Paylocity vs Square Payroll
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Paylocity
Paylocity is a modern HR and payroll platform designed for mid-market businesses. It combines payroll processing with employee engagement tools, learning management, and workforce analytics. Paylocity stands out for its strong mobile experience and focus on building connected, engaged workplaces.
Square Payroll
Square Payroll is a simple and affordable payroll solution built for small businesses, especially those already using Square for payments. It handles full-service payroll, tax filings, and tip management automatically.
Pros
- ✓Strong employee engagement and communication tools
- ✓Excellent mobile app for both managers and employees
- ✓Modern UI with good user adoption rates
- ✓Robust payroll with strong compliance features
Cons
- ✗Pricing requires a sales call and is not published online
- ✗Implementation can be complex for larger organizations
- ✗Some advanced features require additional modules at extra cost
Pros
- ✓Very easy to use
- ✓Affordable flat pricing
- ✓Seamless Square POS integration
- ✓Handles tips and hourly workers well
- ✓Full-service tax filing included
Cons
- ✗Limited features for complex payroll needs
- ✗Not suited for larger businesses
- ✗HR features are basic
- ✗Best value only for Square ecosystem users
Paylocity vs Square Payroll: Side by Side
| Factor | Paylocity | Square Payroll |
|---|---|---|
| User Rating | N/A | N/A |
| Category | HR Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | Custom pricing | Contact for pricing |
| Best For | Mid-market businesses with 20-1000 employees | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution |
| Our Pick | — | — |
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
Pricing Comparison
Our Take
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution.
Best For
Mid-market businesses with 20-1000 employees
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Also Consider
If neither Paylocity nor Square Payroll is the right fit, Justworks is worth evaluating.
Justworks
Small businesses wanting Fortune 500 benefits
From $59/employee/mo
Frequently Asked Questions
What is the difference between Paylocity and Square Payroll?
Paylocity is best for mid-market businesses with 20-1000 employees. Square Payroll is best for small businesses and restaurants already using square pos wanting a simple integrated payroll solution.
Which is better, Paylocity or Square Payroll?
Choose Paylocity if mid-market businesses with 20-1000 employees. Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
Who should use Paylocity?
Mid-market businesses with 20-1000 employees
Who should use Square Payroll?
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution