Prices, features, advantages and disadvantages

If your business already uses the Square app ecosystem for payments, point of sale, or time tracking, you may be wondering if Square Payroll is the right choice for you. Square Payroll is a simple and affordable payroll platform that may be sufficient for many small businesses, but it also lacks the scalability and advanced features that larger businesses need. In this review, I look at the pricing and features of Square Payroll and investigate the pros and cons to help you decide if it's the right choice for your business.

Square Payroll Pricing

Square Payroll offers two simple, transparent pricing plans: one to pay employees and contractors, and another to pay contractors only. Add-ons are also available for an undisclosed price. There is no trial version available to try beforehand, which I definitely consider a drawback.

Full Service Payroll

This plan costs $35 per month plus $6 per employee per month. With this plan, you can pay both employees and contractors. It offers many more features than the Contractor Only plan, including automatic payroll, multi-state payroll, and multiple pay rates. This plan also offers overnight, two-day, and four-day direct deposit, plus additional tools for time tracking, scheduling, taxes, and compliance.

Payroll for contractors only

This plan has no base rate and costs $6 per contractor per month. It offers very limited features compared to the full-service payroll plan. It supports unlimited payments per month, so you don't have to worry about additional fees. It also lets you pay contractors via check, direct deposit, or Cash App. With this plan, you can import your team's timecards from other Square products, but it doesn't offer any native tools for time tracking or scheduling.

Optional add-ons

Square Payroll offers optional add-ons for an undisclosed price. Some of these features are included in the full-service payroll plan, although they can be added to the contractor-only payroll plan; Other features are add-ons only for both plans. These are some of the plugins:

• Workers' compensation.
• Paid modification services.
• Direct access to certified human resources experts.
• Employee manual creator.
• Health insurance administration.
• 401(k) retirement benefits.

Square Payroll Key Features

Payroll for employees

Both Square Payroll plans get unlimited payroll runs, so you won't be charged a fee each time you run payroll. The full-service payroll plan supports automatic payroll (Figure A), so you can schedule it to run at a predetermined time if you won't be at your desk. Both plans allow you to pay employees by check, direct deposit, or Cash App, so workers can choose what works best for them.

With the full-service payroll plan, your company can manage payroll in all 50 states (Square does not support international payroll). I appreciate that Square doesn't require you to pay extra to manage payroll in more than one state, unlike some competitors like Gusto that force you to upgrade to a more expensive plan for that option. This plan supports off-cycle payments and multiple pay rates, which is useful if you need to pay different groups of employees at different times.

Full-service payroll offers not only two- and four-day direct deposits, but also overnight deposits. Not all payroll services offer next-day deposits and some charge an additional fee for urgency, so it's good to have this option in case you need to pay employees quickly.

Tax and compliance

Both Square Payroll pricing plans include automatic payroll tax calculations and digital delivery of W2 and 1099 forms; Submitting paper copies costs $3 per mailed form. The full-service payroll plan includes automated federal and state tax payments and filing (Figure B). This plan will issue automatic alerts for compliance with federal and state tax laws. Please note that contractors are responsible for calculating and paying their own taxes, which is why these features are not included in the Contractor Only Plan.

Time and scheduling

Square Payroll offers basic team management features in the Full Service Payroll plan, but its features don't compare to more advanced plans offered by alternatives like Rippling and ADP. With this plan, managers can schedule up to 10 days in advance and sync time cards from other Square products and third-party solutions (Figure C). It also offers direct tip tracking and import, overtime calculations, and labor cost reports.

Benefits Administration

Businesses can apply their existing benefits within the Square Payroll platform to earn taxable benefit deductions and contributions to their employee profiles. If you don't already have a plan, Square has partnered with SimplyInsured so you can offer medical, dental, and vision plans to your employees. Thanks to another partnership, Square Payroll allows you to add the following benefits if you want (Figure D): workers' compensation (Next Insurance), retirement savings (Guideline), and human resources compliance (Bambee).

Integrations

Square Payroll integrates seamlessly with other Square products, such as Square POS and Square Team Management; However, its integrations outside of Square are a bit limited. It integrates with Homebase for scheduling and QuickBooks Online for accounting, but that's about it. If you're looking for a payroll platform that connects with many different apps, I recommend checking out some Square Payroll alternatives like the ones I list at the end of this article.

Advantages of Square Payroll

• Monthly pricing means you're not tied to an annual contract.
• Unlimited payroll runs and automatic payroll option.
• No base rate for contractor-only plan.
• Integrates seamlessly with other Square projects.

Disadvantages of Square Payroll

• There is no free trial available.
• The features are limited compared to those of the alternatives.
• Only two integrations with third-party software.

Alternatives to Square Payroll

in payment

Our star rating: 4.7 out of 5

OnPay's full-service HR and payroll solution offers comparable payroll features with an easy-to-understand pricing model of $40 per month plus $6 per person paid. Additionally, it includes tools and capabilities to automate taxes, payroll, HR processes, and team management without requiring additional fees. Companies can simplify their payroll operations by using OnPay to create custom payroll reports, perform PTO management, and even streamline employee onboarding. OnPay offers a one-month free trial to new users.

Read our full OnPay review to learn more.

Paychex SurePayroll

Our star rating: 4.7 out of 5

Paychex's SurePayroll is another useful option for businesses looking for robust reporting features within their payroll solution. The software simplifies payroll processes while allowing business leaders to obtain valuable reports on various areas of their business operations. These customizable reports allow companies to gain insight into employee data, benefits, and payroll. Additionally, Paychex's SurePayroll automates payroll for ease of use and can be a useful tool to meet the unique needs of specific business environments, such as nonprofits and restaurants. Businesses can visit the SurePayroll by Paychex sales page to get a quote.

Read our full SurePayroll review to learn more.

Enthusiasm

Our star rating: 4.6 out of 5

Gusto is one of the most popular payroll platforms for small and medium-sized businesses, thanks to its highly intuitive interface. Offers multiple pricing plans for scalability, starting at $40 per month + $6 per person paid; However, it limits certain desirable features, such as overnight deposit and multi-state payroll, to more expensive pricing plans. Gusto also offers a contractor-only plan that is the same price as Square. Gusto syncs with nearly 200 third-party platforms, so it offers many more integration options than Square.

Read our full Gusto review to learn more.

Review methodology

To review Square Payroll, I consulted the product documentation and user reviews. I investigated features such as payroll, tax calculations and filing, time tracking, scheduling, benefits administration, and integrations. I also considered factors like pricing plans, user interface design, and customer support.