PAYROLL OUTSOURCING

Payroll Outsourcing Services India.

End-to-end payroll processing, PF/ESIC/PT/TDS compliance, and payslips — managed by a dedicated HR Manager. From ₹10,000/month.

HRTailor mascot
200+
Businesses served
₹0
Penalty record
3 wk
To fully operational
8+
Cities covered
WHAT IT IS

What is payroll outsourcing?

Payroll outsourcing is the process of delegating salary calculations, tax deductions, compliance, payslips, and employee benefits to a third-party provider. It helps businesses save time, reduce errors, and stay compliant with PF, ESIC, labour laws, and other statutory requirements. A fully digital payroll system removes paperwork, ensures accurate salary payments, and keeps employees satisfied. By making payroll processes easier and more organised, organisations can spend more time on their main business activities while keeping payroll efficient and error-free.

WHY OUTSOURCE

Benefits of payroll outsourcing.

By managing your daily HR activities, HRTailor's full HR outsourcing services help businesses achieve their goals.

01

Dedicated HR Manager

You get a dedicated online HR Manager from HRTailor, specifically for you and your business.

02

Efficient HR processing

HRTailor's efficient HR processing assists you in growing your firm.

03

More time for your core

HRTailor frees up your valuable time so you can concentrate on your main tasks.

04

AWS-grade security

You get AWS security with HRTailor. Data security is nothing to be concerned about.

HOW IT WORKS

How payroll outsourcing works.

A clean monthly cycle, run by your HR Manager, with confirmation gates so nothing goes out wrong.

01

Monthly payroll run

Your Online HR Manager handles monthly payroll — including incentives, bonuses, appraisals, and salary restructuring.

02

Attendance confirmation

Employee attendance is tracked, and payroll proceeds only after confirmation to ensure accuracy.

03

Draft & payslips

Draft pay sheets are prepared and salary slips are uploaded once confirmed.

04

Query resolution

All payroll-related employee queries are addressed, ensuring tasks are completed smoothly and on time.

WHAT YOU GET

What's included in HRTailor payroll.

A complete monthly payroll operation — calculation, statutory filing, reporting, and an employee helpdesk.

  • Monthly salary processing. Variable pay, fixed pay, allowances, deductions, leave-without-pay adjustments, arrears, bonuses and settlement payouts — all computed and validated. Payslips generated and distributed via your HRMS or email by working day 5.
  • Statutory deductions & filings. PF (monthly ECR to EPFO, UAN coordination, transfer claims), ESIC (returns, enrolments, dependent registrations), Professional Tax (state-by-state), TDS (monthly computation under both regimes, quarterly 24Q, Form 16) and LWF.
  • Reports & reconciliations. Monthly cost-to-company breakdown, statutory liability summary, employee-wise pay register, GL-ready journal entries, year-on-year salary cost trends and audit-ready documentation.
  • Helpdesk for employees. Your team asks payroll questions — HRA exemption, 80C declarations, payslip clarifications, missed reimbursements — directly to our team. We resolve, you don't get pulled in.
MULTI-STATE

Multi-state payroll — built in, not extra.

Post-COVID, most Indian teams span multiple states — and each location triggers different compliance. We handle them all in one payroll cycle.

  • Bangalore. Karnataka PT (slabs at ₹15k, ₹30k thresholds).
  • Pune. Maharashtra PT (different slabs) plus LWF (₹12 employee + ₹36 employer, biannual).
  • Delhi. No PT (one of the few non-PT states) but specific Shops & Establishments rules.
  • Chennai. Tamil Nadu PT (half-yearly, a different structure entirely).

Your single monthly run produces compliant deductions and filings for every state your team sits in. No "we only do PT in 3 states" caveats.

SELF-SERVICE

Employee self-service.

  • Payslips on demand. With our HRMS, employees can view or download their payslips anytime.
  • Documents anywhere. All documents uploaded during induction are available to view or download from any location, any time, on any device.
  • Manager approvals. Managers get administrative access to approve or reject attendance and expense-reimbursement requests.
TOOLING

Your HRMS, or ours.

HRTailor doesn't sell HRMS software. We work with whatever you already use, or set one up if you don't have one.

  • Already on an HRMS? We integrate with Zimyo, Keka, GreytHR, Darwinbox, Pocket HRMS, PeopleStrong, Razorpay Payroll, Quickbooks Payroll and most major Indian platforms — pulling attendance and leave, running payroll, pushing payslips and reports back.
  • No HRMS yet? As part of onboarding we configure a cloud HRMS for you — typically Zimyo, Keka or GreytHR depending on team size and budget. You own the subscription; we're your admin user.
  • Pure-spreadsheet shop? Also fine for very small teams — though we'll usually recommend a cloud HRMS by month 3, since spreadsheet payroll doesn't scale past ~20 employees.
ACCURACY & SLA

What we commit to.

  • Payroll accuracy. Zero errors on monthly cycles. If we cause an error, we remediate at our cost — including any penalty negotiation. Maintained across 200+ clients.
  • Statutory filing. All filings completed by the legal due date — PF and ESIC by the 15th, PT by the state date, TDS by the 7th, quarterly TDS returns on schedule.
  • Payslip delivery. Payslips out by working day 5, assuming attendance and variable inputs are received by working day 28 of the previous month.
  • Query response. Employee queries acknowledged within 4 working hours; resolved within 1 working day for standard queries, 3 for complex ones.
COMPLIANCE

Compliance, handled.

Payroll in India is a compliance-plus-calculation problem. Get one filing wrong and you face 12% p.a. penalty interest plus damages — a single missed PF return for 50 employees can cost ₹40,000–₹1,00,000, far more than a year of outsourcing fees.

