Payroll Outsourcing in India that runs itself, accurately, on time, every time.
From salary processing to TDS filing, we manage your entire payroll cycle with zero errors and full statutory compliance.
What is payroll outsourcing?
Payroll outsourcing is when a business hands its entire monthly payroll to an external specialist. That covers salary calculation from attendance to net pay, statutory compliance across PF, ESIC, Professional Tax, TDS and LWF, payslip issuance and year end filings. Instead of hiring a payroll executive at ₹25,000 to ₹50,000 a month plus software, you pay one fixed monthly fee and a dedicated team runs it all on time.
For a startup or SME with 5 to 100 employees in India, outsourcing payroll usually costs far less than running it in house, and it takes the penalty risk off the table. A single late PF return alone attracts 12% a year in interest, plus damages of up to 100% of the arrears.
How payroll works in India
Running payroll in India is not just paying salaries. It is a monthly compliance cycle set by central and state law. Here is the full run we handle for you, every single cycle.
- Collect inputs. Attendance, leave, new joiners, exits and variable pay come in by your cut off date.
- Compute gross to net. Earnings, deductions and reimbursements are worked out against each employee’s CTC.
- Apply statutory deductions. Provident Fund, ESIC, Professional Tax and TDS on salary, each under the right rule.
- Quality check. A three layer QC compares this run against the last one and flags anything odd before payout.
- Approve and pay. You approve a clean summary and salaries go out on your chosen date.
- File returns. PF, ESIC, PT, TDS and LWF are filed before their due dates, with challans generated.
- Report and record. Payslips go out, MIS is shared, and statutory registers stay audit ready.
Miss one step and the cost is real. A single late PF return attracts 12% a year in interest, plus damages of up to 100% of the arrears. Outsourcing payroll takes that risk off your desk.
End-to-end payroll, fully handled
Six core payroll functions, computed, filed and delivered every month without you lifting a finger.
Salary Computation
Gross-to-net calculations including HRA, LTA, reimbursements, and variable pay components. Every component verified against your CTC structure before processing.
PF & ESIC Filing
Monthly ECR generation, contribution filing, and new employee registration management. UAN activation, transfer claims and withdrawal processing handled end-to-end.
TDS & Form 16
Annual TDS returns (Form 24Q quarterly), monthly TDS working, and Form 16 issuance for every employee. Investment declarations (Form 12BB) processed, tax-saving proof verification and revised computation on demand.
Professional Tax
State specific Professional Tax deductions, plus monthly or annual filing across every state where you operate. We track slab changes automatically, so nothing slips when a state government revises its rates.
Payslip Generation
Branded, itemised payslips delivered to employees on processing day via email or ESS portal. Components broken down clearly so employees understand their take-home.
Full & Final Settlement
FnF calculation, gratuity, leave encashment, and clearance documentation handled end-to-end. Processed within 3 business days of confirmed last working day.
Outsource payroll, or run it in-house?
Running payroll in house means chasing attendance, computing PF, ESIC, PT and TDS, generating payslips and filing returns, every single month. HRTailor's payroll pod does all of it for you, accurately and on time.
| Criteria | In-house payroll | HRTailor |
|---|---|---|
| Monthly effort | 3 to 5 days of your team's time | ✓ Zero, we handle it all |
| Accuracy | Manual errors risk penalties | ✓ Three-layer QC process |
| Compliance | You track deadlines yourself | ✓ Auto-filed before due dates |
| Cost | ₹25,000 to ₹50,000 a month (executive plus software) | ✓ From ₹10,000/month |
| Scalability | Breaks at 50+ employees | ✓ Scales to any headcount |
| Error correction | Your liability | ✓ Corrected at no extra cost |
Simple to start, built to scale
Data handover
You share attendance, leave, and variable pay inputs by your cut-off date. We take it from there.
Processing & QC
Payroll is computed, cross-checked, and validated against the previous cycle by our payroll team.
Approval & transfer
You review a clear payroll summary and approve. Salaries are transferred on your chosen date.
Statutory filing
Every filing under PF, ESIC, TDS, PT, LWF, Gratuity, the Payment of Bonus Act, the Maternity Benefit Act, the Shops and Establishments Act and the Labour Codes, generated and filed before its due date, automatically. UAN activation and ESIC IIP registration for new joiners are included.
Who needs payroll outsourcing?
If you’re spending days every month on payroll instead of building your business, it’s time to hand it off.
