Square Payroll pricing, as of November 2026, is $35 a month plus $6 per person paid for full-service payroll, and $6 per person paid with no monthly base for contractor-only payroll. For 5 employees that works out to $65 a month, or $780 a year, and for 15 employees it is $125 a month, or $1,500 a year. Square’s pricing page lists no tiers above that, so the real questions are what the $6 includes, which add-ons cost extra, and where the state-by-state details can change your setup.
I teach high ticket dropshipping at Ecommerce Paradise, and payroll is the fixed cost that shows up when a store hires its first support or operations person. This guide is a pricing breakdown built from Square’s own payroll pages and help articles, not a hands-on test. It covers the plans, the contractor-only option, add-ons, state and tax jurisdiction rules, and worked examples with the arithmetic shown.
Disclosure: some links below are affiliate links, which means I may earn a commission at no extra cost to you.
This is general information, not payroll, tax or legal advice. Prices and terms change, so check Square’s current pages before you buy.
Square Payroll pricing at a glance
Square’s payroll pricing page shows two options. I read it in November 2026. The monthly fee is a base fee plus a fee for each person you pay, and there are no plan tiers above these two.
| Option | Base per month | Per person paid per month | What it covers |
|---|---|---|---|
| Full-service payroll | $35 | $6 | Employees and contractors, automated tax payments and filings, unlimited pay runs, multistate payroll |
| Contractor-only payroll | No base fee listed | $6 | Paying 1099 contractors by check, direct deposit or Cash App, digital 1099 delivery |
The simplest way to read it: a team of any size pays $35 once plus $6 for every person, and a contractor-only business pays $6 for every person with nothing on top. Square’s pricing page says no commitment and no long-term contracts are required. A free trial is not shown on either page, so I would not assume one exists.
The formula behind every bill
Monthly cost on full-service payroll is $35 plus $6 times the number of people paid. Yearly cost is that number times 12. On contractor-only payroll, drop the $35. The page wording is “per person paid,” so my examples assume that everyone on the roster is paid every month. If your headcount moves around, the bill tracks it.
That matters for seasonal teams. If you add 5 temporary people for 3 months, you add 5 times $6 for those 3 months, which is $90, and nothing for the other nine months. I show the full sum in the examples below, with the assumption stated.
What full-service payroll includes
This section follows the feature list on Square’s pricing page and its main payroll page. Where a page did not show something, I say so.
Full-service payroll lists unlimited pay runs per month, auto payroll, off-cycle payments, multistate payroll and multiple pay rates. It lists two-day and four-day direct deposit, next-day direct deposit, and automated federal and state tax payments and filings. It also lists benefit deductions, company contributions, post-tax deductions and garnishments, new-hire reporting, overtime calculations, direct tip tracking and labor-cost reporting.
On the integration side it lists timecard import, digital W-2 and 1099 delivery and a QuickBooks Online integration. The pricing page says timecards can be imported from Square Point of Sale or the Square Team app.
The pricing page adds that Square calculates, withholds and files federal payroll taxes, files state income and unemployment taxes where applicable, and includes new-hire reporting. Neither page has penalty or liability language that I could find, so if you want to know who pays for a filing error, ask Square in writing. The pricing page lists Square Payroll specialist support Monday to Friday, 6 a.m. to 6 p.m. Pacific, plus live support for account setup and an online support center.
Contractor-only payroll: what you get and what you do not
Many stores start with contractors, such as freelance support or fulfillment helpers, before hiring an employee. Square’s contractor-only option costs $6 per person paid, with no base fee shown. It lets you pay contractors by check, direct deposit or Cash App, and it delivers 1099 forms digitally. It also lists the QuickBooks Online integration.
The same page lists what is not included: automated tax filings, auto payroll, off-cycle payments and the two-day, four-day and next-day direct deposit options. Federal and state compliance alerts are an add-on here, while they are included with full-service. The main payroll page says Square Payroll for Contractors will generate, prepare and file Form 1099-NEC online.
One inconsistency to know about. A help article on paying employees in different tax jurisdictions says Square Payroll supports only W-2 employers and W-2 employees, while the pricing page sells a contractor-only option. I read the help article as describing that multi-jurisdiction feature, but I cannot confirm it, so check with Square if you plan to pay only contractors.
