Running payroll can be an extremely tedious and complex process for small business owners.
Luckily, Square Payroll aims to simplify payroll so you can focus on growing your business.
In this Square Payroll review we'll cover everything you need to know, from key features to getting set up, so you can determine if their platform is the right solution to streamline payroll for your small business.
Introduction to Square Payroll
Square Payroll is an online payroll management platform designed to simplify payroll for small business owners. With easy setup, automated tax filings, seamless integration, and robust reporting, it takes the hassle out of paying employees so you can focus on running your business.
What is Square Payroll
Square Payroll is an online payroll service created specifically for small business owners and their unique needs. Key features include:
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Automated payroll - Square Payroll automatically calculates paycheck amounts, tax withholdings, and filings based on employee hours and pay rates.
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Tax payments - Square Payroll files and pays payroll taxes on the business owner's behalf, ensuring compliance and avoiding penalties.
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Seamless integration - Square Payroll integrates with other Square products like Square Point of Sale and Square Invoices for easy employee management.
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Mobile access - Business owners can access Square Payroll via iPhone, iPad, and Android devices to manage payroll from anywhere.
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Customizable pay schedules - Pay employees how and when you want, whether weekly, bi-weekly, semi-monthly or other custom schedule.
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Free direct deposit - Square Payroll offers free direct deposits so employees get paid quickly and securely.
Who is Square Payroll For
Square Payroll is designed for small business owners, managers, and solopreneurs who handle payroll themselves without a dedicated HR or payroll specialist. It essentially automates manual payroll tasks so you can focus on your business instead of paperwork. Specific types of businesses that benefit include:
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Retail shops - Streamline payroll for hourly retail employees. Integrates staff hours from Square POS system.
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Restaurants - Pay kitchen staff, servers, hosts, and bartenders based on hours worked.
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Salons & spas - Customize pay and schedules for stylists, technicians, assistants, and other staff.
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Professional services - Pay employees on 1099 contractor agreements simply.
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Field services - Track hours and pay workers in landscaping, cleaning, delivery, maintenance, construction.
Key Benefits for Small Businesses
The major advantages Square Payroll offers small business owners and solopreneurs include:
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Easy setup - Get started in minutes. Simply input employee details, pay rates and schedule. No lengthy forms required.
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Lower costs - Affordable monthly pricing. Only pay per active employee on payroll each month.
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Automated taxes - Software calculates all taxes and filings for you. Direct withdrawal from bank for tax payments.
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Seamless integration - Connects with other business systems like Square POS for easy payroll management.
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Accessible reports - Provides clear payroll summaries, tax forms, and insightful reports. Exportable for record keeping.
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Reliable support - Dedicated customer support via email, chat or phone during business hours.
By handling payroll administration tasks and compliance automatically, Square Payroll simplifies payroll for lean small businesses so you can focus on your real passion - running your business.
Core Features and Capabilities
Square Payroll provides several key features to help small business owners efficiently manage payroll tasks.
Easy Employee Onboarding
Square Payroll simplifies adding new hires by allowing businesses to enter basic employee details like name, pay rate, tax withholdings, etc. in a user-friendly interface. New employee paperwork is also streamlined through digital forms and signatures.
Payroll Tax Management
One major headache small business owners face is properly calculating, filing, and paying payroll taxes. Square Payroll automates tax calculations and payments based on employee data. This ensures business owners remain compliant without headaches.
Integration with Square POS
For retail and service businesses using Square's point-of-sale system, Square Payroll can directly integrate employee hours logged in Square POS for automated payroll calculation. This saves time syncing data across systems.
Multiple Pay Schedules
Square Payroll adapts to any pay schedule needed, whether paying employees weekly, bi-weekly, semi-monthly, monthly, etc. The flexible system calculates payroll appropriately for diverse business needs.
Robust Reporting
Business owners get access to real-time payroll analytics and reporting through Square Payroll. Key metrics on payroll spending, tax liability, labor costs, and more provide data to optimize operations.
By simplifying onboarding, automating tax management, integrating with other business systems, offering flexible pay schedules, and delivering robust analytics, Square Payroll provides end-to-end capabilities to remove payroll burdens for small business owners. This allows them to focus on their core operations and growth.
Getting Set Up with Square Payroll
Square Payroll aims to simplify payroll for small businesses. Here is an overview of what's required to get set up and start running payroll through Square.
Signup and Configuration
To get started, you'll need to:
- Sign up for a Square Payroll account by providing some basic business information
- Connect a bank account to facilitate payroll payments and tax withdrawals
- Enter any necessary legal paperwork like EIN, W2, 1099 forms
Square provides step-by-step guidance to gather and submit all required documentation to activate your account.
Adding Employees
Employees can be added to Square Payroll in a few ways:
- Manually by entering details like name, contact info, pay rates
- Bulk upload using CSV files with employee data
- Import pay history from other payroll systems
It's easy to add, update or deactivate employees as your team changes over time.
