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Top 20 Best Payroll Software System in India for Small & Medium Businesses

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Vedika Nathani
April 29, 2021

In businesses, managing the payroll of a company is a task filled with hassles. From additions to different direct deposits, deductions, and income tax filing, it demands the need to be accurate and error-free. This is where cloud-based payroll software comes into the picture.

Our businesses are running because of our employees. They work hard both for us and the customers and bring us tangible returns. The least we can do as the HR of such a company is to pay the employee per month salaries that they deserve and do so regularly.

Giving them a bonus sounds great too. But it isn't always easy to manage your workforce's salaries. It can sometimes be downright complicated, actually.

That's why many businesses rely on a payroll team with software, an on-premises or cloud-based system that helps ensure that payments are properly processed and paid without problems. You keep yourself open to making expensive mistakes if you're still completing this process by hand and/or on paper. It can save you time, stress, and, yes, even money by investing in payroll software.

Time is money. So before acknowledging various Payroll Management Solutions, let us have a quick go through about what is Payroll Management Software, its importance, and few features.

What is payroll management software?

Payroll software is a solution used by the HRs of the company to manage their entire payroll operations smoothly.
The software tracks all the employee payments and keeps a record of them. Effective payroll software will allow you to manage time, attendance, tax information, and the employee pay structure.

It is an integration of tools that are used to process, coordinate, and automate payments for employees of businesses. Any payroll manager will inform you that wage processing is more than just a matter of measuring paychecks.

This software is created by third-party human resource technology companies that aim to enhance the performance of businesses that use them.

There are a range of routine tasks every month, ranging from enrolling workers to ensuring spotless enforcement and keeping payroll records before departure. This software allows the employer to conveniently keep track of all these operations within their company.

You can reduce your compliance risk and streamline your entire payroll cycle without the usual changes in payroll.

The program registers all payments and holds all records of payments. It ranges in price and complexity and can be used by startups, small, large, and medium businesses.

HRs will be able to track time and attendance, details of various taxes, and pay structure with efficient payroll software. The platform can be easily incorporated into current organizational processes.

Here is a guide on payroll and how you get started with payroll software.

Importance of payroll service in a business

Collection and business requirements have a wide range of processes to take care of the essential asset of an enterprise - the employees. It becomes complicated, time-consuming, and often unreliable if performed manually, or with an obsolete system, or through sheets.

Dedicated software helps you streamline its related activities and build space for major business ventures for HRs and small business owners.

1. Payroll optimization

When you manually process monthly salary or anything similar, it might leave the door open for accidental errors that could prove very expensive.

The software can automate activities that are both complex and simple, allowing us to better tackle payroll and keep the process coordinated, quick, and effective from having payroll ready to close the pay period.

2. Monitoring payroll expenses

Payroll is often a continuing cost for every company. Our wage expenditure increases as our businesses grow larger. Hence we need complete visibility month by month on one of the largest contributors to our profit & loss statement and reduce the possibility of statutory deductions.

All these reports can be produced by the software directly from employee wage registers to their laws to their incentive payouts, enabling you to track costs down to your last rupee.

3. Having taxes that are less-taxing

The software will allow us to adapt to changing tax laws, choose regulations that will apply to our company, regulate PF contributions, follow all the statutory compliance norms, etc. Like this, our organization can always remain confident in making precise tax deductions.

4. Integration with relevant business apps

To get inputs to process payroll every month, human resource management staff coordinate with multiple teams. However, this process is complicated and time-bound, and it will only become even tougher with a growing business.

Secure integration will enable us to access data in one place from multiple teams. Closely integrated with HR and accounting platforms, cloud software will help us bring under one roof three distinct but crucial departments.

5. Securing information

The software houses sensitive information such as salary, taxes, bank accounts, and more about our employees. With finely-grained access controls, it can improve the integrity of your data.

We can differentiate and eliminate unauthorized access between multiple roles played by each department. Collaborate securely with employees, present the same interface, but let them see only what they need based on their roles.

