An ever-developing industry that has to deal with constantly changing regulations, fixed costs associated with project management, the demand for high-quality products in a competitive environment, and the difficulty in managing payroll with paper-based methods. Payroll for IT organizations involves variable pay structures and remote employees, so maintaining correct payroll is very important for IT companies.
As IT organizations continue to grow, expectations from employees regarding timely payments, transparency, and compliance will only continue to grow. Errors in processing payroll not only decrease employee confidence but also can result in costly legal and financial issues for IT companies.
This is why payroll solutions are necessary for IT companies. Payroll software can be integrated with an organization’s HR, HRMS, Attendance Management, and Leave Management Software, etc., thereby creating a simplified payroll process.
What Is Payroll Software?
Payroll Software is a program that is used to simplify the payment of employees through digital means. It is designed for businesses or employment agencies to automate most aspects of an organisation’s payroll processes. This includes everything from calculating taxes to keeping track of employee wages and benefits. Payroll Software can also assist with Employee payment and policies, as well as generating pay remainder.
Today’s modern Payroll software is more than just a tool for paying employees; it also integrates with Attendance Management systems, Leave Management systems, and Performance Management systems to create a smooth HRMS (Human Resource Management System). The integration of these systems improves both efficiency and accuracy of data.
Top Payroll Software for IT Companies
1. Savvy HRMS
Savvy HRMS is a full-service human resources and payroll solution tailored for the needs of rapidly expanding IT industries. It simplifies the management of employees, pay, compliance, attendance, and lifecycles while providing growth potential, precision, and easy integration with current human resources processes.
Highlights of Savvy HRMS Payroll Software
- Payroll Automation: Avoids the need for manual input when determining salary amounts, handling variable payments, awarding bonuses, and caring for any outstanding payments.
- Statutory Compliance: Completes automated compliance for PF, ESI, PT, TDS, and labor legislation according to the Indian Government laws.
- Syncing of Attendance and leave: Enables accurate payroll data to be generated with attendance and leave management systems.
- Flexible Salary Structure Support: Provides flexibility for specific types of compensation for IT employees, such as variable compensation, incentive compensation, and project-based compensation.
- Employee Portal: Allows employees to easily access their payslips, tax declarations, and supporting documents.
- Tax Calculation and Form Generation: Generates Form 16 with minimal activity on the employee’s behalf.
- Cloud-Based Payroll Access: Payroll can be securely accessed from any location, which supports businesses that employ remote and flexible workforces.
- Payroll Based on Employee Performance: Credited toward performance-based compensation with the connection to the performance management software.
- Advanced Payroll Reporting: Delivers real-time, current payroll information, which contributes to a company’s financial and tax planning.
Pricing (INR): Starts from ₹50 per employee/month.
Best For: Small to large IT companies looking for an all-in-one HRMS and payroll solution.
2. Pocket HRMS
Pocket HRMS provides IT businesses with an intelligent payroll management solution that empowers automation, HR compliance, and employee self-service options.
Key Features of Pocket HRMS Payroll Management System
- Automated Salary Calculations: Payroll is processed automatically using attendance, leave, and salary structure inputs.
- Comply with Statutory Regulations: The Pocket HRMS program takes care of statutory requirements such as employee PF, ESI, PT, and TDS.
- Attend & Leave Management System Integration: Payroll calculations are accurately calculated.
- Digital Payslips & Tax Documents: The program provides all employees with access to digital payslips, Form 16, and tax documents for download.
- Cloud-Based Access: Employees can access their payroll data from anywhere at any time, which provides employees who work in hybrid or remote roles.
Pricing (INR): Starts from ₹60 per employee/month.
Best For: Mid-sized IT companies focusing on payroll automation and compliance.
3. Quandle
Quandle’s HR solutions offer modern payroll and HR tools designed specifically for the new face of IT and innovative technology, enabling organizations with various team structures, dynamic processes,s and flexible workplace arrangements.
Quandle Payroll Software Key Features
- Automated Payroll Processing: Payroll calculations, deductions, and payments are completed with a few clicks and the least amount of manual effort.