Whether someone is a contractor or an employee is a legal question, not a pricing one. The IRS lays out the test on its contractor or employee page, and I would confirm classification with a tax professional before choosing the cheaper product.
Add-ons and extra costs
The base and per-person fees are the part Square prints clearly. The extras are thinner on detail. Here is what I found as of November 2026.
| Item | What Square shows |
|---|---|
| Mailed paper W-2s and 1099s | Annual fee of $3 per mailed form, on both options |
| Health insurance | Listed as an add-on with full-service and not included with contractor-only; no price shown |
| 401(k) | Listed as an add-on with full-service and not included with contractor-only; no price shown |
| Workers’ compensation | Listed as an add-on on both options; no price shown |
| Paid amendment services | Listed as an add-on on both options; no price shown |
| Federal and state compliance alerts | Add-on for contractor-only; included with full-service; no price shown |
| Early pay to a traditional bank account | Not shown on the pages I could load; the pricing page lists Instant Deposit for team members who use Cash App on both options, with no fee shown |
Mailed forms are the one extra with a clear number. If you pay 5 employees and 3 contractors and have all 8 forms mailed, that is 8 times $3, or $24 a year. Digital delivery has no fee listed.
The Cash App line needs a careful read. The pricing page says team members get their paycheck instantly if they use Cash App, and it shows no fee for that. It does not say whether a team member who uses a traditional bank account can get early pay, or what that would cost, and it does not define any eligible states. I would not budget around early pay until Square clarifies.
Health insurance and 401(k) partner names, same-day direct deposit, and HR and PTO add-ons are not shown on the pages I loaded. If any of those matter, ask before you commit.
Cost for 5 employees and 15 employees
These are examples, not quotes. I assume full-service payroll, every person paid every month, no add-ons and no mailed forms. The sums use the $35 base and $6 per-person fee from the pricing page.
| Headcount | Per-person fees | Monthly total | Yearly total |
|---|---|---|---|
| 5 employees | 5 times $6 is $30 | $65 | $780 |
| 15 employees | 15 times $6 is $90 | $125 | $1,500 |
Check the first row: $35 plus $30 is $65 a month, and $65 times 12 is $780. Check the second: $35 plus $90 is $125, and $125 times 12 is $1,500. Going from 5 to 15 employees adds 10 times $6, which is $60 a month, or $720 a year. The base fee does not change.
Contractor-only example: 8 contractors
With 8 contractors on contractor-only payroll and no base fee, the monthly cost is 8 times $6, which is $48, and the yearly cost is $48 times 12, which is $576. If you instead put 5 employees and 3 contractors on full-service payroll, it is $35 plus 8 times $6, which is $35 plus $48, or $83 a month, and $83 times 12 is $996.
Add 8 mailed forms at $3 each and the year is $996 plus $24, or $1,020. That last step is an illustration of how small the extras are compared with the base, not a quote.
Seasonal example: 5 employees plus 5 for 3 months
Assume 5 employees all year and 5 extra people paid for 3 months only. Nine months cost $35 plus 5 times $6, which is $65, so 9 times $65 is $585. Three months cost $35 plus 10 times $6, which is $95, so 3 times $95 is $285. The year is $585 plus $285, which is $870. This depends on the fee applying only in months a person is paid, which is how I read the page wording. The pricing page also lists free seasonal inactivity on full-service payroll, but I would confirm with Square exactly what that covers.
How Square compares on price with Gusto and QuickBooks
Price is only one piece, but it helps to see the neighbors. Gusto’s pricing page lists Simple at $49 a month plus $6 per person, as of November 2026. My QuickBooks payroll pricing guide lists Workforce Payroll at $50 plus $7 per person, from Intuit’s own pages.
| Provider and plan | 5 employees per month | 15 employees per month |
|---|---|---|
| Square full-service | $65 | $125 |
| Gusto Simple | $79 | $139 |
| QuickBooks Workforce Payroll | $85 | $155 |
The arithmetic: Gusto Simple at 5 people is $49 plus $30, or $79, and at 15 people is $49 plus $90, or $139. QuickBooks at 5 people is $50 plus $35, or $85, and at 15 people is $50 plus $105, or $155. Against Gusto Simple, Square is $14 a month lower at either headcount, which is $168 a year. Against QuickBooks it is $20 lower at 5 people ($240 a year) and $30 lower at 15 people ($360 a year).