Important payroll software features

1. Simplified onboarding of staff

As an HR, you have lots of regular paperwork. Your company's payroll software should allow you to easily enrol new workers, manage employee onboarding and their related expenses, giving you the full profile details of your employees from one location. This may include basic information, specifics of wage, tax, and payment information.

2. Customized salary

Our organization's hierarchy can vary from top executives to interns. Appropriate software for the same will allow you, according to the policy of your company, to configure employee salary and earnings, allowances, salary calculation and deductions, reimbursements, and flexible benefit plans giving you a comprehensive solution.

3. Payroll within a single click

The app can complete a host of payment processing operations in one click until you are all ready to process accurate payroll. This means that the wage calculation should be automated, taxes should be determined in compliance with the current tax legislation, payslips, wages, and accounting entries should be taken care of by default.

Now that's a relief, isn't it?

4. Payments for online salaries

As an HR of a company, paying salaries on time is a must.

Payroll software that successfully integrates with reputable banks can help all the HRs pass salary to employees, safely and on time. Apart from the usual pay cycles, some software also allows us to give wages in advance to selective workers, which can help us adapt to complex employee circumstances.

5. Tax declarations

Reporting is a must. It is important for the software to automatically produce reports on all the key statutory for our business to own a spotless tax enforcement record (PF, ESI, LWF, PT). These pre-formatted tax forms will help us easily complete the process of payroll tax filings, saving you plenty of time to arrange the documents. It's even better if we can share the reports with our auditors.

Here is a detailed guide on Must Have Features of Payroll SoftwareHow you can save money using Payroll Software

Factors to consider before choosing a payroll software

1. A free trial

With a fully-featured free trial, software solutions should allow you to test the waters first. Before making a choice, you will want to quickly add a few employees, create some salary structures, set a payment schedule, and run a test pay run effortlessly.

2. Simple to make use of

The learning curve for the software should be minimal, as HRs are still short of time. A clutter-free UI, contextual feature hints, and a user experience that is intuitive enough to have you running the show on it in no time

3. Expandable

It should always be long-term when you think of payroll software. Each month or year, you can not continue switching from different vendors. Depending on the amount of data you have, the migration efforts concerned are too steep and exhaustive. You should align the software you choose with your growth strategy, and it should grow with you.

4. Accessible

Opt for a cloud-based program that allows you to access information from any device, such as a cell phone or tablet from home or while you are travelling with only an internet connection, a web browser, and a suitable laptop.

This offers you the privilege of accessing your personal details at any moment from anywhere. Mobile versions of cloud-based software allow workers to follow your announcements instantly and display their payslips even when they are not in their workplace.

Given the factors, here are the top 20 Payroll Software Solutions for your business to choose from

1. sumHR

sumHr is the all-in-one HR software that puts everything from recruitment to exit together. sumHR is a modern, charming, and incredibly easy-to-use HR management system that helps to streamline HR & payroll processes for start-ups and SMEs.

Their research ensures that if you have the attendance, TDS decisions, and variable payments in place, payroll is done in 5 clicks and pay slips in 5 minutes. They will handle the tax calculations, the salary structure complications, and any variety of remuneration.

It is cloud-based HR software & payroll management system that is tension-free.

Key Features: -  

✔ Reimbursement of Leadership & Payslip management

Indian Compliance Management

✔ Self-service Portal

Availability of mobile app

Salary and History Data

Attendance Management with Biometric and GPS

Flexible Benefits Plan

Leave management

Income Tax Filing (ITR)

360 Feedback

Payroll Outsourcing

✔ Multi-currency

Pricing:- ₹ 49 per employee or make your own plan. Check Pricing Now.

Free trial:- 7-day free trial

2. QuickBooks

Three full-service plans are offered by QuickBooks, long known for offering high-quality accounting software. The cheapest starts at $45 a month and includes automated payroll and statutory reports, employee health insurance options, and direct deposit for the next day.

