A Complete Guide To Square Payroll Pricing
Find out exactly how much Square Payroll costs and which of the two Square Payroll plans are right for your small business in our complete pricing breakdown.
|Square Payroll Plans||Contractor Only||Employee & Contractor|
|Pricing||$5/month per person||$29/month + $5/month per person|
|Unlimited pay runs||✔︎||✔︎|
|Benefits Administration||Costs extra||Costs extra|
Square is a reputable payroll option that will likely come up in your search, and you may already be familiar with their point of sale (POS) system and other applications.
We know committing time and energy to shop around and compare plans can be challenging for small businesses. To help make the most of your hard-earned cash, we’ll explain how each Square Payroll plan compares in terms of pricing and features. Read on and learn how Square pricing stacks up with your small business budget and needs.
Table of Contents
How Much Does Square Payroll Cost?
The cost of Square Payroll depends on the type of employee you are paying. If you are paying contractors, Square Payroll costs $5/month per contractor. If you are paying employees, Square payroll costs $29/month plus $5/month per employee.
How Do Square Payroll Pricing Plans Work?
Some small business payroll software companies try to dress up their various plans and packages with impressive-sounding, vague language, making it hard for customers to decipher. Not Square Payroll.
For payroll services, Square has two plans, written out in plain English. Option one, “Pay Contractors Only,” does exactly that: it handles payroll for businesses exclusively paying independent contractors employed via 1099 forms. This plan is billed on a monthly basis per employee, barring any extra add-on features. Since cost reflects the number of employees, payment will change accordingly as new hires or layoffs are made.
If you have W2 employees on your small business payroll, then you’ll go with option two: “Paying Employees & Contractors.” This plan comes with a monthly subscription fee plus a separate monthly charge per employee or contractor. Like the contractors-only plan, cost is influenced by the total number of employees each month and by any extra features you spring for.
Square Payroll Pricing Plans
Square Payroll’s two plans come with different sets of tools and features and thus vary in price. Let’s take a closer look at how pricing plays out for each option.
Square Payroll’s Pay Contractors Only Plan
This Square Payroll’s plan costs a flat rate of $5/month per contractor and subscribers can cancel at any time for free. It’s hard to find pricing more straightforward than that. Here’s what’s included for small businesses:
- Unlimited monthly pay runs
- Choose to pay by check, direct deposit, or Cash App
- Mail delivery of 1099 forms
- No charge for seasonal inactivity
Square Payroll’s Pay Employees & Contractors Plan
This Square Payroll package costs $29/month + $5/month per employee or contractor. The increased cost of this plan affords a more comprehensive set of tools and features for employers and employees alike, including:
- Automatic payroll calculations and services
- Tax filings
- Square dashboard
- Employee portal to download pay stubs
- PTO management
- Time tracking
Extra Square Payroll Costs & Fees
Your small business is unique, and you may not find the perfect pre-packaged payroll solution for you and your employees’ needs. That doesn’t mean you’re out of luck though. Square’s small business payroll software comes with optional tools that subscribers can add on a la carte. To help make sense of it all, we’ve broken down the cost and usefulness of Square’s choices for extra features.
Small businesses offering benefits like health care and dental insurance can integrate them with payroll when using Square. In partnership with SimplyInsured, Square customers can offer employees health benefits via Aetna, Blue Cross/Blue Shield, Humana, Kaiser Permanente, and UnitedHealthcare. Once the system is set up and employees have chosen their benefits packages, Square Payroll can automatically make deductions from their paycheck moving forward.
401(k) Retirement Plans
Offering a 401(k)-retirement plan in a benefits package is helpful for retaining small business employees for the long-run. With Square, users can integrate Guideline’s 401(k) services to make this a reality without breaking the bank. A Guideline subscription comes with a base monthly fee of $39 plus an additional $8 per participating employee.
Worker’s Compensation Insurance
Policies vary by state, but in many cases, small businesses need to provide worker’s compensation for their employees. In the unfortunate event that an employee is injured on the job, this type of insurance can offer a safety net for any medical expenses and lost wages. With Square’s partner, AP Intego, employers pay an insurance premium for coverage. This cost will be influenced by the number of employees, as well as the risk associated with the type of business.
