Square Payroll Pricing: Plans, Costs, and Features for 2026

Square Payroll pricing starts at $35 per month, plus $6 per person, for businesses with W-2 employees. Businesses that pay only independent contractors pay $6 per contractor paid each month, with no monthly base subscription.

Both options include unlimited payroll runs, direct deposit, digital tax forms, payroll reports, and access to Square’s payroll support resources. The full-service plan also includes supported federal and state payroll tax payments and filings, new-hire reporting when requested during employee setup, benefit deductions, and multi-jurisdiction payroll support.

Square’s straightforward pricing makes its core payroll subscription relatively easy to budget for. Buyers should still account for expenses such as paper tax forms, health insurance premiums, workers’ compensation, retirement plan administration, tax amendments, and other separately priced services.

This guide explains how much Square Payroll costs, what each plan includes, which services may incur extra charges, and how Square’s pricing compares with Gusto's.

Square Payroll pricing overview

Square offers two payroll options: Full-Service Payroll for businesses with employees and Contractor-Only Payroll for businesses that pay only 1099 contractors.

These are Square’s published standard prices, not third-party estimates. Square charges the per-person amount only for workers paid during the month.

Full-Service Payroll: $35 plus $6 per person

The Full-Service Payroll plan costs $35 per month, plus $6 per person paid during that month.

It supports hourly, salaried, and custom payments for W-2 employees and 1099 contractors. The subscription includes unlimited payroll runs, automatic payroll for eligible accounts, direct deposit, employee self-onboarding, payroll reports, support for federal and state payroll tax services, federal W-2 and 1099-NEC filing, and new-hire reporting when requested during employee onboarding.

The $35 base subscription remains relevant during months with little payroll activity. Seasonal employers can pause Square Payroll for up to nine months. Square says it will continue filing applicable tax returns during the pause, but employers should not pay workers outside Square Payroll while the account is paused.

Contractor-Only Payroll: $6 per contractor paid

Square’s Contractor-Only Payroll plan has no monthly base fee. Businesses pay $6 for each contractor paid during a given month.

For example, paying five contractors during one month costs $30. A business that does not pay any contractors during a particular month generally does not incur a contractor subscription charge.

The contractor plan includes direct deposit, digital 1099-NECs, split direct deposits, paystubs, Square Team App access, payroll reports, and QuickBooks Online connectivity.

Square does not ordinarily withhold income or payroll taxes from contractor payments because independent contractors generally pay their own taxes. Square electronically files federal Forms 1099-NEC, but businesses should review their state’s separate reporting and filing requirements.

Businesses that begin hiring W-2 employees will need to move to Full-Service Payroll.

Square Payroll cost calculator

Square’s full-service monthly subscription follows this formula:

Monthly cost = $35 base fee + ($6 × number of people paid)

The following examples assume every listed worker is paid during the month.

Assumptions: These examples use Full-Service Payroll’s published $35 monthly base fee and $6 monthly fee per person paid. Annual figures equal the monthly subscription cost multiplied by 12. They exclude insurance premiums, retirement-plan expenses, workers’ compensation, mailed tax forms, tax amendments, payroll taxes, and other optional or pass-through costs.

Square includes unlimited payroll runs, so running weekly rather than monthly payroll does not change the subscription formula. Off-cycle payrolls also do not carry a separate per-run subscription fee.

Contractor-only cost example

A contractor-only business paying five contractors would pay:

5 contractors × $6 = $30 per month

If it paid the same five contractors every month, its annual subscription cost would be approximately $360.

The actual annual cost may be lower when contractors are paid only part of the year because Square charges based on the number of contractors paid.

Additional Square Payroll costs

Square’s advertised subscription does not cover all possible payroll-related expenses. Some services are optional, partner-provided, situation-dependent, or separately priced.

Paper tax forms cost $3 each

Digital W-2 and 1099-NEC preparation and delivery are included. Employers that opt into Square’s paper-mailing service pay $3 for each mailed employee or contractor form.

A business with 10 employees that requests paper W-2 mailing for all 10 would therefore pay an additional $30 for the year.

