Payroll is the compensation a company should pay to its employees for a specified period of time or on a given date. Payroll is generally managed by the Accounting or Human Resource department of a company. For some small businesses, payroll may be handled by the owner himself.

These days payroll is usually outsourced to third party companies that perform a wide range of payroll functions. The payroll consists of processes such as creating a list of paid employees, tracking their working hours, calculating pay, providing their salary on time, employee benefits, tax withholding.

RazorpayX Payroll is a fully-automated payroll and compliance software that automatically calculates and executes payroll with just 3 clicks every month. RazorpayX Payroll comes with best-in-industry employee self-serve portals, integrations with tools like Slack, Whatsapp, Zoho People and more.

Learn more: Features of RazorpayX Payroll

Functions of Payroll

Payroll as a function encompasses the following:

Payroll policy and process

Defining organisational payroll policy around payslip components like basic & variable pay, HRA, LTA and more

Calculating salary

Calculating gross salary, statutory and non-statutory deductions like PF, taxes, etc

Creating and maintaining records

The payroll function also creates and maintains payroll records such as payslips, time and attendance records, earnings, deductions, etc.

Tax and compliance

Payroll is also responsible for depositing dues like TDS and PF with appropriate authorities to comply with tax and other laws

Issuing salary

The primary duty of the payroll department is to disburse salary to the employees every month or week, depending on the payroll cycle as determined in the payroll policy.

Audit and reporting

Payroll function is also responsible for ensuring that proper documentation and reporting systems are in place for any audits or checks.

Answering queries

Both employees and management constantly have payroll and payslip-related queries. It is up to the payroll department to answer these queries and ensure all stakeholders have all the information they need.

Previously, businesses relied on spreadsheets or manual methods to calculate and disburse salaries. Today, automated payroll software helps businesses manage these complexities effortlessly.

A payroll cycle is the time gap between two salary disbursements. Businesses can opt to pay salaries on a weekly, bi-weekly, or monthly basis. Generally, in India, it is processed every month.

Read more: Payroll Service Provider

Advantages of Payroll

While there are benefits to a manual payroll process, automated payroll is the way to go today. Here’s why:

Reduced costs

Automated systems reduce the risk of payroll errors, which can lead to fewer penalties and fines. They also save time and resources, leading to lower labour costs.

Enhanced compliance

Automated systems can automatically calculate and withhold taxes and generate reports that can be used to verify compliance.

Improved employee satisfaction

Employees appreciate being paid accurately and on time. Automated payroll systems ensure that employees are paid correctly and on time, wh

Error-free calculation

Automated payroll systems reduce the risk of errors in payroll calculations, leading to fewer discrepancies in employee paychecks.

Timely payments

Automated calculations and payment disbursals result in on-time payments with no errors. This results in happy employees and smooth business operations.

Time-saving

Manual payroll processes are time and resource-consuming. With automated payroll, most manual tasks are done automatically in a fraction of the time.

Data security

Robust, trustworthy payroll systems store employee data very securely. Data leaks and privacy issues are a one-in-a-million occurrence. With paper-based payroll, employee records can be stolen, mishandled or lost.

Easy data insights

With all employee data and records available digitally, employers can use analytics tools to forecast trends and employee behaviour.

Try Payroll for Free!

Components of Payroll

Payroll Processing in India

Here are the series of steps involved in executing payroll successfully from ground zero. 

Processing payroll is a sensitive task that involves the efforts of multiple departments like HR, finance and legal. This process includes the following functions:

Pre-Payroll Activities

Step 1: Payroll policy structure

Establish a payroll policy as a first step before beginning the payroll process. A good payroll policy should address the following:

Step 2: Consolidating payroll inputs

To process payroll, you need employee information like bank account details, time and attendance data, identity information like PAN and taxation details, etc. Consolidate all these inputs into an easily accessible and secure database in order to be able to process salaries without hassle.

Step 3: Validating inputs

Make sure you validate the employee information collected before using them in your calculations. Data validation can help avoid errors and ensure compliance.

