Productivity & Business · Finance, Billing & Accounting

Square Payroll

Square Payroll is Square's payroll service for US small businesses: full-service at $35 a month plus $6 per person paid, or contractor-only at $6 per person.

Our take: Square Payroll sells one full-service plan at $35 a month plus $6 per person paid, with multistate payroll, auto payroll and federal and state tax filing included, and a contractor-only option at $6 per person paid.

Best forSmall teams using Square

ReviewedOct 2026Paid

7.15 criteria · see breakdown

Try Square$35/mo + $6/person paid; $6/person for contractors

Square Payroll is Square's payroll service for US small businesses. Full-service payroll costs $35 a month plus $6 a month per person paid, and contractor-only payroll costs $6 a month per person paid, with no long-term contract. It requires a Square account and is only for businesses that file Form 941 or Form 944.

The bottom line

A straightforward base-plus-per-person payroll service, best for small businesses that already use Square; check the eligibility limits and add-on costs first.

Our score

Reviewed by the Conversion Gems editorial team. Hover a facet to focus it; click to pin.Tap a facet to focus it.

What it is, and why we rate it

One line each. Open a row for detail.

What it really isA payroll service from Square with a flat monthly base fee plus a per-person fee, for employees and contractors.

Our takeSquare Payroll sells one full-service plan at $35 a month plus $6 per person paid, with multistate payroll, auto payroll and federal and state tax filing included, and a contractor-only option at $6 per person paid.

The price is easy to read, but it comes with conditions: it needs a Square account, supports only businesses that file Form 941 or 944, and lists health insurance, 401(k), workers' compensation and paid amendment services as add-ons.

Why we rate itSquare publishes both prices on one page with a plan grid that says what each plan includes, and its help center states the eligibility rules and limits.

The catchA Square account is required, Square Payroll is only for businesses that file Form 941 or 944, payroll takes four business days to process until a two-day application is approved (the pricing grid also lists next-day direct deposit, and the pages do not explain how the two fit together), and mailed forms and benefits cost extra.

Best / not good for

Best for

Small businesses that already use Square POS or the Square Team App
Restaurants, retail and home service businesses with hourly staff and tips
Businesses that only pay 1099 contractors and want a per-person price

Not good for

Household or agricultural employers, since Square Payroll is only for businesses that file Form 941 or 944
Employees who work in more than one tax jurisdiction
Businesses that want benefits and workers' compensation included in one price

Trade-offs

Friction report

Trade-offs to know before signing up.

Time to value
The account owner sets it up in a web browser and needs an EIN, state employer tax information and a bank account; manual bank verification takes 1 to 2 business days.
Scale breakpoint
The $6 monthly fee applies to each person paid, so the monthly total rises with headcount.
Walled garden
A Square account is required, though you do not need to use Square payments, and mailed W-2 and 1099 copies carry an annual $3 fee per form.

Still a fit?

If none of these block you, try it on the official site.

Try Square

Square Payroll pricing

Plan	Price	What it covers
Full-service payroll	$35 per month plus $6 per month per person paid	Unlimited pay runs, auto payroll, multistate payroll, and automated federal and state tax payments and filings
Contractor-only payroll	$6 per month per person paid	Contractor payments from the Square Dashboard, digital delivery of 1099s and Form 1099-NEC prepared and filed online

From Square's payroll pricing page and its pricing and features help article, checked 28 October 2026. The page states prices per month and does not say when they are billed. No free plan or free trial is listed, and the page says no commitment or long-term contract is required.

