There are many benefits which include the use of payroll software in salary disbursement, proper and legal compliance and proper deductions from employees’ taxes. In India, the demand for Payroll processing has risen with the increasing size and increasing complexity of compliance legislation. An effective payroll system does help in these tasks since it is a program that calculates taxes, PF, ESI, and all other statutory deductions automatically.
Previously, in taking and processing the payroll, the procedure used to involve many errors, but with the help of digital tools, it is less erroneous and more automated. It also connects well to other HR operations such as attendance, leave, and performance that are present on the software, hence making top payroll software in India a complete management tool for institutions. To small business organizations, especially the SMEs operating in India, selection of appropriate payroll platforms expedites the salary process in a processing manner and, in the process, enhances employees’ level of trust.
What is Payroll Software?
Payroll software on the other hand refers to tools that have been developed to compute employee wages, deductions and benefits as well as provide payslips. It assists organizations to be certain that the workforce receives salaries in time with reference to tax and regulatory requirements proffered by the government. Such tools can be very basic, calculating only the wages, or more complex, processing taxes, bonuses or reports.
This software also helps to reduce human factors like computation of overtime, bonuses and reimbursements by automating them. It also helps to forward compliance of many laws of India such as Payment of Wages Act, Income Tax Act or Provident Fund also.
Also, payroll software simplifies the generation of payroll reports since companies are able to produce precise reports which can be useful for auditing, tax returns, and record-keeping of employees, among others. The top payroll software in India offers solutions that can be hosted in the cloud, while some organizations prefer to install it on their systems depending on the company’s size and needs. With more enhanced features, the existing software allows interactions with other modules, including attendance, leave, and performance.
Key Features to Look for in Payroll Compliance Software
- Automated Tax Calculation: The software should automatically calculate income tax, deductions, and statutory benefits based on Indian laws.
- Compliance with Local Regulations: It must comply with all national and regional labor laws, such as PF, ESI, and PT, and keep updated with legal changes.
- Leave and Attendance Management: Integration with attendance systems and leave management to ensure accurate payroll processing.
- Employee Self-service Portal: Allows employees to view their payslips, track leave balances, and update personal details, improving transparency.
- Reporting and Analytics: Provides detailed reports for audits, tax filing, and internal reviews.
- Data Security and Backup: Ensures employee data is encrypted and securely stored with backup facilities for disaster recovery.
List of 10 Top Payroll Software in India
1. Zoho Payroll
Zoho Payroll is online payroll software for managing structured payroll processing of employees for small and medium enterprises in India. That means it entertains basic and important tasks like the salary computation, the tax computation, and the various legal requirements that are mandatory for the employees’ payroll systems. A number of features of the platform makes it easier for businesses to generate and produce payslips for their employees and to also file taxes as well as to deal with issues to do with employee reimbursement.
Easy to connect to Zoho Books and other Zoho applications, making the Zoho Payroll a one stop solution for businesses that are already in the Zoho platform. Also, it provides detailed reports and compliance to keep the companies audit-complete as well as knowledgeable of the latest Indian labor laws.
Features:
- This feature performs automatic computation of taxes and salaries.
- Draws Set Payslips that are easy to customize.
- It scans and is aligned with the Indian laws on employment.
Pros:
- User-friendly
- Scalable
- Multi-company support
Cons:
- Limited integrations
- No mobile app
- Basic customer support ₹
Pricing: Standard – ₹50, Professional – ₹75, Premeium – ₹100 per Employee per Month Billed monthly
Website: zoho.com
2. GreytHR
GreytHR is a solution that provides HR and payroll services for businesses across their size spectrum. Through the cloud technological advancement of the system, there are immediate updates on its various processing, including the payroll system. With GreytHR, the management of leaves and attendance is done simultaneously with payroll so as to reduce their complexity. It also has statutory compliance features like EPF, ESI and all other labour laws compliance.
Considering its goal and features, and integrated with a user-friendly interactive dashboard and full of flexible and specific HR reports, it is more significant for the HR team. Having more than 10, 000 customers they can be regarded as one of the most reliable top payroll software in India. The software still has clear graphic interfaces that make it easy for users to increase productivity and it assists in the conduct of compliance audits.
Features:
- Integrates features of leave and attendance with payroll features.
- Aggregate duties such as EPF and ESI are vibrant with the help of this feature.
- Offers the high level of flexibility and great detail of the HR reports.
Pros:
- Multi-location support
- Easy to use
- Customizable reports
Cons:
- Limited customer support
- Expensive
- Slow processing
Pricing: Essential – ₹3495, Growth – ₹5495, Enterprise – ₹7495 unlimited employees
Website: greythr.com
3. Keka
Keka is essentially an HR and payroll software solution for small to mid-sized companies to help streamline their managing task their people. Recognized as one of the top payroll software in India, it has a payroll module that can perform automatic or manual computation of salaries and taxes as well as statutory returns. Keka is built with the employee in mind, has a simple web-based dashboard, and presents the ability to monitor leave and payroll in real-time. The same also helps to check compliance with Indian labour laws, which in turn saves significant time for the Human Resource departments.
