Add Employees to Square Payroll

Adding employees to Square Payroll is a quick and easy process. Employees can also set up their own accounts, saving you time.

Click here for instructions on how to Add Independent Contractors to Square Payroll.

Create New Employee

  1. Visit Payroll in your Square Dashboard.
  2. Click Add Employees on the right side of the screen. If you cannot find that button, you can also click Employees at the top of the screen.
  3. Click New Employee.
  4. Enter in your employee’s name and select a Pay type.
    • If you select Hourly, enter your employee’s hourly rate.
    • If you select Salaried, enter your employee’s annual salary and the number of hours in his/her standard workweek.
  5. If your employee is exempt from receiving overtime pay, check Exempt.
  6. Select a Payment Method.
  7. If you choose to provide your employee with an online account, your employee will be able to fill in their W-4 information and, if paid by direct deposit, add their bank account details. If you prefer to fill in this information yourself, you have the option to do so after saving your employee.
  8. If you do not provide your employee with an online account, you will need to input the employee’s personal information from Form W-4.
  9. Provide us with the employee’s start date. If the employee is not a new hire or a new hire report has already been filed, click “Not a New Hire.”
  10. If you selected that the employee is not a new hire, please provide us with their YTD gross pay (if they have already been paid by your business with payroll taxes applied). If your employee has not been paid this year with payroll taxes deducted, click No.
  11. Your employee will appear on your payroll roster.

You cannot pay an employee until their personal information has been entered. To enter this information yourself, click on the employee’s name in the Employees tab and click Activate Manually. You have the ability to change an employee’s payment method at any time.

Note for salaried non-exempt employees with a standard workweek of more than 40 hours: Hourly rate for salaried employees is calculated based on the annual salary divided by the hours the employee works in a year (hourly rate = annual salary / (weekly hours * 52)). For non-exempt salaried employees, if the work week is greater than 40 hours, all hours beyond 40 hours will be paid at the overtime rate of 1.5x hourly rate. This means that the sum of the employees’ paychecks for the year will be greater than their annual salary. Click here for a reference guide.

Activate Existing Employees

  1. Visit Payroll in your Square Dashboard.
  2. Click Add Employees on the right side of the screen. If you cannot find that button, you can also click Employees at the top of the screen.
  3. Click on the employee you wish to add to payroll. Non-active employees will be grey-ed out.
  4. Click “Add to Square Payroll”.
  5. Enter in your employee’s information per the instructions above.

You cannot pay an employee until their personal information has been entered. To enter this information yourself, click on the employee’s name in the Employees tab and click Activate Manually. You have the ability to change an employee’s payment method at any time.

Note for salaried non-exempt employees with a standard workweek of more than 40 hours: Hourly rate for salaried employees is calculated based on the annual salary divided by the hours the employee works in a year (hourly rate = annual salary / (weekly hours * 52)). For non-exempt salaried employees, if the work week is greater than 40 hours, all hours beyond 40 hours will be paid at the overtime rate of 1.5x hourly rate. This means that the sum of the employees’ paychecks for the year will be greater than their annual salary. Click here for a reference guide.

Learn more about setting up time tracking, and Paid Time Off and Sick Leave policy.

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