- Attendance and Leave Tracking: Employees’ attendance, shifts, and leaves are monitored in real-time so you can ensure payroll accuracy.
- Compliance-Ready Payroll: Stay in compliance with state and federal payroll-related laws and Regulations with Quandle Payroll Software’s built-in updates.
- HR Analytics Dashboard: The dashboards and reports provide organizations with the insight needed to improve payroll and HR through actionable data and analysis.
- Scalable Cloud Solution: Organizations can continue to grow with the use of Quandle Payroll Software.
- Employee Data Management: Maintain correct, up-to-date employee records, providing ease of use for both managers and employees.
Pricing (INR): Starts from ₹75 per employee/month.
Best For: Tech startups and IT organizations looking for a suitable payroll software.
4. HR Mantra
HR Mantra is a feature-rich platform that enables large-scale IT companies to operate the payroll process.
HR Mantra Payroll Software Key Features
- Automated Payroll Processing: HR Mantra automates the handling of complex payroll structures efficiently.
- Payroll Compliance for Multiple Locations: HR Mantra enables organizations to manage payroll compliance for multiple states and locations.
- Payroll Processing with Attendance & Shift Information: HR Mantra allows the automatic integration of attendance and shift details with payroll processing.
- Management of Employee Life Cycle via HRMS: HR Mantra provides a platform that enables organizations to handle employee life cycle processes, such as onboarding, payroll, and exit.
- Payroll Processing Reports: HR Mantra has in-depth reports on all aspects of payroll processing, including tax and compliance issues.
Pricing (INR): Starts from ₹80 per employee/month.
Best For: Large IT companies with complex payroll structures.
5. Deel
Deel is a solution that simplifies payroll solutions and compliance for IT companies with international employees, contractors, and freelancers.
Features of Deel Payroll Software
- Global Payroll Processing: It allows for payroll treatments in multiple countries while remaining compliant with local regulations.
- Contractor & Freelancer Payments: Automates payments for contractors globally, along with compliant contract and invoice generation.
- Tax & Compliance Automation: Automates the filing of International Tax and the management of local labour laws and statutory obligations.
- Multi-Currency Payments: Allows for payment of salary in multiple currencies and visibility into the corresponding exchange rates.
- International Employment Support: Provides companies operating in the IT industry with the ability to employ internationally with no requirement.
Pricing (INR): Starts from ₹4,000 per employee/month.
Best For: IT companies with global or remote employees.
6. Kredily
Kredily’s free HR and payroll solution is the ideal starting point for small IT start-ups with basic HR and payroll requirements.
Main features of the Kredily Payroll Software
- Basic Payroll Processing: Allows users to quickly calculate monthly payroll.
- Attendance and Leave Management: Collects attendance and leave information to ensure accurate payroll processing.
- Employee Database: Keeps a record of every employee, including their salary and other personal information.
- Payslip Creation: Creates digital payslips for employees and sends them out.
- Compliance Basics: Includes basic compliance with relevant laws for smaller teams.
- Low-Cost HRMS: Provides all of the key components of an effective HRMS at no cost.
Pricing (INR): Free plan available for a certain number of employees.
Best For: Small IT startups with limited budgets.
Why Payroll Software Is Important for IT Companies?
1. Accuracy
With payroll software, IT organizations can automate the elements that constitute an employee’s pay, as well as their respective deductions, bonuses, payments, etc., so that there is no possibility of error due to manual payroll processing.
2. Compliance
By automating the processes related to payroll, the payroll software provides IT companies with accurate information for managing their various statutory compliance items (such as PF, ESI, TDS) as well as their statutory obligations to comply with labor laws. This helps avoid IT companies from being subject to unnecessary penalties, audits, or legal problems.
3. Scalability
Payroll software provides IT businesses with an effective tool to manage the ongoing growth of business through the easy handling of increasing employee numbers and multiple pay structures, while still ensuring that payroll is processed accurately.
