# Square Payroll

Square Payroll is a payroll platform for small businesses rated 4.2/5 on G2 and 4.7/5 on Capterra. Part of Block Inc (NYSE: SQ). Pricing: $35/mo + $6/employee.

**Category:** Small business payroll software  
**Vendor:** Block, Inc. (Square)  
**Founded:** 2009 (Block/Square); Square Payroll launched 2015  
**HQ:** San Francisco, California, US  
**Website:** https://squareup.com/us/en/payroll  


## About

Square Payroll is a payroll product from Block, Inc. (formerly Square, Inc.), designed specifically for small businesses that already use Square for point-of-sale payments or scheduling. Launched in 2015, it lets owners run payroll directly from the Square dashboard, with automatic tax filings and direct deposits included at a flat per-employee monthly rate. Block, Inc. was founded in 2009 by Jack Dorsey and Jim McKelvey in San Francisco and went public on the New York Stock Exchange under the ticker SQ in 2015. Block reported approximately $22 billion in gross profit and revenue across its ecosystem for FY2024, though Square Payroll is a smaller product within the broader Block suite that includes Cash App, Afterpay, and the Square seller ecosystem. The product competes on simplicity and POS integration rather than HR depth.

## Ratings

| Source | Score | Reviews |
|---|---|---|
| G2 | 4.2/5 | 100 |
| Capterra | 4.7/5 | 650 |
| Gartner Peer Insights | 4.2/5 | 30 |
| TrustRadius | 8.0/10 | 45 |

## Funding

~$590M in private funding before NYSE IPO in 2015

| Round | Amount | Date | Lead |
|---|---|---|---|
| Series A | $10M | Jan 2011 | Sequoia Capital |
| Series B | $27.5M | Jun 2011 | Kleiner Perkins, Sequoia |
| Series C | $100M | Sep 2012 | Citi Ventures, Rizvi Traverse |
| Series D | $200M | Dec 2013 | GIC Private Limited |
| Series E | $150M | Oct 2014 | Government of Singapore Investment |
| IPO | Listed NYSE: SQ | Nov 2015 | Public offering at $9/share |

## Viability

Low risk for the product itself, though Square Payroll's fate is tied to Block, Inc.'s broader strategic priorities. Block is a large public company with substantial revenue, but has faced pressure on its Cash App and Square seller ecosystems in 2024-2025. Square Payroll is not the core business; it is a retention tool for the Square POS ecosystem. If you are not already a Square seller, the case for choosing Square Payroll over Gusto or Paychex is weaker. For Square-ecosystem businesses it is genuinely convenient and well-priced, with little realistic risk of discontinuation.

## Pricing

Square Payroll is priced simply: $35/mo for the plan plus $6 per active employee per month. If you only pay contractors, there is no monthly base fee, just $6 per contractor per pay run. Automatic tax filings at the federal, state, and local level are included in this price, which makes it genuinely competitive for businesses under 10 employees. The catch is that you get payroll only. PTO management, HR compliance tools, and benefits administration all require third-party add-ons.

| Plan | Price | Best for |
|---|---|---|
| Employees plan | $35/mo + $6/employee/mo | Small businesses with W-2 employees needing payroll and automatic tax filing |
| Contractors only | $6/contractor/mo (no base fee) | Businesses paying 1099 contractors only; simplest possible payroll |

## What reviewers say

_~100 G2 reviews at 4.2/5 and ~650 Capterra reviews at 4.7/5, plus TrustRadius_

**Praised:**
- POS integration is the signature strength: tips, hours, and sales commissions flow directly from Square POS into payroll, eliminating manual re-entry for restaurant and retail owners
- Setup speed gets repeated praise; most reviewers describe being able to run their first payroll within a day, with no accounting background required
- The flat per-employee pricing with no hidden fees is a consistent positive, especially compared to Paychex or ADP's opaque custom-quote model

**Complaints:**
- HR features are nearly absent; Square Payroll is payroll only, with no PTO tracking, employee handbook tools, or benefits administration built in
- Customer support response times are the top complaint; phone wait times can be long and chat support does not always resolve payroll-specific questions quickly
- Limited reporting: reviewers who want detailed labor cost analysis or department-level breakdowns find the reporting too thin compared to Gusto or Paychex Flex

## Compliance

- **SOC 2:** Yes
- **GDPR:** Yes
- **HIPAA:** No
- **SSO:** Yes (via Square account)

## Integrations

- Square POS
- Square Appointments
- Square for Restaurants
- QuickBooks
- Xero
- Homebase
- When I Work
- TSheets (QuickBooks Time)
- Gusto (migration)
- Zapier

## FAQs

### How much does Square Payroll cost?

Square Payroll charges $35 per month plus $6 per active employee per month. If you only have contractors (1099), there is no monthly base fee and you pay $6 per contractor per pay run. Tax filing is included in both plans.

### Does Square Payroll file taxes automatically?

Yes. Square Payroll handles federal, state, and local payroll tax calculations, deposits, and filings automatically. Year-end W-2 and 1099-NEC forms are also filed and distributed through the platform.

### Do I need to use Square POS to use Square Payroll?

No, Square Payroll works as a standalone product. But the strongest reason to choose it over competitors is the native integration with Square POS, which pulls hours, tips, and commissions directly into payroll. If you use a different POS, the integration advantage disappears and Gusto or Paychex may serve you better.

### Does Square Payroll offer benefits administration?

No. Benefits administration is not built into Square Payroll. Health insurance, 401(k), and similar benefits must be managed separately or through a third-party broker. This is one of the biggest limitations compared to Gusto, which includes benefits in its core plans.

### Who is Square Payroll best for?

Square Payroll is the obvious choice for small businesses already using Square POS, particularly restaurants, cafes, salons, and boutique retail shops with under 20 employees. The POS-to-payroll sync saves real time for shift-based businesses. It is a weaker choice for businesses with no Square products, any need for HR tools, or more than 25 employees.


## Sources

- [G2: Square Payroll reviews](https://www.g2.com/products/square-payroll/reviews): rating 4.2/5, ~100 reviews
- [Capterra: Square Payroll](https://www.capterra.com/p/120861/Square-Payroll/): rating 4.7/5, ~650 reviews, sub-scores, demographics
- [TrustRadius: Square Payroll](https://www.trustradius.com/products/square-payroll/reviews): score 8.0/10, ~45 reviews
- [Square Payroll pricing page](https://squareup.com/us/en/payroll/pricing): $35/mo + $6/employee; contractor-only $6/mo verified
- [Wikipedia: Square, Inc.](https://en.wikipedia.org/wiki/Square,_Inc.): founding, founders, Block rebrand, NYSE SQ IPO
- [Crunchbase: Square / Block](https://www.crunchbase.com/organization/square): funding rounds, investor list, company timeline
- [Block, Inc. Investor Relations](https://investors.block.xyz/): FY2024 revenue and financial overview
- [LinkedIn: Block, Inc. company page](https://www.linkedin.com/company/joinblock/): employee count, HQ, specialties