Think of payroll as the heartbeat of an organization. Just as a healthy heart is vital for overall well-being, a well-managed payroll system is essential for maintaining the vitality and smooth operation of any organization.Truth be told, running payroll can be a complicated task. Companies with a flawed payroll system may struggle with paying their employees on time. On top of that, the danger of violating labor law provisions and tax deduction norms looms large. However, using the services of payroll outsourcing companies in India can simplify the entire process and help you come out of the nightmare of triggering non-compliance issues.
In this blog, we will offer you detailed insights into the top 10 payroll outsourcing companies in India so that you make the right choice and enjoy seamless payroll processing.
Contents
- What is Payroll Outsourcing?
- What are Outsourced Payroll Functions?
- Why Should You Outsource Your Payroll?
- How Payroll Outsourcing Works?
- What Should You Look for in a Payroll Vendor Before Finalizing One?
- Top 10 Payroll Outsourcing Companies in India
- Payroll Outsourcing Best Practices
- Final Words- Payroll Outsourcing Companies in India
- Frequently Asked Questions (FAQs)- Payroll Outsourcing Companies in India
What is Payroll Outsourcing?
Payroll outsourcing refers to the process of delegating the management of a company’s payroll functions to a third-party service provider. These services typically include handling tasks such as calculating employee wages, managing deductions and benefits, processing tax withholdings, and ensuring compliance with labor laws.
By outsourcing payroll, businesses can:
- streamline their operations
- reduce administrative burdens
- minimize errors
- save time to focus on core activities
Payroll outsourcing providers in India offer additional features like automated payroll systems, compliance updates, and employee self-service portals, making the process more efficient and reliable.
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What are Outsourced Payroll Functions?
Outsourced payroll functions include the following:
- Setup of payroll account
- Payment method setup
- Tracking the number of hours worked by employees
- Calculating wages to be disbursed
- Making payouts on time
- Compliance & tax management
- Making deductions in terms of payroll taxes, income taxes, and garnished wages
- Handling year-end tax work
Why Should You Outsource Your Payroll?
As per studies, payroll outsourcing is estimated to grow by nearly 6% by 2027. Outsourcing payroll to a trustworthy payroll service provider helps businesses in getting rid of the administrative headache of making apt deductions as per the applicable tax norms. Further, using faulty payroll technology can invite costly mistakes.
Gone are the days of running payroll manually on spreadsheets! Not only this method of payroll processing is prone to calculation mistakes and errors but can also lead to negative employer branding. This is because the immediate consequence of running payroll inefficiently without taking the aid of any proper third-party payroll company will cause delay in employees receiving their salaries.
There can be nothing worse than sending your employees incorrect amounts simply because the internal payroll platform you are using doesn’t function smoothly.
No wonder why outsourcing the functions of your organization to one of the best payroll outsourcing companies in India is crucial! Let’s have a look at the reasons that necessitate the outsourcing of payroll for organizations wishing to save time and costs:
1. Helps in Cost Savings
Outsourcing your payroll to an external service provider is a cost-effective approach that you can adopt to streamline the smooth functioning of payroll in your organisation. Rather than handling payroll processing in-house, you can choose a reliable payroll processing partner to simplify things for you. In that way, you won’t have to delve deep into the complexities of mammoth calculations and employee salary components.
Using the services of payroll outsourcing companies will aid you in saving the costs of maintaining your own payroll software, hardware, and the salary of an internal payroll specialist. Further, the HR team will be able to save significant amounts of time that they can then invest in driving strategic HR initiatives for your organisation and boost employee engagement activities.
2. Boosts Time Efficiency
Managing payroll can be extremely time-consuming. The entire ordeal might be a lot to endure with complex calculations and varying deductions to be made from employee compensation accurately. By outsourcing, you free up valuable time for your HR team or other staff to focus on core business activities.
3. Accuracy & Lesser Incidence of Calculation Errors
Payroll outsourcing companies use specialized software and have experienced staff, which can lead to more accurate calculations and fewer errors compared to an internal team.
Using the services of top payroll outsourcing companies in India such as Asanify can help you automate the entire payroll run without having to worry about a thing. With just a single click, payroll processing will be completed in no time. This will also eradicate the chances of any sort of calculation errors to happen.
