These days, it seems unsuitable to label Square as a pure play payments company.
The San Francisco-based, Jack Dorsey-founded company continues to morph into a small business service provider, announcing Tuesday that it now offers a payroll service to users of Square Register.
The functions of the service are pretty standard. Employees clock in and out of their shift via integrated time cards on the Register app. When the pay period closes, the business owner imports employee hours and Square's payroll service calculates applicable taxes and sends the funds out to workers. Employees have the ability to enter their own tax details upon setup, and state and federal payroll taxes are filed automatically for the business.
Square says the payroll service is aimed at smaller businesses with staff comprised largely of hourly employees -- though the product works with salaried workers as well. Pricing is $20 per month plus an additional $5 per month for each employee paid. For now the service is only available in California, although Square says it will expand to new states soon.
Considering the bevy of small business services Square has tacked on to its Register platform over the last year, adding payroll is a logical and advantageous next step for the company.
No longer just a point-of-sale platform for payments, inventory, and analytics, Register has increasingly become Square's cornerstone. The platform now offers a range of revenue-generating add-ons, like an invoice feature, an online scheduling tool for SMBs, and an order-ahead function dubbed Pickup.
The company also offers capital financing to its business customers as well as Square Cash, a service for P2P money transfers. With the addition of payroll, Square gains yet another way to tie customers to its services.
Nevertheless, Square does have some stiff competition when it comes to payroll, even among its own customers. Giants in the space include ADP and Intuit, with the latter having its own link into the Register platform. Square must also face off against some rapidly growing payroll startups, including ZenPayroll.