• Verify that data entered matches the expected format (e.g., numbers for SSN, dates for birthdate)
• Match employee identification documents (e.g., driver’s license, passport) with provided information
• Conduct background checks on new employees
• Identify and remove duplicate records

Payroll Activities

Step 4: Calculating payroll

Calculating payroll manually is a tedious and highly complex task thanks to the complex taxes and deductions applicable for salaried employees in India. Automated payroll calculations take a few seconds and are error-free.

For manual calculations, you can calculate gross salary by adding the basic salary, dearness allowance, house rent allowance (HRA), other allowances, and overtime pay (if applicable).

Step 5: Deduct taxes and other statutory compliances

The next step in calculating final salary is to deduct taxes. Calculate deductions like Professional Tax (PT), Provident Fund (PF), Employee State Insurance (ESI), Income Tax (TDS), and other applicable deductions and deduct from the gross salary to arrive at the net take-home salary.

Step 6: Making the actual payment

The final step in the payroll activity is to disburse salaries to the employees. This is also a tricky step, since any errors can have huge negative consequences to both employer and employee. Make sure to double-check all calculations and payments before you make them.

Post-Payroll Activities 

Step 7: Payroll Accounting

Step 9: Payslips and tax computation sheets

A payslip is a detailed document provided to employees outlining their earnings, deductions, and net pay for a specific pay period. It serves as a record of the employee’s income and tax withholdings.

A tax computation sheet is a detailed breakdown of an employee’s income tax liability for a financial year. It outlines the calculations involved in determining the taxable income, tax deductions, and final tax payable.

Methods of Processing Payroll

There are three ways to process payroll: the manual spreadsheet route, the automated route, or outsourcing the entire process.

Depending on the budget, size of the organisation and each business’s special set of circumstances, payroll can be processed in any way.

Manual Route

Many businesses at their initial stage of operations find spreadsheet-based payroll management convenient because they only have a handful of employees to manage. 

This method involves calculations using standard templates that have set mathematical formulas for the salary and compliance payment computations. 

While this is a cost-effective method, it’s not suitable for businesses when their employee count increases. Also, the opportunity cost of using a traditional system over automated methods is very high. 

Automation 

Automated software will do away with all the challenges of using spreadsheets or outsourcing them. There are many automation tools and software available in the market that can reduce manual efforts and increase efficiency. 

Apart from carrying out payroll computations, the software needs to be updated with the latest compliance laws. 

Read more: How to switch to automated software

Outsourcing 

This means entrusting your payroll execution to an agency. A lot of businesses that don’t have dedicated personnel opt for outsourcing. 

Based on their payroll cycle, they provide the agency with salary information and other data such as attendance, leaves, reimbursement details, etc. every month. The agency then calculates dues and is also responsible for complying with statutory compliances.

Current Payroll Landscape in India

To understand the current payroll landscape in India, RazorpayX Payroll commissioned a survey by the International Research Bureau, which spoke with HR executives from 163 organizations across 12 key industries.

Take the Free Payroll Maturity Assessment to unlock actionable insights for your HR functions’ growth.

The findings?

• Payroll automation is the norm. All the businesses IBR spoke to automated their payroll functions with payroll software. Only 37% of Indian businesses perform their payroll functions manually. 
• Current payroll tools being used lack functional prowess. This was clearly indicated in the fact that 31% of organizations say that their payroll accuracy is below 90%. This is an unacceptable number since payroll is a very important function in every organization.
• There is limited insight into ideal payroll solutions. Most organizations today use sub-optimal payroll software that does not provide fundamental features like automated compliance, speedy and accurate processing, data security and more.

Best Payroll Software for Your Business

Out of all the ways to carry out your business’s payroll process, automated payroll is the most popular and economical. What does a good payroll software look like?

Try XPayroll for Free!

Intuitive & Easy: A good payroll software is intuitive and easy to operate. It should be easy to implement with minimal training for both HR teams and the employees. 

Scalable: As a business grows, so does the size and complexity of its payroll function. A good payroll software should be able to handle payroll for businesses at all stages: small, mid-market and enterprise level.

