Best Payroll Software in India for Small Businesses and Startups
June 27th 2024
Automating payroll is a never-ending problem for startups and small businesses. Many startups and new-age companies still go the traditional route when transferring salaries to the employees’ accounts. Their typical payroll workflow looks something like this:
The HR/Finance team calculates salary tax deductions within the spreadsheet ➡️They log into the banking portal and transfer the salaries to each employee.
Imagine the manual work involved in this process, and there, too, is no guarantee of accuracy. Delays, wrong tax calculations and flawed salary components are widespread, leading to frustrated employees.
What’s the alternative?
Opt for the best payroll software in India that matches your use cases and gels perfectly with your team. We have shortlisted a list of payroll systems for startups. All you have to do is select the one best suited for your organisation.
Let’s get started.
Table of Contents
List of the Top Payroll Software in India
Essential Features to Look Out for in the Best Payroll Software
How to Select the Best Payroll Software?
Quick Comparison of Top Three Best Payroll Software in India
Top 10 Payroll Software in India
Expand Your Options: Explore These Alternatives!
Why is Using Payroll Software Important for a Business?
Benefits of Payroll Software
Conclusion
FAQs
List of Top Payroll Software in India
Essential Features to Look Out for in the Best Payroll Software
According to a report published in InboxInsight, 46% of 250 HR decision-makers intend to learn more about an HR software’s payroll features before purchasing it.
That brings us to a question.
Which payroll features should you invest in for your startups?
When selecting a payroll solution for your business, looking beyond basic features and pricing is crucial. Here are the essential features that a comprehensive payroll software should offer:
User-friendly interface
One-click salary transfers for efficient processing
Seamless integrations with other HR and financial systems
Intuitive user experience for both administrators and employees
Compliance management
Automatic calculations for TDS, PF, ESI, and professional tax deductions
Up-to-date compliance with local and national regulations
Comprehensive reporting tools for statutory requirements
Scalability and flexibility
Accommodate your growing workforce, including full-time employees, freelancers, and consultants
Handle multi-currency payroll for businesses with international operations
Adapt to changing business needs without significant overhauls
Robust customer support
Reliable and responsive customer service
Comprehensive training resources for smooth adoption
Ongoing technical support for any issues that arise
Customisation options
Flexibility to customise salary components
Ability to create personalised features tailored to your team's needs
Adaptability to your unique business processes and payroll structures
Here’s a list of features keeping in mind both the employees and HR/Finance professionals:
Features for HR and Finance Professionals
A centralised database to store employee information such as bank account details and compensation breakdown, etc.
Automated payroll calculation based on working hours, leaves, tax eligibility and deduction, overtime, etc.
Updated local and state tax regulations for compliance
Time, attendance, and leave management system integration for easy tracking and salary calculation
Reporting and analytics, including standard payroll, salary analysis, overtime, pay type reports, etc.
Role-based access controls to protect sensitive employee information
Detailed payroll history and audit trail to track changes
Features for Employees
Self-service portal to access payroll information, view and upload tax deduction documents
Downloadable payslips and other documents with a detailed breakdown of deductions, allowances, etc.
Access to support resources like FAQs, helpdesk, and guides
Mobile app or mobile-responsive browser for easy payroll access
How to Select the Best Payroll Software?
Now that you have a list of India's best payroll solutions, what’s next? It's time to consider aspects beyond features and pricing.
Ease of use: Assess the software for one-click salary transfers, seamless integrations, and user experience
Compliance: Check if the software handles payroll compliance requirements, such as TDS, PF, ESI, professional tax deductions, reporting, etc
Scalability: Make sure the payroll software scales with your growing business, accommodating more full-time employees, freelancers and consultants, and its ability to handle multi-currency payroll
Customer support: Test if the software vendor has reliable and responsive customer support. Check for training resources to help with tool adoption
Customisation: Assess the vendor’s flexibility to customise salary components or other personalised features that your team might need
Quick Comparison of Top Three Best Payroll Software in India
Let us now take you through the best payroll systems for SMEs. Before that, here’s a glance at our top three picks. It is based on their features and startup-friendly pricing.
