General Questions About Square Payroll
Where is Square Payroll available?
Currently, Square’s Employee and Contractor online payroll service is available to employers located in:
We’re working on rolling out Square Payroll to each jurisdiction while maintaining our full-service solution that automates state tax calculations, payments, and filings. For assistance, visit our list of state payroll tax resources.
Square’s Contractor Only payroll service is available to employers and contractors in all 50 states.
How much does Square Payroll cost?
Square’s Employee and Contractor payroll is $29 per month plus $5 per employee or contractor paid that month. This price includes all Square Payroll features. Square’s Contractor Only Payroll has no base subscription fee and is just $5 per month per contractor paid.
Learn more about Square Payroll Pricing.
What services does Square Payroll provide?
- Pay your whole team: W-2 employees and 1099 contractors.
- Automatic tax calculations
- Tax payments and filings to the IRS and your state tax agencies
- Pay employees and contractors by direct deposit or manual check
- Set up Automatic Payroll to ensure on-time payments
- Employee self-onboarding and online accounts
- Employee and contractor time tracking and overtime calculations
- Calculating and importing of credit card tips
- Enroll and set up employee benefits to automatically calculate employee deductions and company contributions for 401(k), health insurance, and more.
- Reimburse employees for expenses
- Calculate final pay for terminated employees
- Integration with our partner Workers Compensation Insurance broker
- Set up and track paid time off (PTO) and/or Sick Pay
- Generate and file W-2s at year end
- Set up recurring post-tax deductions and garnishments
- Sync Square Payroll with QuickBooks Online
- Off-Cycle Payments to pay your employees outside of your typical payroll schedule.
- Generate and file 1099-MISC at year end
What information do I need to get started with Square Payroll?
If you’re new to payroll, visit Get Started with New Employers for a detailed list of information needed to get started.
If you’re switching payroll providers, visit Get Started with Switching Providers for a detailed list of information needed to get started.
If you’re looking to pay contractors only, visit Get Started with Square Payroll for Contractors for a detailed list of information needed to get started.
What if I don’t have an existing Square account?
You can sign up for Square Payroll even if you do not have an existing Square account. We do not require you to process credit cards through Square to use Square Payroll.
Can we see Square Payroll in action?
While we do not currently have a demo mode, you can view the new-to-payroll sign-up process in the following video:
Employers switching to Square Payroll from a previous payroll provider can view their sign up process here:
Are there any features that you do not currently support?
Square Payroll is currently only for businesses that file Form 941 or Form 944. Square Payroll does not support paying household employees or agricultural employees.
Getting Started with Square Payroll
How do I pay my employees?
You have the option to set up your employees’ pay type as either hourly or salaried. To pay salaried employees, you must provide the annual salary and weekly hours. Salaried employees will have their pay automatically calculated each pay period. Hourly employees will need to have their hours entered for each pay period, either manually or by importing time cards. Salaried employees will have their pay automatically calculated each pay period.
How do I track my employee hours?
Square Payroll comes with free timecards that allow your team to clock in and out from the Square Point of Sale app. Seamlessly import your team’s hours into payroll with the click of a button.
How often can I pay my employees?
You can pay your employees once per week (weekly), every two weeks (bi-weekly), two days each month (semi-monthly), or once per month (monthly). The semi-monthly pay periods are set as the 1st - 15th, and 16th - last day of the month; these pay periods are currently not editable. Contractors do not have a set pay schedule and you can send them pay whenever you want.
You can pay your employees and contractors as many times as you need within the month at no additional fee.
When will my employees receive their pay?
Your employee’s and contractor’s pay date is four business days after payroll is processed. For example, if you run payroll on Monday by 8pm PST, your employees will receive their pay on Friday by 5pm PST. You can also opt to pay your employees and contractors faster via manual check. Learn more about Square Payroll’s payment schedule.
Where can I find my employees’ year-to-date (YTD) gross pay?
For instructions on finding your employees’ YTD gross pay through a previous provider, visit Employee Year-to-Date Gross Pay. You can find your employee’s YTD gross pay through Square Payroll by creating a custom payroll report.
Why do I need to add terminated employees to Square Payroll?
You are required to add all employees you’ve paid this year, including those who have been terminated, to ensure that your year-end filings are prepared correctly. Square will generate and file W-2s for terminated employees at the end of the year. Only one entity can file on your behalf at the end of the year.
Why do I need to enter year-to-date (YTD) gross pay for terminated employees?
This information is required to ensure your year-end tax filings are accurate. YTD information is needed to generate a Form W-2 for each employee to be filed with the state and Social Security Administration. For information on finding your employees’ YTD gross pay, visit Employee Year-to-Date Gross Pay.
Can I use Square Payroll if I don’t have a Federal Employer Identification Number (EIN) or a State Employer Identification Number (SEIN Number)?
No, you must have both an EIN and SEIN Number to use Square Payroll.
How do I get or find my Federal Employer Identification (EIN)?
For detailed instructions on locating your EIN, read more at Employer Identification Number.
How do I get or find my State Employer Identification Number (SEIN)?
In order to obtain your SEIN number, you will need to register online with your state tax agency. Visit our list of state payroll tax resources for directions on how to obtain your SEIN number through your state website.
Can I edit my pay period?
You can edit your pay period and payroll schedule before you make your first pay run. This can be done from the Overview tab by selecting Edit next to your current pay period. If you have already paid employees and need to edit your pay periods or pay schedule, please contact us. For more information visit Edit Payroll Period and Schedule.