A Complete Guide To Payroll Software In India!

Payroll Software India

With a good number of Indian businesses switching to automated payroll systems, the whole payroll management process has been changed now. Gone are the days when payroll processing was one of the time-consuming human resources operations. Today, HR managers are able to manage this routine task in just a matter of minutes. All thanks to technology!

Although there is no dearth of payroll systems options in the Indian market, employers still face several challenges while selecting one for their company. This is certainly due to the number of vendors increased over the last few years. But if an employer has a clear understanding of such systems, its benefits, and must-have features, then the selection process will get automatically easier.

In this blog, we will help you learn more about payroll systems. We have also included some effective tips that will allow you to zero down the best software for your organization.

Let’s dive in!

Must-Have Features

First thing first, do not pick any payroll software available in the Indian market. To acquire the desired advantages in the long run, employers should pick a system that comes with some amazing features. Take a look at some must-have features in a payroll management system:

  • Cloud-Based

The first thing every employer should ensure is that they are investing in a cloud-based payroll system. Need to mention, only the best payroll software in India comes with a cloud-based interface. One of the top benefits of implementing such systems is that they store important information and sensitive data in the cloud, thereby eliminating the use of paperwork in the workplace. No papers mean zero risks such as data theft, misplacement, and much more.

  • Employee Self-Service (ESS)

We all know the amount of time HR managers invest in managing and processing payrolls of employees. If that was not enough, employees would also jump to them with different queries, complaints, or payslip requests. Now, it becomes acutely complicated for HRs to focus on every task equally. This is when payroll software comes into the picture! 

The top-notch payroll systems in India factor in employee self-service (ESS) feature that allows employees to view and edit several aspects. Say for example, if an employee wants to check his/her attendance to do a self calculation or an employee wants his/her payslip at the earliest. ESS feature comes in handy in both these situations. It helps employees to check their attendance anytime, anywhere and also, download their payslips on their own. This way, both employees and HR managers can save a large chunk of time.

  • Automation

The main purpose of investing in payroll software is to assist HRs and simplify the entire payroll management process for them. So, it is important to select a fully automated system. Only such systems can help HR managers to save time and energy. Fully-automated payroll systems carry out every task with a bare minimum of human intervention, thereby allowing HRs to pay attention to other important areas of business.


If you pick a payroll system with the three features mentioned above, here are some advantages you can acquire in the long run:

  • Boosts HR Professionals’ Efficiency

As mentioned earlier, the payroll management process has always kept HR professionals in the back office. Either they juggled with files or jumped from one spreadsheet to another. Fortunately, payroll systems avoid such a situation. Since an automated system will streamline and optimize every task, HRs will never have to worry about the payroll process.

  • Cuts Down Payroll Errors

Let’s face it, calculating the salary of every employee is not as simple as it seems. Both outdated tools and HRs are prone to mistakes. Payroll and HR software, on the other hand, eliminates every possible error and ensures accurate payroll calculations along the way. Needless to say, zero errors in payroll help to maintain employee satisfaction and engagement.

  • Improves Legal Compliance

Payroll and compliance go hand in hand. As a result, HR professionals are expected to keep track of the changing laws and new amendments. However, often HR managers fail to stay updated about these legal requirements due to their workload. An efficient solution to this problem is payroll software. The automated payroll systems send timely alerts to HRs and keep them posted about every latest regulation that should be taken into account while processing payroll. In essence, the payroll software helps companies to stay away from non-compliance as well as hefty fines, lawsuits, etc.

Tips To Simplify Your Selection Process

Now that you know the must-have features and top benefits of payroll systems, it is time for you to know some effective tips and tricks for a smooth selection process:

  • Do Good Research

Before meeting vendors, make sure you have spent enough time searching and comparing systems available in the market. This will help you to get it right the first time.

  • Fix Budget Beforehand

Do not start your selection process without deciding on a budget. Fixing budget parameters help to avoid confusion at the time of purchasing.

  • Know Your Needs

It is important to figure out the exact payroll challenges and requirements of your company. Write down them on a sheet of paper and take it with you throughout your selection process. Also, discuss them with the vendors you meet, which will help you to zero down a best-suited system with the right features to solve all your payroll problems.

  • Take Demo

Never make the final decision without taking a demo of the software. Especially when most vendors today provide a free demo, it is your responsibility to take it without a second thought. The demo will help you to have a closer look at the software, thereby allowing you to check its features and user-interface.

So, we have come to an end!

We hope this blog helped you to acquire more knowledge about payroll software.

If you haven’t invested in a payroll system, do it at the earliest and take the burden off your HRs’ shoulders. This New year, let this be a gift to your HR team.

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