Clients Served
Invoices Processed Per Month
Completed Projects
Reconciliation in a Month
Team Size
Why Clients Need to Outsource Payroll Function
- In-house payroll requires staff, training, and software.
- Compliance laws change often—GST, TDS, PF, ESIC, gratuity, professional tax. Missing one deadline = penalties.
- Payroll accuracy impacts employee trust. Even a one-day delay creates dissatisfaction.
- SMEs rarely have the bandwidth to track compliance changes.
- Manual errors in spreadsheets can cost lakhs.
Solution: Outsourcing payroll removes the administrative burden. A specialized partner ensures employees are paid correctly, laws are followed, and business owners gain back 10–15 hours per month to focus on customers.
What is Payroll Outsourcing?
Payroll outsourcing means hiring an external service provider to manage your payroll functions—salary calculations, tax withholdings, compliance filings, and reporting.
It’s not just “salary processing.” It includes:
- Calculating gross and net pay
- Statutory deductions (PF, ESI, professional tax, income tax) Filing returns
- Maintaining employee records Providing payslips and reports
- Ensuring compliance with Indian and global laws
How does payroll outsourcing work?
- Data sharing: Company shares employee and attendance data securely.
- Processing: Outsourcing partner calculates salaries, deductions, benefits.
- Compliance: Taxes, PF, and other deductions are filed on time.
- Disbursement: Net salaries are transferred to employee accounts.
- Reporting: Business receives MIS reports, analytics, and summaries.
Benefits of Outsourced Payroll Function Services:
Cost Efficiency
- No need to hire/pay payroll staff.
- Save software licensing costs.
- Avoid penalties and interest charges.
Compliance & Risk Management
- Stay updated with GST, TDS, PF, Income Tax, labor laws.
- Reduced legal exposure.
Time Savings
- Free HR & finance team to focus on strategy.
- On average, SMEs save 80+ hours per year.
Accuracy & Reliability
- Automated checks, RPA, AI-driven verification.
- Employees always paid on time.
Scalability
- Add 5 or 500 employees—the same system adapts.
Data Security
- Cloud systems with encryption & GDPR-level compliance.
Employee Satisfaction
- Access to payslips, tax forms, and leave balance via self-service portals.
Types of Outsourced Payroll Function Services
- Full-Service Payroll Management: Complete management of payroll processing, including calculations, deductions, and disbursements.(End-to-end handling.)
- Payroll Tax Filing: Ensuring timely and accurate filing of payroll taxes and compliance with local and national tax regulations.(Ensure on-time TDS/GST submissions.)
- Time and Attendance Management: Integration of time-tracking systems to accurately calculate hours worked and overtime.(Biometric/AI attendance integration)
- Employee Self-Service Portals: Providing employees with access to their pay stubs, tax forms, and leave balances.(Anytime payslips and IT declarations.)
- Compliance Management: Keeping up with labor laws, tax changes, and other regulatory updates.(PF, ESIC, gratuity compliance.)
- Reporting and Analytics: Generating detailed payroll reports that help businesses track expenses and make informed decisions. (HR and finance insights.)
Advantages and Disadvantages of Payroll Outsourcing?
Advantages
- Lower cost than hiring staff.
- Improved compliance.
- Advanced tech access.
- Scalable and flexible.
Disadvantages
- Perception of reduced control
- . Reliance on third-party security.
- Customization limits.
For SMEs, the advantages outweigh disadvantages by saving time, reducing penalties, and improving employee morale.
Payroll Outsourcing vs Payroll Software?
Payroll Outsourcing Options & Cost Models
Per Employee Per Month (PEPM)
Fixed fee per employee, best for scaling SMEs.
Per Payroll Run
Fee based on each salary run (weekly/bi-weekly/monthly).
Flat Monthly Fee
One standard price regardless of headcount.
Tiered Pricing
Different packages for small, medium, large businesses.
Pay-as-you-go
Perfect for seasonal businesses.
Custom Pricing
Tailored for MNCs or multi-state compliance.
Why Avail Outsourced Payroll Function in India?
- Experience and Expertise: Look for a partner with proven expertise in payroll management and a track record of successful service delivery.
- Technology and Security: Ensure the provider uses advanced payroll software and adheres to strict data security protocols.
- Client Support: Choose a partner that offers responsive and reliable support to address any payroll issues quickly.