Tool name
Craze
Zoho Payroll
HROne
Pros
All-in-one HR, Finance and Compliance, custom salary components and super-fast support
Intuitive UI and payroll structure customisation
Easy to process payroll and simplified calculations
Cons
No mobile application, but the web application is efficient enough
There is no feature to run payroll in batches.
Live chat and support need improvement
Limited customisation and slow page response
Ideal for
For startups and SMEs with less than 100 employees looking for advanced payroll features
SMEs looking for basic payroll process automation
Small businesses with 50+ employees seeking basic payroll management
Starting price
₹100/ person/ month with no minimum user commitment and feature gating
₹75/ employee/ month for at least 25 employees, effectively ₹3750 with email and voice support only
The basic plan at ₹85/ user/ month, doesn’t cover all use cases
Top 10 Payroll Software in India
Craze
Craze is one of the newest players on the block, but it is on our list of the best payroll systems for small businesses for a reason. The best thing about Craze is that it is simple and built for startups who struggle with spreadsheets or want to switch from clunky and confusing systems. The pricing is a cherry on top, the most flexible on this list.
Craze’s one-click payroll software reduces the back-and-forth of your finance and HR team and the excess effort they spend logging in to the bank account and manually processing salaries. All you have to do is insert the month you are processing the payroll and click on ‘Process Payment,’ and you are good to go.
HR/Finance professionals and employees can calculate tax compliances such as EPF, ESIC, TDS, and PF and download Form 16 from the same portal without remembering any tax regulations or performing any manual calculations. Simply turn on the compliances you want to apply, and your job is done.
Craze efficiently syncs with built-in leave management, Core HR, and attendance management tools to calculate custom salary structures for each employee without the HR team having to track any records or leaves within a spreadsheet. Craze also supports contractor payments, and you can process payments from freelancers, interns, and consultants using the same dashboard.
Craze best features
Automated one-click payroll compatible with any existing bank account — no integration required
Ensure error-free, tax-compliant employee salaries and contractor payments
Generated automated tax reports, managed bonuses and disbursements within Craze’s intuitive dashboard
Sync leaves and attendance effortlessly to ensure updated and accurate salary processing
Support for multiple salary structures as per team or departments and flexible benefits plan
Preview payslips for employees
Pros
Super-fast support from SMEs to address all your specific payroll-related queries
Employee-friendly software, easy to set up and takes only 24 hours to process your first payroll
An all-in-one people operating system where you can manage payroll, leaves, attendance, tax, employee database and all other HR and finance operations without switching between applications
Startup-proof, per user-per-month pricing, no feature gating
Cons
Craze doesn’t have a mobile application yet, but the web application and its simplicity make up for it
Ideal for: SMEs and startups with team sizes less than 100 looking for a simple yet advanced payroll software with an affordable pricing plan and absolutely no feature-gating
Pricing
Growth: The Core, the base layer for all other apps, is ₹40/month/person. The Growth Plan costs you ₹60/month/person with no setup fees or support fees, accommodates unlimited employees, and gives you access to all the payroll features mentioned above. The cost of using the payroll software is effectively ₹100/month/person
Enterprise: The Enterprise plan is suitable for enterprises with 100+ employees looking for specific features for their custom use cases, and the Craze team creates personalised pricing plans accordingly
Keka
Keka's payroll management system automates payroll processes to reduce payment errors, simplify payroll operations, and ensure timely salary credit.
Keka best features
Configurable salary structure
Payroll preview before final release
Integrated expense management with custom approval workflows
Explore Keka features in this detailed Keka Review 2024.
