Square Payroll vs Wave
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.
Wave
Wave is a free accounting and invoicing platform designed for small businesses, freelancers, and solopreneurs. It offers genuinely free accounting, invoicing, and receipt scanning with no subscription fee. Wave makes money through payment processing and payroll add-ons. It is one of the best free accounting tools available for very small businesses with simple needs.
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
- ✓Genuinely free accounting and invoicing — no subscription required
- ✓Clean and easy to use interface
- ✓Good enough for most very small businesses and freelancers
- ✓Receipt scanning and bank connections included free
Cons
- ✗Limited features compared to paid alternatives
- ✗Customer support is minimal on the free plan
- ✗Not suitable for growing businesses with complex needs
- ✗Payroll and payment processing add-ons can add up in cost
Square Payroll vs Wave: Side by Side
| Factor | Square Payroll | Wave |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Freemium |
| Starting Price | Contact for pricing | Free |
| Best For | Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution | Solopreneurs and very small businesses wanting free accounting and invoicing software |
| Our Pick | — | — |
Square Payroll Features
- ✓Payroll processing
- ✓tax filing
- ✓benefits administration
- ✓direct deposit
- ✓employee self-service
- ✓reporting
Wave Features
- ✓Free accounting
- ✓invoicing
- ✓receipt scanning
- ✓bank connections
- ✓financial reporting
- ✓payments processing
- ✓payroll add-on
- ✓mobile app
Pricing Comparison
Our Take
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software.
Best For
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Best For
Solopreneurs and very small businesses wanting free accounting and invoicing software
Also Consider
If neither Square Payroll nor Wave 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 Wave?
Square Payroll is best for small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Wave is best for solopreneurs and very small businesses wanting free accounting and invoicing software.
Which is better, Square Payroll or Wave?
Choose Square Payroll if small businesses and restaurants already using square pos wanting a simple integrated payroll solution. Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software.
How much does Square Payroll cost?
Visit Square Payroll website for current pricing.
How much does Wave cost?
Wave starts at Free. Pricing model: Freemium.
Who should use Square Payroll?
Small businesses and restaurants already using Square POS wanting a simple integrated payroll solution
Who should use Wave?
Solopreneurs and very small businesses wanting free accounting and invoicing software