- Scalability: Opt for a provider that can scale services as your business grows or needs change.
- Reputation and Client Feedback: Review testimonials and case studies to understand the provider’s reputation and service quality.
Challenges We Solve
- Initial Consultation: Understanding your payroll needs, compliance requirements, and objectives.
- Service Proposal: Developing a customized service plan tailored to your specific payroll requirements.
- Onboarding and Setup: Transitioning your payroll data securely to the outsourcing provider’s systems.
- Payroll Processing: Regular payroll runs with accurate calculations, deductions, and timely disbursements.
- Compliance and Reporting: Managing tax filings, compliance updates, and generating payroll reports.
- Ongoing Support: Continuous support and updates to address any issues or changes in regulations.
Technologies Used in Outsourced Payroll Function Services
- Cloud-Based Payroll Software: Real-time access to payroll data, secure processing, and easy integration with other systems.
- Robotic Process Automation (RPA): Automating repetitive tasks such as data entry, calculations, and compliance checks.
- AI-Powered Analytics: Leveraging data analytics to improve payroll accuracy and identify cost-saving opportunities.
- Time and Attendance Systems: Integrating time-tracking solutions to ensure accurate payroll processing.
- Secure Data Transfer Protocols: Ensuring the safe transfer of sensitive payroll data between your business and the outsourcing provider.
Why Choose Us
Decades of Combined Financial Expertise
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Tailor-Made Strategic Financial Plans
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Latest Technology Stack for Real-Time Insights
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360° Compliance, Risk, and Growth Management
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Transparent Communication and Weekly Updates
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100% Data Security with Global Standards
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How It Works
Our Process of Work
Elevate your business with a phased financial strategy. We align every step with your goals, providing clear insights and impactful results.
Outcomes
Retail Industry
Revenue Managed
700 CR+
Transactions Managed
2000 k+
Tax Value Managed
100 CR+
MIS Report Shared
250+
Manufacturing
Revenue Managed
200 CR+
Transactions Managed
50 k+
Tax Value Managed
20 CR+
MIS Report Shared
65+
Setup Check List
Platform Configuration
- Set up a new client account on payroll software/platform.
- Import all employee master data and salary structures into the system.
- Configure statutory deductions (PF, ESI, PT) and tax slabs (TDS) according to applicable laws and the client's location.
Workflow Integration
- Establish a secure method for the client to submit monthly attendance data, leave records, and new hire/termination information. .
- Set up automated reminders for data submission deadlines.
- Customize payroll reports and payslip templates to meet the client’s specific needs
Employee Self-Service (ESS) Portal Setup (If Applicable):
- Create user accounts for all employees on the ESS portal.
- Provide the client with instructions and a guide to share with their employees on how to access their payslips and tax forms
Run a Dummy Payroll
- Process a trial payroll run using the provided data to identify and fix any errors.
- Generate and review dummy payslips to ensure all calculations are correct
- Send the dummy payroll report to the client for their review and approval
- Request a formal sign-off on the accuracy of the trial run before the first live payroll
Bank File Preparation
- Prepare a test bank file for salary disbursement to ensure it is in the correct format for the client's bank.
Payroll Processing & Disbursement
- Process the first live payroll on the scheduled date.
- Prepare and share the final bank disbursement file with the client for payment
- Distribute digital payslips to employees via the ESS portal.
Statutory Compliance
- Calculate and prepare all statutory challans (PF, ESI, TDS) for timely payment.
- File all required monthly, quarterly, and annual statutory returns on behalf of the client.
Bank File Preparation
- Schedule monthly check-ins with the client to review the previous month's payroll and address any upcoming needs
- Provide ongoing support and respond promptly to any employee or client queries.
- Calculate and prepare all statutory challans (PF, ESI, TDS) for timely payment.
- File all required monthly, quarterly, and annual statutory returns on behalf of the client.
Thousands of business owners trust us to manage their account
Let us take care of your books and make this financial year a good one.
Have questions in mind? Find answers here…
What is payroll outsourcing?
Payroll outsourcing is the process of hiring a specialized third-party provider to manage your company’s payroll functions. This includes salary calculation, tax deductions, statutory compliance, disbursements, and reporting.
How does payroll outsourcing work in India?
In India, payroll outsourcing typically works in 5 steps:
- You share employee and attendance data securely.
