Payroll is an integral function in any business. Therefore, it is crucial to set it right. You can always fall into legal compliances, issues, and fines with a flawed or inefficient payroll system. It can lead to employee dissatisfaction which directly hampers productivity—sufficient reason to hire the Best Payroll Outsourcing Providers.
Adding problems to the inconveniences is that running payroll in India can be very complex. Many companies choose to run their payroll in-house at a potentially high cost. Forbes Advisor Today says 70% of the 500 largest companies outsource their payroll.
But what does payroll outsourcing entail?
What are the Best Payroll Outsourcing Service Providers?
Payroll outsourcing services are used as a third-party payroll provider to handle their entire payroll and compliance-related activities. The services include:
- Specific payroll inputs like loss of pay deductions, overtime, arrears, and bonus calculations.
- Processing of the above payroll inputs to calculate the net salary payable as well as deductions like Salary TDS, Provident Fund, ESIC, and Professional Tax
- Filing of compliance returns, including TDS.
- Invoice generation of reports and payslips should be accessible to employees on self-service portals.
- Automatic audit and timely advice related to tax and compliance matters.
Due to these complexities, mid and small-size businesses also started following the trend, still trying to convince others.
Why Should You Choose the Best Payroll Outsourcing Service Providers?
Accuracy
Entangling compliance matters can prove to be your worst nightmare. Some organizations have lost $ 4 M in a single breach of compliance. Not something any would want for their company.
There are ever-changing government regulations across PAN India, adding mayhem to the payroll processing. With that, there are compliance issues related to payroll when handled internally. Therefore, there is a trend in hiring the Best Payroll Outsourcing Service Providers.
Payroll third-party outsourcing companies have the expertise to address complex tax and statutory compliance issues. It is done so by implementing the necessary systems and processes in place. It helps in minimizing any potential payroll errors.
Time and Cost Effectiveness
By outsourcing payroll, you are clearing the in-house HR’s to-do list. Now they can concentrate on other parts of their plate ( duties)—recruitment and employee engagement, instead of dealing with the cumbersome minutiae of running payroll every month.
The month’s work clears up much of HR’s time and optimizes the internal resources allocated for this process.
Confidential Terms
Payroll or salary allocated for specific grade work is a sensitive piece of information. If not handled correctly, the organization’s necessary information will be fodder for the grapevine. By appointing the best payroll outsourcing service providers, they reduce the risk of leakage. The reason is that fewer people will be privy to exact numbers.
Above are pretty convincing points. But what should I look for in the best payroll outsourcing service providers?
What Should you as a Business Owner Look for in the Best Payroll Outsourcing Service Providers?
Reputation Speaks
The foremost aspect to consider while evaluating the best payroll outsourcing service providers is reputation. That brings in the trust of being:
- timely delivery,
- accurate processing,
- years of industry experience, and much more.
Costing Effectiveness
Hiring the best Best Payroll Outsourcing Service Providers will be a fraction of the cost you would spend on an entire payroll team in-house. But be cautious before signing the contract.
Search for any hidden costs involved before selecting the right vendor.
Timely Processing
Error-free work, which needs some review. That is all you have to do. Error-free payroll processing and on-time delivery reflect positively on the quality of services. It is highly recommended to run a test role before signing the contract.
It helps in giving a clear idea of whether the vendor can fulfil your requirements.
Data Security
Data breaching is the most common ill practice. Adding to that, if one hears about cloud computing. The only concern everyone has: Is it safe?
It would help if you looked out for various security certifications (such as ISO-27001) that vendors have under their belts. It will validate the stability and security of their systems.
Customized Packages
It helps if payroll service providers cater to HRMS providers. It will ensure seamless integration of HRMS and payroll. Again, it will reduce the cost and time with integration while being a one-stop solution for HR operational requirements.
Impeccable Customer service
After-sales service is essential, reflecting the seriousness of the best Payroll Outsourcing Service Providers. With professionalism, you can expect to receive their pay on time every month. It doesn’t matter how they do it or the difficulties you must overcome to cater to the customer.
But if payroll vendors cannot assist you with issues and queries that need attention. Then explore other vendors who are willing to offer that kind of support.
Industry Expert
The best payroll outsourcing service providers thrive on efficiency and trust. It only comes with years of experience in the field. A good payroll service provider gives you efficient processing.
But an expert gives everything from the above with expert representatives. They know the ins and outs of the payroll landscape.
Compliance Filing on Time
Payroll and compliance filing go hand in hand. It adheres to all statutory compliances, and its filings are a challenge most companies cannot struggle with. Non-compliance can result in heavy penalties.