The comparison is list price only. Gusto Simple runs payroll in one state, while Square lists multistate payroll on its full-service option. Gusto also shows a long list of priced add-ons, and QuickBooks has intro offers and state filing fees that Square’s page does not mention. Features, support and integrations differ, so price should be a tiebreaker, not the decision.
State and tax jurisdiction details
This is where Square’s help center says more than its pricing page. Two of its articles cover the rules that decide whether your setup works as expected.
On coverage, the Square pages I could load say Square files federal and state payroll taxes on your behalf, but they do not list which states or local jurisdictions are covered. I could not confirm payroll tax filing in all 50 states and the District of Columbia, or how city and county taxes are handled, so ask Square before you sign up if your team works in a state or city with local payroll taxes.
For multiple locations, Square’s tax jurisdictions article says you must provide state tax account numbers and the unemployment insurance rate for each additional location before you can process payroll there. Only account owners can set up multiple jurisdictions, and the article limits the feature to full-service subscribers. For remote employees, you add a work location so unemployment tax goes to their home state.
The same article lists what is not supported: paying one employee who works in multiple tax jurisdictions, courtesy withholding, filing for multiple EINs under one account, and closing a location in one jurisdiction and opening one in another under the same EIN. If any of those match your store, ask Square before you sign up.
The setup article adds more. Square Payroll is described as currently only for businesses that file Form 941 or Form 944, and it does not support household or agricultural employees. You need your EIN, state employer tax information and a linked bank account, either through Plaid or manual micro-deposits that take 1 to 2 business days. You also authorize Square as your reporting agent, and provide power of attorney if your state requires it.
The article does not say who registers your business with state agencies, so I will not claim Square does. If you are switching from another provider midyear, it lists states that require hours worked in prior-provider reports: Delaware, Massachusetts, Minnesota, Oregon, Rhode Island, South Carolina, Washington, Washington D.C. and Vermont.
The IRS lists what employers deposit and report on its employment taxes page. A provider can file for you, but your business information still has to be right.
Square Payroll and the rest of a Square setup
You need a Square account to sign up, but the setup article says you do not have to process payments or use other Square services. If you do run sales through Square, the payroll product can pull timecards from Square Point of Sale and the Square Team app, and tips and commissions flow into the payroll run.
Direct deposit debits can come from your Square Balance with instant payments, but tax debits still need a linked bank account. Using your Square Balance for tax and benefit payments requires a Square Checking account. If you sell through Square, my Square fees calculator shows what the card side costs, so you can add that to the payroll line.
Who Square Payroll tends to fit
This is general guidance, not personal advice. These are patterns drawn from how Square presents the product, and your situation will differ.
Full-service payroll tends to fit a small team that wants one low base fee, wants to pay people in more than one state, and may already use Square for sales or timecards. The low base means the bill is mostly per-person, which suits teams that are growing from one or two hires.
Contractor-only payroll tends to fit a store that pays freelancers and wants digital 1099s, with no tax filing included. Remember that automated filings and auto payroll are not part of that option.
It tends to fit less well for businesses with unusual structures: multiple EINs, one employee working in several jurisdictions, or household and agricultural workers. It also lists no HR suite on the pages I loaded, so teams that want built-in onboarding, performance tools or HR advisors should compare it with the bigger platforms.
The simple test I use for any software fee: divide it by what the store earns per order and see how many orders cover it. At 5 employees, $65 a month is a small number against a single high ticket order. The wages and payroll taxes are the real cost, not the software.
Payroll as a business expense for a store
Payroll software sits next to your storefront, accounting, payment fees and sourcing terms. It also depends on the entity being set up properly, because setup asks for your EIN and legal business details, which is why I cover business formation for a high ticket store first.
If you are still choosing what to sell, my list of profitable high ticket niches shows where margins can absorb a first hire. If the model is new to you, what high ticket dropshipping is explains how orders and suppliers work.
In my experience, dropshipping stores hire for support and operations long before they need warehouse staff, because the supplier ships the product. That is why the supplier sourcing guide matters for payroll planning: strong supplier terms keep headcount lower.
Alternatives to Square Payroll
Square is one of several options with published prices. Gusto is the one most owners compare it with, and its plans are in my Gusto pricing guide. If you want to look at the plans directly, my link is Gusto.
