Payroll built around tipped employees and split shifts.
Tips, pools, hourly + tip splits, contractor 1099s, automated federal/state/local filings, and benefits — designed for restaurants, salons, and any service business with tipped or hourly staff.
Best for
Built for these operators
- Restaurants and bars with tipped employees
- Salons, spas, and personal services with commission + tip math
- Multi-location operators consolidating payroll across sites
- Operators using a generalist payroll provider that doesn't "get" tips
What it does
Capabilities that matter on day one
Tip declaration + pool distribution
Employees declare tips at clock-out. Configurable pool/share rules per shift, station, or role. Square handles the math; payroll runs against the result.
W-2 employees + 1099 contractors in one tool
Payroll for W-2 staff and contractors (booth renters, occasional helpers) in the same workflow. Year-end W-2s and 1099s issued automatically.
Automated tax filings
Federal, state, and local payroll taxes calculated, filed, and paid by Square. New-hire reporting handled. Form 8027 reporting (where applicable) supported.
Direct deposit + manual checks
Direct deposit by default; manual check option for staff without bank accounts. Same-day or two-day deposit speed.
Benefits admin (health, 401k, workers' comp)
Health insurance, retirement plans, and pay-as-you-go workers' comp through Square's partners. Deductions flow into payroll automatically.
Time tracking via Square Team
Staff clock in on the POS or via the Square Team app; timecards flow directly into payroll without a separate timesheet system.
How SugarPay deploys it
From signed contract to working configuration
- 01
Migration from existing provider
We import employees, YTD wages, tax registrations, and benefits enrollments from your current payroll provider. Mid-year migration is well-supported.
- 02
Pay frequency + schedule
Weekly, biweekly, semi-monthly, or monthly. Configurable per pay group; tipped employees often run weekly while salaried run biweekly.
- 03
Tip + pool rules
Define your pool/share logic. Square applies it automatically against declared tips at run time.
- 04
Benefits + tax registrations
Add health, 401k, and workers' comp. Confirm state tax registrations are active; Square helps with new ones if needed.
Pricing
$35/mo + $6 per employee or contractor (as of Square's published pricing)
Pricing is published by Square. Federal, state, and local tax filings are included. Benefits administration may have additional cost depending on plan. SugarPay does not mark this up.
SugarPay does not mark up Square's software pricing. See the disclaimers for our reseller compensation disclosure.
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Continue the tour
Payroll that knows tips.
Tell us your headcount and current payroll provider — we'll quote the migration and run a parallel period to make sure it lands clean.
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