Best Payroll Software in India

As businesses grow, managing payroll becomes a complex and time-consuming task. Payroll software can streamline this process, automate calculations, and ensure compliance with tax laws and regulations. Choosing the right payroll system software can be overwhelming with so many available options.

This guide aims to provide a comprehensive overview of the key features and considerations to help you make an informed decision that meets your business needs. This guide will help you choose the finest payroll software system for your business, whether you're a small business owner or a payroll administrator.

What Role Does Payroll Software Play?

Payroll software plays a crucial role in managing the financial aspects of a business by automating and streamlining the payroll process. Some key roles that payroll platform plays include calculating employee compensation and benefits are automated and streamlined by payroll software, which is essential to modern business operations.

The program allows employers to quickly manage employee payroll activities, including calculating wages, deductions, taxes, and other withholdings.

Payroll system software minimizes errors or compliance problems while ensuring employees receive correct and timely wages. This software can facilitate employee time and attendance data integration, enabling more precise tracking of hours worked and overtime.

Furthermore, many software packages offer reporting and analytics features that give useful information about labor costs, benefit costs, and other financial variables. Ultimately, payroll software is crucial for companies of all sizes since it helps them save time and minimize errors.

What are the Benefits of Payroll Software?

By automating manual (and error-prone) processes, payroll software solutions assist you in conducting employee salaries, wages, bonuses, and deductions. It also keeps track of paid time off, vacation, and perks. Here are some of the key benefits of the software:

1. Saves Time

   Setting up and processing payroll via attendance and payroll software solutions is relatively easy. This renders them user-friendly.

   Payroll programs minimize the need for manual tracking and payment. This helps your team save time, which may be redirected to other areas of your company, resulting in increased productivity. Tasks such as calculating salary and timesheets can be carried out as quickly as 20 seconds.

2. Enhances Compliance

   Tax rules and regulations are subject to change regularly. It may be challenging to calculate taxes, and missing deadlines can result in expensive fines and penalties for companies.

   The payroll system software helps businesses remain compliant by providing information and reminders about payroll compliance needs. It is designed to apply tax deductions automatically and track payments in real-time. Some HRMS payroll software can also generate reports for filing tax requirements automatically.

3. Generates Reports

   Payroll software enables you to generate reports for internal decision-makers, accountants, and auditors. Summaries of quarterly costs, yearly tax payments, and historical employee benefit participation are all examples of what may be found in a payroll report.

   Furthermore, reporting capabilities, such as cost summaries and tax payments, are frequently included in the software.

4. Automates Payment Disbursement

   You may also use payroll programs to automate the payment disbursement procedure. Using attendance with single-touch payroll, you may customize hourly or salaried staff and save much of the tedious labor of calculating hours and paychecks.

   Also, most HR payroll software systems allow you to provide your employees a choice in how they receive their pay. You may keep employee preferences in the system to ensure that their chosen mode of payment is used every time.

5. Reduces Outsourcing

   Payroll platform reduce the risk of disclosing sensitive employee information to a third party. You get complete control over your financial data.

   Besides, employers can restrict access to the payroll information of their employees. Employees can easily view their payroll information on the self-service portal. It ensures complete pay transparency.

What are the Key Features of Payroll Software?

The key features of payroll software can vary depending on the specific software, but here are some of the most common features you can expect to find in most software:

1. Employee management

Payroll software typically includes features for managing employee information, such as contact details, salary, benefits, tax status, and other employment-related data.

2. Notifications and Updates

The employee payroll tool keeps reminding you of important notifications like tax payments and salary due dates. You can also set reminders for pending tasks, such as approval of a leave request.

3. Employee Calendars

Payroll calendars are easy to manage in different aspects of employee status, like checking on sick leaves, absences, and overtime. Time & attendance management software with payroll helps employees to make plans and decisions on a particular day.

4. Time and attendance tracking

Many payroll systems include time and attendance tracking features that allow employees to clock in and out, track hours worked, and monitor leave and vacation time.

5. Payroll processing

Payroll platform automates calculating employee salaries, bonuses, and deductions, processing payments, and generating pay stubs.

6. Tax compliance

Payroll system software ensures compliance with tax laws and regulations by automatically calculating and withholding payroll taxes, generating tax forms, and keeping track of changes in tax laws.

7. Direct deposit and check to print

Payroll software typically includes features for processing payments, such as direct deposit or check printing.

8. Employee self-service

Many payroll software solutions include self-service portals, allowing employees to access their pay stubs, update personal information, and request time off.