This is a mailing charge rather than a filing charge. Square includes applicable federal electronic filing and digital tax forms with the payroll service.

Health insurance is available through SimplyInsured.

Eligible Full-Service Payroll customers can offer medical, dental, and vision coverage through Square’s partner, SimplyInsured.

Employer contributions and employee deductions sync with payroll, but SimplyInsured—not Square—provides the insurance marketplace and related benefit services.

Availability is limited. Square’s documentation says the service is unavailable in:

• Hawaii

• Minnesota

• North Dakota

• South Dakota

• Vermont

• Washington, D.C.

Square also says participating employers must generally contribute at least 50% of employee premiums.

Square does not publish a single universal health insurance price because premiums depend on location, employee characteristics, plan selection, coverage tier, and other factors.

Square offers 401(k) plans through Vestwell

Square offers retirement plans through Vestwell. Square lists Vestwell’s most popular plan at $125 per month plus $8 per participating employee.

Participants also pay an annual account fee starting at 0.2% of plan assets. Other plan designs, investment costs, and financial-advisor arrangements may result in different fees.

For example, a company with 10 participating employees would pay approximately:

$125 + ($8 × 10) = $205 per month

That example excludes participant account fees and any costs associated with a different plan configuration.

Buyers should also confirm the contribution workflow. Square’s support instructions indicate that employers may need to export contribution details after payroll and upload them to Vestwell, rather than relying on a fully automatic contribution transfer after each run.

Workers’ compensation is quote-based

Square offers pay-as-you-go workers’ compensation through an insurance partner.

Premiums depend on factors such as payroll, state, employee classifications, industry, and claims history. Square does not publish one standard workers’ compensation price, so employers must request a quote.

Tax amendments may carry a separate charge.

Square includes routine supported payroll tax calculations, payments, and filings with Full-Service Payroll. Its tax-amendment program, however, is a paid service.

The amendment team can assist with eligible corrections to certain federal and state quarterly and annual forms, including some W-2 and 1099-NEC corrections. Square provides an estimate based on the forms and complexity involved and does not support every type of amendment.

That distinction matters when comparing providers that advertise tax filing as included. Routine tax filing and later corrections are not necessarily the same service.

What Square Payroll includes

Square Payroll covers more than basic paycheck calculations. Its primary features are concentrated in payroll processing, tax administration, employee payments, timekeeping, and Square’s broader staff-management ecosystem.

Unlimited employee and contractor payroll runs.

Full-Service Payroll lets employers pay W-2 employees and 1099 contractors using hourly, salary, or custom payment amounts.

Businesses can process unlimited payroll runs each month without paying a separate charge for each run. Square also supports off-cycle payments for bonuses, corrections, final paychecks, and other payroll needs.

Contractor payments can be processed from the same full-service account. Businesses that employ only contractors can use the separate plan without the $35 base subscription.

Automatic payroll

Eligible employers can schedule recurring payroll to run each pay period automatically. This feature is most useful when compensation, deductions, and hours are predictable.

Employers should still review timecards, bonuses, commissions, tips, leave, benefit changes, and one-time deductions before relying on an automatic schedule.

Direct deposit and faster-payment options

Square supports standard direct deposit and several faster-funding or wage-access arrangements. The available timing depends on account eligibility, funding method, employee participation, and state rules.

Qualifying businesses may submit payroll up to 2 business days before payday. Businesses using eligible Square funding arrangements may receive a later submission deadline.

Eligible employees using Cash App may receive qualifying payroll deposits more quickly. Some workers may also be able to access wages early through a supported debit card for a fee equal to 1.75% of net pay.

Businesses should use the submission timing displayed in their own Square accounts rather than assuming that every account or employee qualifies for the fastest advertised option.

Employee onboarding and self-service

Employers can invite workers to enter their personal information, tax-withholding elections, and direct deposit details.

Employees can use the Square Team App to review estimated earnings and pay stubs and, when the employer enables the relevant features, clock in and out.

Square describes this as employee self-onboarding. Its payroll materials do not present the product as a full talent-management or customizable onboarding-workflow platform.