Read more: Payroll for Enterprise

Robust ESS Mechanism: Payroll software is equally used by the employee to access payslips, submit declarations and other important payroll information. A good employee self-service portal thus becomes very important since it enables employees to be self-reliant.

Integrations

HRMS Integrations: Payroll is only one of the several functions that come under the purview of the HR department and is closely tied with other HRMS functions like time, attendance, and leave management.

A good payroll software should be able to integrate seamlessly with other HRMS software. For example, the RazorpayX Payroll integrates with 45+ HRMS like ZohoPeople, Springverify and more to provide an all-in-one, seamless experience for both HR and employees.

Accounting Integrations: Payroll is an important function of the finance team as well – employee salaries take up a sizeable chunk of most teams’ budgets, and ensuring that this expense is properly and accurately recorded is very important.

For this reason, most payroll software should provide you with integrations with accounting software which will automatically record payments to employees in your books of accounts.

Compliant: The tax regulations and requirements in India are ever-changing, and good payroll software should be able to keep up and stay updated in real time. Compliance includes elements like tax deductions, PF deductions and minimum salary payment requirements.

Not adhering to regulatory requirements can be very costly for a business – it can lead to hefty fines, lawsuits or even criminal punishment.

100% Accurate and Timely: Imagine if you paid the wrong salary to your employees – the consequences of this is immense; right from correcting the error to identifying the source of the error becomes a tedious, time-consuming task.

This is why it is important for payroll software to be 100% accurate right from the start, with no room for error.

Learn more: Timely & Accurate Payroll Software 

Customizable: Every business’s needs are different; good payroll software should accommodate these unique needs with customizations. For example, businesses that pay employees on a shift-wise basis are different from those that pay on an hourly or a monthly basis.

Challenges in Handling Payroll Process

Keeping Up with Compliance 

Businesses in India have to follow a legal framework while disbursing salaries to their employees. This framework is made up of four components. 

Compliance is complicated because each tax is computed differently. Businesses must also periodically file returns on four different portals or risk expensive penalties.

Most businesses use spreadsheets and other manual methods to work on compliance, which is not the most efficient way to be compliant. The computations are lengthy, time-consuming and inaccurate. 

In India, employee laws also change frequently, making it even tougher to stay updated.

Read more: Income Tax Slabs 2023 

Spreadsheet Complications

According to a survey, over 57% of businesses in India still rely on paper or spreadsheet-based payroll management and payroll processing.

Manual payroll is easy and cheap, but also time-consuming and prone to mistakes. Information can also be mishandled and tampered with.

Spreadsheets also cannot be compliant with tax laws as they change.

Data Security 

For processing payroll, employees are required to provide a substantial amount of sensitive data in the form of official documents to the concerned team. These include employee’s bank account details, rental agreements, PAN and Aadhaar details. 

This data can be compromised; failure to protect it can seriously damage the reputation of the business and the personal security of employees. 

Paper-based documents can be misplaced easily. Even if the documents are saved on spreadsheets, they are just a password away from being misused. 

How to Manually Calculate Payroll

Calculating these taxes manually for each and every employee is a tedious task. Learn more about automating your payroll with RazorpayX Payroll.

Automate your Payroll

Payroll Glossary – Important Terms

1. Gross Pay: Gross salary is the total of all the components of the salary package offered to an employee. It is the salary before any mandatory and voluntary deductions such as income tax, provident fund, medical insurance, etc.

2. Net Pay: After calculating gross pay, you must make govt. mandated deductions such as income tax, provident fund, etc. from gross pay. The amount that an employee takes home after all such deductions is termed net pay or net salary.

3. Overtime: Overtime refers to the extra hours worked by an employee in a company than the usual defined as per govt. Law. The extra salary or remuneration that the employee will get depends on the company policies.

4. Pay Period: It is a time frame defined to calculate earned wages and determine when employees receive their payslips. Pay periods are fixed and recurring on a bi-weekly, or monthly basis.

5. Compensation: It involves managing, analysing, and determining the salary, benefits, and incentives paid to the employees for their work.