9. Payslips

This salary slip module helps you generate payslips so your employees and company can keep the payment records.

10. Automates Data Management

Automating the data management software in this tool helps speed up your work process and saves time. Besides, it eliminates the chance of human-made error and ensures accuracy.

11. Tax Computation

Most advanced solutions have a tax computation module that helps you accurately file your tax on time. It complies with all updated government regulations and helps avoid hefty fines for miscalculations or failing to file taxes.

12. Integration with other systems

Payroll software may integrate with other systems, such as time and attendance, accounting, or HR software, to streamline processes and avoid duplicate data entry.

Why Do You Need Payroll Software?

Businesses need payroll software essential for any business to operate effectively and efficiently. Below are some important reasons:

1. Time and cost savings

Payroll tools automate and streamline the payroll process, saving time and reducing costs associated with manual payroll processing, such as data entry, printing and mailing checks, and reconciling payroll data.

2. Accuracy and compliance

Payroll programs ensures accuracy and compliance with tax laws and regulations by automatically calculating taxes and deductions, generating reports for tax purposes, and keeping track of changes in tax laws.

3. Employee self-service

Many payroll software solutions include self-service portals, allowing employees to access their pay stubs, update personal information, and request time off, reducing administrative work for HR staff.

4. Data security

Clous-based payroll software securely stores employee information and payroll data, reducing the risk of data breaches and ensuring compliance with data protection laws.

5. Reporting and Analytics

Payroll software generates reports on payroll costs, tax liabilities, and other financial metrics, providing businesses with insights into their payroll processes and helping them make informed decisions.

How To Choose The Right Payroll Tool?

Payroll software is a cloud-based solution that helps you process the employee payroll seamlessly. Below, we have explained the steps on how you can choose the right software for your business for payroll processes:

1. Business Size and Complexity

The payroll software solution helps businesses of all sizes with a well-structured dashboard. Also, it offers multiple functions like analyzing, viewing, and extracting different sets of data at any given time. Large businesses mainly use payroll as they require more resources to manage their employees.

2. Scalability

Scalability is one of the major factors in considering payroll platform for your organization. Using cloud-based payroll software helps the organization scale up or down according to the needs of the business.

3. Automation Features

Automation reduces the error rate and enables HR teams to speed up the screening process. It helps organizations to have a smooth and efficient payroll process, as large businesses require lots of resources to manage their employees.

4. Customer Support

Having good customer support can enhance the performance of the business. The payroll process can be more complex and time-consuming, so consider payroll software with dependable and responsive customer support to ensure a seamless experience.

5. Integration with Existing Systems

Payroll integration means linking payroll software with other tools and programs to make data sharing and syncing happen automatically. This integration fosters a more efficient and error-free payroll management system, contributing to overall business effectiveness.

Top 5 Payroll Tools Comparison

Payroll software is an essential tool for businesses of all sizes, helping to streamline the complex process of calculating and managing employee compensation and benefits. With so many software solutions in the market, it can be challenging to determine which is right for your business. To help you make an informed decision, here are the top five payroll software systems:

1. Keka

Keka software is one of the best payroll software, an all-in-one HR payroll platform that enables you to automate your payroll process and achieve complete efficiency. It can do everything from accurately calculating your employees’ salaries to disbursing them directly to their accounts. Moreover, it considers leaving, bonuses, and other pay compensation factors while calculating an individual’s pay. Global brands like Oyo, Aditya Birla, and UpGrad use Keka to manage their payroll process.

Pricing

• Foundation: 6,999/month (up to 100 employees) +60/month per additional employee
• Strength: 9,999/month (up to 100 employees) +90/month per additional employee
• Growth: 13,999/month (up to 100 employees) +130/month per additional employee

2. Pocket HRMS

Pocket HRMS is a cloud-based payroll software that comes well-equipped with solutions. It offers solutions tailored to industry needs, including manufacturing, construction, real estate, schools, BSFI, etc.

HR personnel can easily prepare and file tax returns using online payroll tool. It can generate necessary tax forms like eTDS Form 24Q. The best thing is that after accurately calculating employees’ salaries, you can automate disbursing the amount to their accounts directly.