Pre-Tax Spending Accounts
This benefit allows employees to deposit pre-tax income into an account to be used for things like medical costs, childcare, or commuter-related expenses. Alice operates this service on behalf of Square and provides a debit card to employees to utilize funds in their pre-tax spending account. Once integrated with Square, these deductions can be automated.
Although Square’s more robust employee & contractors plan lets users input payment, tax, and HR information, there may be additional tools worth ponying up for. For $35 more per month, Square Team Plus supports more advanced features, including the use of multiple wage rates, employee break violation reporting, and the ability to create different levels of access to HR staff and employees.
Square POS (Point of Sale) software is utilized by more than 2 million businesses around the world. The software can be integrated with online orders or in-person purchases via smartphone, tablet, or computer to process payment from credit cards, Google Pay, Apple Pay, and gift cards. Incoming funds can be immediately accessed with a Square business debit card or you can wait one to two business days for the transfer to arrive in your bank account.
Though the software is free to access, users are charged on a per payment basis. The standard processing rate is 2.6% plus 10 cents. For small businesses handling over $250,000 in card-based sales, it may be possible to negotiate a more favorable custom rate with Square.
eCommerce (electronic commerce) is not just for the likes of Amazon and other major corporations. Small businesses can access national and global markets with an online presence, too, thanks to Square Online: an app that lets small businesses create and share payment links across platforms, even if you don’t have your own website. Similar to Square POS, there are no monthly fees, start-up costs, or binding contracts. Instead, customers will only be charged at a rate of 2.9% + 30 cents per transaction.
Looking to stay connected with your customers and reach new audiences? Square Marketing is a handy software for collecting customer email addresses and designing customized campaigns for social media and email alike. Real-time analytics and reporting also let you track the marketing success of each campaign, promotion, or discount offered to your customers. Square charges per customer contacts according to the following breakdown:
- 500 customer contacts or less: $15/month
- 501-1,000: $25/month
- 1,001-2,000: $35/month
- 2,001 or more: $45+/month
Be sure to check if Square is offering a free month trial to give it a test run.
If you have a service-oriented small business, scheduling clients and customers can be a serious time killer and logistical challenge. Square Appointments is one way to simplify your scheduling and piggyback off their reputable POS services. Whether you’re a personal trainer, salon owner, or wellness professional, Square Appointments can tailor their software to your professional needs and style.
Pricing is calculated based on two things: in-person transactions and users. Again, the POS rate is 2.6% plus 10 cents per transaction. Meanwhile, Square Appointments is free for a single user, but charges $50/month for 2-5 staff and $90/month for 6-10 staff. Small businesses with more than 10 staff are eligible for custom pricing.
The Bottom Line: Calculating The Cost Of Square Payroll
If you’re seriously considering a new payroll program, Square Payroll delivers a straightforward interface and features at a value for many small businesses. A wide range of complementary small business software (Square POS, etc.) and add-on features also make it easy to customize a payroll package that works for you. Let’s rehash what factors will impact Square Payroll pricing for your small business.
- Pay Contractors Only Plan: Covers unlimited pay runs for 1099 contractors for a cost of $5/month per person paid.
- Pay Employees & Contractors Plan: Includes more comprehensive payroll services and some HR features for a monthly subscription fee of $29/month plus $5/month per employee or contractor paid.
- Add-Ons: Square Payroll has several optional add-on features, including health, worker’s compensation, and retirement benefits. These are offered by partner companies and vary in price per small business customer.
- Additional Square Products:
- Square Team Plus: Costs $35/month per business location
- Square POS: Charges 2.6% + 10 cents per transaction
- Square Online: Priced at 2.9% + 30 cents per transaction
- Square Marketing: Costs upwards of $15 depending on customer contacts
- Square Appointments: Free for 1 user, then costs upwards of $50/month for more staff.
Depending on the type of employees you have, the number of employees you have, and the number of Square add-ons you need (like marketing, appointments, etc.), Square Payroll can cost anywhere from $5/month – $134/month+.
Whether you’re looking for a simple way to handle payroll arithmetic and cutting checks, or are aiming to beef up your business with online sales and marketing, Square has something for you. If you’re still weighing small business payroll software options, you can compare Square payroll to the best payroll options for small businesses.