6. Contractual employees: These are not permanent employees and are usually employed on a temporary basis. Their terms of employment are mentioned in the contract.

Try RazorpayX Payroll for Free!

Responsibilities of HR and Payroll

HR focuses on employee well-being, development, and legal compliance, while Payroll handles the financial aspects of employee compensation, ensuring accurate and timely payments.

HR is responsible for attracting, interviewing, and hiring qualified candidates. They also manage the onboarding process, ensuring new hires are equipped and comfortable in their roles. They are responsible for managing benefits, performance and compliances.

Payroll, on the other hand, is a complementary function that manages the calculation and disbursal of employee wages.  It also factors in deductions for taxes, benefits contributions, and garnishments.

In most businesses, payroll and HR coordinate on employee pay, benefits and taxation matters.

FAQs

Thanks to R.A.Y., you can ‘Consider it done’!

Razorpay recognised a few challenges

In today’s competitive landscape, businesses must enhance their decision-making capabilities and improve operational efficiency to drive success, while allowing key personnel to focus on critical tasks that matter. However, business teams still spend time on manual tasks that take up significant energy. Here are some of the prevalent issues facing leadership in these organizations, spanning payments and payroll:

Problems in payments:

1. Lack of Efficient Data Management and Analytics: 80% of businesses desire partners to provide detailed insights into their business, such as loyal customers, top-performing offers, and preferred payment methods. 
2. Tedious Routine Tasks: Navigating the onboarding and dashboard has been described by users as “tedious”, with 25% businesses reaching out for assistance, and 70% of these queries are to primarily understand capabilities and status of their account.
3. Less Awareness of Payment Products: This leads them to stick to the first product they use without utilizing the full benefit and ease of collecting online payments.
4. Lack of an Enhanced User Experience: Research confirms that issues like slow processes and unclear information (e.g., ticket closure, payments, settlements) are among the primary reasons for customer churn for businesses.

Problems with Payroll:

1. Insufficient Efficiency: It takes more than 2 days to create a custom payroll report and analysis from Payroll data.
2. Resource Drain: One HR spends over 50 hours per month– just onboarding new employees.
3. Costly Comparison: Compensation Benchmarking requires significant expenditure. We are talking lakhs of rupees!
4. Taxation Trouble: Most employees struggle with tax planning impact company experience.

This is where R.A.Y. comes in as the assistant that helps you analyze data, summarize trends, do tasks and give actionables. It provides a unified voice to Razorpay customers and aims to be the first touchpoint anytime anyone wants to know something. Accessible across WhatsApp, Razorpay Mobile App, and Dashboard, R.A.Y. is there to support you on your preferred platform.

Key benefits for Payments

Transitioning from a reactive to proactive approach, our payment solution offers both predictive insights and on-demand capabilities, empowering businesses to anticipate needs and act decisively.

• Effortless Payment Setup with AI-Driven Solutions: Initiating payment collection has never been easier. Whether it’s payment collection, receiving settlements, managing invoices, or handling recurring billing, R.A.Y. simplifies the entire payment process, saving time and reducing the risk of errors. 

• Proactive Alerting: R.A.Y. diligently operates behind the scenes, delivering proactive notifications regarding downtimes, delays, and insightful analyses, enabling you to make more informed plans and decisions.

• Seamless Monitoring with Streamlined Prompts: Simply inquire, and effortlessly receive transaction updates and daily summaries, ensuring you stay informed and empowered to make well-informed decisions regarding your business performance.

• Personalized Recommendations for Tailored Products: In a sea of options, finding the right products and services can be a daunting task. That’s why you receive personalized recommendations for tailored products, providing you with the tools to succeed—from the best payment solutions and optimized marketing strategies to accessing exclusive offers.
• Exponential Business Growth: With live updates and actionable insights, R.A.Y. keeps you ahead, effortlessly spotting opportunities and risks. Its AI-driven monitoring ensures seamless operations for success.

Key benefits for Payroll

With a comprehensive suite, it caters to everyone from founders to employees, ensuring seamless operations for all involved.