Pros
Accurate tax declarations and data visibility
Easy to access and use payment records
Hardik B - “ One of the best payroll management software solutions is an all-in-one employee management tool. It manages IT returns, stores the entire history of salary slips, and allows employees/manageer to set up one on one meetings directly in Keka or through integrated Microsoft Teams feature. It's easy to use, and I love using it frequently.” Source
Cons
Inadequate reading materials and support for beginners
Mobile app UI requires improvement
Hardik B - “ Many times, the performance of Web Keka suddenly drops, making it inaccessible during office hours. In my experience, the mobile app is to consume more data and often runs slowly on mobile networks.” Source
Ideal for: Mid-sized businesses and enterprises with high budgets looking for payroll automation
Pricing
Foundation: ₹9,999/month for up to 100 employees and ₹90/month for each extra employee. No access to employee self-service
Strength: ₹12,999/month for up to 100 employees and ₹120/month for each extra employee with feature lock-ins
Growth: ₹15,999/month for up to 100 employees and ₹150/month for each extra employee. Access all payroll and Core HR features
RazorpayX Payroll
RazorpayX Payroll is an automated payroll and compliance software for HR managers, payroll administrators, and employees. The platform simplifies payroll processing with automatic salary deposits and tax payments.
RazorpayX Payroll best features
Automatic salary calculation and direct transfer to employee bank accounts
Self-serve employee dashboard for payslips, Form 16, and investment declarations
Payroll auto-sync with attendance and leave management for error-free salary disbursements
Learn more about RazorpayX Payroll features in this detailed RazorpayX Payroll Review 2024
Pros
Easy-to-use and compliant payroll processing
Automatic calculation of deductions and bonus
Paramjit S - “ Payment processing is very easy, many payment options like credit card, wallet, upi and netbanking etc.” Source
Cons
Limited report generation features
There is no feature to download Form 16 mid-year
Lack of robust Leaves and Attendance products
Ayushi A - “ Razorpay customer support is unsatisfactory as it takes longer to resolve raised tickets.” Source
Ideal for: SMEs and enterprises looking for comprehensive payroll management features
Pricing
Prime: ₹2999/month for up to 20 employees with basic payroll features
Elite: ₹5999/month for up to 50 employees and ₹100/employee/month for extra employees. Access to advanced payroll but limited expense management features
Enterprise: Custom pricing plan best for teams of 100+ employees
Zoho Payroll
Zoho Payroll is a tax-compliant payroll software for India. The tool automates payroll calculation and statutory compliance. It also provides employee self-service to enable collaboration between employees and payroll teams.
Zoho Payroll best features
Automate payroll calculation and generate payslips with detailed tax, allowance, and deduction breakdown
Customisable pay slabs for different employee groups
User roles and role-based access for security
Pros
Clean and intuitive UI
Customisations for unique payroll structures
Shradha J. - “ Ease in operating. It is user friendly. Easy to integrate with other Zoho Applications to track. Good support from the zoho whenever required . You can implement this sofware easily with large group.” Source
Cons
The feature to run payroll in batches is missing
Live chat and support features could be better
Sunil Y.- “ The missing feature which acccording to me lacks is running payrolls in batches.” Source
Ideal for: SMEs looking for basic payroll system automation
Pricing
Free: ₹0 up to 10 employees with basic payroll features
Standard: ₹50/employee/ month for at least 25 employees. No access to advanced payroll features like custom user roles and access controls
Professional: ₹75/employee/month for at least 50 employees. Get access to payroll features
Kredily
Kredily is a payroll software that enables custom salary configurations and automates compliance tasks like tax calculations.
Kredily best features
Customisable salary structures to align with company needs
Automated overtime wages and tax deduction calculations
Mid-month variable payouts for flexible employee compensation
Learn more about Kredily’s leave management features in this Kredily Review 2024.
