Mobile payments company Square is bolstering its position in the small business market with the launch of Square Payroll, a software solution to help businesses pay and track employee salary and taxes.
The payroll product is initially being made available for businesses in California for $20 per month and with an additional $5 per employee paid that month. Using the solution, businesses can not only calculate paystub taxes but also make employees clock in and out using the POS register, according to the company blog.
Square’s entry into the crowded payroll business space might be late, but with its wide base of merchants, it already has a solid foundation to build upon for its new solution, which covers the front and back end business needs of small retailers.
Eyeing an even wider market of small businesses, Square has made its payroll solution available to even those businesses which don’t use the company’s mPOS terminal.
Considering the nature of small employers, the software has been designed to provide payroll solutions for both full-time and part-time employees.
Square Payroll would be competing for space with some of the big fishes such as Intuit, which owns TurboTax, and PayChex, which made $2.3 billion in revenue in 2013. However, PayPal would most likely continue to remain its prime competitor that stands right over its shoulder with its PayPal Here reader in the merchant consumer network category, according to the PYMNTS mPOS Tracker.
Prior to its launch in California, the company reportedly tested out a private beta version of its payroll solution last year for $10 per month per active employee.
The company recently took another swing at the small business market with its Square Cash or $Cashtag service, which allows businesses to swap out card payments for checks.
Square has also been making waves with the rumor mill suggesting a 2015 IPO while its CEO Jack Dorsey continues to serve as interim CEO at Twitter.