• Actionable Insights: R.A.Y. sources instant insights from Payroll and HR data through simple language interactions to speed up your decision-making process.
• Compensation Benchmarking: R.A.Y. empowers businesses to make informed decisions on salary structures, incentive programs, and overall compensation strategies, ensuring competitiveness in the labor market.
• Intelligent Tax Planning for employees: By analyzing salaries and investments, R.A.Y. recommends the optimal tax regime and provides intelligent tax-saving strategies. 

In Conclusion

With R.A.Y. at the helm, Razorpay empowers businesses to soar to new heights of success, accomplishing more with fewer resources. R.A.Y. signifies a groundbreaking leap in AI for fintech, setting unprecedented standards for efficiency, innovation, and growth. Available round the clock and on-demand, it sets new standards for efficiency, innovation, and growth. Embrace the future of business with R.A.Y., and let’s unlock the full potential of your business together.

The heart of most payroll issues lie in the absence of true automation. 

Some of the other key challenges enterprises face with respect to running payroll is the risk of committing errors. Such as getting audit flags, struggling to comply with regulations and spending unnecessary time on arduous tasks. 

RazorpayX Payroll for Enterprise brings forth its exclusive technology of automated compliance to large-size businesses along with newly built advanced systems for integrations and customizations. Having already served over 10,000 startups and SMEs, this new launch marks a significant expansion of RazorpayX Payroll’s capabilities, now catering to businesses of all sizes, ranging from teams of 2 to mammoth workforces exceeding 20,000+ employees.

Let’s look at a few key offerings:

• Universal HRMS
  With open APIs and integrations with 45+ HRMS partners, RazorpayX Payroll integrates seamlessly with all popular HRMS software with Universal HRMS. This powers auto data synchronization, and streamlined workflows that provide unparalleled flexibility to clients. Noteworthy integrations include the likes of DarwinBox, SAP SuccessFactors, Oracle HCM, PeopleStrong, Keka and more.
• Bonus Management

A bonus is a one-time payment to an employee given outside of an employee’s total salary. However, unlike other one-time payments, bonuses must be minutely tracked for clawback. With RazorpayX Payroll, enterprises can provide bonuses, set clawbacks, edit and delete bonuses for your employees right on the dashboard.

• Loans and Advances
  For a good employee experience, enterprises often offer loans and advances. With RazorpayX Payroll, you can effortlessly handle employee loans, EMIs, and perquisites, offering various interest options on a dashboard for your employees. Please note that this feature is an extension of our salary advance module, and loans should be provided by your organization.

Payroll Maturity Index ‘23

RazorpayX Payroll is proud to present the Payroll Maturity Index 2023- an industry-first report offering invaluable insights into the state of payroll processes among India’s leading organizations. And it’s now available for you to explore! 

Access the report to empower your HR team with actionable insights for enhancing business efficiency. Download the Payroll Maturity Index 2023.

RazorpayX Payroll for Enterprise brings forth a comprehensive solution to the challenges faced by businesses in managing payroll. With its advanced technology and customizable features, it aims to streamline the payroll process, reduce errors, and ensure compliance with regulations. Whether you are a small startup or a large enterprise, RazorpayX Payroll has something to offer to help you manage your payroll more efficiently.

Traditionally, HR and finance systems have operated in silos, leading to manual workflows and time-consuming processes. With Universal HRMS, RazorpayX Payroll aims to bridge this gap by seamlessly integrating HRMS platforms like SAP SuccessFactors, Oracle HCM, Darwinbox, Keka, PeopleStrong, BambooHR, and more.

Benefits of Universal HRMS

Along with seamless integration with any existing HRMS platforms, Universal HRMS offers a range of other features, including:

1. Automated employee onboarding and offboarding
2. Real-time syncing of employee data between HRMS and payroll systems
3. Alerts for employee status changes, such as terminations or promotions

Let’s see how these features help us help you.

