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Payroll software review

Square Payroll

Square's payroll, billed monthly plus a fee per person paid. It files federal, state and supported local taxes, pays its own filing errors, and imports tips from Square's POS.

By SquareParent company: Block, Inc.

RTC SCORE

7.4

#2 of 22 with enough data

Our verdict

A low-cost, month-to-month payroll for restaurants that already run on Square's POS. If you need tip credit make-up or the 8846 report, look at a restaurant specialist.

What we like

  • Published price ($35 a month plus $6 per person paid), billed month to month, with unlimited pay runs.
  • Square pays penalties caused by its own filing errors, in all 50 states and DC.
  • Card tips and declared cash tips flow in from Square's POS, and employees can get paid early at no cost to you.

What to watch

  • Tips import only from Square's own POS.
  • No documented tip credit make-up and no Form 8846 report.
  • Live support only on weekdays, 6 a.m. to 6 p.m. Pacific.
  • You remit garnishments to the agencies yourself.

How the score breaks down

RTC Score7.4out of 10

Methodology v0.1.0

Data completeness94%

We could verify 94% of the scoring data

Strongest points
12-month payroll cost (reference restaurant), Who files payroll taxes, Published pricing
Weakest point
POS integrations

Score by criterion

  • 12-month payroll cost (reference restaurant)Weight 19%Strongest10.0 out of 10

    $1,500 over 12 months

  • Who files payroll taxesWeight 7%Strongest10.0 out of 10
  • POS integrationsWeight 6%Weakest1.4 out of 10
  • Published pricingWeight 5%Strongest10.0 out of 10
  • Tip credit and minimum wage make-upWeight 5%No data
  • Tips imported from POS systemsWeight 5%1.4 out of 10
  • 2026 W-2 ready for No Tax on TipsWeight 5%0.0 out of 10
  • Initial termWeight 5%10.0 out of 10
  • Live support hours a weekWeight 5%3.6 out of 10
  • Payroll in all 50 statesWeight 4%10.0 out of 10
  • Time trackingWeight 4%10.0 out of 10
  • FICA tip credit (Form 8846)Weight 3%0.0 out of 10
  • Tip pooling and tip-outsWeight 3%6.0 out of 10
  • Early termination feeWeight 3%10.0 out of 10
  • Unlimited pay runsWeight 3%10.0 out of 10
  • Fastest direct deposit includedWeight 3%10.0 out of 10
  • Tax penalty guaranteeWeight 3%10.0 out of 10
  • Year-end W-2 and 1099 formsWeight 2%10.0 out of 10
  • Accounting integrationsWeight 2%10.0 out of 10
  • Notice to avoid renewalWeight 2%10.0 out of 10
  • Garnishments and new-hire reportingWeight 2%10.0 out of 10
  • Declared cash tipsWeight 2%10.0 out of 10
  • State and local minimum wages built inWeight 2%No data
  • Dedicated specialistWeight 2%10.0 out of 10
  • Paying 1099 contractorsWeight 1%10.0 out of 10
  • Early pay for employeesWeight 1%10.0 out of 10

All the data, with sources

Each value links to its source. "Not published" means the vendor doesn't disclose it; "Unconfirmed" means we looked and couldn't confirm it. Data points we have for fewer than four vendors are left out until we can compare them.

