After unveiling Square Payroll in California earlier this year as another component in its strategy to aid small businesses, Square Inc. is expanding the service for businesses with hourly or salaried employees into Texas.

By offering Square Payroll in Texas and California, Square says it is serving more than 20% of the U.S. population with financial services for independent businesses. In Texas alone, the service is available to 390,000 small businesses and 6.4 million hourly employees.

Square Payroll is designed to help businesses comply with payroll filing requirements, Square said in a press release. The service is available to small business owners, even if they are not using Square for payment processing.

With Square Payroll, hourly employees can clock in and out with timecards integrated into the payment register. The service also handles federal and state payroll taxes, as well as any workers' compensation insurance, employee sick leave or time off.

Employees can set up direct deposit of their pay through Payroll, eliminating paper checks for the business. Square has established a flat of $20 per month and $5 per employee paid that month for the Payroll service.

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