• Smooth Onboarding and Off-boarding

One of the key benefits of this integration is the ability to manage the entire employee onboarding and offboarding process across platforms without manual effort. This means that organizations can add new employees to their finance systems in minutes, rather than hours, and keep employee information updated and in sync between their HRMS and RazorpayX Payroll.

• Increased Accuracy

Universal HRMS, with its automated data synchronization feature, increases payroll accuracy. By automating the data flow between HRMS and payroll systems, organizations can reduce the risk of errors and ensure that employee data is always up-to-date.

1. Employee Delight
   Universal HRMS also simplifies tasks such as applying time-off and LOP policies and calculating FnF amounts for dismissed employees. These processes, which were previously done manually, can now be automated, saving organizations time and resources.

Overall, Universal HRMS is a game-changer for organizations looking to streamline their payroll and employee finance processes. By integrating HRMS platforms with RazorpayX Payroll, businesses can save time, reduce errors, and improve efficiency.

If you’re already using RazorpayX Payroll, you can easily connect your HRMS to RazorpayX Payroll in minutes. Simply head to the Integrations tab of RazorpayX Payroll to get started.

In conclusion, Universal HRMS is a powerful tool that promises to revolutionize how organizations manage their payroll and employee finance processes. By bridging the gap between HR and finance systems, RazorpayX Payroll is helping businesses save time, reduce errors, and improve efficiency.

So is processing payroll. 

If an organisation has employees, they will have to process and execute payroll irrespective of size or type of business. 

Managing and executing payroll through traditional methods can be a tedious and time-consuming task. These methods involve manual intervention that can also lead to erroneous payroll execution. 

Although there are no set standards for executing payroll, every organisation should aim at processing payroll efficiently. Unfortunately, processing payroll manually results in some unavoidable errors!

To get deeper insights into traditional payroll methods and their flaws, we spoke to a few but extraordinary & unique Y Combinator startups. These companies have been solving age-old day-to-day problems, right from body fitness to payments for millennials in India. 

About Y Combinator

Y Combinator provides seed funding to startups. Their goal is to get early-stage startups through the first phase. This means – get to a point where startups have built something impressive enough to raise money on a larger scale. Then, introduce them to later stage investors or even acquirers.  

Let’s understand the idea behind these startups, their payroll processing methods and how Razorpay Payroll – RazorpayX Payroll made a significant difference for them. 

Thunderpod is a platform, founded by Rahul Khanna that aims to make fitness affordable and effortless. People can perform a full-body workout with no human guidance involved. 

The obstacle

Initially, Thunderpod outsourced their payroll to a CA firm who calculated monthly salary payouts and compliance deductions for all the employees on a spreadsheet. After the finalisation of payroll figures, Rahul transferred salaries to individuals accounts one-by-one. 

The entire process of transferring salaries, making statutory payments and sending payslips to employees took around 6-7 hours. 

Moreover, the difficulty increased with every new onboarding. They had to send details over mails to their accountants and miscommunication created a lot of confusion. This resulted in the loss of documents, error in salary calculation, incorrect TDS deductions, and much more. 

But, Rahul found a way to get away from all these issues. We will keep the secret remedy for the end; until then – keep reading the payroll problems other startups faced!

Founded by Anudeep Reddy, Nonu combines quality medical advice, scientific solutions, Ayurveda and lifestyle changes to solve men’s personal issues.

The Obstacle

Just like the case of Thunderpod, Anudeep also experienced a tough time tackling payroll since Nonu used manual methods. 

It was difficult to manage employee records, statutory payments like TDS, PF, PT, ESI and salary calculations on spreadsheets. One wrong input would jeopardise the entire payroll calculations for the month. 

Being an early-stage startup founder, Anudeep wanted to focus on the product and branding. Instead, he was spending long hours to process and execute payroll. 

goDutch is a platform that empowers group payments for millennials. Users can split payments on the go without any reminders, delayed payments, or multiple transactions. 

The obstacle

goDutch ran payroll manually just like other companies. They used spreadsheets to maintain employee records and folders for documents.