4. Enhanced Employee Satisfaction
Studies have revealed that 69% of employers are contemplating to outsource most or all of their payroll processes. Accurate and timely payroll processing can lead to improved employee satisfaction. Outsourcing helps ensure that employees are paid correctly and on time, reducing potential payroll-related grievances.
5. Scalability
As your business grows, an outsourced payroll service provider can easily scale to accommodate more employees and complex payroll needs without requiring additional internal resources.
No wonder why delegating your payroll functions to one of the top HR and payroll companies can help you adapt to changes in the size of your team without facing any hassle! To bring in flexibility, using the services of one of the best payroll outsourcing companies in India may prove to be immensely beneficial for you.
6. Access to Advanced Technology
ayroll service providers often use cutting-edge technology to streamline processes, offer self-service options, and generate detailed reports. This technology might be costly or complex to implement internally.
Powerful payroll technology-backed platforms such as Asanify aids businesses in automating the entire process so that every ounce of complexity gets completely removed.
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How Payroll Outsourcing Works?
Payroll outsourcing typically involves a structured process where a business partners with a third-party provider to manage its payroll functions.
- Choosing an Ideal Payroll Outsourcing Company
Firstly, research and evaluate potential payroll service providers based on certain crucial factors such as their services, reputation, pricing, and features. Make sure to go for a payroll outsourcing company that aligns with your business needs and budget.
- Initial Step & Integration With Your Existing System
Once you have selected a payroll outsourcing company for your business, make sure to provide the service provider with essential details such as employee data, salary information, tax information, and company policies. To ensure seamless data flow without facing any constraints, integrate your existing HR and accounting systems with the payroll provider’s platform.
- Data Collection
Regularly provide the provider with payroll information, including hours worked, overtime, bonuses, and deductions. You can do this manually or through automated feeds. Be sure to check that the submitted data is accurate and complete to prevent errors in payroll processing.
- Payroll Processing
Your payroll outsourcing partner will then calculate gross wages, taxes, and deductions based on the information provided. It will also prepare paychecks or direct deposits for employees and process any necessary tax withholdings and contributions. Ideal payroll outsourcing companies such as Asanify will also offer payslips for employees and invoices for contractors employed at your organisation.
- Compliance & Reporting
The next step involves your payroll outsourcing software to help you in complying with all relevant tax laws, labor regulations, and reporting requirements. It will also assist you in getting your hands on detailed payroll reports and documentation, including tax filings, earnings statements, and payroll summaries.
- Employee Support
Your payroll outsourcing provider will help your employees access their payroll information, such as pay stubs and tax documents, through a secure self-service portal. Further, they will also bear the responsibility of handling any employee questions or issues related to payroll, benefits, or tax deductions.
What Should You Look for in a Payroll Vendor Before Finalizing One?
When selecting a payroll outsourcing vendor, make sure to take into account the following critical factors before finalizing one:
1. Experience & Reputation
Check how long the vendor has been in business and their experience with companies of your size and industry. Further, it is crucial to look for client testimonials and reviews to gauge their reputation and reliability.
2. Compliance & Accuracy
Ensure that a particular payroll outsourcing company is knowledgeable about state and local payroll regulations and compliance requirements.Make sure to assess their track record for accuracy in payroll processing and any guarantees they offer.
3. Technology Offered & Ease of Integration
Evaluate whether the payroll software used is robust, secure, and user-friendly. An ideal payroll outsourcing company should use a software that can seamlessly integrate with your existing HR, accounting, and other relevant systems.
4. Service Offerings
Determine if a specific payroll outsourcing company offers additional services such as tax filing, benefits administration, or HR consulting. It is better to go for a solution that can personalize their services to suit your requirements.
5. Security & Data Protection
Check if a specific payroll outsourcing software follows strong data protection practices and comply with data privacy laws. Make sure to ask questions about their data backup and disaster recovery processes.
6. Customer Support
Confirm the level of support provided and the payroll software’s availability for resolving issues or answering questions. It is crucial to assess how quickly they respond to inquiries and address concerns.
Suggested Read: Best Global EOR Companies- How to Choose the Best One?
