A Comprehensive Guide on Top Payroll Software in India in 2024

Payroll is a crucial part of HR functions, yet, its complexity is not unknown to any organization, be it small or big. This overwhelming task can be simplified with the help of payroll software that can make your HR operations less stressful, enhance transparency, reduce the chances of errors in payout computation, and improve employee satisfaction. Besides, multiple compliance regulations require micro detailing of the salary structure so that organizations can pay the government what is due without worrying about clerical mistakes and avoid penalties.  

Why should you opt for payroll automation?

Managing the payroll is quite a daunting task, especially when there is continuous onboarding and offboarding. A payroll software will not only simplify the process but ensure there are fewer manual errors, reduce the incidence of tax compliance mistakes, flag regulatory changes, and build employee confidence by developing the right software. 

It will reduce the workload of the payroll and HR team so that they can focus on decision-making, track employee costs, and help the management make the right hiring decisions. Besides, it will cut down the need of having a large payroll team and you can automate most of the tasks. Additionally, it will manage encryption of your sensitive data with security at different access levels. 

This article will help you compare the top payroll software in India while highlighting their key features. Although the list is not exhaustive, it will help you compare the key features:

Workrig

Configured for high performance, with Workrig, you can reduce manual intervention to a bare minimum and take end-to-end care of your workforce management needs. Their payroll management system simplifies complex tasks with real-time updating of time management so that the calculation of payouts is accurate and quick.  

Prominent features of their payroll software include:

• Intuitive and responsive data presentation
• Comprehensive & configurable structure to enable organizations manage fixed and flexible payouts
• Integrated with comprehensive HR modules
• Comprehensive MIS and statutory reporting structure
• Easy integration with third-party software
• Scalable and versatile plans to meet the needs of any organization
• Smart analytics to imbibe intelligence in decision-making
• Separate module for managing employee travel and reimbursements 

Keka

Keka promises holistic solutions bringing all solutions under one platform and getting practical insights on efficient payroll management. It helps reduce month-end stress on payroll teams for efficient salary management and the simplification of the salary structure. Its key features include: 

• Global platform, enables multi-currency rates
• Management of complex Indian payroll management system
• Complete control of your statutory compliance
• Enables arrears calculations
• Unifies payroll and time management
• Reduction of manual efforts
• Rich analytics to comprehend the workforce expense and measure efficiency

Darwinbox 

Dawrinbox is AI-powered and it helps make your payroll system 100% accurate and audit-ready, steering towards error-free payroll management. It can be seamlessly integrated with your current digital apps and offers an integrated platform to manage all your workforce-related issues. Its key features include: 

• World-class security
• Flexible workflows
• “RIVeR” framework to simplify your payroll process
• Automated and seamless experience to manage reconciliation and verification 

ZingHR

ZingHR streamlines your payroll management services while enabling you real-time access to the data, and monitoring and tracking of the data so that you can effortlessly carry this task. It enables tax filing and an exclusive CXO dashboard that gives insights into employee payouts. 

Key features: 

• Transparency
• Real-time services
• Zero touch payroll system
• End-to-end payroll management
• Maker checker system to reduce errors

HROne

HROne enables auto payroll processing and simplified salary structure, leaving almost no room for errors in calculations and statutory compliance so that your payroll staff can focus on strategizing. 

• Faster verification of payroll errors
• Reliable compliance and comprehensive solutions
• Responsive solutions and dashboards to check CTC trends and other data
• Mobile app for making the payroll system highly accessible

GreytHR

GreyTHR is a popular payroll, full-suite software that helps streamline your entire HR process. They offer various plans and pricing. They promise management of complex issues of modern payroll requirements and easy management of clerical tasks. 

