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June 6, 2024
XX min read

Square Payroll vs Lano


Choosing the right HRIS (Human Resource Information System) tool is crucial for businesses aiming to optimize their HR functions. Two popular HRIS tools are Square Payroll and Lano. Square Payroll is trusted by small businesses for its online payroll services, while Lano offers a comprehensive solution for hiring, managing, and paying employees and contractors globally. This comparison will help businesses determine the best fit for their needs by exploring the features, similarities, differences, pros, cons, and use cases of each tool.

Square Payroll Overview

Square Payroll is designed for small businesses, providing a streamlined online payroll service that integrates seamlessly with other Square products.

Key Features

  • Automated Payroll Processing: Offers automated payroll for both employees and contractors.
  • Tax Filing and Payments: Handles federal, state, and local tax filings and payments.
  • Employee Benefits: Facilitates benefits management, including health insurance and retirement plans.
  • Time Tracking Integration: Seamless integration with Square’s time tracking system.
  • Direct Deposit: Ensures employees receive their payments directly to their bank accounts.
  • Mobile App: Manage payroll on the go with a user-friendly mobile app.
  • Compliance: Keeps businesses compliant with payroll laws and requirements.

Lano Overview

Lano is a cloud-based compliance and payments platform, offering a unified solution for hiring, managing, and paying employees and contractors in over 150 countries without setting up a legal entity.

Key Features

  • Global Hiring and Payments: Enables businesses to hire and pay employees and contractors worldwide.
  • Compliance Management: Ensures full compliance with local labor laws and tax regulations.
  • Multi-Currency Payment: Supports payments in multiple currencies.
  • Integrated Employee and Contractor Management: Centralizes the management of both employees and contractors.
  • Invoicing and Expense Management: Simplifies invoicing and business expense management.
  • Onboarding and Offboarding: Streamlines the onboarding and offboarding process for remote and international workers.
  • Robust Reporting: Provides detailed reports and analytics for better decision-making.


Both Square Payroll and Lano provide essential HRIS functionalities that streamline the management of workers and payroll processing. Key similarities include:

  • Payroll Processing: Both tools offer the capability to manage payroll effectively.
  • Compliance: Each tool ensures compliance with relevant regulations, although Lano is specialized for global compliance.
  • Integration Capabilities: Both integrate with other business tools and systems to provide a cohesive user experience.
  • Employee and Contractor Management: Each solution provides robust management features for both employees and contractors.
  • User-Friendly Interfaces: Both platforms feature intuitive, user-friendly interfaces that simplify navigation and use.


Despite their similarities, Square Payroll and Lano cater to different business needs and have distinct features:

  • Target Audience: Square Payroll is primarily designed for small businesses, whereas Lano targets companies with global hiring needs.
  • Global Reach: Lano excels in managing international employees and contractors across 150+ countries, whereas Square Payroll is more focused on domestic payroll.
  • Compliance Scope: Square Payroll manages compliance within federal, state, and local jurisdictions in the U.S., while Lano handles international labor law and tax compliance.
  • Payment Options: Lano supports multi-currency payments, which is vital for businesses with global operations. Square Payroll typically deals in local currency.
  • Additional Services: Lano offers comprehensive global HR services, including invoicing, expense management, and detailed reporting, whereas Square Payroll focuses more on payroll and basic employee benefits.

Pros and Cons

Square Payroll


  • Easy to Use: User-friendly interface ideal for small business owners.
  • Integration with Square Ecosystem: Seamlessly integrates with other Square tools.
  • Automated Tax Filing: Saves time by handling all tax-related filings.
  • Affordable: Cost-effective for small businesses.
  • Direct Deposit and Benefits Management: Offers essential payroll features including direct deposit and employee benefits management.


  • Limited Global Reach: Not suitable for businesses with international employees or contractors.
  • Basic HR Features: Lacks advanced HR features like invoicing and expense management.
  • Limited Reporting: Provides basic reporting compared to more comprehensive solutions like Lano.



  • Global Compliance: Manages compliance with local laws in over 150 countries.
  • Multi-Currency Support: Facilitates payments in multiple currencies.
  • Comprehensive HR Features: Includes invoicing, expense management, and robust reporting.
  • Scalability: Ideal for businesses looking to scale their global operations.
  • Unified Platform: Centralized management of both employees and contractors.


  • Complexity: May have a steeper learning curve for small businesses.
  • Cost: Potentially more expensive than solutions like Square Payroll.
  • Integration Challenges: May require more effort to integrate with existing systems.

Use Cases

Square Payroll

  • Small Businesses: Particularly beneficial for small businesses needing a straightforward payroll solution.
  • Domestic Operations: Ideal for companies operating within the United States.
  • Existing Square Users: Businesses already using Square for payments or other services.


  • Global Companies: Best suited for companies with international employees and contractors.
  • Scaling Businesses: Companies aiming to expand their workforce globally.
  • Comprehensive HR Management Needs: Businesses requiring advanced HR features like expense management, invoicing, and detailed reporting.


In comparing Square Payroll and Lano, it’s clear that each platform serves different needs within the HRIS space. Square Payroll is a great fit for small businesses looking for an easy-to-use, cost-effective payroll solution with basic HR functionalities. On the other hand, Lano stands out for its global capabilities, making it ideal for businesses looking to manage a diverse, international workforce while ensuring compliance and streamlined payments.

When choosing between the two, consider your business size, growth plans, and whether you require global HRIS features. Square Payroll is ideal for small, domestically-focused businesses, while Lano offers a robust solution for companies looking to navigate the complexities of international employment.

Key takeaways 🔑🥡🍕

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