Employee Payroll Management Software (Salary Calculations, Features, And Prices)
Managing payroll manually can be a nightmare. One small mistake in salary calculations or tax deductions, and your employees might face delayed payments or incorrect deductions. Worse, your company could be hit with hefty compliance penalties.
And employees, are also on the losing end. With manual calculations, 32% of global employees receive incorrect payroll payments due to errors in calculations. Both employees and HR professionals are frustrated and stressed. So what’s the solution?
This is where employee payroll management software steps in.
With the right employee salary management software, businesses can:
Automate salary calculations, tax deductions, and compliance reporting.
Track employee attendance and leaves without manual paperwork.
Ensure employees receive accurate and timely salaries.
Reduce workload stress of HRs, saving their time.
In this guide, we’ll break down everything you need to know about payroll software—the benefits, how it works and expert tips. Plus, we have added a list of the top 5 best payroll software in India to help you choose the right one for your business.
Employee Payroll Management Software
Today at least 70% of companies have payroll software to calculate and manage salaries and pay related tasks. With growing technological developments and a shift towards automation, the global payroll software market is projected to reach $17.9 billion by 2025. That is 7.2% compound growth for a year!
Employee payroll management software is a digital solution that automates payroll processing, ensuring accurate and compliant salary calculations. It is a part of an ERP system that has other solutions for finance, CRM and operation management.
The core functionalities covered by payroll software are:
Salary calculations - considering bonuses, deductions, and taxes.
Tax deductions - statutory deductions like PF, ESI, and TDS
Compliance management - adhering to tax and labour laws enforced by the government.
Employee attendance & leave management - employee attendance, leave requests, paid leaves and overtime.
It is a myth that only MNCs can use payroll software. From small businesses to hospitals and medium-scale companies, everyone can use salary management software to:
Enhance efficiency - by reducing payroll processing time.
Improve accuracy - by eliminating manual errors in salary calculations
Save Costs - on HR teams for payroll-related tasks.
Satisfy employees - with correct and timely salary payments.
Best Employee Payroll Management Software
1. e-HRX by Ekklavya
eHRX by Ekklavya is a comprehensive payroll management solution designed for businesses of all sizes.
Features:
Automated payroll processing with tax compliance
Supports filing of GST, TDS and ESIC.
Employee self-service portal
Seamless integration with accounting tools
Customizable payroll rules
Dedicated customer support with live chat, email and virtual meet options.
Generates pay slips with multiple regional language options.
Pricing: Price on request. Get a Quote
2. Zoho Payroll
Zoho Payroll is a cloud-based payroll system ideal for businesses looking for affordability and ease of use. It supports automated salary calculations, tax deductions, and employee self-service features.
Features:
Automated tax filing and compliance tracking.
Employee self-service portal for payslips and leave management.
Integration with Zoho’s ecosystem, including Zoho Books and Zoho People.
Cons:
Limited support for global payroll processing.
Not as feature-rich as enterprise-grade payroll software.
Pricing:
Standard: ₹50 per employee per month.
Professional: ₹100 per employee per month.
Premium: ₹200 per employee per month.
3. Quick Books
QuickBooks Payroll is an excellent choice for small to mid-sized businesses looking for an easy-to-use HR solution with accounting integration. It automates tax calculations and salary disbursement with direct deposit capabilities.
Features:
Direct deposit and automated tax calculations.
Integration with QuickBooks accounting software.
Employee benefits and HR management tools.
Customizable payroll processing.
Pros:
Ideal for small businesses.
Strong accounting integration.
Automated payroll tax filing.
Cons:
Limited HR functionalities compared to other payroll solutions.
Higher pricing for additional features.
Pricing: Starts at $45/month.
4. RazorpayX Payroll
RazorpayX Payroll is designed specifically for Indian businesses, automating statutory compliance and salary payments while providing benefits like health insurance and tax-saving investments.
Features:
Auto-generated payslips and contractor payments.
Compliance management for PF, ESI, and TDS.
Employee insurance and benefits support.
Pros:
Excellent for startups and mid-sized companies.
Ensures compliance with Indian payroll regulations.
User-friendly interface.
Cons:
Limited scalability for larger enterprises.
Customer support could be more responsive.
Pricing: Starts at ₹100 per employee/month.
5. ADP Payroll
ADP Payroll is a well-established payroll solution trusted by large enterprises and multinational corporations. It provides a full suite of payroll and HR solutions with global compliance capabilities.
Features:
Scalable multi-country payroll solutions.
AI-powered payroll insights and analytics.
Automated statutory compliance updates.
Global payroll and workforce management.
Pros:
Ideal for large enterprises and multinational businesses.
High-level automation and compliance tracking.
Advanced AI-powered analytics.
Cons:
Higher pricing compared to smaller payroll software options.