Top 10 Payroll Outsourcing Companies in India
1. Asanify
Asanify is an umbrella payroll platform offering a vast range of features to help business owners, employers and HRs to comply with the set of labor rules and regulations applicable in India. It has been designed with the motto of helping startup founders and HRs of global enterprises to save time by taking care of their payroll processing needs. In that way, companies will get the much-needed time to build their organisation and drive growth initiatives to expand their reach.
The very fact that makes Asanify stand out from the list of top payroll outsourcing companies in India is that it doesn’t limit its services to payroll processing solely. In fact, it offers end-to-end HRMS suite consisting of robust modules such as expense reimbursement, leave management, performance management, and so much more. Its employee self-serve platform offers an user-friendly interface that lets employees easily navigate their way through various features and enables them to mark their attendance, regularize it, apply for leaves,, download payslips, etc., seamlessly.
One of the key reasons for businesses to choose Asanify as their payroll outsourcing partner is that it offers tax management and statutory compliance solution as well. Every kind of statutory compliance such as TDS (old/new regime), PF, ESI, PT, LWF, etc., are taken care of at the time of processing the payroll. Interestingly, its fully gamified Investment Declaration feature allows employees to plan and submit invest declarations online without facing any hassle.
Asanify offers a remarkable package of payroll processing and HRMS in addition to excellent round-the-clock customer support. Its affordable yet top-notch payroll outsourcing services have made it pave its way to the first position in the list of best HR & payroll outsourcing companies in India.
Features
- Easy-to-use employee self-serve platform that comes complimentary with payroll outsourcing services
- Support of a dedicated team of payroll, legal and HR specialists to help you stay compliant and save time and cost
- Seamless integration with core HR management modules such as leave management, employee directory, attendance management and reports & analytics
- AI-powered platform ensuring 100% error-free automation of payroll
- Assistance of an advanced tax calculator to help your employees reduce tax planning worries and ensure easy submission of investment declaration online
- Offers global payroll services, in addition to local payroll automation
- Separate portal for managers or admins to ensure efficient employee management
Pros
- Complete support in payroll processing, managing talent, ensuring compliances and accurate tax deductions
- All-in-one platform offering payroll processing, employee self-serve portal, crucial document and contract storage, tax management and compliance support
- 24/7 customer support with dedicated account manager assigned to each client company, thereby ensuring instant resolution of their problems and grievances
- Automated solution for full and final settlement
- Direct client support via phone & e-mail
- Customization options to add personalization touches to digital payslips along with annexures for employee leave and attendance
- Supreme package of affordable HR & payroll processing services suited to meet the needs of both startups, SMBs and global enterprises
Cons
- Not available to be used for free
2. ADP
ADP, or Automatic Data Processing, offers payroll outsourcing services for a wide category of users, including businesses of varying strength. It comes with an employee self-service platform with a dedicated portal for managers or admins.
An automated payroll and compliance tracking tool comes with ADP payroll outsourcing services to help businesses stay compliant. It offers easy integration with individual HR and accounting software of businesses without creating any hassle. However, ADP’s payroll outsourcing services may not be suitable for Small and Medium-Sized Businesses (SMBs) owing to its exorbitant pricing structure.
Features
- Offers payroll services segregated into two packages- one for small businesses and the other for mid-sized to large businesses
- Tax and compliance support to protect businesses from violating regulatory norms
- Automation of payroll to minimize the chances of calculation errors
Pros
- Easy to implement
- Simple user interface
- Ensures compliance with the tax laws
- Swift integration with existing software
- Comes with a mobile app to ensure that users get easy access to crucial information
Cons
- May not be an ideal option for startups and SMBs owing to its expensive pricing model
- Lack of a responsive customer support
3. Quikchex
Quikchex aids businesses in simplifying the complex task of processing payroll. Apart from simplifying payroll functions for businesses, it also comes with an efficient HRMS that makes the entire task of people management an easy task. Starting from ensuring mandatory compliances to adhering to tax regulations applicable in India, Quikchex aids organisations to save time that would have otherwise been invested in these manual processes subject to errors.