Pricing

• Standard: Starting at 2495 /month(for 50 employees)
• Professional: Starting at 3995 /month(for 50 employees)
• Premium: Call for pricing

3. Saral PayPack

Saral PayPack is a simple yet powerful payroll system software designed to meet every aspect of payroll processing. From tracking attendance punch to payslip generation, it is well-equipped with tools to perform every functionality. Payroll software can be deployed on-premise and on the cloud to enable you to access the system on the go. Moreover, the system ensures that your business complies with all laws and regulations, such as PF, TDS, PT, ESI, etc.

Pricing

• Standard: 46,500/single user, 70,800 for Multi-user
• Corporate: 100,500/single user, 123,000 for Multi-user
• Premium: On request

4. 247HRM

247HRM Software offers a complete HR-related solution - from payroll and taxes to performance management. With its interactive dashboard, you can easily keep track of every activity and interaction with visual charts. The employee self-service portal accelerates basic HR processes, such as task management, scheduling, and leave requests. There is also a help desk where employees can communicate directly with HR if they have any queries.

Pricing

• 247HRM Seed: 1999/Monthly
• 247HRM Shot: 2999/Monthly
• 247HRM Sapling: 3999/Monthly
• 247HRM Tree: 4999/Monthly

5. Zoho Payroll

Zoho Payroll is a leading online payroll software streamlining payroll processes. It acts as a centralized database for all your employees’ information and records and allows you to schedule payroll processing. Zoho tool is well-known for its high accuracy and ability to file returns.

Zoho Payroll ensures that your company complies with all applicable laws and regulations in India. Companies like Indiefolio, Tartlabs, Webcasts, and more trust Zoho Payroll for their payroll activities.

Pricing

• Free plan
• Premium plan: 50/employee/month billed annually

Challenges Faced While Using Payroll Software

There are many challenges to using payroll software. Some common challenges that users may face while using the software are:

1. Learning curve

Payroll software can be complex and require time to learn and become proficient.

Users may need to invest time in training, reading documentation, and exploring the software to understand its full potential.

2. Technical issues

Payroll programs can sometimes have technical issues, such as bugs, system crashes, or compatibility problems with other software. These issues can disrupt the payroll process and cause delays or errors.

3. Security concerns

Payroll data is highly sensitive and confidential, and users must ensure that the software they use is secure and compliant with data privacy regulations. Any security breach can result in a loss of trust and legal and financial implications.

4. Customization limitations

Depending on the software, some users may find that the software does not meet all their specific payroll needs or does not allow for customization. This can result in workarounds or additional manual work.

5. Integration with other systems

Payroll tools may need to integrate with other systems, such as HR or accounting. Integration can be challenging, and users may face compatibility issues, data inconsistencies, or synchronization problems.

6. Cost

Payroll software can be expensive, and users may need to balance the cost of the software against the benefits and savings it can provide. Some users may find the cost prohibitive and need to look for alternatives.

Current Market Trends In Payroll Tool

The payroll software market is evolving to meet the changing needs of companies and employees. These payroll trends will likely shape the industry in the coming years.

1. Cloud-based payroll solutions

One of the biggest trends in payroll software is the shift toward cloud-based solutions. These solutions offer greater flexibility, accessibility, and scalability than on-premise systems, allowing companies to manage payroll data securely and from anywhere.

2. Mobile-friendly solutions

As more employees work remotely or from mobile devices, payroll software vendors are developing mobile-friendly solutions that enable employees to access their pay stubs, benefits information, and other payroll-related data from their mobile devices.

3. Artificial Intelligence and Automation

Payroll software providers integrate artificial intelligence (AI) and payroll automation features into their products to streamline processes, reduce errors, and improve efficiency. AI-powered solutions can automate tax calculations, wage deductions, and compliance reporting, freeing HR and payroll staff to focus on more strategic tasks.

4. Integration with other HR software

Another trend in payroll software is integration with other HR software, such as time and attendance tracking, benefits administration, and performance management systems. By integrating these systems, companies can streamline their HR processes and ensure that all employee data is accurate and up-to-date.

5. Increased focus on compliance

With ever-changing regulations and tax laws, compliance is a top priority for payroll software vendors. They are developing solutions that help companies stay up-to-date with regulations and ensure their payroll processes comply with local and federal laws.

Conclusion

Payroll software is critical for any business to efficiently manage employee compensation and benefits. Best payroll systems can automate complex calculations and streamline administrative tasks, helping to reduce errors, save time, and improve compliance with regulations.

Whether your business is large or small, many payroll software solutions can meet your specific needs, from basic payroll processing to more advanced HR tools. By investing in the right payroll software, businesses can focus on their core operations and free up valuable time and resources for other important tasks.

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