Key Features: -  

Multi-user login and role-based access

✔ Online banking integration

✔ Expense tracking  

✔ Budgeting

✔ Mobile app

✔ Multi-currency

Pricing:- ₹ 295.92 per employee

Free trial:- 30 days

3. Officekithr

Offickithr offers you a platform to manage your HR and Payroll functions. It is a strong combination of different sub-modules supporting a particular type of methodology/ application/practice.

Key Features: -

✔ Wage protection system report

✔ Employee self-service  

✔ Generate SIF (salary information file)  

✔Rich UI  

✔ Mobile app

✔ Talent analytics

Pricing:- ₹  2500 per month

Free trial:- 30 days

4. Wave Payroll 

As it provides a fantastic selection of free accounting services, Wave is among our top picks for the best accounting and comprehensive payroll software. Although Wave is not free, they also offer an outstanding range of functions; it is among the cheapest out there.

Key Features: -  

✔ Automatic payment reminders  

✔ View pay stubs online    

✔ Share invoice status  

✔ Track hours worked    

✔ Mobile app

✔ Multi-currency

Pricing:- $6 per employee or ₹  443 per employee

Free trial:- 30 days

5. Zoho Payroll

Zoho Payroll is an online cloud platform that streamlines all aspects of payroll compliance and management. Zoho Payroll does everything from centralizing and coordinating the records and details of workers to arranging payments and overseeing regulatory enforcement. Zoho Payroll is a good alternative.

Key Features: -

✔ Store records securely  

✔ Mobile access    

✔ Employee self-service management  

✔ Biometric recognition    

✔ Customizable templates

360-degree feedback  

Pricing:-  ₹ 50 per employee

Free trial:- 30 days

6. Keka

They are a modern, new-generation platform, unlike traditional HR systems, focused on user experience and simplifying complex workflows. Managing HR, advanced payroll calculations, and talent management are the key activities for any employee-centric company.

These operations require an expert's handling. You don't need to look beyond Keka HR. Keka is one of India's smartest payroll management software available.

Key Features: -

✔ Taxation management    

✔ Mobile access    

✔ Multi-user log in and role-based  access  

✔ Multi-company    

✔ Statutory compliances

✔Formula defined salary calculation

✔ Compatible with a swap card

✔ 360-degree feedback  

Pricing:-  ₹ 6999 up to 100 employees

Free trial:- 7 days

7. Wallet HR

WalletHR is a full solution for HR management with the main emphasis on offering solutions for corporate payrolls. It makes seamless workflow management simpler, and through a variety of creative features, increases operational performance.

Key Features: -  

✔ Hiring and retiring management    

✔ Mobile access    

✔Cloud-based platform

✔ Faster processing of payments

Pricing:- As per requirements ( in rupees)

Free Trial:- Contact For Details

8. Opfin

For small and medium-sized companies in India, Opfin is an integrated payroll & HR service. It measures the payroll taxes, pays workers and vendors, and takes care of all enforcement, such as TDS, PF, ESI, and PT, as well.

Key Features: -

✔ Document management    

✔ Statutory compliances

✔Shift management

✔ Payslip

Pricing:- ₹ 100 per employee per month

Free trial:- 3 months

9. Zimyo

Employee Engagement Network | Zimyo HRMS is a solution for the management of human resources that empowers businesses to manage and maintain great talent.  

Key Features: -

✔ Exit and separation management    

✔ Mobile support  

✔ Email integration

✔ Collaboration tools

✔ Excel import

✔ Grievance management

Pricing:- ₹49/ month

Free trial:- 14 days

10. Qandle

In seconds, this solution handles correct payroll, employee attendance, compliments & employee benefits. It is a user-friendly payroll & HR service that has many useful functionalities that increase operational performance.