The business collected their employees’ bank account details and spent hours on making individual IMPS transactions to disburse their salaries. They were concerned about the different aspects of compliance like TDS, ESI, PF, and PT, along with reimbursements. They also believed the system they followed was not secure. 

Another major issue faced by goDutch was reimbursements. They reimbursed employees on an approximate basis. There was no set method for verifying documents, expense approval and reimbursements. 

But, they quickly realised that their payroll process was not all that efficient. 

Arpit Agarwal, co-founded farmtheory with an aim to curb food waste by increasing farmer incomes and giving access to healthy, affordable and yet remarkably farm-fresh produce to every family.

The obstacle

Despite having a dedicated team to manage payroll, Arpit had to spend his valuable time on processing salaries and making statutory payments. The team calculated and processed the month’s payroll on spreadsheets that were prone to human errors. 

More than full-time employees, Farmtheory had contractual agreements with contractors and professionals. Managing their invoices, deducting TDS before payments and making contractual payments were significant pain points. A simple TDS miscalculation would trouble them with interest and fines. 

Then, a few other startups backed by Y Combinator suggested a solution that took away all the payroll problems from Farmtheory. 

OrangeHealth creates services and products that doctors can use in a clinic or remotely to assess and diagnose patients’ health in a better way and provide the right treatment.

The obstacle

For an early-stage startup, there are a lot of things to manage, and payroll is one of the crucial tasks that has to be done effectively. 

Dhruv Gupta, the Founder of OrangeHealth, said – ‘As a new company, our top priority building brand & product and achieving sales targets. Instead, a lot of valuable time is spent on manually executing payroll.’

They dealt with payroll calculations and salary disbursements manually, but the primary cause of concern was offer letters, salary customisation. They had to customise offer letters, salary break-ups for different employees manually and feed those details in the spreadsheets. The entire process was tiresome and time-consuming. 

But, OrangeHealth also found a partner, similar to others, to help them manage their time and money efficiently. Stay tuned with us!

Edyst, founded by Srinivas Sriramdas, bridges the gap between skills the industry demands and the skills the students possess.

The obstacle

Processing payroll wasn’t a smooth sail for Edyst too. We maintained spreadsheets for salary calculations, compliance payments, reimbursements, etc. It was difficult to make last-minute changes to salary figures and manage statutory calculations like TDS, PF, ESI and PT on spreadsheets. 

Edyst employed many teachers on contractual basis. But, they didn’t have a smart solution to help with contractual payments, managing the due invoices and deducting accurate TDS. 

Edyst desperately needed a solution that could take care of payroll and compliance, and they could focus on achieving their mission. 

FamPay is India’s first neobank for teenagers. People below the age of 18 can create an account to send or receive money. Also, they can make digital payments via their prepaid card and UPI.

The obstacle

FamPay processed payroll calculations on spreadsheets. And, the same was sent to a CA firm to verify and execute payroll for a particular month. 

In conversation with the Finance Manager at FamPay, Akash Srivastava, we figured that there was a lack of communication between the CA firm and the in-house team. This friction led to several mistakes with salary disbursals, statutory deductions, F&F calculations and much more. 

We know, those were some lengthy conversations and it might have bored you. But, our intention was only to let you know the major pain-points these startups faced with managing payroll. And, help you find the right solution as they did!

Here’s a quick summary. 

RazorpayX Payroll – The only payroll solution you need

RazorpayX Payroll was built by a team of accountants, developers and designers headed by Anuj Jain. All of these people were familiar with the pain of running small businesses in India –– especially issues faced with manual payroll execution. 

We at Razorpay acquired RazorpayX Payroll, in November 2019 to make headway with payroll solutions for small and medium businesses in India. This acquisition enabled companies to not only manage their entire payroll process and fund transfers but also manage compliances through a single platform, without hiring any external vendors.

Since then, RazorpayX Payroll has been streamlining payroll processes for startups and SMBs. And, will continue to create a dent to make the entire payroll process simple, easy, and quick for businesses. 

Download our Payroll and Compliance Ebook

RazorpayX Payroll partnered with these unique Y combinator startups to solve their operational payroll efficiencies, while they were solving age-old problems for the human ecosystem. 

