Square Payroll vs Gusto (2027): Which Is Better?

Square Payroll costs less, but Gusto ranks higher overall. Gusto files local payroll taxes on every plan, while Square leaves some local taxes for you to file, and Gusto has bigger plans to move into as you grow. Square is the better buy for Square POS businesses and for teams with no local tax exposure. We based this on each vendor's pricing pages and help docs, checked November 12, 2026.

Monthly cost at 5, 20 and 50 employees

Regular published prices, one state, employees only.

Plan	5	20	50
Square Payroll (all states)	$65	$155	$335
Gusto Simple (1 state)	$79	$169	$349
Gusto Plus (multi-state)	$140	$320	$680

Square charges $35/mo + $6 per person paid on its only employee plan, per its pricing page. Gusto Simple is $49/mo + $6 per person. Square also has a contractor-only plan at $6 per contractor paid with no base fee, which files 1099-NECs but no taxes.

Taxes, states, deposit speed and support

Gusto files federal, state and local payroll taxes on every plan, per its pricing page. Square files federal and state taxes in all 50 states and DC, but its help center says local taxes are filed only in supported jurisdictions. Others are calculated and left for you to file and pay. Its help pages name gaps in Ohio, Pennsylvania and New York.

Square includes multi-state payroll on its full-service plan. Gusto Simple is one state; more states need Plus. Square can't pay one employee who works across several tax jurisdictions.

Square's standard deposit takes 4 business days, with 2-day payroll on full-service and an option to run payroll 1 day before payday from your Square balance. Gusto includes next-day deposit on Plus and Premium and sells it on Simple for $15/mo + $3 per person.

Square offers phone support Monday to Friday, 6 a.m. to 6 p.m. PT, plus live setup help. Gusto charges $30/mo + $3 per person for priority phone and chat on Simple and Plus. Both run month to month.

The traps on each side

Square:

• Unsupported local taxes in Ohio, Pennsylvania and New York are yours to file. In Ohio, that covers municipalities not run by RITA, CCA or the City of Columbus.
• No support for multiple EINs under one account or courtesy withholding.
• Mailed paper W-2s and 1099s cost $3 per form.
• Workers' comp, health insurance and 401(k) are add-ons without prices on the pricing page.

Gusto:

• One out-of-state hire moves you from Simple to Plus.
• Same-day pay is $90 per payroll and instant pay $100 per payroll on Simple and Plus.
• New state tax registrations cost extra, priced by state.
• Trustpilot: 3.3/5 from 2,767 reviews.

Choose Square Payroll if...

Choose Square if you already run Square POS and want timecards and tips to flow into payroll, you pay staff in several states on a tight budget, or you pay only contractors. Check Square's state help pages first to see whether it files your city or county taxes, especially in Ohio, Pennsylvania or New York.

Choose Gusto if...

Choose Gusto if your employees owe local taxes Square doesn't file, someone on staff works across tax jurisdictions, or you want next-day deposit and room to add HR tools on Premium later. In one state with no local taxes, Square saves you money at every headcount above.