Square is testing a new payroll product for small and medium-sized businesses. It's called Square Payroll, and is currently in private beta in California.
According to Square, Square Payroll is a "simple solution for paying employees that saves time and worry, so you can focus on what matters. Square takes care of everything from paying your employees via direct deposit, to collecting employee W-4 tax withholding information, and reporting new employees on your behalf."
Here's a look at the features:
The company has additional features available, such as benefits administration, paying contractors, or garnishments. These will presumably cost more, as businesses are told to contact the company about them.
"Square Payroll takes care of all state and federal payroll tax filings on your behalf," Square says. "Employer and employee taxes are calculated and withheld each pay period, ensuring that your employees receive the correct pay. Square files New Hire reports on your behalf, thus maintaining your tax compliance. Most importantly, Square handles all your quarterly and yearly tax filing, freeing up your time to run your business."
The product will file the following forms on your behalf: 941, DE 9, DE 9C, W-2, W-3, 940, and DE 34.
Pricing is $10 per active employee per month. If an employee doesn't work in a given month, you're not charged a fee for that employee.
It remains to be seen whether (or when) this test will be expanded, but it seems likely that it will launch more broadly in time, as Square seeks new revenue sources. Square itself has already proven popular among small businesses. It doesn't seem like too big a leap for many of them to adopt this product. It's competitive with other payroll providers as it doesn't charge for each payroll run, and there aren't any additional fees for tax filing or reporting.
Image via Square