Pros
Easy-to-use interface
It is easy to generate payslips and approve expenses and payouts
Komalpreet K. - “ I had a fantastic experience using the portal; It helped the organization in every way to maintain data and keep track of every employee and his/her details, I am suggesting it to my friends also.” Source
Cons
Custom support is not responsive
Login issues and the free version is buggy
Akash N. - “The only issue I feel needs attention is, that we get logged out automatically from the website after some time of inactivity or closing the website. Every time we close the tool we have to log in again.” Source
Ideal for: Mid-sized businesses and enterprises with custom payroll needs
Pricing
Free forever: ₹0/Month with one customisable salary structure and basic payroll features
Professional: ₹1499/Month for up to 25 employees and ₹60/employee extra from the 26th employee. Payslip bulk download and IT computation are available as add-ons
Enterprise: Custom pricing
GreytHR
HROne
HROne is one of the best payroll software for small businesses to ensure timely payouts. The platform simplifies payroll management by automating CTC calculation and salary verification.
HROne best features
Detailed 3D reports for salary breakdown, overview, and month-wise trends
Employee self-service portal for payroll access and self-proposed declarations
Compliant requirements checklist and auto deductions of ESI, PF, etc. for statutory compliance
Get more insights into HROne features in this detailed HROne Review.
Pros
It is easy to process payroll through the mobile app
Simplified arrear and increment calculations
Sakina N. - “ HROne is a unique and simplest software i had ever used. It has all the features available which makes day to day operations easy for company thats why i called it as all in one.” Source
Cons
Limited customisation in reports and dashboards
Slow page response after system updates and errors while uploading files
Sakina N. - “ Few things needs some improvement which we feel such as reports needs to be more accurate majorly the leaves reports. They also start focusing on the policy which are follow by international companies.” Source
Ideal for: Small businesses looking for a basic and affordable payroll system
Pricing
Basic: ₹85/user/month with access to payroll features
Professional: ₹115/user/month with limited access to core HR and workforce features
Enterprise: Custom pricing
ZingHR
ZingHR is an HCM (Human Capital Management) platform that provides payroll management services. The tool helps access real-time payroll data and track salary disbursements and compliances.
ZingHR best features
CXO dashboard for visibility into payroll processes
In-built analytics for pay rates overview, monthly trends, tax insights, etc.
Tax filing services to streamline employee taxes
Pros
Easy to download payment slips and investment submissions
Comprehensive monthly and cumulative salary statements with allowance details
Aryan D. - “Lots of thing are easy to perform in this wether it is new member information or employee birthday/anniversary. Easy to download payment slips and Tax Simulation and investment submissions.” Source
Cons
Sometimes, the dashboard does not respond. It takes several refreshes to mark leaves or attendance
Outdated UI that requires improvement on different aspects for better user experience
Aryan D. - “we use once in a month and imagine dashboard loads really slow and multiple refresh just to mark WFH and leaves.” Source
Ideal for: Enterprises with a large workforce seeking comprehensive payroll management features
Pricing
Not available on the website
Qandle
Qandle is a centralised HR and payroll records platform. It automates payroll processing and employee reward compensation plans and optimises salary structures.
Qandle best features
Real-time payroll reports, including pay rates, employee data, payroll history, tax contributions, etc.
Reimbursement approval workflows
Incentive compensation plan calculation
Pros
Intuitive and customisation-focused
It is easy to calculate employee hours and work for performance evaluation
Subham Kr B. - “A nice and attractive user interface, very friendly also easy to use.” Source
Cons
Requires frequent software updates
The site is slow sometimes and takes long to process a page
Subham Kr B. - “Sometimes Qandle got stuck.” Source
Ideal for: Mid-sized businesses and enterprises looking for core HR and payroll features
Pricing
Foundation: ₹2950/month for up to 50 employees and ₹59/month per extra employee. No access to visual analytics and strategic HR features
Regular: ₹4950/month for up to 50 employees and ₹99/month per extra employee with feature lock-ins
Plus: ₹6200/month for up to 50 employees and ₹124/month per extra employee. Limited strategic HR features
Premium: ₹8000/month for up to 50 employees and ₹160/month per extra employee. Access all features except the remote toolkit
Enterprise: Custom pricing plan best for 1000+ employees
Zimyo
Zimyo is an AI-powered HRMS platform for payroll processing. The tool automates salary calculation and disbursement to reduce payroll errors.
