To ensure your direct deposit recipients receive pay on payday, payroll must be processed by 8 PM PT on the first business day following the end of your pay period (4 business days before the employee pay date). For more info on Square Payroll’s payment schedule and holiday exceptions, visit Square Payroll Payment Schedule.
These instructions are for paying W-2 employees. Learn how to Pay Contractors Through Square Payroll.
To process payroll for W-2 employees:
Log in to the Payroll section of your online SquareDashboard or the Square Payroll app > click Pay Employees > Run Payroll to enter or import your employees hours. Don’t worry, you will be able to review everything before you confirm the payment.
Select the Payment Method you would like to use to pay your employee(s). You can pay your employee(s) manually or by their default payment method.
Your employees must have their information entered for them to be able to be paid. If they have not entered this information, you can submit this info on their behalf by navigating to your Payroll Team tab and entering in their personal, tax filing, and bank account information.
If you are using Square Timecards or a supported third-party timecards application, click Import Timecards to import your employee’s hours worked for the pay period. If you’re using Square to take payments and have enabled Tip Importing, click Import Timecards + Tips to import your employee’s hours and tips for the pay period.
If you are not using timecards, enter the number of hours worked and any additional dollar amount earned (if applicable) for each employee into the appropriate columns:
Rate: The employee’s hourly wage.
Regular Hours: Number of hours worked at regular hourly wage.
Overtime: Overtime hours worked (1.5x the hourly wage).
Additional: Additional wages associated with the pay period, such as commissions. These amounts will be taxed as income and included in the employee net pay.
Click the + icon next to Gross Pay and check the appropriate box(es) if you need to pay your employees for the following:
Double: 2x the hourly wage.
Cash Tips: Amount in cash tips paid. This amount should already have been paid to your employee and will not be sent in your pay run. Declaring cash tips ensures accurate tax reporting and documentation. Employee taxes will be calculated for these amounts and withheld from the employee’s pay.
Paycheck Tips: Tips paid out to your employee(s) for the pay period. This amount will be paid to your employee(s) through Square Payroll.
PTO: PTO hours used in the pay period. Will be turned on by default if you are using our Paid Time Off feature.
Sick Leave: Sick Leave hours used in the pay period. Will be turned on by default if you are using our Sick Leave feature.
Double-check that all information entered is accurate.
If this is your first time using Square Payroll, you’ll be asked to confirm pricing to complete the pay run. To accept, click Next.
You will be taken to a screen containing a detailed breakdown of the pay run and the bank withdrawal. Click Confirm Withdrawal to approve and process the payroll for the current pay period.
If you are paying employees by Printed Check, click “Print Checks” to download a PDF file of your employee checks.
Employees with a Square Payroll log-in will receive an email containing a link that will allow them to view their paystubs.
Payroll debits appear separately on your bank statement from card payment credits and debits processed through the Square app.
Learn how to run payroll for employees with post-tax deductions and garnishments.
We know that sometimes you need to pay your employees outside of your typical payroll schedule. If you want to send a bonus separately, accidentally underpay or forget to pay one of your employees, or pay your employees on an irregular schedule, you can do so by making an off-cycle payment at no extra cost after you send your first scheduled pay run.