  • Always current. HRTailor continuously updates compliance processes to stay aligned with current regulations and best practices.
  • TDS reporting. Detailed TDS reports for monthly deductions and payments, ensuring accurate and timely compliance.
  • Bulk salary transfers. Employee salary details, bank information and transfer amounts prepared for easy, accurate bulk transfers as per client instructions.
  • Form 16. Form 16 (TDS certificate) provided to employees as required, so they have the documentation they need for tax filing.
REFERENCE

Statutory compliance penalties in India — 2026.

Compliance AreaViolationPenalty (First Offence)Filing Deadline
PF — Late PaymentDelayed employer PF contribution12% p.a. interest + 5-25% damages15th of following month
PF — Non-registrationFailing to register (20+ employees)₹5,000-₹25,000 fineWithin 30 days
ESIC — Late PaymentDelayed ESIC contribution12% p.a. interest on arrears15th of following month
ESIC — Non-registrationFailing to register (10+ employees)₹5,000-₹25,000 fineWithin 15 days
Professional TaxDelayed PT paymentInterest 1-2% per month (varies by state)Monthly/Annual
Gratuity — Non-paymentWithholding gratuity10% p.a. interest from due dateWithin 30 days
Minimum WagesPaying below minimum wage₹500-₹10,000 fine per employeePer pay period
POSH ComplianceNo ICC or policy (10+ employees)₹50,000 fineImmediate
TDS — Late FilingLate TDS return filing₹200/day until filedQuarterly
TDS — Non-deductionFailing to deduct TDS from salary1% per month interest + TDS amountAt salary credit

Penalties are indicative and may vary by state. Updated for 2026 regulations. For a company-specific assessment, contact our compliance team.

REFERENCE

Professional Tax slabs by state — 2026.

StateMonthly Salary SlabPT Amount (Monthly)Annual Cap
MaharashtraUp to ₹7,500 / ₹7,501-₹10,000 / Above ₹10,000Nil / ₹175 / ₹200 (₹300 in Feb)₹2,500
KarnatakaUp to ₹15,000 / Above ₹15,000Nil / ₹200₹2,500
GujaratUp to ₹5,999 / ₹6,000-₹8,999 / ₹9,000-₹11,999 / Above ₹12,000Nil / ₹80 / ₹150 / ₹200₹2,500
Tamil NaduUp to ₹21,000 / ₹21,001-₹30,000 / Above ₹45,000Nil / ₹100 / ₹310₹2,500
TelanganaUp to ₹15,000 / ₹15,001-₹20,000 / Above ₹20,000Nil / ₹150 / ₹200₹2,500
West BengalUp to ₹10,000 / ₹10,001-₹15,000 / Above ₹40,000Nil / ₹110 / ₹200₹2,500
DelhiDelhi does not levy Professional Tax
Haryana / UP / RajasthanThese states do not levy Professional Tax

Slabs verified for FY 2025-26. HRTailor manages PT compliance across all states.

SWITCHING

Migrating from your current provider.

Switching from another provider or in-house payroll? Most clients are fully migrated within 30 days — no cycles missed, no filings dropped.

01

Week 1 — Collect

We collect your last 3–6 months of payroll runs, statutory registration certificates (PF, ESIC, PT, S&E), employee master data, salary templates and TDS records. NDAs in place.

02

Week 2 — Reconcile

We reconcile your statutory liability — PF challans, ESIC, state-wise PT, pending notices — and give you a one-page report so you know exactly what you're handing over.

03

Week 3 — Parallel run

We compute the upcoming month's payroll alongside your current provider so you can compare. Differences are documented and reconciled.

04

Week 4 — Live cutover

We handle the live monthly cycle. Your previous provider is debriefed and any final returns from their period are filed cleanly.

PRICING

Pricing — scope-based, transparent.

Payroll-only outsourcing starts at ₹5,000/month for small teams (up to 15 employees, single-state, basic statutory). Mid-tier (30–60 employees, multi-state, full statutory) typically runs ₹10,000–15,000/month. Larger SMEs (100+ employees, complex comp, multiple entities) range ₹20,000–35,000/month.

Most clients buy payroll as part of a broader HR outsourcing engagement, where the blended price is lower than payroll-only plus separate HR services. We'll scope both and recommend whichever is cheaper for your situation.

Outsource your payroll today. Focus on growing your business.

From ₹10,000/month · Setup in 3 weeks.

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FAQS

Frequently asked questions.

Existing accounts are fine. We coordinate with your PF/ESIC consultant (if any) or take over the EPFO/ESIC portal access directly.

Yes — expat payroll with FRRO compliance, social security exemption certificates where applicable, and tax-equalisation calculations are all handled. It costs slightly more per expat employee due to complexity.

We compute and report perquisite tax on ESOP exercises and RSU vests. We do not administer the ESOP plan itself — that's typically handled by your CS or a dedicated ESOP administrator.

All data resides on encrypted cloud storage with role-based access. Statutory portal credentials are rotated quarterly. We don't share employee data with third parties. An NDA is signed with every engagement, and an ISO 27001 compliance roadmap is underway.

Yes — F&F calculation, leave encashment, gratuity (if applicable), tax adjustment, statutory settlement and exit letter. Typically processed within 30 days of the last working day.

Payroll-only starts at ₹5,000/month for small single-state teams. Mid-tier multi-state runs ₹10,000–15,000/month, and larger SMEs range ₹20,000–35,000/month. Bundled with broader HR outsourcing, the blended price is usually lower.

Ready to hand payroll to people who do this every day?

Talk to a real HR Manager and get a tailored plan within one business day — no obligation.