Square Shifts access

Square Payroll subscribers receive access to free Square Shifts features, including:

• Timecards

• Shift scheduling

• Tip tracking

• Time imports into payroll

• Scheduling for more than five team members

Businesses can import timecards and tips from Square POS or the Square Team App into payroll. This is particularly useful for hourly teams in restaurants, retail, personal services, and other businesses already recording work through Square.

Square POS is not required. A business can subscribe to Square Payroll without using Square to process customer payments.

Payroll reports

Square provides downloadable payroll and tax reports rather than limiting employers to individual paystub views.

Available report categories include:

• Paycheck details

• Employee totals

• Company totals

• Paystubs

• Bank-withdrawal summaries

• Federal and state tax filings

• W-2s and 1099s

• Payroll data separated by work address

Square allows employers to select certain report types, date ranges, and employees. That should not be confused with an unrestricted analytics platform that can combine any HR field or build arbitrary dashboards.

Square also provides labor-cost reporting that can include wages and tips.

QuickBooks Online integration

Square Payroll can sync payroll accounting data with QuickBooks Online.

Employers can map Square Payroll categories to corresponding QuickBooks accounts and choose automatic or manual syncing.

Current Square Payroll documentation confirms QuickBooks Online. Businesses using Xero or another accounting platform should verify the available export or integration method before purchasing.

Payroll tax filing and compliance support

Full-Service Payroll includes automatic calculations, withholding, payments, and filings for supported federal and state payroll taxes.

Square describes itself as an IRS-certified reporting agent and may require reporting-agent authorization and state power-of-attorney documentation during setup.

Federal and state payroll tax services

Square calculates and withholds federal payroll taxes and uses payroll withdrawals to remit applicable amounts. It also handles supported state income-tax and unemployment-tax payments and filings.

Exact responsibilities vary by jurisdiction. Employers should review Square’s state-specific documentation because certain state or local registrations, payments, notices, or filings may remain their responsibility.

Multi-state and local payroll support

Square supports payroll tax calculations and filings across all 50 states and the District of Columbia.

Employers can add business and employee work locations in different state and local tax jurisdictions. However, Square documents several important limitations.

It does not support:

• One employee working in multiple tax jurisdictions

• Courtesy withholding

• Multiple EINs within one Square Payroll account

• Certain location changes involving the same EIN

Businesses with mobile employees, workers who split time among jurisdictions, multiple legal entities, or complex local tax arrangements should confirm that Square supports their specific setup.

W-2s, 1099s, and new-hire reporting

Square generates and files federal W-2s and 1099-NECs for the prior tax year.

Digital forms are included, while optional paper mailing costs $3 per form. Employers paying contractors should check whether their state imposes additional filing requirements beyond Square’s federal 1099-NEC service.

Full-Service Payroll also includes new-hire reporting when the employer requests it during employee addition.

Square Payroll tax guarantee

Square states that when an erroneous or late Square Payroll filing causes a penalty, it will correct the filing and pay the associated penalty.

The guarantee should not be interpreted as covering inaccurate employer-provided information, unsupported filings, missed setup deadlines, payroll processed outside Square, or errors that occurred before the employer joined Square.

Businesses remain responsible for supplying accurate tax IDs, rates, employee information, prior payroll records, and authorization documents.

Square Payroll limitations and purchasing considerations

Square Payroll’s limitations are more specific than a simple “payroll only” description suggests.

The platform includes timekeeping, scheduling, payroll reports, benefit deductions, and access to partner-provided services. It nevertheless remains a payroll-first product rather than a full HR, talent, or benefits-administration suite.

Benefits depend partly on outside partners.

Square’s marketed partner offerings focus primarily on:

• Medical, dental, and vision coverage through SimplyInsured

• 401(k) plans through Vestwell

• Workers’ compensation through an insurance partner

Square Payroll can also calculate and track deductions and employer contributions for certain existing benefits, including:

• Health insurance

• Health savings accounts

• Health flexible spending accounts

• Dependent-care flexible spending accounts

• Several retirement-plan categories

That payroll support does not mean Square provides, brokers, or administers every underlying benefit.