What they promise to deliver:

• Reduce irregularities and compliance mistakes
• Accelerated payment processing
• Speed and reliability
• Customizable structures
• Precise payroll calculations

SpineHR

Offered by Spine Technologies, an HRMS and fixed asset management solutions company, they offer industry-recognized, advanced, and highly flexible solutions to fast-track your payroll management solutions. Key features of their payroll management solutions include:

• Versatile dashboards
• Readymade reports that can be customized as per your needs
• Faster generation of reports
• Reduction of workload of the accounting team so that they can focus on decision-making
• Identification of seasonal trends or fluctuations in payroll costs

Zoho People

Zoho offers services to businesses of all sizes and offers a powerful payroll management platform that automates all processes, reducing loopholes and compliance errors. With flexible, real-time and ready-to-file reports, it helps keep the HR, Finance, and Payroll team updated at the same time.

What they offer?

• Collaborative and seamless approach
• Highly customizable as per the customer’s needs
• Simplify complex tasks
• Adaptable to changing tax scenarios
• Dedicated payroll systems for small businesses to manage fragmented teams

FactoHR

Catering across various sectors, factorHR helps streamline and simplify the entire payroll process by integrating all their solutions with payroll management so that you are not worried about the accuracy of calculation or payment of government dues on time. 

Their key features include:

• Fully integrated user experience
• Security of critical employee data
• Configuration with ease
• Built-in integration with external systems and software such as SAP, Oracle, Tally, etc.
• Simplifies salary arrears by keeping track of retroactive changes

Zimyo

Zimyo caters to organizations of various sizes and helps in the management of employee lifecycle, including attendance, performance, payroll, etc. It simplifies the entire recruitment process while streamlining the financial workflow. 

Its key features include:

• Simplification of payroll processing in 5 easy, simple steps
• Automate the manual processes and real-time attendance tracking
• Manage employee engagement
• 30 days refund policy
• Mobile subscription at no additional cost

Indian taxation and compliance system is indeed quite complex with each state having different rules. Equipped with these payroll management solutions, you can reduce your worry about the accuracy of data and compliance management. It helps maintain transparency with your employees, increasing their trust in the organization.

Choosing the right payroll software completely depends on the needs of your organization, budget, and the customizations required. These key features will help you to make a brief comparison and understand which payroll stands best in serving your needs. Booking a free trial would allow you to compare these different modules and make the best decision.

Step-by-step guide to choosing the payroll software

• Assess your Business Size and Employee Strength

Number of employees, business size, locations, and compliance rules will help you determine the complexity of your organization. Divide the employees into different categories: part-time, full-time, freelance, or contract and check the frequency of the payment. Mention the budget, challenges, and time for installation.

• Comparing the software

Shortlist the software that adheres to your demands and compare them on the basis of parameters such as budget, and time for installation. Book a demo and compare their pricing plans. 

• Evaluate features

Check for their after-sales support, user-friendliness, self-service platforms, data security, etc. 

• Integration with the current HR system

Check its adaptability and ability to seamlessly integrate with your current HR and accounting systems.

• Selection

Select the one that offers the perfect balance of features and pricing, seems appropriate to the business needs. 

While choosing the right payroll software in India, do consider these factors:

• The Indian tax regime is quite complex with constant changes in tax regulations and labor laws, including PF, ESI, TDS, etc. along with differences in state laws. 
• What is your current employee strength? If you are aggressively hiring, will the software be able to meet your growing needs? The payroll software must be customizable and scalable to meet your growing needs. 
• Compare the features and understand the dynamics of your team and the industry. The features must be user-friendly, able to help track metrics and deliver reports that can help in tracking and decision-making. 
• Check after-sales support by the vendor 
• Compare your budget and check the pricing solutions available that are best suited to your needs.   
• Find out if the chosen payroll software can be seamlessly integrated with your current solutions.

What makes the best payroll software in India?

In India, the complexity of state-specific labor and tax laws along with many unsaid challenges including frequent policy challenges calls for a payroll software that is customizable and scalable. Multiple organizations follow different payment cycles in India, with varied employee categories attracting different laws. Small and medium-scale organizations still process payroll data manually, and most of the time of the HR and top management are invested in administration. Easy to use, flexible, intuitive, and easily accessible, which can enable employees to get access to tax forms and pay slips, are the prominent features to look out for while choosing the right payroll software in India.