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Payroll Processing Services- 7 Big Changes That Will Shock You

  • payroll service provider
  • 12 min read
  • May 30, 2024


‘You got to pay the right payroll to all your employees!’ And that is quite an unshakable fact because that is how things work in the business. But if you are paying attention, many companies are following the method of ‘payroll outsourcing‘ which has become quite common these days.

So how come we have grown to just giving PAYCHECKS to all the employees ‘to outsource payroll’ by a third party company, and that too in just a couple of decades? Quite fascinating, isn’t it? This fascination doesn’t end so quickly, because if you have a look over the level of HR payroll outsource, the world is scaling up at a magnificent pace! And so does India!

About Payroll Outsourcing India…

In the dynamic world of Human Resource Management Systems (HRMS) in India, the method of doing payroll is shifting. As an organization or being just a part of it, you can understand the changing spectrum of payroll processing, from modern digital methods to much more efficient digital methods.

Every day, more and more organizations are recognizing the advantages of outsourcing payroll services. They have understood the answer to a frequent question in this regard: ‘What is outsourcing payroll services?

  • The outsourcing payroll is cost-effective

  • Ensures accuracy

  • Streamlines operations and makes them more effective

So, today, we are going to understand all those benefits and will talk about all the crucial details regarding the right payroll outsourcing services in detail. And in regard to that, we have some big news that we would like to share with you about the big changes that have happened in the realm of outsourcing payroll. Let’s understand what they are!

What is Payroll Outsourcing?

What is Payroll Outsourcing

You hire the employees, you get work from them, and you pay them by yourself- here doing the payroll processing will be called payroll in-house service! But when the same thing [payroll processing] is done by a third party [like when you hire a company just to do your employees’ payroll], it is called payroll outsourcing.

Doing Payroll outsourcing is like leaving a vast amount of your monthly work to a third-party company that has tons of experience in doing so. However, running payroll processing services in India can be quite a tough task.

Because in terms of payroll and HRMS services, the organizations are still bound to believe that in-house payroll & HRMS services are better. But at what cost? Because doing payroll and compliance are quite expensive, and will cost you a lot of time. For that reason only, the payroll outsourcing companies in India are gathering more and more attention these days.

What do Payroll Outsourcing Services Offer?

With a massive market for outsourcing your payroll, tons of companies offer different payroll outsourcing services. However, a company/ payroll service provider can offer multiple services based on efficiency and convenience. So here’s the list, please have a look at it…

  • Implementing and Setting Up Payroll Systems

  • Processing Payroll and Calculating Salaries

  • Administering Tax Payments

  • Managing Salary Payments

  • Calculating and Administering Payroll Taxes

  • Managing Compliance

  • Administering Employee Benefits

  • Keeping Payroll Records

  • Preparing Statutory Payroll Reports

  • Providing Employee Payroll Support


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7 Big Changes in Payroll Outsourcing Services

Outsourced payroll has become one of the latest crucial services that we need to talk about more often. It is time to focus on the crucial changes in the field of payroll providers because there are some new measures that can change the game!

1. Increased Adoption of Automation and AI

Payroll Outsourcing Increased Adoption of Automation and AI

Automation is indeed revolutionizing payroll processing as a most convenient one. Because with the right payroll, we get peace of mind for a change, as we become free from the possibility of human error. All thanks to Modern payroll systems using Artificial Intelligence (AI), we keep moving forward with the payroll process [by keeping its pros and cons in mind].

Best payroll outsourcing companies providing payroll services in India make sure to automate every payroll management solution. So they can easily handle the data entry, perform complex calculations with ease, and even identify discrepancies to avoid them.

For payroll providers and even your business, the utilization of AI is a fruitful task. Because it can automatically update

  • Your payroll records based on attendance data,

  • Easily calculate taxes according to the latest regulations, and

  • Alert HR managers about potential issues before they arise. The result is a more efficient, accurate, and reliable payroll system

2. Enhanced Data Security Measures

Payroll Outsourcing Enhanced Data Security Measures

With payroll outsourcing services in India, there’s another measure that needs to be kept in mind, and that is Data security. Because with time and the easily available HRMS services, problems such as cyber threats, and data breaches can risk the protection of sensitive employee information.

Henceforth, payroll processing providers have to employ cutting-edge security measures to safeguard data. Encryption ensures that all data transmitted and stored is secure. And over that, multi-factor authentication continues to add an extra layer of security, requiring multiple forms of verification before accessing sensitive information.

3. Shift Towards Cloud-Based Solutions

Shift Towards Cloud-Based Solutions

In this next change, we can say that it is a befitting answer to ‘how to outsource payroll?’ After the introduction of cloud-based solutions, the companies were able to avail their payroll outsourcing services.