What each Square Payroll plan includes

Feature	Full-service	Contractor-only
Unlimited pay runs per month	Included	Included
Pay by check, direct deposit or Cash App	Included	Included
Auto payroll	Included	Not included
Off-cycle payments	Included	Not included
Multistate payroll	Included	Not included
Multiple pay rates	Included	Not included
Next-day direct deposit	Included	Not included
Timecard import from Square POS or the Square Team App	Included	Included
Direct-tip tracking and importing	Included	Not included
Overtime calculations and labor-cost reporting	Included	Not included
Automated federal and state tax payments and filings	Included	Not included
Digital delivery of W-2s and 1099s	Included	Included
Health insurance and 401(k)	Add-on	Not included
Workers' compensation	Add-on	Add-on
QuickBooks Online integration	Included	Included
Payroll specialist support, Monday to Friday, 6 a.m. to 6 p.m. PT	Included	Included

From the plan grid on Square's payroll pricing page, checked 28 October 2026. Mailed paper copies of W-2s and 1099s carry an annual fee of $3 per form, and the pricing page does not give prices for add-ons.

Eligibility and limits

Item	What Square states
Who it is for	Businesses that file Form 941 or Form 944; household and agricultural employees are not supported
Account	A Square account is required, but you do not need to process payments or use other Square services; only the account owner can set up payroll, from a web browser
Setup details	EIN, state employer tax information, legal business name and address, and a bank account for payroll withdrawals
States	Payroll tax calculations and filings in all 50 states and the District of Columbia; one employee who works in more than one tax jurisdiction is not supported, and neither are multiple EINs under one account
Processing time	Four business days until a two-day payroll application is approved; the pricing grid also lists next-day direct deposit as included on full-service, and the pages checked do not explain how the two fit together

From Square's help center articles on setting up Square Payroll, paying employees in different tax jurisdictions and two-day payroll, and its payroll pricing page, checked 28 October 2026.

Frequently Asked Questions

How much does Square Payroll cost?Is Square Payroll free?What are Square Payroll's fees beyond the monthly price?Do I need a Square account to use Square Payroll?Who can use Square Payroll, and in which states?How does Square Payroll compare with Gusto?

How much does Square Payroll cost?

Full-service payroll is $35 a month plus a $6 monthly fee per person paid, and contractor-only payroll is $6 a month per person paid. On those figures, paying 5 people in a month costs $65 on full-service ($35 + 5 x $6), paying 10 people costs $95 and paying 25 people costs $185, before add-ons; paying 10 people every month for a year comes to $1,140. Paying 5 contractors on the contractor-only plan costs $30 a month. These totals are arithmetic on Square's published figures, not prices Square lists. Square's pricing page lists unlimited pay runs and no long-term contract (checked 28 October 2026).

Is Square Payroll free?

No. Square lists no free plan or free trial on its payroll pricing page (checked 28 October 2026). Full-service costs $35 a month plus $6 per person paid, contractor-only costs $6 per person paid, and Square's payroll page says there is no commitment and you can cancel anytime.

What are Square Payroll's fees beyond the monthly price?

If you opt in to mailed paper copies of W-2s or 1099s, Square charges an annual fee of $3 per mailed form (checked 28 October 2026). Health insurance, 401(k), workers' compensation and paid amendment services are listed as add-ons, and the pricing page does not give their prices. Automated federal and state tax payments and filings are included on the full-service plan.

Do I need a Square account to use Square Payroll?

Yes, you need a Square account, but you do not need to process payments or use other Square services. Only the account owner can set up payroll, from a web browser, and you need your EIN, state employer tax information and a bank account for payroll withdrawals. Once it is set up, payroll is in the Square Dashboard under Staff, then Payroll.

Who can use Square Payroll, and in which states?

Square's help center says payroll tax calculations and filings are supported in all 50 states and the District of Columbia (checked 28 October 2026). Square Payroll is currently only for businesses that file Form 941 or Form 944 and does not support household or agricultural employees. It also cannot pay one employee who works in more than one tax jurisdiction.

How does Square Payroll compare with Gusto?

Based on each company's own pricing page (checked 28 October 2026): Square's full-service plan is $35 a month plus $6 per person paid and lists multistate payroll as included. Gusto's Simple plan is $49 a month plus $6 a month per person and covers basic payroll in one state, while its Plus plan at $80 plus $12 per person adds multi-state payroll. Compare the plan that matches the states you pay in.