Square Payroll vs Melio
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
Melio
Melio is a business bill payment platform that simplifies accounts payable for small businesses. It lets you pay any vendor by bank transfer or card, even if they only accept checks, and syncs with QuickBooks and Xero.
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
Pros
- ✓Free to use for bank transfers
- ✓Pay vendors who only accept checks
- ✓Seamless QuickBooks and Xero sync
- ✓Good for managing AP workflows
- ✓Fast setup
Cons
- ✗Focused only on accounts payable, not full accounting
- ✗Card payments carry a fee
- ✗Limited reporting
- ✗Not a replacement for full accounting software
Square Payroll vs Melio: Side by Side
| Factor | Square Payroll | Melio |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Freemium |
| Starting Price | Contact for pricing | Contact for pricing |
| Best For | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution | Small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software |
| Our Pick | — | — |
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
Melio Features
- ✓Bill payments
- ✓invoicing
- ✓payment scheduling
- ✓vendor management
- ✓bank sync
- ✓approval workflows
Pricing Comparison
Our Take
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Melio if small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software.
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Best For
Small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software
Also Consider
If neither Square Payroll nor Melio is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Square Payroll and Melio?
Square Payroll is best for small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Melio is best for small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software.
Which is better, Square Payroll or Melio?
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Melio if small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
How much does Melio cost?
Visit Melio website for current pricing.
Who should use Square Payroll?
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Who should use Melio?
Small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software