Employers seeking commuter benefits, life insurance, disability insurance, COBRA administration, bring-your-own-broker administration, or a broader tax-advantaged benefits catalog should verify each requirement individually.

HR and talent functionality is narrower than Gusto’s upper tiers

Square Payroll’s documented feature set emphasizes:

• Payroll

• Tax filing

• Employee self-onboarding

• Timecards and scheduling

• Tips and commissions

• PTO and sick-leave policies

• Benefit deductions

• Payroll reports

Square’s payroll pages do not describe a comparable tiered HR suite with certified HR-advisor access, applicant tracking, employee surveys, dedicated service advisors, or a broad performance and compensation platform.

A growing company seeking those functions may need additional Square products, third-party software, or a broader HR and payroll provider.

Some employers are not supported.

Square Payroll is designed for businesses filing Form 941 or Form 944. It does not support household employees or agricultural employees.

Businesses with specialized worker classifications, industry-specific tax filings, multiple EINs, or workers crossing multiple tax jurisdictions should review Square’s eligibility requirements before setup.

Faster payroll is conditional.

Two-day payroll is limited to qualifying businesses. Next-business-day payroll may require an eligible Square funding arrangement.

Instant or early wage access may depend on Cash App, a supported debit card, state availability, account eligibility, and employee choice.

Businesses should build payroll schedules around the timing shown in their own accounts rather than assuming the fastest option will be available immediately.

Square works without Square POS, but the integration is a major advantage

Businesses do not have to process payments through Square or use Square POS to subscribe to Square Payroll.

Nevertheless, some of the product’s most distinctive operational benefits appear when a business already uses Square to record employee hours, schedules, tips, commissions, and other staff information.

A business outside the Square ecosystem may still find the published price attractive. Still, it should compare Square’s accounting integrations, HR scope, benefits options, and support model with those of standalone payroll platforms.

Square Payroll pricing vs. Gusto pricing

Square uses one full-service employer payroll subscription, while Gusto offers several tiered payroll plans.

Pricing assumptions: The 10-person examples use each provider’s published base and person fees. They exclude benefits premiums, retirement expenses, workers’ compensation, HR add-ons, faster-payment fees, and other optional services.

Square has the lower core payroll subscription price

For 10 people, Square Full-Service Payroll costs $95 per month, compared with $109 for Gusto Simple.

Because both plans charge $6 per person, Square remains $14 less per month at equal headcounts.

Square also supports multiple tax jurisdictions through its single full-service subscription, subject to documented limitations. Gusto positions Simple as a single-state plan and reserves multi-state payroll for Plus and Premium.

Businesses primarily concerned with payroll, Square timecards, tips, scheduling, and a relatively low recurring subscription may find Square’s structure more economical.

Gusto offers more HR and benefit options

Gusto’s higher-priced plans extend beyond core payroll.

Gusto Plus includes multi-state payroll, time tracking, and performance-management features. Premium adds a dedicated service advisor, certified HR experts, performance and compensation tools, custom reporting, priority support, and migration assistance.

Gusto also publishes a broader menu of optional HR and benefits services, including:

• Health-insurance brokerage

• Existing-broker integration

• Workers’ compensation

• Life and disability insurance

• HSAs

• Health and dependent-care FSAs

• Commuter benefits

• Retirement-plan integrations

Some services carry separate administration, participant, premium, or insurance costs. Buyers should not assume every listed benefit is included in a Gusto base subscription.

The fairest comparison is the total cost of the payroll, benefits, time, HR, and support configuration a business actually needs.

Square has the lower ongoing contractor-only price

Square charges $6 per contractor paid and has no base subscription.

Gusto’s Contractor Only plan normally costs $35 per month plus $6 per contractor. Gusto has advertised a limited promotion that reduces the base subscription to $0 for the first six months, but that offer should not be treated as the permanent rate.

Based on the standard published prices, Square has the lower ongoing subscription cost for a contractor-only business.

Is Square Payroll worth the cost?

Square Payroll may be worth its cost for businesses that need payroll and tax administration without purchasing a larger HR platform.