Pricing
Data pointValue
Base fee$35/moSource: Square (opens in a new tab)
Per employee$6Source: Square (opens in a new tab)
Who counts as an employeeEach person paid that monthSource: Square (opens in a new tab)You pay per person paid; seasonal inactivity is free.
Per contractor (1099)$6Source: Square (opens in a new tab)There is also a contractor-only plan at $6 per person paid.
Published pricingPublishedSource: Square (opens in a new tab)
Setup fee$0 one-timeSource: Square (opens in a new tab)Square's pricing page lists only the monthly fee, the fee per person paid and the optional paper forms; it shows no setup charge.
Year-end forms fee$0/yrSource: Square (opens in a new tab)W-2 and 1099 forms are filed and delivered digitally at no charge. Paper copies mailed by Square cost $3 per employee or contractor a year, only if you opt in.
Each extra state$0Source: Square Support Center (opens in a new tab)Each state or tax jurisdiction where you run payroll is filed at no additional charge.
Other feesPaper W-2 and 1099 copies mailed by Square: $3 per employee or contractor a year (optional). Employees who take their pay early to a debit card or bank account pay 1.75%; to Cash App it's free.Source: Square (opens in a new tab)
Taxes and forms
Data pointValue
Who files payroll taxesThe provider calculates, files and pays federal, state and local payroll taxesSource: Square Support Center (opens in a new tab)Square files supported local taxes (for example New York City, Yonkers, Ohio and Pennsylvania local agencies, Kansas City and St. Louis). If a local tax isn't supported, you file it and Square gives you a quarterly wage report.
Payroll in all 50 statesYesSource: Square Support Center (opens in a new tab)
Year-end W-2 and 1099 formsW-2 and 1099 prepared and filedSource: Square Support Center (opens in a new tab)Forms it files: 941, 940, 944, 1099-NEC, W-2 and W-3.
Paying 1099 contractorsAlso a contractor-only planSource: Square (opens in a new tab)
Tax penalty guaranteePays penalties caused by its own errorsSource: Square Support Center (opens in a new tab)
Garnishments and new-hire reportingIncludedSource: Square (opens in a new tab)New-hire reports are filed for you. Garnishments are withheld from pay, but you send the money to the agency yourself.
Paying your team
Data pointValue
Pay schedulesWeekly, Every two weeks, Twice a month, MonthlySource: Square Support Center (opens in a new tab)
Unlimited pay runsYesSource: Square (opens in a new tab)
Fastest direct deposit includedNext daySource: Square Support Center (opens in a new tab)Next business day when you fund payroll from your Square balance. Funded from another bank account, deposits take four business days, or two with two-day payroll, which you apply for.
Early pay for employees (earned wage access)Included at no cost to the employerSource: Square (opens in a new tab)On Demand Pay and Instant Deposit: free for employees to Cash App; 1.75% to a debit card or bank account. Instant Deposit isn't available in CA, MA, NJ, NM, NY, PA, VT and WV.
Tips
Data pointValue
Imports tips from these POS systemsSquareSource: Square Support Center (opens in a new tab)Card and cash tips from Square POS, pooled or direct. It leaves out auto-gratuities and contractors' tips.
Tip pooling and tip-outsPaid add-on or higher planSource: Square Support Center (opens in a new tab)With Square Shifts Plus or the Plus and Premium plans.
Tip credit and minimum wage make-upUnconfirmedSource: Square Seller Community (opens in a new tab)Not documented. In 2022 a Square moderator filed automatic tip credit make-up as a feature request; we found no newer Square page that describes it.
FICA tip credit (Form 8846)Not supportedSource: Square Support Center (opens in a new tab)Form 8846 isn't among the forms Square files.
Declared cash tipsYesSource: Square Support Center (opens in a new tab)"Tips Already Paid" and "Paycheck Tips" fields.
2026 W-2 for No Tax on Tips (code TP and tipped occupation code)Not confirmedSource: Square Support Center (opens in a new tab)Square's W-2 article and its No Tax on Tips post (2025 amounts on pay stubs) don't confirm code TP or the tipped occupation code on the 2026 W-2.
2026 W-2 for qualified overtime (code TT)Not confirmedSource: Square Seller Community (Square staff post) (opens in a new tab)Square's post covers how employees find 2025 amounts on their pay stubs; it doesn't confirm codes TT or TP on the 2026 W-2.
Service charges paid as wagesNoSource: Square Support Center (opens in a new tab)Square's tip import does not support auto-gratuity from Square for Restaurants; you add service charges to the pay run yourself.
State and local minimum wages built inUnconfirmedSource: Square (opens in a new tab)Not documented on Square's payroll pages or help articles we read.
Integrations and time tracking
Data pointValue
POS integrations (hours or sales data)SquareSource: Square (opens in a new tab)
Time trackingIncludedSource: Square Support Center (opens in a new tab)Timecards come from Square POS or the Square Team app (free Square Shifts).
SchedulingIncludedSource: Square (opens in a new tab)
Accounting integrationsQuickBooks OnlineSource: Square Support Center (opens in a new tab)
Payroll engineThe vendor itselfSource: Square Support Center (opens in a new tab)
Benefits and insurance
Data pointValue
Health benefitsThrough a partner brokerSource: Square (opens in a new tab)
Workers' compensationPay-as-you-go connected to payrollSource: Square (opens in a new tab)Pay-as-you-go workers' comp through Square's partner, with premiums based on each payroll run.
Contract and exit
Data pointValue
Initial termMonth to monthSource: Square (opens in a new tab)Month to month: Square says there is no long-term commitment.
Automatic renewalMonth to monthSource: Square (opens in a new tab)Billed month to month.
Notice to avoid renewal0 daysSource: Square (opens in a new tab)You cancel from your Square account settings; access continues to the end of the billing period, with no refund.
Early termination feeNoneSource: Square (opens in a new tab)Month to month: no term and no early termination fee.
Early termination clauseNo early termination fee.Source: Square (opens in a new tab)
Right to raise pricesSquare can change subscription fees with reasonable advance notice; using the service after the notice means you accept the change.Source: Square (opens in a new tab)
Your records when you leaveUnconfirmedSource: Square Support Center (opens in a new tab)Square's help center says closing the payroll account is irreversible; it doesn't say how long you keep access to reports afterwards.
Support
Data pointValue
Support 24/7NoSource: Square (opens in a new tab)
Live support hours a week60Source: Square (opens in a new tab)12 hours a day, Monday to Friday.
Dedicated specialistYesSource: Square (opens in a new tab)Square describes dedicated payroll specialists for setup and questions; it doesn't say each account gets one assigned person.
Language
Data pointValue
Employee app in SpanishPartlySource: Square (opens in a new tab)Square's Spanish payroll page names the team app in Spanish ("Mi equipo Square"), and its App Store listing includes Spanish; Square doesn't document pay stubs in Spanish.
Owner's dashboard in SpanishYesSource: Square (opens in a new tab)
Pay stubs in SpanishUnconfirmedSource: Square (opens in a new tab)Not documented: we found no Square page that says pay stubs can be printed or viewed in Spanish.
Support in SpanishSays it serves you in SpanishSource: Square (opens in a new tab)Square says it serves you in your preferred language.
Contract or terms in SpanishYesSource: Square (opens in a new tab)
Website in Spanish for the USYesSource: Square (opens in a new tab)

More about Square Payroll

Head-to-head comparisons

How we score