Zimyo best features
Automated tax deduction and TDS, PF, and ESIC calculation
Custom expenses/ reimbursements approval workflows for expense management
Benefits management features, including instant personal loans and insurance coverage
Pros
Comprehensive payroll management features contributing to organisational efficiency
Payroll features are available for front users and admin, reducing payroll errors
Manisha M. - “Easy to use software with comprehensive features. I really like the real-time attendance tracking of employees, payroll automation, intuitive HR Analytics, and real-time performance tracking.” Source
Cons
Software bugs that often lead to frozen screens and functional complexities
Tax calculations vary every month
Anurag M. - “Some bugs are still there which sometimes freezes the screen and results in difficult situations and complexities sometimes.” Source
Ideal for: SMBs with 50+ employees looking for basic payroll automation tools
Pricing
Basic: ₹80/user/ month with least billing for 40 users and no access to advanced HR features
Standard: ₹120/user/ month with least billing for 40 users. No access to expense and benefits management and other features
Enterprise: ₹125/user/ month with least billing for 40 users. No access to payout features like error-free salary disbursement, available as add-ons
Expand Your Options: Explore These Alternatives!
Here are a few more payroll software for small businesses and startups to explore:
PocketHRMS
PocketHRMS is an AI-powered HRMS platform offering automated payroll processing solutions to streamline salary calculations and disbursements.
PocketHRMS best features
Easy to use and intuitive UI
Helpful for maintaining employee data records and payroll processing
Pros
Comprehensive payroll management features
User-friendly interface for admins and employees
Flexible customisation options
Ashraf S - “ Pocket HRMS is Very useful and easy software to do Payroll and very useful to maintain employee data and we can download reports as per our convient at any time as it” Source
Cons
Slow response time
Poor customer support
Rajnish K. - “ Slow response, TAT needs to be followed, can do better with support, the team needs more clarity on the product front.” Source
Ideal for: SMBs and enterprises with 50+ employees seeking advanced payroll automation and HRMS features
Pricing
Standard: ₹2495/month (up to 50 employees), then ₹40/employee/month
Professional: ₹3995/month (up to 50 employees), then ₹80/employee/month
Premium: Custom pricing
Darwinbox
Darwinbox is a comprehensive HR technology platform offering an innovative "One Touch Payroll" solution. Within its broader HCM suite, it provides a seamless, integrated approach to payroll management.
Darwinbox best features
Global framework with RIVeR methodology for simplified payroll processing
Four-step process covering all pay groups in one system
Integrated HCM, WFM, and payroll for accurate and easy payroll management
Suitable for businesses of all sizes, regions, and departments
Pros
Simple and smooth, day-to-day payroll automation tool
Loads faster and easy to navigate platform
Numaan Q- “ Fast loading time and easy navigating buttons” Source
Cons
Incomplete notifications
Mobile app lacks important features
Robin S. - “ The web application has more features than the mobile app, which makes it annoying for users who prefer to use the mobile app more.” Source
Ideal for: Enterprises of all sizes seeking a comprehensive, integrated HR and payroll solution, particularly those with complex payroll requirements or global operations.
Pricing
Undisclosed
BambooHR
BambooHR is a comprehensive HR platform offering an integrated payroll solution designed for fast, easy, and accurate paydays. It provides a seamless approach to payroll management within its broader HR software suite.
BambooHR best features
Extensive reporting capabilities with customizable access levels
Employee self-service for pay stubs and information updates
Multi-rate payroll for tracking multiple job rates within an organisation
Streamlined implementation process with dedicated specialist support
Pros
Intuitive and easy to use
Easy to set-up
Deb L.- “ Easy to set up, implement and use for Admins and End Users alike. Staff is responsive and very friendly.”
Source
Cons
Preparing reports is challenging
More new and customisable features can be added
Valentina J. - “ Overall, BambooHR is amazing, even though I believe there is a lot of room for new feautures, more customizable filters, reports, etc.” Source
Ideal for: Companies of all sizes seeking an integrated HR and payroll solution, particularly those looking to streamline their payroll processes and improve overall HR efficiency.
