Finding Payroll Services For Your Web Development Services Gone Easy

Maintaining payroll records of your employees is one of the legal requirements for businesses in India. Earlier companies used to have the manual process to manage payrolls. The problem with such an approach is that it is time-consuming and prone to errors resulting in penalties and fines. 

Today companies prefer to turn their payroll services over to professionals who are more skilled at this task. A less expensive option is to opt for payroll management software used by a trained employee.

Do you own a web development agency? Are you confused between payroll outsourcing services and payroll software?

Do not worry, we will help you decide which one to opt for. Choosing between handing your payroll services over to a professional firm or doing it yourself with payroll software depends on a few criteria.

Here is a list of 6 features that must be considered before making a decision regarding payroll.

  • Cost
  • Employee training
  • Data access
  • Data security
  • Integration


When a small business like a web development agency is in its initial stages, the cost could be a significant factor to determine if one should opt for payroll management services or software. Both options have their prices.

Payroll management services

The cost of payroll services depends on various factors:

  • Location-Factors related to payroll and payroll taxes are always subject to local laws. Depending on this, the cost of outsourcing may vary.
  • Employees-The cost depends on the number of employees in your company.
  • Services– The price also depends on the bouquet of services required. Several options are available based on your requirements, such as the primary service of generating payslips based on attendance, outsourcing the entire HR function.
  • Tax requirement – Although tax filing is part of most providers’ basic package, some may ask for additional fees for the year-end tax compilations.
  • Industry – Industries with complex compliance requirements (like mining) could also be charged higher payroll management fees.

You must ask for a price estimate from the service providers before making a decision.

Payroll management software

With the software, there are two options:

Either you opt for the full software and install it internally, or you can opt for the cloud-hosted/SaaS-based solutions. Cloud-hosted solutions are in demand because:

  • There is no hardware or infrastructure requirement
  • You do not need a team of IT professionals to keep these systems running

So, if you own a small web design company with just a few employees, then instead of outsourcing or buying the entire software package, you can simply purchase the cloud-based solution.

Employee training

External payroll management services may have a recurring monthly or yearly cost. Still, the software alternative also includes the cost of hiring and training employees to use the software. For qualified employees who already know how to manage payroll, it is easy for them to understand the software.

Training staff includes payroll management, managing working hours, tax deductions, benefit deductions, etc. If the training seems tedious, payroll outsourcing services might be a better option.

Data access

An essential factor to be considered here is how often do you need the data?

Many times, the past data for an employee is required for managerial decisions and internal processes. Collecting information from your service provider may take time and effort in the above situations and causes delay.

On the other hand, data files can easily be exported from the payroll software. The required information can be accessed without any hassle or time delay.

Cloud-based software is also available where you can access your data from anywhere in the world. Since it is hosted on the cloud, you can access the given URL with your credentials from anywhere.

As there is no hardware requirement as you can use the cloud on either PC, smartphone, or tablet wherever there is the internet.

One more advantage is that Multiple people can work on the same data set while working from different office locations or geographies.

Data security

With great power comes great responsibility.

Cloud-based payroll software has its benefits but is susceptible to sensitive data on the internet. Payroll data is vulnerable and includes employee details like Aadhaar card numbers and other crucial information.

Considering this, one must evaluate the security safeguards provided by any cloud-hosted software and external service providers. Users also should be warned about using public Wi-Fi.

The most secure option can be considered as Desktop-based payroll software that resides on one computer that one or two people have permission to use. Specific cloud-based solutions also are protected from cyberattacks through their multi-level firewalls and encryption systems.


It is essential to check if the software works with the other applications you are already using to opt for a software approach.

While evaluating software or outsourcing, you must consider whether it works with any other software you are already using for HR and accounting functions.

There is also a provision of an integrated HR application that comes with Some payroll management software


Considering the above factors, you can decide whether to outsource payroll services or buy the software.

Outsourcing might seem like a costly affair, but it’s a hassle-free solution, as there is no need to train the staff and looking for mistakes. Software, on the contrary, is less expensive and allows a lot of internal control of the data. Still, it requires extensive employee training and remains susceptible to mistakes.

When it comes to evaluating both the options and selecting one for your company, it finally boils down to your preferences and priorities. Weigh out different options and choose the one that seems best for you.

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