Square’s online payroll services make it easy to pay your independent contractors. We handle everything from contractor direct deposit to automatically filing Form 1099-MISC. You’ll be up and running in minutes with our easy setup.
Get Set Up
- Create or sign in to an existing Square account.
- Select the option to pay Contractors Only.
- Enter your legal business name and DBA, if applicable, and its associated address exactly as it appears on your EIN registration letter and recent tax forms.
- Enter your EIN (Federal Employer Identification Number) as it appears in your EIN registration.
- Enter your bank account information for direct deposit withdrawals.
- Finish verifying your identity by entering your legal name, date of birth, and full SSN (Social Security Number).
To add contractors:
- Sign in to your online Square Payroll dashboard > click Contractors.
- Click Create Contractor.
- Enter the contractor’s full legal name, set a payment method, and add an optional hourly rate. If you’re paying your contractor a flat amount or commission, you can enter the amount directly when you’re sending payments.
- If you’d like to invite your contractor to create an online account where they can input their information and view pay stubs, toggle Online Account ON > enter their email address.
- Click Save.
Note: You won’t be able to pay contractors until all their information is completed. If you have invited a contractor to create an online account, you can choose to Activate Manually and complete the rest of the information yourself.
- Sign in to the Overview tab of your online Square Payroll dashboard.
- Click Pay Contractors.
- Select a pay period and payment method. Default payment methods will depend on what you or your contractor have set up in their profile, be it direct deposit or check.
- Select which contractor(s) you’d like to pay.
- Enter the amount or hours being paid.
- For hourly contractors, you can set their rate from their profile. This will enable you to only need to enter hours worked and pay is automatically calculated. Enter any additional commissions or pay in the Amount field.
- If you’d like to pay a flat amount, enter it in the Amount field. This should include all pay you’d like reported in the contractor’s 1099-MISC, including any reimbursements or commissions.
- Click Continue > review the pay run details and amount to be debited.
- Click Submit Payment. At this point, contractors paid by direct deposit will receive pay 4 business days after you submit the payment.