Hear from CIOs, CTOs, and other C-level and senior execs on data and AI strategies at the Future of Work Summit this January 12, 2022. Learn more
Today, Square is rolling out its Payroll service to Texans, marking the first time the product has expanded outside of California.
Square first launched Payroll over the summer. The service handles all aspects of employee payment, with a focus on hourly employees, and charges a monthly fee of $20 plus $5 per employee. Payroll also accommodates salaried employees and automatically manages tax filings, sick and holiday leave, as well as workers’ compensation claims.
Small business is big for Texas, so it’s not surprising that Square decided to take its payroll service there. In 2011, more than 4 million people in Texas, or nearly half of the state’s private workforce, worked for small businesses, according to the U.S. Small Business Administration.
This is the second service that Square has launched that isn’t tethered to its point-of-sale system. Small business owners can use its appointments service or payroll service even if they don’t process transactions using Square. The expansion of these paid services will be important for the company, especially as it approaches a public offering. In the early days, Square offered much of its software and hardware for free, relying on transaction fees from merchant sales to make money. But, because Square is predominantly a tool for small businesses, and transaction volume and purchase amounts tend to be low, the company needed to diversify the way it monetizes.
So it started building out paid tools like Appointments and Payroll. In order for the company to fully capitalize on Payroll, however, it will need to roll out the product more broadly. Texas is the first step in doing just that.
VentureBeatVentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
- up-to-date information on the subjects of interest to you
- our newsletters
- gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
- networking features, and more