Key Features: -

✔ Leave approval through push notifications    

✔ Compatibility with a swap card  

✔ Automated check-ins

✔ Collaboration tools

✔ Qandle Odometer

✔ Ad hoc analysis

Pricing:- ₹ 2450 per month for 50 users

Free trial:- Time duration not specified

11. HRMantra

HRMantra is the most flexible and perfect software for the payroll management system. It not only automates the complete administration and process of payment but also enables you to monitor the life-cycle activities and details of employees.

Key Features: -

✔ Survey library    

✔ Online time tracking  

✔ Competency scale

✔ Employee lifecycle management  

✔ ISO compliance

✔ Automated shift scheduling

Pricing:- As per requirements

Free trial:- Time duration not specified

12. EliteHRMS

EliteHRMS has 16 separate modules that support the tasks of HR & Payroll, making it easier than normal. The eliteHRMS Back-office modules provide management and corresponding departments with clear data.

Key Features: -

✔ Multi-company    

✔ PF/ESIS calculation  

✔ Arrears calculation

✔ Absence management  

✔ Workflow configuration

✔ Employee portal

Pricing:- ₹ 1199 per month

Free trial:- Time duration not specified

13. GreytHR

The recommended HR app for Indian companies is GreytHR. This automates the main areas of HR, payroll control, leave, and monitoring of attendance. It provides high-quality online payroll management on a 24 x 7 basis with more than 9,000+ highly satisfied customers and handling 10 lakh employee records daily.

Key Features:-

✔ Ad hoc reports    

✔ Formula defined salary calculation  

✔ Self onboarding  

✔ Absence management  

✔ Arrears calculation

✔ Employee profile

Pricing:- ₹ 1495 per month

Free trial:- 7 days

14. HROne

For small and medium-sized enterprises, HR-one is a complete end-to-end online payroll solution. It includes more than 12 modules, including participation, onboarding, payroll taxes, expenses, hiring, timesheets, training, and reports.

Key Features:-

✔ Project planning    

✔ MIS reports  

✔ Request hierarchy  

✔ Taxation management  

✔ Online resignation

✔ Geolocation

Pricing:- As per requirements

Free trial:- Time duration not specified

15. Paybooks

Paybooks has a user-friendly interface and is essentially an all-in-one solution. It simplifies and automates all operations related to HR and also ensures compliance with the payroll laws and policies of India. Key Features:-

✔ Payslip    

✔ On-boarding  

✔ Excel import    

✔Reimbursement management  

✔ Statutory compliances  

✔ Multi-company

Pricing:- ₹1800 per month

Free trial:- 30 days

16. Saral Paypack

Approach Saral PayPack which provides a full payroll software solution for any requirement. It is a one-stop-search destination as it has the most sought-after payroll management system specifications. This is the best platform for automating most HR duties.

Key Features:-

✔ Back office assistance    

✔ Mobile support  

✔ Application security    

✔Grievance management  

✔ Excel imports  

✔ Letter generation

Pricing:- ₹ 1654 lifetime access

Free trial:- No trial period  

17. Farsight HCM Engine

Through HR automation & payroll software technologies & services, Farsight allows organizations to develop internal and external HR eco-systems. In the competitive marketplace of today, it drives operational excellence.

Key Features:-

✔ 360-degree feedback    

✔ Mobile support  

✔ Help desk    

✔Taxation management  

✔ Statutory compliances

✔ Letter generation

Pricing:- As per requirements (in rupees)

Free trial:- 30 days

18. PeopleWorks

PeopleWorks is an integrated HR management framework overseeing all facets of the tenure of employees. Workforce management, recruiting, payroll management, attendance, and talent management are the main functionalities.

Key Features:-

✔ Payslip    

✔ Mobile support  

✔ Hr management tools    

✔Information management  

Pricing:- ₹ 1800 per month for up to 20 employees

Free trial:- 30 days

19. Spine Payroll

Spine Payroll is a new age-long recruitment platform that enables employees to work effectively, save time, and build a workplace for themselves. It is one of the best online Payroll Software for businesses.