Managing Pay Schedules
Square Payroll provides flexibility to configure pay schedules and pay dates that align with your payroll workflow, including:
- Hourly - set hourly wages and overtime rules
- Salaried - fixed monthly/annual salary
- Contract - 1099 contractors, payment by invoice
- Tips - allocate tips to employees
- Bonuses - one-time or recurring rewards
You can create multiple pay schedules to accommodate different employee types.
Processing Payroll
Each pay period, Square will automatically calculate gross wages for hourly employees based on hours tracked. As the employer, you can review payroll amounts and make any last minute adjustments or additions before final approval.
On the scheduled pay date, payroll payments will be deposited directly into your employees’ bank accounts. Any associated tax payments will be automatically withdrawn from your connected bank account as well.
And that's the basics of getting set up with Square Payroll! Let me know if you have any other specific questions.
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Paying Employees
Square Payroll offers several flexible options for businesses to pay their employees, including:
Direct Deposit
Employees can sign up to have their paychecks automatically deposited into their bank account through direct deposit. This allows for fast, no-fee paycheck deposits each pay period. Employees enjoy quick access to their wages without having to deposit a check.
Pay Cards
For employees without bank accounts, Square Payroll provides branded pay cards. These cards give employees access to their earnings without needing a checking account. Funds are loaded onto the card each payday for fast access.
Paper Checks
Businesses can still cut old-fashioned paper checks for employees through Square Payroll. For staff who prefer to receive physical checks, companies can print checks to hand out each payday. Checks include all necessary tax withholding and deductions.
On-demand Pay
Square Payroll allows employees early access to their accrued wages through on-demand pay. Rather than waiting for the next pay cycle, staff can withdraw available earnings or request an advance between pay periods. This provides flexible, fast payments when unexpected expenses arise.
Managing Payroll Taxes
Square Payroll aims to simplify payroll tax management for small businesses. By automating calculations, payments, and filings, it removes the complexities of staying compliant.
Automated Tax Calculations
Square Payroll automatically calculates federal, state, and local payroll taxes in real-time based on up-to-date rates and forms. This ensures accuracy and compliance without the hassle of managing changing regulations.
Tax Payments
Businesses can choose to have Square Payroll directly pay withheld taxes on their behalf or receive payment reminders to pay taxes themselves. This flexibility allows customization based on a company's preferences.
Tax Form Filing
At year-end, Square Payroll can file all required payroll forms and returns with federal and state agencies. This saves small business owners significant time while reducing the risk of mistakes.
Year-End Tax Support
To wrap up the tax year, Square Payroll provides annual tax summaries, W-2s for employees, and dedicated support. Their team helps ensure all end-of-year tax obligations are addressed completely and accurately.
By simplifying payroll tax management, Square Payroll enables business owners to focus on their companies rather than administrative burdens. The combination of automated calculations, flexible payments, seamless filings, and expert support provides a streamlined solution for this critical but complex need.
Payroll Reporting and Analytics
Square Payroll provides robust reporting and analytics tools to empower data-driven payroll decisions.
Real-time Metrics
Key payroll stats like total wages, taxes, deductions, etc. are updated in real-time each pay period. This enables instant insights into labor costs and trends over time. For example, managers can track overtime wages across locations to identify problem areas.
Labor Cost Analysis
Businesses can break down payroll expenses in multiple ways - by department, location, project, and more. This makes it easy to spot trends and opportunities to optimize spending. If a certain project is generating excessive overtime pay, steps can be taken to bring those costs down.
Overtime Tracking
With clear visibility into overtime hours per employee and pay period, businesses can better control labor budgets. Rules can be set to flag excessive overtime for review. And overtime trends can be analyzed to set staffing levels that balance costs and productivity.
Employee Self-Service
Employees can access their individual payroll details and pay stubs 24/7 through secure online and mobile access. This empowers them with self-service access to their info and reduces admin requests to the payroll team. Employees stay informed and payroll stays efficient.
Conclusion and Next Steps
Key Takeaways
Square Payroll simplifies payroll for small business owners by providing:
- Automated payroll calculations and tax filings to save time and effort
- Seamless integration with other business tools like POS systems and accounting software
- Built-in tax expertise to ensure payroll tax compliance
- Flexible payout options like direct deposit or cash cards
Getting Started
To experience Square Payroll firsthand, small business owners can:
- Sign up for a free 30-day trial with full access to features
- Schedule a custom demo to walk through capabilities with an expert
This allows small businesses to test Square Payroll before deciding to roll it out more broadly.
Expanding Needs
As business needs grow over time, Square offers additional integrated products like:
- Employee management software for organizing hiring details
- Workers comp insurance tailored to industry risk levels
This further simplifies human resources operations for small business owners within a single, unified platform.
