What is Square Payroll and how does it work?
Square Payroll is a comprehensive cloud-based payroll solution designed for small to medium-sized businesses, offering automated tax filings and seamless integration with Square's business ecosystem.
The platform processes payroll for both W-2 employees and 1099 contractors through a simple interface accessible via web or mobile app. It automatically calculates federal and state taxes, handles withholdings, and manages all tax payments and filings—eliminating the complex compliance burden that often overwhelms small business owners.
Key features include:
Unlimited payroll runs at $35/month plus $6 per person paid
Direct integration with Square POS for automatic tip and hours tracking
Same-day or next-day direct deposits
Automated W-2 and 1099 form generation and distribution
Benefits of Integrating Square Payroll with Abacum
• Sync employee compensation data, tax liabilities, and benefits costs automatically from Square Payroll to Abacum's FP&A platform
• Eliminate manual payroll journal entries and reduce month-end close time by automating the flow of payroll expenses into financial models
• Build accurate headcount plans with real-time visibility into current labor costs, overtime trends, and contractor expenses
• Integrate payroll data with revenue metrics from Square's point-of-sale system for comprehensive unit economics and profitability analysis
• Automate variance analysis between budgeted and actual payroll costs with drill-down capabilities to individual employee or department level
• Leverage Square's unified ecosystem to connect payroll, payments, and banking data into a single financial planning environment
• Access historical payroll trends and patterns to improve forecast accuracy for seasonal businesses and growth planning scenarios
• Ensure compliance-ready reporting with automated tracking of tax obligations, benefits administration, and multi-state payroll requirements flowing seamlessly into financial statements