Hiring separate compliance consultants leads to gaps in the process as they are not integrated with payroll. Also, it requires particular dealing. Therefore, a no-brainer to outsource their compliance to the current payroll provider.
Now you know what to expect from the best payroll outsourcing service providers. Then let’s get to learn more about them. We are starting with their pros and cons. In some cases, the pricing package of the services. All of this will help you in making informed decisions when choosing one.
20 Best Payroll Outsourcing Service Providers
MME
Exemplary payroll outsourcing services catering in Pan India. They offer services to various industries, small, medium, and large businesses, to manage their HR payroll process End to End solutions. Their payroll service is one of the best payroll outsourcing service providers as they give substantial answers and can take human resource management to the next level.
They offer innovative business insights while helping you adhere to compliance easily, allowing you and your team to focus on other aspects of the business. MME knows the value of error-free payroll in the business organization and ensures each customer is administered impeccable service.
They are the industry leads for the best payroll outsourcing service provider as they have experienced knowledge in payroll management. MME strive hard to absorb employer-related responsibilities so that they can focus on other aspects. Whatever the business size/ potential, they are here to serve.
It can be an amateur or prominent business entrepreneur, and the excellent payroll service of MME can assist in payroll management. Thereby reducing the costs of the company.
Pros
MME offers a complete payroll solution through state-of-the-art software for the payroll cycle. Ensuring accurate, streamlined, and consistent execution of your company’s payroll with our full-fledged payroll solution reduces your processing costs. It includes payroll processing expense management, leave management, client and employee self-service, query management, reports & analytics, etc., offered to our payroll services.
A list of the Payroll Service Providers in India:
- Payroll Management
- Attendance and Leave Management
- Provident Fund
- ESI
- Medical
- Income Tax (TDS)
- Employee Insurance
- Earning Statement/ Salary Slips
- Department Cost Summary
- Employees Grievances/ Query Management
- Payroll Administration on ERP package
- Payroll Check Summary etc.
With a wide range of payroll services, MME offers experienced professionals. Therefore an affordable way of paying employees, filing taxes, and performing other activities associated with payroll administration. Payroll consultants also take care of IT returns.
They are educated in legal formalities. Thus, all your tax-related worries are taken care of well in time. Thus leaving no scope for penalties. Now as a business owner, you can be in a peaceful state of mind as expert representatives of MME cater to payroll-related issues.
Quikchex
Quikchex is a one-stop payroll solution and ranked second in our list of the best payroll outsourcing service providers in the Indian payroll landscape. Through its cumulative group companies, it has a market reputation of 40 years in the payroll, HR, and staffing industries. Today it caters to 1200+ clients across Pan India. The business owners trust their payroll with Quikchex, ranging from large MNC companies to some VC-backed tech startups.
What is a different feature of Quikchex?
Relative to other payroll outsourcing companies, it provides comprehensive payroll outsourcing services. It also offers clients an easy-to-use full-suite HRMS, end-to-end tax management, and statutory compliance solution. It covers
- PF,
- ESIC,
- Professional tax,
- LWF,
- Shops and Establishment,
- Minimum wages, etc.
Other highlights of the solution include investment proof verifications, Form 16 generation, and payslips accessible by employees on self-service portals. It is included in their mobile app. They are also given dedicated account management support for any queries and issues that clients might need immediate resolution.
What makes Quikchex really at the top of its game is providing arguably hard-to-find packages at a price accessible for most SMEs and enterprise clients.
Pros
Provides unique packaging of one-stop full suite HRMS, end-to-end payroll outsourcing. On top, it gives Salary TDS management and Payroll and Labour Compliance management services.
We have a dedicated key account manager in support of a maker checker system.
A budget-friendly option with customized packages.
Cons
It doesn’t offer payroll for international locations as the solutions only cater to India, Singapore, and Middle East markets. Therefore it is not an option for those who want to settle in the EU or overseas locations other than these three countries.
PaySquare
PaySquare is always on the list of growing payroll outsourcing companies in India. In today’s times, Paysquare offers comprehensive outsourcing solutions and accounting domains. Due to its multiple expertise in payroll and accounting, PaySquare has made a name for itself in the market.
Pros
They offer end-to-end payroll and accounting outsourcing with specific packages targeted toward every business size. PaySquare also provide TDS filings with statutory compliance management across geographical borders.
They also offer a MyPayroll self-service portal exclusively for employees. HR administrators can monitor various aspects of their payroll, and employees can download payslips, view CTC structures, apply for reimbursements, etc.
Cons
PaySquare is a service-specific solution. It is unsuitable for companies looking for an integrated HR solution with attendance tracking, leave management, etc. Another reason is that it doesn’t have its own HRMS solution. Therefore, an integrated solution for business owners is needed.