QuickBooks is the other common comparison, especially if your books already live there. My link is QuickBooks. The plan breakdown is in my QuickBooks payroll pricing guide.
For a wider view, read my roundup of the best payroll software for small business. If ADP or Paychex are on your list, my Gusto vs ADP vs Paychex comparison covers the quote-based side.
How to check the price yourself before you buy
Open Square’s payroll pricing page in a normal browser and read the two cards. Then open the payroll help articles on tax jurisdictions and setup, and read the lists of what is not supported. Finally, ask Square in writing about the items the pages do not answer: free trial terms, filing error liability, add-on prices for health insurance and compliance alerts, which states and local jurisdictions are covered, and whether early pay to a bank account carries a fee.
Square rate-limits automated page readers, so a tool can fail where a browser works. Confirm any payroll price, including mine, against the live page on the day you buy.
Frequently Asked Questions
How much does Square Payroll cost per month?
As of November 2026, full-service payroll is $35 a month plus $6 per person paid. Contractor-only payroll is $6 per person paid with no base fee listed. For 5 employees on full-service, that is $65 a month.
How much does Square Payroll cost for 15 employees?
As an example, 15 employees on full-service payroll is $35 plus 15 times $6, which is $125 a month, or $1,500 a year. That assumes everyone is paid every month and no add-ons or mailed forms.
Does Square Payroll charge extra for contractors?
Contractors are $6 per person paid, the same per-person rate as employees. On full-service payroll the $35 base applies. On contractor-only payroll there is no base fee shown, but automated tax filings and auto payroll are not included.
Is there a free trial for Square Payroll?
A free trial is not shown on the pricing page or the main payroll page I loaded. The pricing page says no commitment and no long-term contracts are required, so ask Square directly if a trial matters to you.
Does Square Payroll work in every state?
The Square pages I could load do not list which states are covered, so I could not confirm all 50 states and D.C. or local city and county taxes. A Square help article says multiple tax jurisdictions are supported for full-service subscribers who add each work location with its state tax account number and unemployment insurance rate. It does not support some cases, such as one employee working in multiple tax jurisdictions or multiple EINs under one account.
Bottom Line
Square Payroll costs $35 a month plus $6 per person paid for full-service payroll, or $6 per person paid for contractor-only payroll. For 5 employees that is $780 a year and for 15 employees it is $1,500. Mailed forms are $3 each, and health insurance, compliance alerts and other extras have no price on the pages I loaded.
The state and jurisdiction rules are where to spend your time, since multiple EINs, one employee in several jurisdictions and contractor-only filing are all limits. Budget with the tables here as a floor, confirm the unknowns with Square, and check the live page on the day you buy. This is not payroll, tax or legal advice, terms change, and you should check the provider and a tax professional before you commit.
Related Articles
If you are costing out your first hire or comparing payroll tools, these are the posts I would read next.
- Best Payroll Software for Small Business: 9 Options Priced (Nov 2026)
- Gusto Pricing Explained: Simple vs Plus vs Premium Costs Breakdown 2026
- QuickBooks Payroll Pricing 2026: Workforce Plans, Per-Employee Fees and Real Costs
- Square Fees Calculator 2026: What You Keep on Every Sale
- Gusto vs ADP vs Paychex: Which Payroll Provider Fits in 2026?
Trevor Fenner is an ecommerce entrepreneur and world traveler from Seattle, Washington, and the founder of Ecommerce Paradise, a platform focused on helping entrepreneurs build and scale profitable high-ticket ecommerce and dropshipping businesses. With over a decade of hands-on experience, Trevor specializes in high-ticket dropshipping strategy, niche and product selection, supplier recruiting and onboarding, Google & Bing Shopping ads, ecommerce SEO, and systems-driven automation and scaling. Through Ecommerce Paradise, he provides free education via in-depth guides like How to Start High-Ticket Dropshipping, advanced training through the High-Ticket Dropshipping Masterclass, and fully done-for-you turnkey ecommerce services for entrepreneurs who want a faster, more hands-off path to growth. Trevor is known for emphasizing sustainable, real-world ecommerce models over hype-driven tactics, helping store owners build scalable, sellable, and location-independent brands.
He maintains homes in Seattle and Bali, spends most of the year overseas, and usually returns to Seattle for about a month each summer.