Key Features:-

✔ Discussion forum    

✔ Mobile support  

✔ Arrears calculation      

✔Employee management  

✔ Excel imports

✔ Performance appraisal

Pricing:-

₹ 12000 per year

Free trial:- No trial period  

20. 247 HRM

24*7HRM is an all-in-one solution for your payroll & HR needs. It centralizes and streamlines all HR roles, for example, recruitment, onboarding, salary, performance appraisal, and taxation, making your job much easier.

Key Features:-

✔Online and psychometric tests    

✔ Mobile support  

✔ Time tracking      

✔Travel management  

✔ Resume database

✔ Arrears calculation

Pricing:- ₹2450 per

month

Free trial:- No trial period

How is sumHR better?

sumHR assumes that the most significant department of any sector is HR. Human resources hold things together and address countless human differences but often do not have the right tools to realize its full potential and deliver excellent results. sumHR wants to be the platform that helps HRs get the credibility it deserves with appreciation.

Business owners can benefit by automating their payroll processing with sumHR. With error-free calculations and a stress-free process, sumHR's Payroll Management software can free organizations of the hassles of payroll management.

However, what really seals the deal for sumHR above other platforms in the list above is its ability to track remote workforce. With its attendance and time-off attendance feature, sumHR is simply the best payroll management software to track the productivity of and eases the management of employees when they are working remotely.

Driven by the passion to create the best products for our clients, the team of sumHR has created a powerful and complete HRM and Payroll Management System to give them all the tools in a single software.

With sumHR, you can reduce your compliance risk and streamline your entire payroll cycle without the usual challenges in payroll.

The hallmark of their online payroll software is the flexibility to define unlimited income and deduction components.

Their research ensures that if you have the attendance, TDS decisions, and variable payments in place, payroll is done in 5 clicks and payslips in 5 minutes.

So, now that you have a well-curated list of top 20 payroll processing software in India with their own sets of advantages, it's time for you to choose the right service which suits your type, needs, and requirements.

Till then, Namaste!

FREQUENTLY ASKED QUESTIONS ( F.A.Qs)

1. What is payroll software?

Payroll is an integral part of the Human Resources department and needs to be prioritized by an employer. Employee salary needs to be paid on time by avoiding errors.

Payroll software is an application utilized by the Human Resource Department (HRs) or payroll teams to maintain the entire life cycle of payroll processes.

It needs to be aligned with an organization's needs, which bring all the loose ends of inputs, validation, processing, and checks on a single platform.

Here is a guide on payroll software to help you get started.

2. Why SMEs need to choose the best payroll software in India?

Using payroll software for small businesses can really ease most problems and challenges HR face regularly. Whether you're an HR professional, CEO, or employee of an organization, HR software can help you automate and simplify important processes.

Some benefits of payroll software:

- cost-saving

- time-saving

- accuracy

- tax update

- storage accessibility

Here is a detailed blog on benefits of payroll software.

3. How much does payroll software cost?

All the businesses in the market that provide payroll software will want to carefully consider their pricing before making a final decision. Only a few payroll vendors show their pricing for companies on their websites.

Generally, if you want to know the price of particular software, you will have to contact the team directly for a price quote.

4. What are the benefits of open source payroll software?

Open source payroll software can improve the payroll management system of an organization without straining its organizational budget.

And, open-source payment software has also found its timely client pool with expected growth at 9% CAGR between 2019-2025

They are inexpensive

Add-on layer of security

Does not require an expert to operate

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About sumHR
sumHR is an HR Management Software which helps Small and Medium businesses to simplify and automate mundane HR processes. Growing companies can use our HR Software to create a memorable employee experience from recruitment to exit, without burning a hole in their budgets. Our comprehensive end-to-end HRMS includes:
... and much more
We’re on a mission to elevate HR teams to HR Heroes, one SMB at a time.
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Written by
Vedika Nathani
Vedika is a marketing intern at sumHR. Her educational background in management studies and social media internship her to get a keen insight into the marketing field.
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