Payroll day is giving you nightmares. Commission calculations that take hours to figure out. Tip tracking across multiple payment methods. Tax filing deadlines that sneak up on you. And spreadsheets full of numbers that never seem to add up right.
Meanwhile, your stylists are asking when they’ll get paid, and you’re spending your weekend trying to make sense of timesheets instead of relaxing.
But here’s what the most successful salon owners have figured out:
The right management software with integrated payroll doesn’t just handle payments. It eliminates the entire administrative headache.
Not by adding complexity, but by automating calculations, integrating with your existing POS system, and ensuring compliance without the constant worry.
The best salon management software with payroll integration helps you do exactly that:
- Calculate commissions automatically based on actual services performed
- Track tips from multiple sources and distribute them accurately
- File taxes and handle compliance without missing deadlines
- Pay your team faster while reducing errors and disputes
These are the platforms salon owners use to cut payroll processing time by 80% and eliminate those late-night number-crunching sessions.
The best part?
Your stylists get paid accurately and on time, every time. No more explaining why their check is different than expected.
My Top 3 Hair Salon Management Software with Payroll Integration
- Zenoti: Enterprise-level platform with automated payroll calculations and commission tracking
- Square Appointments: Affordable solution with seamless Square Payroll integration
- Homebase: All-in-one small business platform built specifically for hourly teams
Zenoti
Best for growing salons that want enterprise-level payroll automation
Pricing: Custom pricing based on business size; demo available
Zenoti isn’t just salon software with payroll bolted on. It’s an enterprise platform where payroll automation is built into every aspect of your business operations.
The system automates complex earnings calculations, handles tips and commissions automatically, and provides next-day direct deposits while managing everything from appointment booking to inventory tracking.
Automate Complex Commission Structures
Zenoti excels at handling the intricate payment structures that make salon payroll so complicated.
The system automatically calculates commissions based on services performed, tracks bonuses tied to sales targets, and manages different pay rates for different services.
For example, if Jessica earns 40% commission on cuts, 35% on color, and gets a $50 bonus for every new client she brings in, Zenoti handles all those calculations in real time.
The platform automatically calculates both commissions and bonuses based on services rendered, sales targets met, or specific employee performance metrics, eliminating the manual math that leads to errors and disputes.
Track Everything Automatically
What sets Zenoti apart is how it captures payroll data from your actual business operations:
- Service sales automatically calculate stylist commissions
- Tip amounts from credit card transactions sync directly to timesheets
- Retail sales trigger product commission calculations
- Time tracking integrates with appointment scheduling
This means your payroll data is always accurate because it’s pulled directly from what actually happened in your salon, not from manual entry.
Enterprise-Level Reporting and Compliance
Zenoti Payroll offers various reports, including payroll summaries, base pay, commissions, bonuses, tips, and historical payroll data that give you complete visibility into your labor costs.
The compliance features handle tax filing, labor law requirements, and audit trails automatically. You get alerts when regulations change, and the system adapts to keep you compliant.
For multi-location salons, Zenoti provides centralized payroll management across all sites while maintaining location-specific reporting.
Pros & Cons
| Pros | Cons |
|---|---|
| Fully automated commission and tip calculations | Custom pricing can be expensive for smaller salons |
| Enterprise-level compliance and reporting | Complex features may require training for staff |
| Scales seamlessly for multi-location operations | Overkill for basic payroll needs |
Zenoti Alternative: Vagaro
Vagaro is great for commission-based salons that want built-in booking and basic payroll features in one platform, starting around $30 per month.
While it handles commission calculations and basic payroll functions, it doesn’t offer the same level of automation or enterprise reporting as Zenoti.
Vagaro works well for smaller salons that need solid payroll integration without the full enterprise feature set.
Square Appointments
Best for salons already using Square POS that want seamless payroll integration
Pricing: Free for solo providers; Plus at $39/month, Premium at $69/month; Square Payroll add-on starts at $35/month + $6 per employee
Square Appointments becomes incredibly powerful when you add Square Payroll to your existing setup.
With a Square Staff and Payroll bundle, you can track your employee’s commissions and automatically import those sales to Square Payroll, eliminating the double data entry that causes so many payroll headaches.
Seamless Integration Across All Square Products
The magic happens when your POS, scheduling, and payroll all speak the same language.
When a stylist completes a $150 color service with a $30 tip, that information flows automatically:
- The service revenue hits your Square POS
- Commission calculations happen instantly based on your preset rates
- Tip amounts get added to the stylist’s timesheet
- All data syncs to Square Payroll for processing
This integration means your payroll is always based on actual transaction data, not manual estimates.