And with time more and more organizations are looking for a payroll provider, just because of its multi-dimensional benefits [we have mentioned above]. Because keeping an in-house payroll is the big and heavy step, that many companies are choosing not to take. The reason behind that is to keep the finances in control and save your team from doing hectic procedures.

4. Mobile Accessibility

Mobile Accessibility of Payroll Outsourcing

In today’s digital age, employees expect to access their payroll information on the go. Because those employees can be working from remote locations, hence they wish and should have convenient access to their pay stubs, tax documents, and personal information. For that reason, they should be able to access crucial information about themselves simply through apps, including…

  • The minor to major updates for their contact information,

  • Viewing their payroll history from anywhere, and

  • To request time off, and more.

In simple words, this mobile accessibility improves employee satisfaction tenfold by providing them with greater control over their payroll information. and furtherly, it also reduces the burden on the administration [like HR departments], as employees can handle many tasks themselves through the app. So, it’s pretty much a win-win situation.

5. Focus on Employee Self-Service

Focus on Employee Self-Service

When you choose a reliable and the right outsourced payroll providers for your company, you just don’t have to be concerned about employee satisfaction in terms of payroll. Because they will be receiving their accurate paychecks on time, and that is how they will feel to be valued and motivated. Because a correct and on-time payroll can make the office environment, more positive, than ever!

Accurate payroll processing also reduces employee grievances related to pay discrepancies. By providing employees with easy access to their payroll information and ensuring timely payments, businesses can improve overall job satisfaction and retention rates.

6. Compliance Management

Compliance Management in Payroll Outsourcing

Staying compliant with ever-changing tax laws and labor regulations is as challenging as ever for businesses. And for that, they fall in dire need of having an outsource payroll service provider, just to get help with ensured compliance as per the relevant laws and regulations.

The reason that we have mentioned payroll management outsourcing services, is because their systems are regularly updated to reflect changes in tax codes and labor laws. And because of all this, the risk of non-compliance gets reduced to none.

For instance, when a new tax law is enacted, the payroll system automatically updates to ensure that payroll calculations are accurate and compliant. This proactive approach to compliance management helps businesses avoid heavy fines and legal troubles.

7. Cost Management and Transparency

Cost Management and Transparency in Payroll Outsourcing

As for the benefits we have mentioned above, cost-effectiveness is the most common, yet the most logical one! HR and payroll outsourcing can lead to significant cost savings, which can boost the core functions of the businesses.

By eliminating the in-house payroll team, companies can subsequently reduce overhead costs like salaries, benefits, and training of the employees. Additionally, outsourcing reduces administrative expenses by streamlining payroll processes and minimizing errors. Plus the reports we will be getting will be accurate, and as transparent as daylight free from all the hidden factors.

The efficiency we will be getting from outsourcing will also allow the HR teams to focus on more strategic initiatives, and will further enhance the overall employee productivity of the organization.


Okay, so let’s have a briefing by ourselves, and go through some questions that we have got the answers from!

  • what are the benefits of a payroll outsourcing? That we have told you right up in the blog!

  • With payroll outsourcing doing business is pretty easy, does it? that is correct!

  • Is it easy to avail for everyone? Yes, it is!

So, as we are in the closing statement of the blog, we want to advise a great payroll partner, the finest HRMS software, that can solve all your payroll troubles with a snap. An HRMS and payroll software that has been known throughout the nation as the most convenient one- Superworks!

Use once, and experience the ultimate payroll convenience like never before!


How does payroll outsourcing work?

Payroll outsourcing involves hiring another company to handle all your payroll-related tasks. And those payroll-related tasks include calculating wages, managing taxes, and ensuring compliance with labor laws. The service provider takes over these duties, allowing businesses to focus on core activities.

What is global payroll outsourcing?

Global payroll outsourcing is when a company hires an external provider to manage payroll for employees of not only the same country but many more. In such a case, the provider will ensure that all payroll processes comply with the local laws and regulations of each country.

What to consider when outsourcing payroll?

When outsourcing payroll, consider the provider’s experience and reputation, and not to mention you should also consider the range of services they offer. Make sure they have robust security measures, comply with local laws, and provide good customer support.

What are the benefits of outsourcing payroll?

Outsourcing payroll will save you time and will reduce the risk of errors. Furthermore, it will ensure compliance with tax laws and regulations, and can often be more cost-effective than maintaining an in-house payroll team. Moreover, it also helps businesses to concentrate on their key operations.

What are the benefits of outsourcing payroll services in India?

Outsourcing payroll services in India can be cost-effective due to lower labor costs. The Indian providers are often experienced and can offer a wide range of services, ensuring compliance with local laws and easing the administrative burden on businesses.


Alpesh Vaghasiya

The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.

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