Mobile Payment Company Square Launches Payroll App

Square, the company that helped standardize payment acceptance on mobile phones, has launched a new payroll system it says will be easier for small businesses.

The system is designed to work on mobile devices and includes time clock management features. When employees clock in and out, the information is shared with the payroll app. The payroll system can also handle bonuses, tipped workers and commissions.

“Square is committed to building financial services that level the playing field for independent businesses,” the company said. “We first transformed the way your customers pay you – today we’re transforming the way you pay your employees.”

Square Payroll also manages reporting and payment of federal payroll taxes (Forms 940, 941, 944), new hire reports and W-2 forms. It currently only offers state reporting for California employers and employees and does not yet include integrated workers comp or third party payment features. The company said it is developing other state support soon.

Core features of Square Payroll include:

Timecards are integrated: Hourly employees can clock in and out from the register and their hours are automatically imported into the system.
Taxes are taken care of: Square handles withholding, payment and reporting of federal and state (California) payroll taxes.
Easy setup: Simple onboarding of new employees, plus employee self-service features to access their pay stubs online.
Simplified pricing model: $20 a month plus $5 for each employee paid that month.
Open to all: Works for hourly or salaried staff.

The system is designed to manage only one payroll at a time, not for professionals managing payrolls for multiple clients.

More information on Square Payroll online.