A 2-level verification process of “Maker-Checker” is used by Quikchex to ensure that every payroll output generated is vetted by a Team Leader. This is done to ensure that the entire process of payroll run is completed in a secured, error-free manner. It also offers a diverse range of services such as Form 16 submission, investment declaration for employees, and so on, along with account management support.
Features
- Expert support to help businesses navigate the challenges of compliances and tax regulations
- Offers end-to-end HRMS along with payroll processing services
- Comes with proper tax and compliance management services with a special function of “Compliance Tracker”
- 2-level verification process to ensure that the payroll has been executed in a safe and secure way with no calculation errors
Pros
- Single platform to run payroll and manage employees
- Easy to use employee self-serve platform with proper attendance & leave management sections
- Availability of employee help desk to assist users in solving their queries and problems that they may face while using the platform
Cons
- The app version of the tool is not that efficient
- Some users have complained that the process of salary slip generation is quite time-consuming
- Expense reimbursement feature often doesn’t work efficiently
4. Zing HR
Zing HR streamlines payroll operations for mid to large-sized enterprises. It also offers global workforce management solutions aiding businesses to manage employee benefits, ensure statutory compliances and manage employees.
Apart from compliance facilitation and tax filling services, Zing HR comes with an exclusive CXO dashboard and in-built tools to access crucial HR analytics and trends. It also provides users with the option to choose from hourly/daily/weekly/monthly payments of salaries to employees. Further, it grants access to real-time payroll data, thereby enabling business to keep a close tab over their expense, budget and labor costs.
Features
- Domain-specific payroll outsourcing services (for instance, it offers suitable facilities for companies if these operate in the healthcare or financial technology by adhering to certain niche-specific regulations)
- Removes complications involved in payroll run
- Automated tax filling facilities
- Compliance support
Pros
- Easy access to payslips for employees
- User-friendly platform to consolidate payroll processing in a single platform
- Offers a single, unified platform to store important employee documents and employment contracts
Cons
- User interface of the mobile application is poor
- Slow response to customer grievances
- Some users have pointed out that chances for customization are poor
5. PaySquare
Paysquare uses robust HR technology to simplify payroll processing and accounting for businesses of all sizes. Starting from collating payroll inputs, fulfilling reporting requirements to managing expense reimbursement requests, Paysquare helps organisations to keep stress at bay by removing any kind of manual activities involved in the process.
For businesses looking to use the services of a payroll outsourcing company that can also offer holistic HRMS, Paysquare may not be an ideal option for them. This is because it doesn’t have its own HRMS platform. Therefore, it may not suit the needs of companies looking to switch to an all-in-one platform for payroll outsourcing and gaining access to employee self-service platform.
Features
- Handles all aspects of payroll processing and management
- Ensures accurate processing of wages, taxes, and deductions
- Provides tailored payroll reports and analytics
- Ensures adherence to local tax laws and regulations
Pros
- Eliminates the risk of errors by automating payroll run
- TDS filing support along with compliance management
- End-to-end accounting outsourcing services with separate packages to suit the needs of both enterprises and SMBs
- Implements robust security measures to protect sensitive payroll data
Cons
- Doesn’t offer any HRMS solution as a complimentary service
- Specific modules such as attendance tracking and leave management are not available while using payroll outsourcing services
6. Rippling
Rippling’s payroll outsourcing services cater to a varied number of businesses of diverse sizes. It offers both local and international payroll delegating functions. Once your employee data gets stored in Rippling’s system, payroll gets implemented swiftly, thereby ensuring that all your employees receive the correct figure and on time. Its payroll comparison tool lets business owners compare the current pay run with the one processes in the previous month. This helps them in digging further into the changes in gross pay, tax deductions and so on.
One of the most notable characteristics of Rippling is that its payroll solution smoothly integrates with time and attendance module, benefits administration solution, accounting software and several other platforms. This makes it a quick to implement payroll outsourcing software. It also offers room for customization and syncs payroll & expenses to the general ledger of businesses.