Square Payroll may be a good fit when:

• You already use Square timecards, scheduling, tips, commissions, or POS data.

• You pay both W-2 employees and 1099 contractors.

• You want unlimited payroll runs without separate per-run fees.

• You operate in more than one state but do not have individual employees working across multiple jurisdictions.

• Your HR requirements center on employee records, self-onboarding, timekeeping, scheduling, PTO, and payroll deductions.

• You want a contractor-only plan without an ongoing base fee.

• You prefer one published full-service payroll price rather than several tiers.

Another provider may be more suitable when:

• You employ household or agricultural workers.

• Individual employees regularly work in several tax jurisdictions.

• You operate multiple legal entities or EINs.

• You need applicant tracking, extensive onboarding workflows, employee surveys, compensation planning, or access to a certified HR advisor.

• You require a wide range of benefits administered through a single platform.

• You need an accounting integration other than QuickBooks Online.

• You want a dedicated account advisor included with the payroll subscription.

• Your reporting, compliance, benefits, or talent-management needs exceed Square’s documented scope.

The final decision should account for the full cost of payroll, benefits, retirement, time tools, HR services, accounting connections, insurance, and support—not only the advertised base fee.

Who Square Payroll is best for

Square Payroll’s pricing and feature structure may be most favorable for small businesses with relatively straightforward U.S. payroll, especially those already using Square’s workforce tools.

Restaurants, cafés, and food-service businesses

Restaurants can import timecards, tips, commissions, and scheduling information from Square tools.

That can reduce duplicate data entry between day-to-day operations and payroll. Businesses with employees working across several local tax jurisdictions should still review Square’s limitations carefully.

Retail and personal-service businesses

Retail stores, salons, barbershops, fitness businesses, repair services, and appointment-based companies may benefit from connecting employee hours and tips with an existing Square account.

The payroll subscription remains separate from other paid Square services.

Small contractor-only businesses

At $6 per contractor paid and with no base subscription, Square is particularly competitive for businesses that pay a small number of domestic contractors irregularly.

Businesses planning to hire W-2 employees should budget for the $35 full-service base fee once they change plans.

Small employers with payroll-first needs

Square may also work for businesses that do not use Square POS but want published pricing, unlimited payroll runs, tax filing, timecards, scheduling, payroll reports, and access to optional partner benefits.

Companies building a more formal HR department or talent-management program may eventually need additional software or a broader platform.

Frequently asked questions

How much does Square Payroll cost per month?

Square Full-Service Payroll costs $35 per month, plus $6 per person paid. Contractor-Only Payroll costs $6 per paid contractor and has no monthly base subscription fee. Optional benefits, retirement plans, workers’ compensation, mailed tax forms, tax amendments, and insurance premiums can increase the total.

How much does Square Payroll cost for 10 employees?

Square Payroll costs $95 per month for 10 employees: a $35 monthly base fee plus $60 in person fees. That equals $1,140 annually before optional services, insurance premiums, retirement expenses, paper forms, payroll taxes, or other employer costs.

Does Square Payroll charge for every payroll run?

No. Square includes unlimited payroll runs with its subscription. Employers can process ordinary and off-cycle payroll without paying a separate subscription fee for each run.

Does Square Payroll offer a free trial?

Square displays a “Start free trial” prompt on one of its official payroll pages, but its public materials do not clearly establish a standard trial duration or universal eligibility rules. Buyers should review the current offer during signup.

Is Square Payroll cheaper than Gusto?

Square’s full-service base fee is $14 less than Gusto Simple's, and both charge $6 per person. Square costs $95 per month for 10 people, while Gusto Simple costs $109 per month. Gusto offers a broader selection of HR and benefits services, some of which require higher-tier plans or additional fees.

Does Square Payroll file payroll taxes?

Square Full-Service Payroll calculates, withholds, pays, and files supported federal and state payroll taxes. Exact obligations vary by jurisdiction, and employers remain responsible for accurate account information and any registrations, filings, or taxes Square does not support.

Does Square Payroll offer health insurance?

