Software solution

Square Payroll

Payroll that keeps your team, taxes, and timecards moving together

Square Payroll gives a growing U.S. business one place to pay W-2 employees and 1099 contractors, import hours, tips, and commissions from Square tools, and keep federal and state filings on schedule. Full-service payroll fits teams that need tax calculations, direct deposit, checks, multiple pay rates, multistate support, and employee benefits workflows.

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Built for your day-to-day

How it fits your business

Contractor-only payroll keeps the job narrower and charges only for contractors paid. For a bakery, salon, contractor, retailer, or restaurant already using Square timecards, the practical advantage is less rekeying between scheduling, time tracking, and payroll. It is not a universal payroll substitute: eligibility, tax-account setup, payment timing, and state-specific rules still matter.

Key capabilities

What you can do

Import hours, tips, and commissions
Full-service payroll can import timecards and direct tips from Square POS or the Square Team App, and Square Shifts can contribute commission data. That is useful for restaurants tracking pooled or direct tips, salons paying service commissions, and retailers using multiple rates.
Tax filing is part of the full-service plan
Square says it calculates, withholds, remits, and files federal and state payroll taxes for full-service subscribers, including quarterly and annual filings, W-2s, and 1099-NECs. Accurate employer and state tax information is still the business owner's responsibility.
Choose how people are paid
Employees can be paid by direct deposit, manual check, or Cash App. Unlimited pay runs and off-cycle payments are included in full-service payroll; contractor-only payroll supports repeated contractor payments but does not include the full-service payroll features.
Useful for distributed teams
Full-service payroll supports locations across all 50 states and Washington, D.C., when the business supplies the relevant state tax information. Employees working from home can have work locations added for unemployment-tax handling.
Employee benefits can sync with payroll
Health insurance and 401(k) offerings are add-ons through Square's benefits partners, with deductions and contributions flowing into payroll. Instant Deposit is available only to eligible team members and has different economics for Cash App versus a traditional bank account.

Explore the details

Product details

Plans and the real fit

Full-service payroll is the option for W-2 employees, mixed employee-and-contractor teams, automated tax work, multiple pay rates, multistate payroll, direct tips, overtime, and benefits deductions. Contractor-only payroll is designed for paying 1099 contractors and filing their 1099-NEC forms; it omits employee payroll functions such as auto payroll, off-cycle payments, multistate payroll, multiple pay rates, and automated federal or state tax filings. Both plans include digital tax forms, employee self-onboarding, timecard import, and the Square Team App where the pricing comparison marks them included.

Setup, software, and compatibility

Only the Square account owner can set up or run Payroll. Setup uses a web browser and requires an EIN, legal business information, state employer-tax information, a linked bank account, authorized-signer verification, and employee W-4 details. Square Payroll does not require the business to process card payments or use another Square service. The practical software path is Square Dashboard plus the Square Team App, with optional Square Shifts/POS timecards and a QuickBooks Online sync. No dedicated Payroll hardware is required or listed by Square.

Limits to check before switching

Square says Payroll is currently for businesses filing Form 941 or Form 944 and does not support household or agricultural employees. In multistate payroll, it does not support one employee working in multiple tax jurisdictions, courtesy withholding, multiple EINs under one account, or closing one location and opening another under the same EIN. A manually linked bank account may take 1–2 business days to verify, and payroll must be processed by 8 p.m. PT on the due date for direct-deposit recipients. Tax-form amendments are a separate paid service with case-by-case estimates.

Plan details

Pricing, fees & eligibility

Explore pricing

U.S. published pricing checked 2026-10-27: full-service payroll is $35 per month plus $6 per person paid per month; contractor-only payroll is $6 per person paid per month. Both have unlimited pay runs and no long-term commitment according to Square.

Monthly software (USD)$35

Fees & eligibility

Full-service per-person fee
Added to the $35 monthly full-service subscription; the person can be a W-2 employee or contractor covered by the full-service run.
$6 per person paid per month
Contractor-only fee
Applies to the contractor-only plan; no $35 base subscription is shown on Square's published comparison.
$6 per contractor paid per month
Mailed paper W-2/1099 form
Applies only if the business opts to mail paper copies; digital forms are included.
$3 per mailed form annually
Instant Deposit to a traditional bank account
Square's benefits page states this fee for eligible team members using early deposit to a traditional bank account; eligible Cash App access is stated as free.
1.75% of net pay
Payroll Amendment Service
Paid service for eligible corrections; the estimate varies with forms, complexity, and other factors.
Case-by-case estimate; no fixed fee published

Requirements

U.S. business with an EIN and legal business information matching IRS and state records.
Currently files Form 941 or Form 944; household and agricultural employees are not supported.
Linked bank account for payroll withdrawals and tax debits; manual verification can take 1–2 business days.
Account owner setup, authorized-signer verification, employee personal information, and W-4/state withholding details.
For each state or locality, provide the business tax account information required to process payroll there.

This record uses Square's official United States English pages and support articles only; pricing and capabilities were checked on 2026-10-27.

Square's published comparison distinguishes full-service and contractor-only payroll; add-ons such as health insurance, 401(k), workers' compensation, and paid amendments are not included in the base price unless expressly stated.

Faster payroll, Instant Deposit, and some payment methods depend on eligibility, state availability, account setup, and the selected funding source.

Square states that business and employee tax information must be accurate; the business remains responsible for supplying correct data and meeting applicable tax obligations.

No hardware recommendation is made because Square documents Payroll as a Dashboard/Team App service and does not require dedicated payroll hardware.

Square can change pricing, supported jurisdictions, partner benefits, eligibility, and add-on terms; confirm the live plan and state-specific details before purchase.

Questions

Frequently asked questions

Can I use Square Payroll without taking card payments with Square?

Yes. Square's U.S. setup article says the business does not need to process payments or use another Square service to use Square Payroll. You still need the required employer, tax, bank, and employee information.

Which Square Payroll plan should a small team choose?

Choose full-service payroll when you pay W-2 employees or need automated payroll-tax filings, multiple pay rates, multistate support, tips, overtime, or employee deductions. Contractor-only is the narrower option when the people being paid are 1099 contractors and the business wants Square to prepare and file 1099-NEC forms.

Does Square Payroll need a Square Register, Terminal, or other payroll hardware?

No dedicated hardware is required by the official setup and run-payroll documentation. Payroll runs in Square Dashboard or the Square Team App. Square POS and Square Shifts can provide timecards, tips, or commissions, but those are software integrations rather than required payroll devices.

Sources & product information

Information as of 2026-10-27. Product details date: 2026-10-27.

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Talk through the options for your business.

Contact Sales Create Free Account

Payroll that keeps your team, taxes, and timecards moving together

How it fits your business

What you can do

Import hours, tips, and commissions

Tax filing is part of the full-service plan

Choose how people are paid

Useful for distributed teams

Employee benefits can sync with payroll

Product details

Plans and the real fit

Setup, software, and compatibility

Limits to check before switching

Pricing, fees & eligibility

Fees & eligibility

Requirements

Frequently asked questions

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