4. Time-Saving
HR Teams save significant time by automating their payroll workflows so that they can spend their time on strategic initiatives instead of spending their time completing repetitive manual tasks such as payroll administration.
5. Transparency
Payroll software provides employees with payslips that include the total of their payments, deductions, bonuses, allowances, etc., as well as the calculated amount of tax withholding, and provides employees with complete data and information necessary to develop trust and minimize errors arising from payroll.
6. Integration
Modern payroll software smoothly integrates with HR Software (ERP), Attendance Management Software (AMS), Leave Management Software (LMS), as well as Document Management Software (DMS), allowing for the accurate and effective handling of payroll-related data.
7. Data Security
Advanced payroll software protects sensitive employee and salary information by utilizing secure cloud computing platforms, encrypted communication channels, and privacy regulations, ensuring confidentiality and compliance of all applicant and employee payroll-related data.
8. Employee Experience
Payroll software provides employees with self-service portals for accessing timely crediting of salaries, payslips, and tax-related documents necessary to file taxes. As a result, employee satisfaction and retention are improved.
How to Choose the Right Payroll Software for Your IT Company?
Consider the following factors to choose the right payroll software for your IT Company:
1. Scalability
IT companies need accounting programs that grow with their business easily, providing a payroll solution as the number of employees, locations, and pay structures continue to grow naturally, without having a negative effect on the performance or operations.
2. Compliance Management
An effective payroll program will automatically manage requirements and areas such as PF, ESI, TDS, and other labor-related compliance requirements while guaranteeing accuracy, timely filing, and decreased business risk related to penalties and legal issues.
3. Integration Capability
The payroll solution must integrate easily with HRMS, attendance management, and leave management solutions to ensure accurate payroll processing and a consistent source of employee data.
4. Customization Flexibility
Flexible payroll systems for IT companies are important to accommodate the variable pay and compensation structures for the various roles and project-based salaries that an IT company can potentially encounter.
5. User Experience
An easy-to-use interface and employee self-service portal can help simplify payroll functions, reduce employee dependency on HR, and increase employee engagement within IT teams.
6. Security & Data Privacy
Your payroll system should ensure the highest level of data security through encryption, cloud protection, access control based on role, and other measures to comply with laws and best practices for data privacy and information security.
7. Cost Effectiveness
When evaluating payroll programs, IT companies should compare pricing for payroll software against features for long-term value, operational efficiency, and scalability, while remaining within budget constraints.
What are the Challenges in Implementing Payroll Software?
| Challenge | Description | Solution |
| Data Relocation | Difficulty in moving legacy payroll data | Use vendor-assisted relocation tools |
| Employee Adoption | Resistance to new systems | Provide training and demos |
| Compliance Complexity | Frequent regulatory updates | Choose compliance-ready payroll software |
| Integration Issues | Disconnected HR systems | Select integrated HRMS platforms |
| Customization Limits | Inflexible salary structures | Opt for customizable payroll solutions |
| Data Security Concerns | Risk of payroll data breaches | Ensure cloud security and encryption |
Why Savvy HRMS Is the Best Choice?
Savvy HRMS is a complete payroll and HR solution specifically built to support the ever-developing requirements of the IT industry. As an integrated entity, Savvy HRMS provides payroll accuracy as well as simplifying HR operations.
The smooth integration of Savvy HRMS with attendance management software, leave management software, and performance management software breaks down many of the barriers associated with operating in large organisations and improves operational efficiency.
Savvy HRMS is a cost-effective, fully compliant, and scalable payroll platform for IT organisations looking for future-proof solutions; it will help IT businesses create sustainable business models.
Conclusion
Today, there is no option when selecting a Payroll System, especially for an IT company looking to attain operational efficiency, regulatory compliance, and employee satisfaction. An Integrated HRMS will enable payroll accuracy as well as business growth.
Amongst the available Payroll System providers, Savvy HRMS provides IT companies with an affordable, scalable, and reliable Payroll System that combines Payroll, HR software, Attendance, Leave, and Performance Management into one system, thereby enabling IT companies to simplify their business processes and concentrate on Innovation and Growth.