Yes, in eligible locations. Full-service customers can offer medical, dental, and vision insurance through SimplyInsured, with contributions and deductions synced to payroll.

Square says the service is unavailable in Hawaii, Minnesota, North Dakota, South Dakota, Vermont, and Washington, D.C. Participating employers must also generally contribute at least 50% of employee premiums.

Does Square Payroll support 401(k) plans?

Yes. Square offers 401(k) plans through Vestwell.

Square lists Vestwell’s most popular plan at $125 per month plus $8 per participating employee, with an annual participant account fee starting at 0.2% of assets. Other plan configurations may have different fees for plans, participants, investments, or advisory services.

Does Square Payroll support multi-state payroll?

Yes. Square supports payroll tax calculations and filings across all 50 states and Washington, D.C.

It does not support every complex arrangement, including a single employee working across multiple tax jurisdictions or multiple EINs within a single payroll account.

Can I use Square Payroll without Square POS?

Yes. Businesses do not have to process payments through Square or subscribe to another Square service to use Square Payroll.

The connection with Square timecards, tips, scheduling, commissions, and staff tools remains one of the product’s main advantages.

Does Square Payroll integrate with QuickBooks?

Square Payroll has a documented QuickBooks Online integration. Employers can map payroll categories and send accounting entries automatically or manually.

Current official documentation does not confirm a native Xero payroll integration.

Can I cancel Square Payroll at any time?

Square allows authorized account owners to close a Square Payroll account through subscription settings.

Closing the account is irreversible and cannot be used later to pay employees or contractors. Employers should download the required reports, review outstanding payroll and filings, address benefits, and confirm responsibilities for final tax forms before closing the account.

Square’s public instructions should not be interpreted as a guarantee of a prorated refund for a subscription.

How does Square Payroll compare with other payroll providers?

Square combines relatively low published pricing with unlimited payroll runs, tax filing, Square Shifts features, and close connections to Square’s staff tools.

Providers such as Gusto offer broader HR and benefit options. Square may provide better value for businesses focused primarily on payroll and Square-based operations, while companies with expanding HR needs may prefer a broader platform.

Sources

Square publishes its standard payroll rates, so the core pricing is drawn directly from Square's own pages. Partner-provided services (health insurance, retirement, workers' comp) and conditional fees are sourced from Square's pricing and support documentation; partner premiums and plan fees are set by those partners, not Square.

• Square Payroll pricing — $35/mo + $6 per person (full-service); $6 per contractor paid (contractor-only); $3 per mailed paper W-2/1099; unlimited runs; tax filings included

• Square Payroll product page — multi-state filing (all 50 states + D.C.), faster-payment options, Square Shifts/Team App timecard integration, tax-filing scope, cancel-anytime

• For the partner-service figures, cite Square's support documentation for SimplyInsured (health insurance availability and 50% employer-contribution requirement), Vestwell 401(k) ($125/mo + $8 per participating employee; participant account fee from 0.2%), the workers' compensation add-on, the tax-amendment service, and the seasonal-pause and tax-guarantee terms — pull these from squareup.com/help so each citation points to a live page.

Disclaimer

Pricing is accurate as of June 2026. Square Payroll's published rates are $35 per month plus $6 per person paid for Full-Service Payroll and $6 per contractor paid (no base fee) for Contractor-Only Payroll; the per-person fee applies only to workers paid in a given month. These cover the core payroll subscription only and exclude separately priced or pass-through costs, including paper-form mailing ($3 per form), health insurance through SimplyInsured, Vestwell 401(k) administration and participant fees, pay-as-you-go workers' compensation, tax-amendment services, early wage-access fees, insurance premiums, and employer payroll taxes. Partner services are provided by third parties (SimplyInsured, Vestwell, and Square's insurance partner), not Square, and have their own eligibility rules, availability limits, and pricing. Multi-state support is subject to documented limitations (e.g., no single employee across multiple jurisdictions and no multiple EINs per account). This content is informational only, is not financial, tax, or legal advice, and is not affiliated with or endorsed by Block, Inc. Square® and Square Payroll® are trademarks of Block, Inc. Verify current pricing and terms directly with Square before purchasing.