Square Payroll
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.
Xero
Xero is a cloud-based accounting software designed for small business owners and accountants to manage invoices, bank reconciliation, inventory, and payroll through a real-time financial dashboard.
Quick Comparison
| Feature | Square Payroll | Xero |
|---|---|---|
| Website | squareup.com | xero.com |
| Pricing Model | Subscription | Subscription |
| Starting Price | Free | $15/month |
| FREE Trial | ✘ No free trial | ✓ 30 days free trial |
| Free Plan | ✘ No free plan | ✘ No free plan |
| Product Demo | ✓ Request demo here | ✓ Request demo here |
| Deployment | ||
| Integrations | ||
| Target Users | ||
| Target Industries | ||
| Customer Count | 0 | 0 |
| Founded Year | 2009 | 2006 |
| Headquarters | San Francisco, USA | Wellington, New Zealand |
Overview
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.
Xero
Xero is a cloud-based accounting platform that helps you take control of your small business finances from anywhere. Instead of manual data entry, you can automate your bank feeds so your transactions flow directly into your accounts for easy reconciliation. You can track your cash flow in real-time, send professional recurring invoices, and manage your bills to keep your suppliers happy.
The platform is built for collaboration, allowing you to share access with your accountant or bookkeeper so you are always looking at the same numbers. Whether you are managing inventory, processing payroll, or tracking project expenses, you can handle everything through a single dashboard. It simplifies complex tasks like tax preparation and financial reporting, giving you more time to focus on growing your business.
Overview
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.
Xero Features
- Bank Reconciliation. Connect your bank accounts to automatically import and categorize your transactions every day for an up-to-date view of your cash.
- Online Invoicing. Create and send professional invoices from your desktop or mobile device and let customers pay you instantly via credit card.
- Bill Management. Track and pay your bills on time to build better supplier relationships and get a clear overview of upcoming accounts payable.
- Expense Tracking. Capture costs by taking photos of receipts with your phone to automate expense claims and keep your records digital.
- Inventory Management. Keep track of what you have in stock, populate invoices with items, and monitor which products are your best sellers.
- Project Tracking. Monitor your project profit margins by tracking time and expenses against specific jobs to ensure every hour is billed.
Pricing Comparison
Square Payroll Pricing
- $5 per person paid monthly
- No monthly base fee
- Direct deposit included
- 1099-NEC generation and filing
- Self-service contractor account
- Everything in Contractor plan, plus:
- $6 per person paid monthly
- Full-service tax filings
- Time card and POS integration
- Health insurance and 401(k) access
- Live phone and chat support
Xero Pricing
- Send up to 20 invoices
- Enter up to 5 bills
- Reconcile bank transactions
- Capture receipts with Hubdoc
- Short-term cash flow snapshots
- Everything in Early, plus:
- Send unlimited invoices
- Enter unlimited bills
- Bulk reconcile bank transactions
- Standard business reporting
Pros & Cons
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
Xero
Pros
- Clean and intuitive user interface
- Excellent mobile app for managing finances
- Seamless collaboration with your accountant
- Massive ecosystem of third-party app integrations
- Automated bank feeds save significant time
Cons
- Strict limits on the entry-level plan
- Multi-currency support requires the highest tier
- Customer support is primarily online-only
- Recent price increases for long-term users