Square Payroll vs Wave Comparison: Reviews, Features, Pricing & Alternatives in 2026

Detailed side-by-side comparison to help you choose the right solution for your team

Updated Apr 2026 8 min read

Square Payroll

0.0 (0 reviews)

Square Payroll is a full-service payroll software that automates tax filings, employee payments, and benefits management for small businesses using integrated time tracking and point-of-sale data.

Starting at Free
Free Trial NO FREE TRIAL
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Wave

0.0 (0 reviews)

Wave is a comprehensive financial management software providing small business owners with integrated tools for accounting, invoicing, payroll, and payment processing to simplify bookkeeping and improve cash flow management.

Starting at Free
Free Trial NO FREE TRIAL

Quick Comparison

Feature Square Payroll Wave
Website squareup.com waveapps.com
Pricing Model Subscription Freemium
Starting Price Free Free
FREE Trial ✘ No free trial ✘ No free trial
Free Plan ✘ No free plan ✓ Has free plan
Product Demo ✓ Request demo here ✘ No product demo
Deployment saas mobile cloud mobile
Integrations Square POS QuickBooks Online Xero Homebase Deputy TSheets 7shifts Guideline SimplyInsured AP Intego PayPal Stripe Etsy Shopify Zapier Google Sheets HubSpot Mailchimp
Target Users solopreneur small-business freelancer solopreneur small-business
Target Industries retail restaurant professional-services
Customer Count 0 0
Founded Year 2009 2010
Headquarters San Francisco, USA Toronto, Canada

Overview

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Square Payroll

Square Payroll simplifies how you pay your team by automating the most complex parts of business ownership. You can pay employees and contractors in just a few clicks, whether they are hourly or salaried. The platform automatically calculates, files, and pays your federal and state payroll taxes, ensuring you stay compliant without manual paperwork. Because it integrates directly with Square POS, your team's hours sync automatically, eliminating the need for manual data entry or messy spreadsheets.

You can manage everything from a single dashboard, including workers' compensation, health insurance, and 401(k) plans. The system supports flexible payment options like Instant Payments, allowing you to send funds to employees the same day they work. Whether you are running a single coffee shop or managing multiple retail locations, you get a straightforward tool that handles the back-office heavy lifting so you can focus on growing your business.

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Wave

Wave is a specialized financial platform designed to help you manage your small business money without the complexity of traditional accounting suites. You can track your income and expenses, create professional invoices, and scan receipts directly from your phone. It solves the headache of manual bookkeeping by automatically syncing your bank transactions and categorizing them for tax season.

The platform is built specifically for freelancers, consultants, and businesses with only a few employees who need a clear view of their profitability. You can manage multiple businesses under one account and invite your accountant to collaborate on your books. While the core accounting features are free, you can add paid services like payroll or credit card processing as your business grows.

Overview

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Square Payroll Features

  • Automated Tax Filings Let the software calculate, file, and pay your state and federal payroll taxes automatically to ensure total compliance.
  • Time Card Sync Import employee hours directly from Square POS or the Team App to eliminate manual data entry errors.
  • Instant Payments Access your funds immediately and pay your team the same day they work using your Square Balance.
  • Benefits Integration Offer and manage health insurance, 401(k) plans, and workers' comp directly through your payroll dashboard.
  • Contractor Payments Pay your independent contractors via direct deposit and let the system generate and file 1099-NEC forms.
  • Employee Mobile App Give your team a dedicated app to track their hours, view pay stubs, and manage their tax forms.
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Wave Features

  • Unlimited Invoicing. Create and send professional, customized invoices to your clients in seconds and track their payment status in real-time.
  • Automated Bookkeeping. Connect your bank accounts to automatically import transactions and keep your books up to date without manual entry.
  • Receipt Scanning. Snap photos of your receipts with the mobile app to automatically capture expense details and stay organized for tax time.
  • Online Payments. Accept credit cards and bank transfers directly through your invoices so your customers can pay you with one click.
  • Financial Reporting. Generate instant profit and loss statements, balance sheets, and cash flow reports to understand your business health.
  • Payroll Integration. Pay your employees and contractors easily while Wave handles the tax filings and payments in supported regions.

Pricing Comparison

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Square Payroll Pricing

Contractors Only
$0
  • $5 per person paid monthly
  • No monthly base fee
  • Direct deposit included
  • 1099-NEC generation and filing
  • Self-service contractor account
W

Wave Pricing

Starter
$0
  • Unlimited invoicing
  • Unlimited bookkeeping
  • Bank connection sync
  • Unlimited receipt scanning
  • Exportable accounting reports

Pros & Cons

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Square Payroll

Pros

  • Seamless integration with Square Point of Sale
  • Automatic tax filing saves hours of manual work
  • Simple and transparent per-employee pricing model
  • Easy setup process for new business owners

Cons

  • Customer support can be difficult to reach
  • Limited advanced HR features for large corporations
  • Account freezes can occasionally delay payroll processing
A

Wave

Pros

  • Core accounting and invoicing features are completely free
  • User interface is clean and easy to navigate
  • Mobile app makes receipt scanning very convenient
  • Setup process is quick for non-accountants

Cons

  • Customer support is limited for free users
  • Payroll features are only available in specific regions
  • Lacks advanced inventory management for product sellers
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