In this Square Payroll Review 2023, we delve into the world of modern payroll management and explore whether Square Payroll is the ideal software solution for your business. As the digital landscape continues to evolve, businesses of all sizes are seeking streamlined and efficient ways to handle their payroll needs.
Square Payroll has emerged as a prominent player in the market, offering a range of features designed to simplify the payroll process. Join us as we navigate the features, advantages, and potential drawbacks of Square Payroll, ultimately uncovering whether it lives up to its reputation as one of the best payroll software for businesses in the digital age.
What is Square Payroll?
Square Payroll is an inexpensive and user-friendly payroll solution specifically aimed at small businesses. It is especially useful for organizations that hire and pay their employees on an hourly basis. Alongside sending employees their wages, Square Payroll can also administer benefits, file taxes, manage time tracking, and oversee scheduling.
Square Payroll set itself apart from the competition with features like economic contractor-only plans, transparent pricing, and flexible payment options. The possibility to receive part of their wages in advance of the prescribed payday is one such feature. More features are available if you opt for other Square products, such as a Square debit card or Square POS, their point-of-sale system.
This Square Payroll review will help you determine if it is the right fit for your business.
Square Payroll Review: Advantages & Disadvantages
pros
- Very user friendly
- Transparent pricing with no hidden costs and an extremely affordable contractor-only option
- Instant or next-day payment options
- Multi-state payroll at no extra cost
- Easy integration with Square POS
cons
- Offers only fundamental HR functionality
- Limited phone support
- Standard direct deposits take four days to process
- No dedicated payroll specialist
- No free trial period
When To Use
If you run a small business
Square Payroll was designed with small businesses in mind. It is extremely wallet-friendly and enables employers to offer their staff various benefits such as workers’ compensation, healthcare, and retirement plans.
If yours is a contractor-only company
With an affordable contractor-only plan that allows business owners to manage and pay independently contracted workers at just $5 per person per month, Square Payroll is an excellent solution for contractor-only businesses. The software can file the 1099-MISC forms, make direct deposits to contractors, and automatically waives processing fees between projects when there aren’t any payments to be made.
Retail outlets and restaurants that already use Square POS
Businesses that employ the Square point-of-sale solution can conveniently incorporate the payroll tool into their existing subscription. Square Payroll works seamlessly with Square POS and allows you to monitor actual hours worked and tips received for accurate and quick payment processing.
Large organizations with many employees
Square Payroll is designed as a solution for small businesses and lacks the scalability and personalization to serve a large company with a massive workforce. If you’re looking for a solution to handle payroll for thousands of employees, you would be better off looking towards ADP or Paychex, as they offer more comprehensive HR features and flexible pricing options.
Businesses in need of PEO services
Square Payroll offers no-frills payroll processing and isn’t equipped to offer PEO (professional employer organization) services to take on daily HR functions. If you’re looking for a full-service HR solution, you should consider comprehensive PEO software.
Square Payroll Review: Deciding Factors
| Price | 1. Square Payroll charges organizations that need to pay employees as well as contractors a $35 base monthly fee and $5 per employee per month. 2. Businesses that only need to pay contractors are charged $5 per contractor to be paid. |
| Filing and paying taxes | Square Payroll automatically calculates, withholds, and pays all relevant state and federal taxes. |
| Employee benefits management | For an additional cost, Square Payroll offers employer-sponsored benefits plans through its many partners. These may include health, dental, vision, workers’ compensation insurance, retirement benefits, flexible spending accounts (FSA), and health savings accounts (HSA). |
| Employee portal access | Employees can use Square’s Team app to access the employee web portal. This portal enables them to complete onboarding tasks such as submitting documentation, as well as clocking in and out, tracking their working hours and reviewing timecards, monitoring their historical earnings, or maintaining their personal information. |
| Customer support | Square Payroll offers live phone as well as chat support from 6 am to 6 pm Pacific Time on weekdays. |
| Ease of use | With an intuitive and contemporary interface and accessibility through a mobile app, Square Payroll is extremely easy to use for employers as well as employees. |
Pricing of Square Payroll
Square Payroll offers two subscription plans. One for organizations that need to pay in-house employees and independently contracted workers, and one for businesses that rely entirely on contractors. Let’s take a closer look at both.
- Employees and contractors: $35 monthly base fee plus $5 per employee/contractor per month
This plan offers unlimited and automated payroll runs with automated tax filing, and payment as well as benefit calculations and deductions. Other features include the generation and filing of W-2 and 1099 forms, a provision to track tips and commissions, time tracking, wage garnishment, new hire reporting, and easy integration with QuickBooks Online and Square POS.
- Only contractors: $5 per contracted worker per month and no monthly subscription fee
This contractor-only plan offers unlimited payroll runs, automatically generates and files 1099 forms, and includes a time-tracking function. It seamlessly integrates with QuickBooks Online and Square POS.
Customer Service
When it comes to customer support, Square Payroll offers various avenues for assistance. Customers can reach out for help via phone, chat, or email. However, it’s important to note that phone support is only available on weekdays from 6 am to 6 pm Pacific time. If you choose to submit an email query, you should expect a reply within 24 to 48 hours.
Additionally, Square Payroll provides an automated chatbot that helps to navigate its extensive library of FAQs and user guides. For more specialized HR-related inquiries, the company offers access to qualified HR professionals through their HR services provider, Bambee. This on-demand access to HR expertise can be valuable for businesses needing tailored assistance.
Square Payroll Integrations
Square Payroll integrates seamlessly with other Square services. You can use Square POS to sync employees’ time-tracking information with the payroll service and automate wage calculations.
Is Square Payroll Worth It? – The Final Verdict
Square Payroll is affordable, user-friendly, and easy to set up. The fact that it doesn’t charge contractor-only businesses any monthly subscription fee for the software makes it an attractive proposition.
It is ideal for small companies who wish to simplify their payroll processes with minimal effort. However, larger organizations and those looking for a full-service HR solution are better off considering other, more comprehensive options.
Frequently Asked Questions
How much does payroll cost on Square?
In our exploration of Square Payroll’s 2023 review, it’s essential to consider the pricing structure that accompanies this payroll solution. Transitioning into this aspect, businesses opting for Square’s payroll service will encounter distinct cost structures based on workforce composition.
For organizations with an in-house workforce, a $35 monthly subscription fee is required in addition to a charge of $5 per employee per month.
On the other hand, businesses reliant on independently contracted employees are subject to a charge of $5 per employee per month, without any accompanying monthly fee. By understanding these varying pricing models, we can better assess the financial implications and suitability of Square Payroll for different business scenarios.