Pricing
Undisclosed
Why is Using Payroll Software Important for a Business?
By using payroll software, small businesses can avoid the risks and challenges of manual payroll processing. Here’s why small businesses and startups should consider using payroll software:
Regulatory compliance: With constantly evolving labour laws and tax regulations, payroll software ensures businesses stay compliant, avoiding costly penalties and legal issues
Reducing errors: Manual calculations are prone to mistakes, leading to incorrect payments and dissatisfied employees. Automated systems minimise these errors, ensuring accurate and timely salary disbursements.
Time and resource optimisation: By automating repetitive tasks, payroll software frees up HR and finance teams to focus on strategic initiatives, driving business growth
Scalability: As businesses expand, payroll complexity increases. Payroll software easily adapts to growing employee numbers and changing organisational structures without significant manual adjustments
Risk management: Standardised payroll operations reduce dependency on individual personnel, ensuring business continuity during employee turnover or absences
Employee trust and transparency: Accurate, on-time payments and easy access to pay information through self-service portals enhance employee satisfaction and trust in the organisation
Data security: Advanced encryption and access controls protect sensitive payroll information, mitigating the risk of data breaches
Strategic decision-making: Comprehensive reporting and analytics provide valuable insights for data-driven workforce planning and budgeting
Benefits of Payroll Software
Automation: Eliminates manual calculations and spreadsheet work for salary processing
Accuracy: Reduces errors in tax deductions and salary components
Time-saving: Speeds up payroll processing with one-click salary transfers
Compliance: Automatically handles tax regulations like TDS, PF, and ESI
Employee self-service: Provides a portal for employees to access payslips and tax documents
Integration: Syncs with attendance and leave management for accurate salary calculation
Scalability: Adapts to growing businesses and handles various employee types
Reporting: Generates detailed payroll reports and analytics for informed decisions
Customisation: Allows for flexible salary structures and components as per company needs
Cost-efficiency: Reduces expenses associated with manual payroll management
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Conclusion
By now, you know what features to look for in the best payroll software, the top payroll systems in India, and their pricing and use cases. It's time to make a decision.
If you plan to try out these tools individually, start with Craze.
Sounds biased? Maybe, but hear us out. You are a perfect fit for Craze if:
You are searching for a people operating system that handles finance, HR and IT all in one single dashboard
You are frustrated with the existing payroll software in India as most of these tools restrict all the advanced features for the premium plans
You want to work with an empathetic team that understands your struggles and is genuinely interested in helping you
Sounds like a fit? It's time to meet the Craze team.
FAQs
What is Payroll Software?
Payroll software automates salary calculations, tax deductions, and business compliance tasks. It streamlines payroll processing, generates payslips, and often includes employee self-service portals for accessing pay information.
What is the best payroll software in India?
Craze stands out as the best payroll software in India, especially for startups and small businesses. It offers flexible pricing, comprehensive features, and user-friendly interfaces. While other options exist, Craze provides the ideal balance of affordability and functionality for growing companies.
What is the cost of payroll software in India?
The cost of payroll software in India ranges from ₹40 to ₹150 per employee per month, depending on the features and the number of employees.
What are the different steps in Payroll Processing?
Payroll processing involves collecting employee data, calculating salaries, applying deductions, ensuring compliance, generating payslips, disbursing salaries, and creating reports. Many software solutions automate these steps for efficiency and accuracy.
What challenges are there with payroll software?
Common challenges include integrating with existing systems, maintaining confidentiality of user data, complying with location-specific regulations, and customising for specific business needs. User adoption and proper training can also be challenging for some organisations.
Does payroll software handle accurate payroll processing?
The best payroll management software automates payroll processing, freeing HR professionals from manual processes.
Does payroll software offer leave management and core HR as built-in features?
Yes, payroll software like Craze has a strong core HR and built-in leave management software that syncs deeply in real-time.
