Payroll: in-house, software or outsourced

Three ways to run payroll for a small business and what each means for the work you still have to do.

	In-house, by your own team	Payroll software you run yourself	Outsourced payroll service
Who does the work	Your accountant or HR person calculates salaries, deductions and payslips	You or your team enter the data and the software calculates and produces payslips	A service provider calculates, prepares payslips and the statutory figures from the data you send
Good fit when	You have a small team and someone who knows the rules	You want control and have a person who can set up and check the software	You want the monthly work and the statutory calculations handled for you
What you still do	Everything: calculation, deductions, payments and returns	Enter changes, check the output and file the returns and payments	Send attendance, joiners, leavers and changes on time, and approve the figures
What to check	That PF, ESI, professional tax and TDS on salary are calculated and paid on time	That the software is set up for your state's rules and kept updated	What is included, who files the returns and how mistakes are corrected

Related services

General information about ways of working. It is not a recommendation for your business; the right choice depends on your headcount, states and records.

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