Even more, if the issue of scalability is significant in an organization, it is crucial since it has a fast implementation, and security measures are astonishing for an organizational payroll workflow. Keka also had modules for analytics and reporting that gives the employer the ability to measure the performance of their workforce.
Features:
- Automating and Manual on salary processing
- Registers and records leave and attendance in real-time.
- Guarantees legal compliance specifically the labor laws of the country.
Pros:
- Intuitive UI
- Fast implementation
- Compliance-driven
Cons:
- Expensive
- Limited reporting
- Customer support issues.
Pricing: FOUNDATION – ₹9,999/month, STRENGTH – ₹12,999/month, GROWTH – ₹15,999/month (Upto 100 Employees)
Website: keka.com
4. SumHR
Examining its capacity, SumHR is a cheap HR and payroll software for small business at the initial stage. In particular, it works to automate the salary calculation, tax and compliance processing so that businesses can remain accurate and specific when dealing with their payroll. It has an ‘Employee Portal’ where employees can find their payslips, tax credits & summaries and leave balance without stressing.
Because of the user-friendly design, any HR team can handle SumHR’s payroll functions without much training. It is also easy to operate, and cheaper than other elaborate systems, making it ideal for small-scale businesses. They include tracking features, integration capabilities, and other aspects which clearly make SumHR an ideal choice for businesses that are expanding rapidly.
Features:
- Helps in computation of salaries and taxes.
- Contains provision of an employee self-service application for payslips and tax information.
- Makes it easy for small business entities to achieve compliance with legal requirements.
Pros:
- Simple UI
- Affordable
- Employee self-service portal
Cons:
- Limited features for larger companies
- Slow customer service
- Basic reports
Pricing: STARTUP – ₹ 49, BASIC – ₹69, ADVANCED – ₹ 119 per user/month, billed annually
Website: sumhr.com
5. Qandle
Qandle is a complete HRMS solution with an advanced payroll system incorporated within it. Recognized among the top payroll software in India, it simplifies handling employee salaries, managing compliance issues, and monitoring performance, making the solution relevant for all types of businesses. Dedicated modules and integrated automations available at Qandle are beneficial for organizations as they do not need to perform most of these tasks manually.
It also has rich sets of employee engagement tools that help provide workplace satisfaction and collaboration and feedback. However, it is not easily understandable for small business owners especially those who are not so well versed with computer and internet usage.
Features:
- Simplifies tasks related to payroll processing, and obligations related to compliance.
- Effectively handles the performance of the employees.
- Provides resources concerning employee motivation and social interaction.
Pros:
- Customizable
- Time-saving
- Employee engagement features
Cons:
- Expensive
- Limited mobile features
- Complex for new users
Pricing: Foundation – ₹ 2450/mo, Regular – ₹ 3950/mo, Premium – ₹ 6450/mo upto 50 employees
Website: qandle.com
6. Razorpay Payroll
Razorpay Payroll is an online platform which is built to help companies of all sizes for payroll processing. It processes and disburses salaries, calculates and remits taxes, and files papers that make engaging and sustaining human resource and finance departments efficient and collaborative. Embedded with Razorpay payment solution, payroll software supports direct bank transfer facilities and real-time tracking of payroll cost.
The completion of the salary and wage calculations for the company is also facilitated and offers elaborate payroll information for audit and tax purposes thus eliminating the cumbersome activities. Nonetheless, more appropriate for middle and, particularly, large organizations because its costs and numerous functions may be too beneficial for small enterprises and startups.
Features:
- Direct bank transfers
- Simplifies processes associated with tax returns, and compliance certificates.
- Included Payroll Cost Tracking and Payroll Reports.
Pros:
- Simplified tax filing
- Easy integrations
- Secure
Cons:
- Limited features
- High cost
- Not suitable for small businesses
Pricing: Custom pricing.
Website: razorpay.com
7. Paybooks
Paybooks is an effortless payroll software that is more concentrated on statutory compliance and payroll computation for corporations in India. Recognized as one of the top payroll software in India, it produces fair payslips, calculates taxes for a company, and measures conformity to labor laws such as EPF and ESI. The software provides options for the compliance of multiple states, making it useful for companies operating in different regions.
It is relatively cheap and easy to use, making it suitable for small businesses, and may not handle sophisticated integrations and lacks a mobile application for business-sensitive operations as may be observed with large and technologically advanced businesses.
Features:
- Produces clear and legally correct payslips that are compliant with the state.
- Provides information for automating tax computation and tax filing processes.
- Is involved in monitoring and reporting compliance with labor laws across many states.
Pros:
- Simple interface
- Multi-state compliance
- Fast processing
Cons:
- Limited integrations
- Basic support
- No mobile app
Pricing: ESSENTIAL PLAN – ₹2,499/month, REGULAR PLAN – ₹4,999/month, PREMIUM PLAN – ₹9,999/month (Up to 50 employees)
Website: paybooks.in
8. HRMantra
HRMantra is a fully integrated Human Resource Management System with functionality in payroll processing. It helps in automating tasks like having to process salary, compliance, taxes among others. The modularity of the software and the compatibility it has with the HR modules would make the program suitable for mid-sized organizations planning for one stop solutions.