Zing HR
Zing HR has a range of HR, payroll, and HCM services for mid to large-sized enterprises. Its offerings include end-to-end HRMS solutions, workforce productivity solutions, and talent management solutions. Currently, its operations are working at full throttle in India, Singapore, Australia, and a few other locations worldwide.
Enterprise-level companies have an added advantage when they use their products. But not ideal for small companies only looking for HRMS and payroll outsourcing.
Pros
The solutions of payroll outsourcing and compliance management are based on domain expertise. Zing HR Manufacturing plan complies with payroll for manufacturing companies based on challenges. It includes shift customization, OT calculations, and similar challenges in that industry.
Cons
The pricing needs to be lowered for small and midsize companies. Therefore not targeted towards them.
ADP
ADP, aka Automatic Data Processing, is a leading global payroll service provider. The headquarters is located in the USA, and started its operations in India recently. They offer a range of products according to employee size and the global strength of the company.
ADP can address all the payroll and compliance requirements with additional functions like Smart Compliance with an automated live payroll and compliance track. As an organization, it also regularly updates its compliance legislation globally. Therefore, pricier when compared with other options. Also, not suitable for small companies.
Pros
It is Affordable for an organization with its talent pool/employees and ventures worldwide. The organization also seeks a payroll outsourcing company to advise them on compliance matters. Zing HR’s vast knowledge on a global scale is always a plus.
It offers additional services like recruitment, onboarding, performance tracking, and more, all under one umbrella.
Cons
Not suitable for organizations looking for integrated HRMS and a payroll outsourcing solution. The reason is niche HRMS modules are not available.
Easy Source
The HR solutions focus on providing Payroll and Manpower Outsourcing, PEO, and other managed services. With over 16 years of experience in HR solutions and a range of 300+ clients in their portfolio. Who is helping them in operations?
They have an in-house team of 75 experts who provide 24/7 support for any resolution of payroll questions or complications—however, it is a minor problem. Easy Source is a consulting company.
It can provide services and advice on compliance issues but fails in the software domain. Again, not suitable for companies looking for complete end-to-end HR and payroll software solutions.
Pros
An excellent option for companies looking for a payroll and manpower outsourcing solution along with PAN India compliance management.
Cons
Since they provide any primary employee self-service portal, it cannot be considered an alternative to a full-suite HRMS solution.
Excelity Global
Excelity Global, a payroll processing and compliance administration alternative. As a human capital management service provider, we catered to 400+ clients across 17 countries in the Asia Pacific.
Along with being the best payroll outsourcing service provider, it offers essential payroll solutions and an employee self-service portal for your employees to check payslips, mark attendance, etc.
They also provide seamless with the most HRMS Software popular in today’s industry.
Therefore a through and through service provider company. Hence not ideal for companies looking for HRMS or a payroll solution.
Pros
Provides end-to-end payroll outsourcing and compliance management services. Adding to that, integration options for HRMS solutions. Therefore suitable for companies looking to outsource their payroll in Asia Pacific locations.
Cons
Not favorable for companies looking for integrated HRMS solutions along with payroll services.
Osource
A global player since 2004 in the IT and business processing outsourcing space. The reason for their HRO services. It includes payroll management, employee lifecycle management, HR shared services, staffing, recruitment, risk and compliance management, and other back-office processes.
Pros
Every solution in payroll management is readily available in the description of their services. They have everything from employee life cycle management to compliance and staffing services. To upscale their service package, they offer HR and accounting outsourcing services combined in the same box.
Cons
They are service-specific companies, thus not offering HRMS solutions as their core expertise. The second negative associated with Osource is that it needs to be targeted towards SMEs.
HRM Thread
HRM, a branch of Sensys Technologies, is an end-to-end HRMS and payroll outsourcing solution. Therefore ninth on the list of best payroll processing outsourcing service providers. The company caters to midsize businesses that want basic and affordable packages for automating HR processes.
HRM thread offers both options for software problems. They are both cloud-based and on-premise HR software and complete payroll, final settlement processing, and compliance management for PF, ESIC, LWFM, etc.
Pros
They provide end-to-end desktop/cloud-based HRMS solutions with payroll outsourcing and compliance management services.
The other feature of this service is its impeccable customer service for SMEs’ budgets.
Cons
The ideal choice for large enterprises looking for a more sophisticated solution with requirements.
Hinduja Global Solutions
Hinduja Global Solutions is a pioneer in offering business process solutions and customer experience solutions across multiple sectors globally. They provide end-to-end payroll outsourcing and compliance management, recruitment and structured staffing services, and many other finance, accounting & HR services.
