site Compare all

Alternatives to Square Payroll

OnPay Read review

Similar price with longer support hours and HR add-ons, and it isn't tied to a payments account.

Visit site
Gusto Read review

Better if you want built-in benefits, HR tools and a larger app ecosystem and can pay more.

Visit site
Quickbooks Payroll

Makes sense if your books are already in QuickBooks and you want payroll posted automatically. Intuit renamed QuickBooks Payroll to QuickBooks Workforce in May 2026.

Read review
Do it yourself with IRS EFTPS

With one or two employees in a simple state, you can calculate withholding with IRS Publication 15-T and pay through the free EFTPS system, though you carry all filing risk.

See all payroll software, ranked

Next steps

Alternative Deel Visit site

Alternative Paychex Visit site

Alternative Gusto Visit site

Square Payroll reviews

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Frequently asked questions

How much does Square Payroll cost?

$35 a month plus $6 per person paid for full-service payroll, or $6 per person paid for contractor-only payroll, as listed October 2026. Mailed paper W-2s and 1099s cost $3 per form.

Do I need Square POS to use Square Payroll?

You run Square Payroll from a Square account and Dashboard, but you don't have to process payments with Square. Square POS users get the most from it, because timecards and tips import automatically.

Does Square Payroll file taxes?

Yes on full-service payroll. Square calculates, pays and files federal and state payroll taxes, including state unemployment where applicable, and delivers W-2s and 1099s.

Is Square Payroll available in every state?

Square says it supports payroll tax calculations and filings in all 50 states and the District of Columbia. It doesn't support paying a single employee across multiple tax jurisdictions.

What if Square makes a tax mistake?

Square says that if a tax agency sends a notice because of an error by Square Payroll, it will cover the penalties and fines. Penalties from incorrect information you provided are your responsibility.

How long does direct deposit take with Square Payroll?

Standard processing takes four business days, with two-day processing available by application and next-day deposit listed on full-service payroll. Team members who use Cash App can receive pay instantly.

Does Square Payroll offer benefits?

It handles benefit deductions and employer contributions, and offers health insurance and 401(k) plans as add-ons through partners such as SimplyInsured and Guideline.

Is Square Payroll cheaper than Gusto?

On base price, yes: $35 plus $6 per person versus $49 plus $6 on Gusto Simple, and Square includes multistate payroll. Gusto offers more HR and benefits tools.

Can I pay contractors only?

Yes. Contractor-only payroll costs $6 per contractor paid each month with no base fee, and Square delivers 1099s at year end.

What are Square Payroll's support hours?

Payroll specialist support is available Monday to Friday, 6am to 6pm Pacific. Setup help is included on both plans.

Sources (8)

Facts on this page come from company websites, government agencies and regulators, checked on the dates shown. Editorial standards

Square: Payroll pricing (accessed October 13, 2026)
Square Support: Paying employees in different tax jurisdictions (accessed October 13, 2026)
Square Support: Square Payroll guarantee and federal tax payments (accessed October 13, 2026)
Square Support: Run payroll for W-2 employees (accessed October 13, 2026)
BBB: Square, Inc. profile (accessed October 13, 2026)
Trustpilot: Square US reviews (accessed October 13, 2026)
Apple App Store: Square Team (accessed October 13, 2026)
IRS: Publication 15-T, Federal Income Tax Withholding Methods (accessed October 13, 2026)

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