The Complete Guide To Square Payroll Pricing

How Much Does Square Payroll Cost?

Square Payroll has two pricing plans. If you’re only paying contractors, Square Payroll costs $6/per person. If you’re paying employees and contractors, Square Payroll costs $35/month + $6/employee.

Your total cost may increase if you add services such as health benefits, retirement plans, workers’ compensation, or advanced team management tools.

How Does Square Payroll Pricing Work?

Square Payroll offers two payroll plans: Contractor Only and Employee & Contractor.

The Contractor Only plan is for businesses that only pay 1099 contractors. There is no monthly base fee, and you only pay for each contractor paid during the month.

The Employee & Contractor plan is for businesses that pay W-2 employees, with the option to also pay contractors. This plan includes full-service payroll features, including payroll tax calculations, tax filings, direct deposit, employee self-service, and payroll reports.

Because Square charges per person paid, your monthly cost may change as you add employees or contractors, stop paying team members, or add extra services.

Square Payroll Pricing Plans

Square Payroll’s two plans come with different sets of tools and features and thus vary in price. Let’s look at how pricing plays out for each option.

Square Payroll Contractors Only Plan

This Square Payroll plan costs a flat rate of $6/per person. Subscribers can cancel at any time, and there is no charge for seasonal inactivity.

This plan includes:

• Unlimited monthly pay runs
• Choose to pay by check, direct deposit, or Cash App
• 1099 filing and delivery
• No charge for seasonal inactivity

Square Payroll Employees & Contractors Plan

This Square Payroll package costs $35/month + $6/employee.

This plan is designed for businesses that pay W-2 employees, with the option to also pay contractors.

This plan includes:

• Automatic payroll calculations and services
• Tax filings
• Square dashboard
• Employee portal to download pay stubs
• PTO management
• Timecard import/sync
• Reporting

Extra Square Payroll Costs & Fees

Square Payroll includes core payroll tools, but businesses can add optional benefits and team management services for an extra cost. These add-ons can help you manage benefits, retirement plans, workers’ compensation, pre-tax spending, and advanced team permissions from within the Square ecosystem.

Square Payroll Health Benefits

Square Payroll integrates with SimplyInsured to help businesses offer health benefits, including medical, dental, and vision coverage. Available plans, carriers, and pricing vary by location, business, and employee eligibility.

Once benefits are set up, Square Payroll can automatically sync eligible deductions and employer contributions with payroll.

Square Payroll 401(k) Retirement Plans

Square Payroll integrates with Guideline to support 401(k) retirement plans. Pricing varies by plan and participation, but once connected, employee contributions and employer matching can sync with Square Payroll.

Square Payroll Worker’s Compensation Insurance

Square Payroll also supports workers’ compensation coverage through its insurance partner. Workers’ comp costs vary based on your state, payroll, employee count, and business risk level.

Once connected, payroll data can help keep workers’ compensation premiums aligned with actual wages paid

Square Payroll Pre-Tax Spending Accounts

Square Payroll supports pre-tax spending accounts through Alice. Employees can use pre-tax income for eligible expenses, such as medical, childcare, or commuter costs.

Once set up, eligible deductions can sync with Square Payroll.

Square Advanced Access

Square Advanced Access, formerly called Team Plus, adds more advanced staff management features, including custom permission sets, team member badges, team activity logs, and team sales reporting.

Square Advanced Access is included with Square Plus and Square Premium plans. Businesses using Square’s free plan or older à la carte subscriptions should check their Square account to confirm whether Advanced Access is included or requires a separate subscription.

Other Square Products & Services

Square offers more than payroll. If your business already uses Square, adding Square Payroll may make sense because it connects with Square’s broader ecosystem of POS, payment processing, staff management, online selling, appointments, and marketing tools.

The Bottom Line: Calculating The Cost Of Square Payroll

Square Payroll is a strong option for small businesses that want simple payroll pricing, an easy-to-use interface, and a payroll system that connects with Square’s broader business tools.

Square Payroll may be especially appealing if your business already uses Square POS, Square payments, or Square team management tools. However, if payroll is your only priority, compare Square Payroll with other affordable payroll software options before choosing a provider.

If you’re still weighing small business payroll software options, you can compare Square payroll to the best cheap payroll options for small businesses.