Switch to Gusto from Square Payroll (2026 Comparison)

Dad’s short answer

Living in Square POS on a tight budget? Stay. Payroll outgrowing the register? Gusto is the next step up.

Square is cheaper at list price: $35 + $6 per person vs Gusto Simple's $49 + $6.⁶¹
Square wins if you live in Square POS: timecards and tips flow straight in.⁶
Gusto fits when payroll outgrows the register and you want time tracking, scheduling and next-day pay in one plan.¹

Provider	Best for	Starting price
Gusto	Most small teams that want payroll taxes filed for them, in one state (Simple) or several (Plus)	Simple $49/mo + $6/person; Plus $80/mo + $12/person¹
Patriot Software	The lowest full-service price for teams of 2 or more	Full Service $37/mo + $5/worker; Basic $17 + $4 if you file taxes yourself⁸
QuickBooks Payroll	People already doing their books in QuickBooks	From $88/mo + $6.50/employee, bundled with Simple Start accounting⁹
Square Payroll you	Shops and restaurants already on Square POS	$35/mo + $6/person; contractor-only $6/person⁶
OnPay	Teams in several states that want one flat rate	$49/mo + $6/person, multi-state included¹⁰

Starting list prices from each company’s pricing page, verified Oct 31, 2026. Add-ons and promos not included. Confirm on their site.

Start on Gusto’s website →

Goes through our referral page first. We earn a reward if you sign up; your price doesn’t change.

Who this is for

You run payroll on Square today. Gusto fits you if:

You're moving off Square POS, or payroll is outgrowing the register.
You want time tracking, scheduling and unlimited next-day pay in one plan (Plus).¹
One-person S-corp: Gusto Solo.⁷
Phone and chat support during business hours plus a 24/7 help center. Square's payroll support runs M–F, 6 a.m.–6 p.m. PT.⁶²

Why Gusto, compared with Square

Dad story

Picture a taco truck with 5 people.

Square Payroll: $35 + $6 a person. $65.⁶

Gusto Simple: $49 + $6 a person. $79.¹

Square pulls the tips straight from the register.

That's hard to beat.

If tacos are the whole business, keep Square. If it's turning into a restaurant group, keep reading.

(Made-up business. Real prices, checked Oct 31, 2026.)

List prices from each company's own site, read on Oct 31, 2026. Promos and quotes vary.

	Square Payroll	Gusto
Published pricing	Full-service: $35/mo + $6 per person paid. Contractor-only: $6/mo per person paid.⁶	Simple $49/mo + $6/mo per person. Plus $80/mo + $12/mo per person. Premium $180/mo + $22/mo per person.¹ Month-to-month, cancel anytime.¹
What's included	Unlimited pay runs, no long-term contract, auto payroll, timecard import from Square POS, direct-tip tracking, free seasonal inactivity. Paper W-2/1099 mailing: $3 per form per year.⁶	Unlimited payroll runs, including off-cycle. Automatic federal, state and local payroll tax filings, including W-2s, 1099s, Form 940 and Form 941.²
Contractor payments	Contractor-only plan at $6 per person paid, no base fee.⁶	US contractors cost your plan's per-person rate, and only in months you pay them.¹ The contractor-only plan closed to new customers on Oct 1, 2026.³
State tax filings	Federal and state filings, including state income tax and SUTA. Multistate payroll included.⁶	Simple covers one state. Plus and Premium cover multiple states.² Registering in a new state is an add-on; price varies by state.¹
Switching into Gusto	No automated import into Gusto. Enter earlier payrolls from Square's reports.	Not on Gusto's transfer-automation list, so you enter earlier payrolls in setup: quarter-to-date totals for past quarters plus this quarter's pay stubs.⁴⁵

What it costs for your team

Change the numbers, or type in your last Square bill. Dad does the multiplication.

Your numbers

✓ Prices checked Oct 31, 2026

Current provider

What you pay now ($/mo, optional)

W-2 employees

Contractors paid / mo

States

List prices from each company’s own pricing page. Promos, add-ons and taxes not included. Quote-only providers show “quote only.” How we calculate

Start on Gusto’s website →

Goes through our referral page first. We earn a reward if you sign up; your price doesn’t change.

Where Square is genuinely better

Price. $14/month less than Gusto Simple for 5 people at list price.⁶
POS integration. Timecards and tips flow from Square POS.⁶
Contractor-only for $6 a head. Gusto closed its contractor-only plan to new customers on Oct 1, 2026.³
Free seasonal inactivity for businesses that close for part of the year.⁶
Multistate included at the base price.⁶

Your Square-to-Gusto checklist

Do these in order. Grab a coffee. It's mostly downloading PDFs. Want to tick them off? Use the interactive switching checklist; it remembers your progress.

Company tax IDs. Your EIN, legal name exactly as the IRS has it, and whether you file Form 941 (quarterly) or 944. Pull your federal deposit schedule while you're in there.
State account numbers. State withholding account number, state unemployment (SUI) account number and current rate, and any local tax IDs. Square has these on file. Copy them before you cancel.
Year-to-date payroll. A YTD payroll register for every employee paid this year, including people who quit. Gross pay, taxable wages, withholding, deductions, check dates.
Prior quarter 941s and tax payments. Copies of every Form 941 and state quarterly return filed this year, plus proof of tax deposits. Gusto asks for YTD reports and documentation of this year's tax payments.²³
Employee W-4s and direct deposit. Each person's federal W-4 (and state form), pay rate, pay schedule, deductions, garnishments, PTO balances, and bank details.
Contractors. Names, W-9s, and what you've paid each one this year, so 1099s come out right.
Plan to type in earlier payrolls. Gusto asks for quarter-to-date totals from the last pay stub of each finished quarter, plus every pay stub from the current quarter. Include people who already left.⁵
Agree who files what. Only one provider can file a quarterly return for a given quarter. If both file, the second one gets rejected.²³ Get Square to confirm in writing which quarters it will file.
Run one payroll in Gusto, then cancel. Download every report and tax form from Square first. Once you lose access, those PDFs get hard to find.

Why the end of the year is the easiest time to switch

Gusto handles quarterly returns starting with the quarter of your first Gusto check date.²³ So the cleanest plan is a first Gusto payday in January 2027.

Square finishes 2026: the Q4 Form 941 and your 2026 W-2s. W-2s are due to employees and the SSA by February 1, 2027.²⁴ Get Square to confirm in writing that it's filing them.
Gusto starts 2027 with a clean slate. With a first check date in Q1, Gusto's list is just the pay stubs from the current quarter.⁵ Start in January and that's close to nothing.
Any other quarter works too. You'll just be entering more history.

If you sign up through our link by Jan 31, 2027 and run a paid payroll, Gusto's referral terms say you get a $100 Visa gift card. We get a referral reward too.²⁵

FAQ: Square to Gusto

Is Square Payroll cheaper than Gusto?

At list price, yes: $35 + $6/person vs Gusto Simple's $49 + $6/person.

Can I keep Square POS and use Gusto for payroll?

You can, but you'd give up Square Payroll's built-in timecard and tip import. Check that your hours and tips can get into Gusto before you switch.

Does Gusto import Square payroll history?

Square isn't on Gusto's transfer-automation list. Enter earlier payrolls during setup from Square's reports.

When should I switch?

Plan your first Gusto payday for January 2027 so Square files 2026 and Gusto starts fresh.

Sources, checked Oct 31, 2026

Every number on this page comes from one of these pages. Prices change; if a vendor updates its page, theirs wins.