- ✓ Startups and SMEs with 5 to 100+ employees who need accurate, on-time payroll without a dedicated payroll team.
- ✓ Companies operating across multiple Indian states, each state has different PT slabs, LWF rules and filing portals that need to be tracked.
- ✓ Businesses that have faced penalties for late PF/ESIC/TDS filings and need a zero-miss system going forward.
- ✓ Founders and ops leads who are currently doing payroll themselves and need to free up 3 to 5 days per month.
- ✓ Companies with contract, gig and full-time workers on the same payroll platform needing unified processing.
- ✓ Businesses preparing for audit or due diligence, clean payroll records and statutory compliance documentation matter.
The benefits of outsourcing your payroll
- Zero missed deadlines. Every PF, ESIC, PT and TDS filing goes in before its due date.
- No penalty exposure. Late filing interest and damages become our problem, not yours.
- Days back every month. Your team stops running payroll and gets back to the business.
- One flat starting price. From ₹10,000 a month, with no surprise per filing charges.
- Audit ready records. Clean payslips, challans and registers, ready for due diligence.
- Scales with you. From 5 employees to 500, across any number of Indian states.
What is third party payroll?
Third party payroll means workers are paid and managed on a partner’s payroll rather than yours, which suits contract, project and temporary staff. HRTailor runs managed payroll for your own team and third party payroll for contract and gig workers, each with the correct statutory treatment. If you need full third party staffing or an Employer of Record, our enterprise arm Team Management Services handles it start to finish.
Transparent payroll pricing
No hidden fees. Pricing scales with your team size.
Standard Payroll
- Monthly salary computation
- PF & ESIC filing
- TDS computation & Form 16
- Professional Tax filing
- Branded payslips
- Full & final settlements
- Statutory registers & compliance monitoring
- Attendance & leave integration
- Dedicated payroll contact
Custom Quote
- Everything in Standard
- Multi-state PT management across PAN India (28 states + Union Territories)
- Contract & gig worker payroll
- Custom reporting & MIS
- HRMS integration
- Bulk hiring payroll setup
For companies with more than 100 employees or complex multi-entity structures, contact us for customised pricing.
What does payroll outsourcing cost in India?
For SMEs it usually works out to a low per employee monthly fee. That is far cheaper than an in house payroll executive at ₹25,000 to ₹50,000 a month, and it removes the penalty risk of a missed filing. A single late PF return attracts interest at 12% a year, plus damages of up to 100% of the arrears.
HRTailor’s payroll outsourcing eliminates this risk entirely. See our payroll cost guide, or explore full HR outsourcing.
How to choose a payroll outsourcing company in India
Comparing payroll outsourcing companies in India? Here is what actually matters once you look past the top ten lists.
- Compliance coverage. Do they handle PF, ESIC, PT, TDS, LWF and gratuity across every state you run in?
- An accuracy guarantee. Is there a real QC process, and who pays if a filing is wrong? We fix it free, revised filings included.
- Clear pricing. A flat, predictable fee beats add ons that quietly grow your bill.
- A named contact. Will you get one person who replies, or a ticket queue?
- Data security. Encrypted, access controlled, and aligned to the DPDP Act 2023.
- The right fit. Enterprise providers over serve a 20 person startup. HRTailor is built for SMEs and moves you to Team Management Services once you cross 100 employees.
Never miss a payroll deadline again
We take complete ownership off your plate, from inputs to statutory filing. One team, one process, zero missed deadlines.
Payroll live in 5 business days. Plans from ₹10,000/month. Full statutory compliance included.
Payroll outsourcing for small businesses & startups
Running payroll in house means chasing attendance, computing PF, ESIC, PT and TDS, generating payslips and filing returns, every single month. HRTailor's payroll pod does all of it for you, accurately and on time, from ₹10,000 a month.
What’s included
- ✓ Monthly payroll processing + payslips
- ✓ PF, ESIC, PT & TDS computation and filings
- ✓ Statutory registers & compliance monitoring
- ✓ Full & final settlements
- ✓ Attendance & leave integration
- ✓ A dedicated point of contact who actually replies
What does payroll outsourcing cost in India? For SMEs it’s typically a low per-employee monthly fee, far cheaper than an in-house payroll executive plus the penalty risk of a missed filing. See our payroll cost guide, or explore full HR outsourcing.
Payroll outsourcing across India
We run payroll, compliance and HR support in every major Indian metro, and multi state teams are exactly what we are built for. Find your city below.