Detailed Review of Square Payroll - Payroll Software Software 2025

401(k) Tracking

Square Payroll 401(k) Tracking allows employers to easily manage employee retirement contributions through seamless integration with supported 401(k) plan providers. This feature ensures automatic, accurate deductions from each payroll cycle, tracks employer matching, and stays compliant with IRS contribution limits. It provides clear reporting for both employers and employees, helping businesses support long-term financial wellness while reducing manual work and maintaining up-to-date retirement records.

Attendance Tracking

Square Payroll Attendance Tracking supports accurate and efficient recording of employee work hours, enabling seamless integration with payroll processing. With features that allow clock-in and clock-out directly from the mobile app or POS system, it ensures time data is captured in real-time. This reduces payroll errors, simplifies overtime calculation, and enforces compliance with wage laws, giving businesses a reliable way to manage workforce time tracking.

Benefits Management

Square Payroll Benefits Management enables employers to offer and administer a range of employee benefits, such as health insurance and retirement savings plans, through a user-friendly interface. It ensures benefit deductions are automatically reflected in payroll and allows employees to enroll and view their benefits via the platform. This integration reduces administrative overhead, ensures compliance, and improves the employee experience by promoting benefit transparency.

Check Printing

Square Payroll Check Printing allows businesses to generate and distribute physical paychecks for employees who prefer paper payments. Integrated with the payroll system, it ensures checks include all necessary details such as gross pay, deductions, and net pay. This feature is especially useful for businesses that manage a mix of payment preferences, and it maintains a professional and compliant approach to wage distribution.

Compensation Management

Square Payroll Compensation Management gives employers the ability to manage base salaries, hourly wages, and bonuses in a centralized platform. It provides visibility into pay structure, supports adjustments for raises or performance-based compensation, and automatically incorporates changes into payroll calculations. This feature ensures transparency and accuracy, helping businesses uphold equitable compensation practices while simplifying the ongoing task of managing diverse pay arrangements.

Deductions Management

Square Payroll Deductions Management automates the calculation and application of both mandatory and voluntary payroll deductions. This includes taxes, benefits premiums, garnishments, and retirement contributions. It ensures each deduction is accurately processed per pay cycle, aligned with applicable laws and employee selections. The feature provides detailed summaries for employers and employees alike, simplifying compliance and supporting transparent, accurate financial tracking within payroll operations.

Direct Deposit

Square Payroll Direct Deposit streamlines employee payments by enabling automatic transfer of wages into employee bank accounts on payday. This secure and efficient feature eliminates the need for paper checks, supports multiple bank accounts if required, and ensures timely processing. Integrated directly with payroll runs, it reduces administrative effort, minimizes errors, and provides a smooth, digital payment experience that benefits both employers and employees.

Leave Tracking (Vacation)

Square Payroll Leave Tracking (Vacation) offers a built-in solution for monitoring employee paid time off, including vacation days, sick leave, and personal time. Employers can configure leave policies, track accruals, and approve requests within the system. The feature ensures leave is reflected in payroll calculations accurately, provides visibility to employees on their balances, and supports planning and compliance with workplace leave regulations.

Multi-country

Square Payroll Multi-country functionality is designed for businesses operating in multiple countries, allowing them to manage international payroll within a unified platform. It supports compliance with local labor laws, tax regulations, and currency requirements. By centralizing global payroll processes, it simplifies operations, reduces legal risks, and ensures accurate payments to international teams while maintaining visibility and control across different jurisdictions.

Self Service Portal

Square Payroll Self Service Portal empowers employees to access their payroll information securely and independently. Employees can view pay stubs, tax documents, direct deposit details, and benefits information through a user-friendly dashboard. This reduces HR workload, improves data transparency, and allows employees to make updates to personal information, ensuring payroll accuracy while enhancing overall satisfaction and engagement.

Tax Management

Square Payroll Tax Management takes the complexity out of tax compliance by automatically calculating, withholding, filing, and paying payroll taxes at the federal, state, and local levels. The feature stays current with changing tax regulations and ensures all filings and payments are made on time. Employers benefit from reduced risk of penalties, while employees receive accurate withholding reflected in their pay statements and year-end forms.

W-2 Preparation

Square Payroll W-2 Preparation simplifies the year-end tax process by generating IRS-compliant W-2 forms based on payroll data collected throughout the year. These forms are automatically distributed to employees and submitted to relevant tax authorities. The feature ensures accuracy in wage and tax reporting, supports electronic and printed formats, and helps employers stay compliant with filing deadlines with minimal administrative effort.

Wage Garnishment

Square Payroll Wage Garnishment automates the deduction and processing of court-ordered wage garnishments, including child support, tax levies, and other legal obligations. This feature ensures deductions are made in accordance with federal and state laws and prioritized correctly if multiple orders are in place. Integrated into payroll runs, it maintains accurate records, protects employers from liability, and ensures that garnishments are handled legally and consistently.