Requires technical expertise for full utilization.
Pricing: Custom pricing based on business needs.
What Are The Key Features Of employee salary management software?
A good payroll management system does more than just generate payslips. It simplifies financial processes, ensures compliance, and reduces HR workload. Let's understand in detail:
Self-Service Tools For Employees
A robust employee salary management system provides self-service tools, allowing employees to access their payroll data without depending on HR teams.
Easy Access to Payslips & Tax Forms: Employees can download their monthly payslips, view tax deductions, and generate tax forms like Form 16 at their convenience.
Leave & Attendance Management: The system integrates with attendance tracking tools, giving employees access to their leave records and balances.
Reduction in HR Queries: With self-service tools, employees no longer need to approach HR for minor payroll-related queries. This improves efficiency and allows HR professionals to focus on strategic tasks.
Integration With Accounting Software
Payroll and accounting go hand in hand. A good payroll system connects with accounting software to ensure financial data is accurate and up to date.
Easier Financial Management: Salary expenses, tax deductions, and benefits are automatically recorded, reducing manual work.
Integration with other software: If you have a software already, our pauroll software eHRX can easily take data and integrate with our ERP software for accounting.
Automated Statutory Compliance
Manually calculating tax deductions and provident fund contributions can lead to mistakes and legal issues. Payroll software ensures compliance by automating these processes.
Prevents Legal Penalties: The software calculates and deducts taxes, provident fund contributions, and other mandatory payments automatically.
Key Compliance Features:
Automatic tax and provident fund deductions.
ESI (Employee State Insurance) calculations
TDS (Tax Deducted at Source) reports
Integration with government portals for easy submissions
For example, if a business forgets to deduct and submit TDS on time, the software can send alerts.
Benefits Of Payroll Software For Employee Salary Management
Using payroll software helps businesses process salaries accurately and efficiently. Here are some of the biggest advantages:
1. Error-Free Payroll Processing
Mistakes in salary calculations can lead to financial losses and unhappy employees. Payroll software automates salary calculations, reducing the risk of errors.
Ensures correct salary payments, including tax deductions and bonuses.
Eliminates calculation mistakes that can lead to penalties.
2. Enhanced Transparency
Employees want to understand how their salaries are calculated. Payroll software provides a clear breakdown of earnings and deductions.
Employees can see their salary components, such as basic pay, tax deductions, and bonuses.
Reduces misunderstandings and builds trust between employees and employers.
3. Time and Cost Savings
Automating payroll reduces manual work and cuts administrative costs.
HR teams save hours by automating payroll calculations and tax filing.
Reduces the need for external payroll consultants, saving money.
4. Scalability and Compliance
As a business grows, payroll management becomes more complex. For instance, a startup with 10 employees today might have 100 employees in two years
Payroll software makes it easy to handle an increasing number of employees.
Businesses can manage payroll for more employees without additional HR workload.
The software adapts to new tax laws and compliance requirements automatically.
Tips To Choose The Best Employee Salary Management Software
Not all payroll software is the same. Also, what is good fit for others might not be the one for your company.
PHere are some things to consider when choosing the right one for your business:
Look For Essential Features
Before selecting payroll software, make sure it has the features your business needs.
Basic Features: Salary calculation, payslip generation, tax deductions, and compliance management.
Additional Features: Integration with accounting software, leave tracking, and employee self-service options.
Take A Free Trial
Most payroll providers offer a free trial. This allows businesses to test the software before making a purchase.
Helps check if the software is user-friendly and meets business needs.
Allows HR teams to test integrations and automation features.
Security Features
Payroll software handles sensitive employee data, so security is crucial.
Look for data encryption to protect salary details.
Ensure the software has multi-factor authentication for secure logins.
Check compliance with data protection laws like GDPR.
Mobile Accessibility
A mobile-friendly payroll system makes it easier for employees and HR teams to access payroll information on the go.
Employees can check payslips and leave balances from their smartphones.
HR teams can approve salary payments from mobile devices.
How Can Employee Payroll Automation Improve Efficiency?
A employee payroll management software improves work efficiency by:
Reducing human mistakes in payroll processing.
Configuring payroll rules to function automatically.
Handling all tedious tasks and allowing HRs to focus on more strategic decisions.
Following the latest updates in tax laws or any other laws. For example, recent changes in income tax slab rates announced by the finance minister.
Allowing employees to fill in the information in the self-service portals.
Frequently Asked Questions About Employee Payroll Management Software
eHRX by Ekklavya is the best employee payroll management software in India, offering automated salary processing, compliance management, and seamless integrations.
An employee salary management software:
Eliminates manual payroll errors.
Ensures compliance with tax laws.
Provides employees with easy access to payroll details.
Saves time and operational costs for businesses.