Square is piloting a new service that can distribute salaries and handle tax filings for small and medium size enterprises, according to Re/code.

This the latest attempt by the payments firm to diversify away from its core business of processing payments for small businesses  — an activity whose low entry barriers has drawn more and more competitors.

The company confirmed the pilot, which involves a small number of businesses in California paying $10 per employee per month.

Not all Square’s bets have come off. For instance, Square Wallet, which was supposed to enable users to check in at their favourite café and pay automatically for regular orders, was withdrawn.

Meanwhile the firm has launched a cash advance service for merchants, as well as buying up a food delivery startup, among its new offerings.