It also provides strong safeguarding and analyzing and revealing features. However, it has a complicated user interface and it is quite expensive than others particularly for small companies, and may necessitate undertaking special classes from trainers.
Features:
- Produce payroll and also assists with leave administration.
- Provides solutions for compliance reporting, as well as human resource management system solutions.
- It also helps in computation for tax rates and payment of employees’ salaries.
Pros:
- Scalable
- Customizable
- Integrated with HRMS.
Cons:
- Complex UI
- Expensive
- Slow updates
Pricing: contact Pricing
Website: hrmantra.com
9. PeopleStrong
PeopleStrong has emerged as a leading premium HR and Payroll services provider for enterprises. Known as one of the top payroll software in India, it includes payroll management and automation, compliance with the tax system, and managing the employee life cycle. With very strong features for security, PeopleStrong offers a solution for multi-country payroll software processing, catering to worldwide organizations with various demands. It also provides artificial intelligence input on the right staffing allocations.
Nonetheless, there are distinct disadvantages of this platform: it is rather costly compared to other similar platforms, and it would not suit small businesses as the platform itself is rather complex and requires significant time to familiarise with the users.
Features:
- Contains information for automatic paycheck processing and managing employee life cycle.
- They use it to run multinational payroll for global corporations.
- Uses AI for staffing data and distribution.
Pros:
- Multi-country support
- Robust security
- Cloud-based.
Cons:
- Complex for small businesses
- Expensive
- Slow onboarding.
Pricing: Custom pricing.
Website: peoplestrong.com
10. Tax2Win
Tax2Win is mainly a tax filing software that comes with payroll functionality. They also appeal to the small business as they help in automating compliance with tax, computation of salaries, and filing of statutory records. The platform is very cheap, and very easy to use and as such is very suitable to firms and companies that are starting out such as startups and small enterprises.
Additionally, the programme also provides efficient support for the customers with compliance problems. Yet, it does not offer the highest degree of payroll parameterization and does not incorporate extensive payroll-related solutions tailored for handling expansive or developing organizations’ HR needs.
Features:
- Helps the small businesses in that they are able to easily perform their payroll and taxes.
- Manages PF/ESI, calculates salary as per the Window Salary System, and more.
- Offers simple procedures for the preparation of statutory filings.
Pros:
- Tax-compliant
- Easy to use
- Affordable
Cons:
- Limited features
- No payroll customization
- Limited support.
Pricing: Standard – ₹899, Business Income – ₹1874, Foreign – ₹7499
Website: tax2win.in
How to Choose the Right Payroll Compliance Software?
- Scalability: Select a system that would expand according to the growth of the business and cater for growing payrolls.
- Ease of Use: Make sure that there is no need for much training in order to operate the software.
- Customer Support: To Support Customers Issues, effective customer support is critical.
- Customization: Make sure that the software will allow your company payroll policies to be set.
- Compliance Updates: The software should however be designed to update with any change in the tax laws and regulations.
- Integration: If there is any conflict in its compatibility with other software you use in your human resource department or accounting department then this would be a very big problem.
Conclusion
Due to the ever-evolving bureaucracy and the increasing complexity of the legal environment, especially when it comes to employee remuneration, top payroll software in India has become essential for any business organization that wants to keep its payroll management efficient and in compliance with the laws. Apart from conducting computations and interacting with other HR applications, the payroll tool minimizes the time spent on payroll processing and errors made.
Companies in India can select any number of software according to their requirements; it could be for taxation, compliance, or reporting. Some of the aspects that need to be considered when choosing the software include scalability, user-friendliness, and compatibility.
Since there are multiple possibilities to implement an appropriate solution, the businesses have to analyse their needs, determine requirements on the solution and follow the corporation’s structure and further development strategies. Thus, the proper choice of payroll not only solves organizational problems related to statutory requirements but also increases employees’ opinions about their organization due to the transparency and accuracy of the process.
FAQs
1. What is payroll software?
It allows for calculating workers’ wages, compounding taxes, managing employees’ benefits and producing payslips and will help to guarantee employees’ prompt salary payments and compliance with Labour Laws effectively.
2. In what way does payroll software help to follow the Indian legislation in the field of labor rights?
This saves time in calculations of taxes and statutory bare necessities such as PF, ESI, PT and it follows all Indian labor laws and tax laws religiously.
3. What are the benefits of using payroll software in a business?
First, it would be time-saving; second, it helps enhance accurate accounting; third, it is legal; fourth, it contributes to the satisfaction of employees; fifth, it secures the data of payroll.
4. Can payroll software be integrated with other HR tools?
Yes, many payroll software solutions integrate with HR tools like attendance, leave management, and performance systems for seamless data flow.
5. How can I choose the best payroll software for my company?
Consider ease of use, compliance features, scalability, integration capabilities, and customer support when selecting payroll software.
