[India] Payroll solutions and the automated world of the future

Technology is changing the world at a rapid pace and the future of the payroll industry is being reimagined with the advent of new products. In times to come, payroll solutions will completely transform the way payroll and compliances are managed. TechGraph considers what that future might look like.

Here are the top 4 trends we can expect and the ways new age payroll solutions will be driving those trends:

Payroll on autopilot

In a world that is increasingly run by artificial intelligence and machine learning, customers can’t be expected to do any repetitive tasks.

Whether it is making salary payments to employees or filing compliance reports on various government websites, the payroll solutions of the future will run everything on autopilot.

Payroll solutions will do all the work on their own and will require minimal action from the customers. At most, the work of customers will be limited to approving payments. They won’t be required to do anything else.

In the future, almost all products will start offering such features and the majority of payroll operations will happen on autopilot.

On-premise solutions will become obsolete

Gone are the days when companies would purchase on-premise applications and end up stuck with those products even if they were unhappy because they used to incur a huge upfront cost.

SaaS products have completely transformed the way companies use payroll solutions.

Businesses can now start using any SaaS product by taking their free trial and subscribing to those products by paying a very small monthly subscription fee if they enjoy the experience during the trial duration.

Even after subscribing, if they face any problems, they can unsubscribe with the click of a button. With the kind of ease provided by SaaS-based payroll solutions, customers will increasingly buy SaaS products and on-premise products will become completely irrelevant.

Payroll solutions specifically for gig workers will be mainstream

Payments and compliances for gig workers or freelancers work very differently from regular employees. While companies are required to make deductions for various compliances such as PF, PT, or ESI from the salary of their employees, none of these apply to gig workers. Likewise, because a gig worker works with many companies simultaneously, the income tax calculations also happen very differently. Therefore, current payroll solutions aren’t geared to meet the challenges of a gig economy.

However, with the speed at which the gig economy is growing, most payroll solutions will adapt to manage salary and compliance payments for freelancers.

Currently there are many payroll solutions available to manage payments for permanent and contract employees but there are very few built specifically for freelancers.

In times to come, many payroll solutions will be built specifically to manage the payments of freelancers and most existing payroll solutions will also add features to manage gig workers.

Niche products will be created for mass adoption by small businesses

On average, more than 15,000+ businesses are registered in India each month - according to the official website of the ministry of commerce - and most of these are small businesses with less than 50 employees.

This demonstrates that the small businesses are on the rise in India and this number is only going to increase in the future. And since the requirements of small businesses are drastically different from those of large enterprises, there will be a plethora of payroll solutions targeted solely at small businesses in the future.

These solutions will make the life of small business owners easier by doing most of the administrative heavy lifting for them.

Small business owners will be able to use these products confidently, even if they know nothing about payroll. These tools will recommend compliances, automatically break down employee salaries into multiple salary components to help them save the most money in taxes and do everything else that a small business owner would normally hire an HR or a CA to do.

Source: TechGraph

(Links via original reporting)

Technology is changing the world at a rapid pace and the future of the payroll industry is being reimagined with the advent of new products. In times to come, payroll solutions will completely transform the way payroll and compliances are managed. TechGraph considers what that future might look like.

Here are the top 4 trends we can expect and the ways new age payroll solutions will be driving those trends:

Payroll on autopilot

In a world that is increasingly run by artificial intelligence and machine learning, customers can’t be expected to do any repetitive tasks.

Whether it is making salary payments to employees or filing compliance reports on various government websites, the payroll solutions of the future will run everything on autopilot.

Payroll solutions will do all the work on their own and will require minimal action from the customers. At most, the work of customers will be limited to approving payments. They won’t be required to do anything else.

In the future, almost all products will start offering such features and the majority of payroll operations will happen on autopilot.

On-premise solutions will become obsolete

Gone are the days when companies would purchase on-premise applications and end up stuck with those products even if they were unhappy because they used to incur a huge upfront cost.

SaaS products have completely transformed the way companies use payroll solutions.

Businesses can now start using any SaaS product by taking their free trial and subscribing to those products by paying a very small monthly subscription fee if they enjoy the experience during the trial duration.

Even after subscribing, if they face any problems, they can unsubscribe with the click of a button. With the kind of ease provided by SaaS-based payroll solutions, customers will increasingly buy SaaS products and on-premise products will become completely irrelevant.

Payroll solutions specifically for gig workers will be mainstream

Payments and compliances for gig workers or freelancers work very differently from regular employees. While companies are required to make deductions for various compliances such as PF, PT, or ESI from the salary of their employees, none of these apply to gig workers. Likewise, because a gig worker works with many companies simultaneously, the income tax calculations also happen very differently. Therefore, current payroll solutions aren’t geared to meet the challenges of a gig economy.

However, with the speed at which the gig economy is growing, most payroll solutions will adapt to manage salary and compliance payments for freelancers.

Currently there are many payroll solutions available to manage payments for permanent and contract employees but there are very few built specifically for freelancers.

In times to come, many payroll solutions will be built specifically to manage the payments of freelancers and most existing payroll solutions will also add features to manage gig workers.

Niche products will be created for mass adoption by small businesses

On average, more than 15,000+ businesses are registered in India each month - according to the official website of the ministry of commerce - and most of these are small businesses with less than 50 employees.

This demonstrates that the small businesses are on the rise in India and this number is only going to increase in the future. And since the requirements of small businesses are drastically different from those of large enterprises, there will be a plethora of payroll solutions targeted solely at small businesses in the future.

These solutions will make the life of small business owners easier by doing most of the administrative heavy lifting for them.

Small business owners will be able to use these products confidently, even if they know nothing about payroll. These tools will recommend compliances, automatically break down employee salaries into multiple salary components to help them save the most money in taxes and do everything else that a small business owner would normally hire an HR or a CA to do.

Source: TechGraph

(Links via original reporting)