- The provider calculates salaries, deductions, and contributions (PF, ESI, TDS).
- They ensure timely tax filings and compliance with Indian labor laws.
- Employee salaries are disbursed directly into bank accounts.
- MIS reports and payslips are shared for records.
Benefits of outsourcing payroll vs in-house?
- In-house payroll requires dedicated staff, training, and software.
- Outsourced payroll reduces costs, ensures compliance, minimizes errors, saves time, and provides scalability.
Advantages and disadvantages of outsourcing payroll?
- Advantages: Cost savings, compliance accuracy, time efficiency, access to advanced technology.
- Disadvantages: Perceived loss of control, dependency on third-party security, limited customization in some cases.
Payroll software vs outsourcing – which is better?
- Payroll software: Best for large companies with HR teams that can handle operations internally.
- Outsourcing: Ideal for SMEs/startups with limited staff, as experts handle everything end-to-end.
How does outsourcing payroll save costs?
It removes the need for full-time payroll staff, software licenses, and training. It also prevents costly compliance penalties by ensuring accurate and timely filings.
How much does payroll outsourcing cost?
- Per Employee Per Month (PEPM)
- Per payroll run
- Flat monthly fee
- Tiered pricing
- Pay-as-you-go
- Custom pricing
What is PEPM pricing in payroll outsourcing?
PEPM (Per Employee Per Month) is a pricing model where you pay a fixed fee for each employee managed. It’s predictable, scalable, and common for SMEs.
What are payroll outsourcing options?
Options include full-service payroll management, tax filing, time & attendance management, compliance handling, employee self-service portals, and reporting/analytics.
Is my company’s data secure with outsourced payroll?
Yes, reputable providers use encryption, secure data transfer protocols, GDPR-compliant systems, and strict access controls to safeguard sensitive employee information.
Can outsourcing handle complex payroll requirements?
es, providers are equipped to handle multi-entity payroll, unionized staff, variable pay structures, bonuses, and compliance across multiple jurisdictions.
What if there are errors in the payroll?
Outsourcing partners use automated checks to minimize errors. If any issue arises, they provide quick correction, reprocessing, and updated reports to maintain accuracy.
What kind of reports can I expect from outsourced payroll?
Businesses receive MIS reports, salary registers, tax filings, employee payslips, leave balances, and cost analytics. Custom reporting is also available.
How does outsourcing handle compliance with local labor laws?
Providers stay updated with changing regulations (PF, ESI, gratuity, TDS, professional tax, etc.) and ensure filings are done on time to avoid penalties.
Can outsourcing manage PF, ESI, TDS compliance?
Yes, payroll outsourcing services cover all statutory deductions and filings including PF, ESI, professional tax, labor welfare fund, and TDS.
Is outsourcing payroll suitable for small businesses?
Absolutely. SMEs benefit the most because they save time, reduce costs, and get compliance handled without hiring a full-time HR/payroll team.
How quickly can payroll outsourcing be set up?
Depending on employee count and data availability, setup can take 1–3 weeks, including data migration, compliance checks, and system integration.
How often are payroll runs processed?
Most companies process payroll monthly, but outsourcing can also support weekly, bi-weekly, or customized cycles depending on business needs.
Do employees get access to payslips online?
Yes, many providers offer self-service portals or mobile apps where employees can download payslips, tax forms, and check leave balances.
Can outsourcing handle multi-state payroll compliance?
Yes, outsourcing partners manage compliance across states, handling different labor laws, professional tax rates, and region-specific rules.
How do outsourced providers ensure accuracy?
Through automated software, multi-level verification, reconciliation checks, and compliance audits before each payroll run.
Can outsourcing help with employee tax declarations?
Yes, employees can submit investment proofs, and the provider validates them for accurate TDS deductions and year-end compliance.
What’s the ROI of payroll outsourcing?
ROI comes from saved salaries of payroll staff, reduced penalties, efficiency gains, and employee satisfaction. Most SMEs see a 2–3X ROI within the first year.
Why is India a top destination for outsourcing payroll?
India offers skilled talent, cost efficiency, strong IT infrastructure, and compliance expertise, making it a preferred global hub for payroll outsourcing.
How do I choose the right payroll outsourcing partner?
Evaluate experience, technology, data security, compliance expertise, client testimonials, scalability, and responsiveness of support before deciding.