Pros
- Good reputation in the industry. It commands respect.
- Ideal for the organization whose next destination is going global.
Cons
Resources cannot be trusted together in HRMS solutions and payroll outsourcing services.
Ramco
Its headquarters are situated in Chennai. Another global payroll provider which is on the go to a massive list of enterprise solutions. They are starting from supply chain management, project management, and more. Their 25 years of experience in payroll outsourcing and processing have kept them levelled up in compliance with local laws actively. Ramco is not a company for small and midsize levels. It suits companies looking for a global presence to outsource the payroll.
Pros
- They use AI technology for payroll automation. It enables them to save time and validate and detect data on anomalies while processing payroll.
- Ideal for companies who want payroll processing in Asia Pacific. Therefore running payroll globally.
- Unmatchable market reputation but 11th position in the best payroll outsourcing service providers.
Cons
It is not an option for smaller firms as the same services can be availed in cheaper alternatives.
Keka HR
Employee-centric payroll processing outsourcing service ideal for small Indian businesses. Its features include a modern, fully-featured outsourced payroll provider offering a smooth user experience and simplifying complex workflows. The software does all the work.
We are automating all core HR and payroll operations to provide a hassle-free payroll processing experience in less time.
Price: Rs. 6999/ 100 employees
SBS
It is the most sought-after payroll service provider and is globally loved by every business size. They have helped Indian and across-border businesses reach new heights by automating their payroll, staying compliant, and delighting their people (employees).
Zoho Payroll
The services of the company follow core automation. It offers everything from automatic payroll calculations to simplifying the breakdown of taxes, allowances, and deductions while keeping up with the latest regulations. So you don’t have to lift a pen.
It lies in the best payroll outsourcing service providers as it helps pay employees on time. Also, encourage staff to use employee self-service and seamlessly collaborate with employees for any other work/ problem.
Starting Price: Rs 50 /employee/month.
Candle
The perfect solution for modern workplaces that believe in customization. The services couples payroll policies with incentives. Therefore allowing employees to view payroll-related information like CTC, payslips, tax slips, etc. Accurate payroll processing at the click of fingers while syncing data with all HR records. Pricing: Rs 49/ employee/ month.
HROne
The best payroll outsourcing service providers take manual labour off your plate, giving you the time to concentrate on business strategies. Their key feature is error-free payroll, which reduces post-payroll queries with timely payouts. All this while maintaining HR records.
Papaya Global
The practical option for the best payroll outsourcing service providers who want their solutions instantly. They have payroll solutions for all types of employment. Automating payroll processes, therefore, saving costs and maximizing the optimization of resources. The service checks easily show that data complies with 100% accuracy—audits preventative reports to determine payroll inconsistencies while standardizing all payroll data under a unified platform.
Starting Price: Rs 1440/ employee/ month.
Sum HR
Sum HR is an excellent choice for full-service payroll outsourcing solutions. The services features include:
- Payroll and HR services
- Hassle-free payroll processing
- automated tax and statutory compliance,
- attendance and leave management, etc.
- recruitment,
- onboarding,
- career development,
- attendance tracking, and
- goal tracking.
Starting Price: Rs 49/ user/ month.
Pros
Attendance and leave tracking were a significant hit among customers. With impeccable customer service, they are tuned to listen to your query. Make your problem their own and offer solutions. My success team is always responsive and helpful. Simple to understand User interface
Paybooks
The correct alternative in the list of the best payroll outsourcing service providers for giving complete freedom from manual payroll. The services include salary payments, compliance payments, virtual HR, payroll & HRMS tools, and more. The perk of this service provider is virtual HR, who solves your problems as and when needed.
Pros
User-friendliness and saving time are the key features. But the user interface can have more features and can look more professional.
ApHusys
The HR and the best payroll outsourcing service provider helps organizations streamline payroll operations and simplify HR processes. At the same time, they are complying with local laws and regulatory bodies. Its accurate payments to employees help in talent retention and reduce your time in performing monotonous tasks.
Pros
Its software is a one-stop solution for all business needs. Therefore cost-effective and time optimization. A massive benefit for mid-sized startups and SMEs as it has different software to cater to other tasks. By working alone, it handles everything.
Our Viewpoint
We have provided the 20 best payroll outsourcing service providers. But the truth is many service providers still offer top-notch services. They provide perks and benefits in various forms and packages to the companies. But before proceeding with any service provider, it is mandatory to be on the same page for both entities regarding service requirements and the current payroll system.
It would be easier to process the work to the next stage. This way, the payroll provider can understand the to-do steps required for the business. It helps in making informed decisions keeping business interests as the priority.