Mobile Payroll Management
See real-time performance metrics for client retention, prebooking, and scheduling utilization for team member(s) or yourself. Get an idea of how much you’ll earn within the next week or month based on upcoming appointments clients have already booked.
You can approve payroll, review timesheets, and handle corrections right from your phone between appointments.
The mobile access is particularly valuable for salon owners who are always moving between stations and rarely sit at a desk.
Transparent Processing and Costs
Square’s pricing is straightforward: Run full-service payroll starting at $35 per month + $6 per person paid.
Unlike some competitors with hidden fees, Square shows you exactly what payroll will cost based on your team size.
The processing fees for credit card transactions are also clearly stated, so you can budget accurately for both payment processing and payroll costs.
Pros & Cons
| Pros | Cons |
|---|---|
| Perfect integration if you already use Square POS | Payroll features require separate subscription |
| Transparent pricing with no hidden fees | Limited advanced payroll features compared to specialized providers |
| Strong mobile access for on-the-go management | Free plan doesn’t include payroll capabilities |
Square Alternative: GlossGenius
GlossGenius offers payroll management with separate bank accounts for booth renters and integrated team scheduling.
The platform provides more styling customization than Square and includes features specifically designed for beauty professionals.
However, the payment processing integration isn’t as seamless as Square’s unified ecosystem.
Homebase
Best all-in-one solution for small salons with hourly and commissioned staff
Pricing: Free for up to 20 employees at one location; paid plans from $24.95/month; Payroll add-on $39/month + $6 per employee
Homebase is built for small businesses and bundles scheduling, payroll, hiring, compliance, and team messaging into one easy platform.
If you’re running a smaller salon and want everything in one place without enterprise complexity, Homebase delivers exactly what you need.
Built for Small Business Payroll Challenges
What makes Homebase special is how they designed their payroll specifically for small businesses dealing with hourly workers and tips.
Homebase automatically pulls tips from your POS, calculates the tip pool, and adds it to timesheets, handling one of the biggest headaches in salon payroll.
The system manages:
- Hourly wages with overtime calculations
- Commission payments based on service revenue
- Tip distribution from credit card transactions
- Contractor payments with automatic 1099 filing
- Paid time off tracking and accrual
Scheduling That Connects to Payroll
The scheduling features work hand-in-hand with payroll processing.
When you build your weekly schedule, Homebase automatically tracks which stylists are working which hours. Clock-in and clock-out times sync directly to timesheets.
If someone picks up an extra shift or stays late, those hours automatically appear in their timesheet for payroll processing.
This connection between scheduling and payroll eliminates the manual reconciliation that leads to payment errors.
Compliance and Tax Handling
Homebase sends direct deposits to employees and files your payroll taxes for you, taking care of the compliance requirements that keep salon owners up at night.
The system includes:
- Automatic tax calculations and filing
- Labor law compliance tracking
- Break and overtime requirement monitoring
- Audit-ready payroll records
- State-specific regulation updates
For small salon owners who can’t afford to hire a payroll specialist, this compliance automation is invaluable.
Pros & Cons
| Pros | Cons |
|---|---|
| Free version supports up to 20 employees | Charges per location, which can add up for multi-site salons |
| Excellent tip management and POS integration | Payroll is an add-on, not included in base plans |
| Built specifically for small business needs | Less sophisticated than enterprise alternatives |
Homebase Alternative: Gusto
Gusto offers comprehensive payroll with built-in HR features starting at $39/month plus $6 per employee.
While Gusto has strong payroll capabilities, it doesn’t include the salon-specific scheduling features that make Homebase particularly valuable for beauty businesses.
The integration between scheduling and payroll isn’t as seamless as Homebase’s purpose-built connection.
Other Tools That Support Our Payroll Workflow
Managing salon payroll effectively often requires additional tools beyond your main management software.
At successful salons, owners typically use these supporting platforms:
- QuickBooks for accounting integration and financial reporting that connects to payroll data
- TaxSlayer Pro for handling quarterly tax filings and year-end reporting
- BambooHR for employee onboarding and document management
- Deputy as an alternative scheduling tool that integrates with multiple payroll providers
Wrapping up
Most salon owners are still calculating commissions by hand and praying they get the tax filing deadlines right.
But the salons thriving in today’s competitive market are using integrated software that handles payroll automatically while they focus on clients.
Start with the platform that matches your salon’s size and complexity. Even basic payroll automation will save you hours each week and eliminate the stress of payment errors.
Then, as your team grows, you can add more sophisticated features for advanced reporting, multi-location management, and enterprise-level compliance.