[bctt tweet=”RazorpayX Payroll is a payroll software that has been designed to automate payroll processing, from onboarding employees to compliance payments & their return filings. It eliminates manual intervention from the entire process. ” via=”no”]

In our conversations with these startups, they shared some amazing experiences with RazorpayX Payroll.

Processing payroll is a breeze 

With RazorpayX Payroll, everything related to payroll processing and execution is seamless. 

It just takes 3 simple steps and a maximum of 10 minutes to process a month’s payroll. Otherwise, manual processing methods took a lot of time and effort.

Anudeep Reddy, Founder, Nonu

Everything is handled automatically with RazorpayX Payroll. Being a 360-degree payroll processing platform, RazorpayX Payroll makes processing payroll a breeze. 

One-stop solution for compliances 

RazorpayX Payroll handles compliance calculations like TDS, PF, PT and ESI, payments automatically, along with their return filings.

The software enables accurate TDS calculations and proper PF calculations. Without compliance automation, companies spent a lot of time figuring out the regulations and taking corrective actions. 

One of the best things about RazorpayX Payroll is that it allows us to customise offer letters. And, we don’t worry about compliance anymore!

Sagar Sheth, Co-founder, goDutch

Best-in-class support

With RazorpayX Payroll, there is no need to become a payroll specialist or hire a professional to execute payroll. 

The software provides best-in-class customer support to its users. Representatives provide dedicated hand-holding whenever and however needed. 

Dedicated support from the RazorpayX Payroll team is extraordinary. We get help from the support team whenever we ask for it. I’m glad that we are using RazorpayX Payroll for our organisation.

Srinivas Sriramdas, Founder, Edyst

Employee management

Employees get easy access to their payslips with RazorpayX Payroll. Companies can organise employees and contractors into departments for easy management and reporting. The software facilitates paperless employee onboarding. 

Moreover, employees can claim reimbursements directly from their account. All they have to do is upload their invoices, and RazorpayX Payroll processes the reimbursements. 

RazorpayX Payroll empowers employees to choose the best-suited tax regime. Once employees upload their investment declaration, the software automatically calculates their tax liability under both, new and old tax regime. And, let the employees choose the better-off regime. 

That’s all about our conversation! Now it’s your time to try RazorpayX Payroll and let us know your payroll experience. 

We would love to share it with the world and make payroll seamless for every business.

It really was a year like never before. For the world at large, for businesses in India and for Razorpay. While COVID-19 broke the back of the global economy, closer home, it also gave Indian entrepreneurs and business owners the opportunity to take their business online for the first time.

With consumers staying home and ordering online, digital payments saw an overall growth of 80% in 2020, as compared to 2019. Tier-2 and tier-3 cities contributed to more than half of this growth.

While the journey of offline to online was not easy, it was an essential one. And we were grateful that over 200k businesses chose us as their partner in this paradigm shift.

To serve these businesses and be an able partner, we also expanded our product suite in 2020. Some of our biggest launches of the year were:

• Payment Button: Copy-paste a line of code and start collecting payments
• RazorpayX Payroll: Automate salary disbursals and compliance payments
• UPI AutoPay: Accept recurring payments through UPI

And a lot more. At our annual flagship event, FTX, our co-founders spoke about how Razorpay fared through the year and what’s in store in 2021. You can watch the keynote address here.

All in all, 2020 was a tough year, but one that will lay the foundation for how Razorpay will aid Indian businesses in their growth in the times to come.

Here is a succinct infographic on some numbers from our product suite in 2020.

The pandemic got startups to rethink their strategies both from a business and employee management perspective. But nine months into the pandemic, the startup ecosystem is beginning to get back on its feet, showing signs of recovery.

RazorpayX used ground-level data to analyse and uncover insights about the impact of COVID-19 on several aspects of payroll in the startup ecosystem.

Payroll is a company’s biggest line item, its single biggest expense. These insights are developed based on salaries and reimbursements made by startups on the RazorpayX Payroll Platform (Opfin) between April and November 2020.