Square Payroll vs Paylocity
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.
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.
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
- ✓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
Square Payroll vs Paylocity: Side by Side
| Factor | Square Payroll | Paylocity |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | HR Software |
| Pricing Model | Paid | Paid |
| Starting Price | Contact for pricing | Custom pricing |
| Best For | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution | Mid-market businesses with 20-1000 employees |
| Our Pick | — | — |
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Pricing Comparison
Our Take
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Paylocity if mid-market businesses with 20-1000 employees.
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Best For
Mid-market businesses with 20-1000 employees
Also Consider
If neither Square Payroll nor Paylocity 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 Paylocity?
Square Payroll is best for small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Paylocity is best for mid-market businesses with 20-1000 employees.
Which is better, Square Payroll or Paylocity?
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Paylocity if mid-market businesses with 20-1000 employees.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
Who should use Square Payroll?
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Who should use Paylocity?
Mid-market businesses with 20-1000 employees