Square Adds Benefits To Payroll Platform

Square is enhancing its payroll platform for small and medium-sized businesses (SMBs) by integrating benefits solutions, the company announced on Wednesday (Nov. 14).

Reports in Business Insider said Square hopes to streamline SMBs’ employee benefits management by adding health insurance and retirement savings solutions into its payroll service, features that could reduce the tax burden on small firms.

Square noted that an internal survey of its Square Payroll clients found the addition of employee benefits to be one of the largest hurdles for business owners.

“We’ve heard again and again from sellers what a pain point payroll is,” said Square seller lead Alyssa Henry, according to the report. “We’ve heard many of them are doing it on paper or even paying under the table – not necessarily to avoid taxes, but because of the complexity.”

Square Payroll is collaborating with employee benefits solutions providers Guideline 401(k), AP Intego, Alice and SimplyInsured, reports said.

“We believe everyone should have access to great benefits and the financial security that comes with it,” said Square Payroll head Caroline Hollis in another statement.

The additional features come just months after Square’s Payroll app rolled out, providing business owners with a mobile self-service solution that expands upon the firm’s desktop-based payroll services. Square Payroll, which launched in 2015, offers automated tax calculations, filings and payments to SMBs.

Earlier this month, Square released its third-quarter earnings results, posting $431 million in revenues, a 68 percent year-over-year increase. The firm surpassed analyst expectations with double-digit payment volume growth as it worked to add larger merchants to its client base.

CEO Jack Dorsey said the firm’s new Square POS solutions are among the most exciting for the firm.

“We believe we have built something that has a lot of utility, and that will enable in ways that we are not necessarily expecting,” he said during a conference call with analysts. “We hear from our sellers directly that they don’t want to use their personal device[s] to accept credit cards.”