Features
- Complete automation of payroll processing
- Ensures error-free payroll run so that employees receive the accurate amount that they are entitled to obtain
- Automated compliance alerts, thereby ensuring that all the local labor regulations are adhered to
- Offers detailed insights into payroll reports and analytics
Pros
- Comes with an easy-to-use mobile app that lets employees access their pay stubs and apply for leaves
- Allows data access customization and visibility on the basis of each level and department
- Permits paying both employees and contractors
- Payment can be made via direct deposit or check
- Offers compliance and tax support
Cons
- To purchase advanced workflows, one needs to pay separately
- Some users have complained about poor onboarding experience
- Pricing is on the higher side and may not be a suitable option for startups and SMBs
7. Ramco
Ramco is one of those payroll outsourcing companies in India offering streamlined payroll services and easy-to-use employee self-service portal. It comes with in-built integrations with popular Human Capital Management systems for swift data flow, thereby sweeping away any possible hindrances in data flow.
Owing to its embedded AI-powered chatbot, Ramco helps address user queries concerning payroll processing and leave & expense approvals quickly. Further, this AI-powered payroll outsourcing company ensures data validation precisely and alerts about any anomalies in advance.
Features
- Offers both local and global payroll services
- Ensures complete AI-backed automation of payroll, thereby eliminating any kind of calculation errors
- User-friendly interface enabling users to go about this platform easily
- Error-free payroll tax calculations
- Self-service options for employees to access payslips and apply for leaves
Pros
- Statutory compliance support with assistance in tax filing
- Easy-to-use mobile app
- Access to crucial analytics to unravel insights related to employee data and payroll costs
- Chat bot-enabled help desk to address user grievances
- Hassle-free integration with various HCM systems and ERPs
Cons
- Some users have reported that data import is quite a complicated process for non-technical people
- Customer support is not that efficient and swift
- Implementation of customization is quite cumbersome
8. HRMThread
HRMThread by Sensys Technologies offers payroll management services for a varied category of users such as companies, business owners, Chartered Accountants and PF consultants. Along with its payroll automation services comes an user-friendly Employee Self-service software. This lets employees access their payslips, view information about leaves and expense requests.
Compliance management services are also offered by HRMThread. It helps business owners to adhere to mandatory labor law legislation applicable in India. Every compliance, starting from PF, ESI to LWF will be taken care of. Further, it helps in calculating accurate tax deductions from employees’ compensation.
Features
- Cloud-based platform to streamline the complex process of payroll functions
- Reduces the risk of errors while running payroll for employees
- Access to employee self-service platform to ensure easy access to pay slips, employee benefits, leave information, etc.
- Helps ensure compliance as per the Indian labor code
Pros
- Desktop-based HRMS offering payroll outsourcing and compliance management services
- Budget-friendly option for startups and SMBs
- Offers instant access to payslips
- Automated payroll processing to remove any kind of complications and errors
- Cost-effective solution for SMBs
Cons
- Some users have reported that the loading time on browsers is quite slow
- May not be an ideal option for global enterprises looking for a consolidated platform to fulfill their diverse requirements
9. Justworks
Justworks is a payroll software working towards simplifying the otherwise complicated procedure of running payroll for the workforce of a company. It has been keeping in mind the requirements of small businesses so that they can invest more time in planning their growth initiatives than mulling over how to go about the process of running payroll.
The software comes integrated with easy-to-use HR tools to facilitate people management. Moreover, it permits unlimited payroll runs and ensures accuracy in calculations. Statutory compliances are well taken care of, with assistance provided in making the right tax deductions. It also offers integrated employee benefits access by letting you choose the best package from a wide variety of options.
Features
- Easy way of running payroll with endless number of attempts
- Offers easy integration with other HR tools such as attendance & leave management
- Facility to purchase add-ons such as employee benefits package
- User-friendly platform to run payroll compliantly while withholding deductions from employees’ compensation accurately
Pros
- An easy and streamlined approach to running payroll on time
- Intuitive platform to execute crucial payroll and HR functions
- Direct sync of payroll software with time-tracking solution to help employees track their time
- Compliance & tax support
Cons
- Customer support is not up to the mark and needs to be improved for quick resolution of user problems
- Some users have shared that the onboarding process needs to be enhanced
- Tracking of employee benefits can be quite difficult at times
10. OSource
Apart from processing payroll monthly, OSource offers smart solutions to simplify investment proof verification services, full & final settlement processing and statutory compliance management. It cuts down operational costs and removes manual efforts involved in handling payroll single-handedly, without the aid of any technology.
Employee self-service platform of OSource lets the workforce of a company access their payslips on time and check leave and expense approvals. It also comes with a simple mobile app version that makes regular work life of employees hassle-free.
Features
- Payroll shared services with seamless processing of employee salary
- Easy integration with other HCM solutions
- Availability of HR outsourcing services as an add-on
- Comes with a dedicated mobile app to ensure easy access to salary slips, tax forms, and so on
Pros
- Simplifies the complex task of payroll processing
- Payroll outsourcing expertise in diverse domains such as healthcare, IT, hospitality, etc.
- Flexible and swift client process adoption
- Tax & compliance management services
- Supports processing of both local and global payroll
Cons
- Not suited for SMBs owing to its pricing structure
- Customer support enhancement is needed
Payroll Outsourcing Best Practices
When outsourcing payroll in India, adhering to best practices ensures compliance, efficiency, and security. Let’s have a look at certain essential payroll outsourcing best practices:
- Ensure the payroll outsourcing vendor is well-versed in Indian labor laws, tax regulations, and compliance requirements (e.g., Provident Fund, ESI, TDS).
- Confirm that the vendor has robust data protection measures, including encryption, access controls, and compliance with data privacy laws.
- Get a clear understanding of the pricing model and ensure transparency with no hidden costs. Consider scalability in pricing as your business grows.
- Provide necessary training to your HR and finance teams on working with the outsourced vendor and understanding payroll processes.
- Confirm that employees have access to self-service portals for viewing pay slips, tax forms, and updating personal information.
- Keep accurate and up-to-date records of payroll transactions, compliance documents, and any communications with the vendor.
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Final Words- Payroll Outsourcing Companies in India
Now that you are aware of the top 10 payroll outsourcing companies in India, make sure to choose the right partner that can significantly influence the efficiency and accuracy of your payroll operations. In a rapidly evolving business environment, outsourcing payroll not only streamlines processes but also allows you to focus on core business activities while ensuring that your employees are paid accurately and on time.
Empower your business with a strategic payroll partner such as Asanify, and watch as your administrative burdens lighten and your operational efficiency soars. The future of payroll is here—embrace it with confidence and clarity!
Frequently Asked Questions (FAQs)- Payroll Outsourcing Companies in India
In India, the cost for payroll outsourcing may vary from Rs 150 to Rs 200 per employee per month. However, general estimates for outsourcing payroll in India may fall between ₹5,000 to ₹1,00,000 per month, depending on the size of the business and the scope of services.
Small businesses might pay around ₹5,000 to ₹20,000 monthly, while medium to large enterprises could face costs ranging from ₹20,000 to ₹1,00,000 or more.
Outsourcing payroll involves delegating the management and processing of employee wages, benefits, and compliance tasks to an external service provider. This includes calculating salaries, managing tax withholdings, ensuring compliance with labor laws, and handling other payroll-related functions.
By outsourcing payroll, businesses can reduce administrative burdens, minimize errors, and ensure adherence to regulatory requirements, allowing them to focus on core activities and strategic goals.
Outsourcing payroll can be highly beneficial for many businesses as it streamlines payroll processing, ensures compliance with complex regulations, and reduces administrative overhead. This allows businesses to focus on their core activities and strategic initiatives while ensuring accurate and timely payroll execution.
Outsourcing HR can often be cheaper than managing HR functions in-house, especially for small to medium-sized businesses. It eliminates the need for full-time HR staff and reduces costs related to recruitment, training, and benefits administration.
Payroll services in India encompass a range of functions designed to manage employee compensation and compliance efficiently. These services include calculating salaries, handling tax deductions and contributions, managing employee benefits, ensuring adherence to labor laws, and generating payslips.
Payroll is typically prepared by either an internal HR or finance team within a company or by an external payroll service provider. Internal teams handle payroll processing by calculating salaries, managing deductions, and ensuring compliance with regulations. Alternatively, businesses may outsource this function to specialized payroll service providers, who use their expertise and technology to manage payroll tasks.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
