Top Features of Employer of Record platform in India

Managing payroll and compliance in a country as diverse and complex as India is no small feat. The country’s unique combination of federal and state-level regulations requires businesses to navigate through a maze of tax filings, labor laws, and compliance requirements, all while ensuring that employees are paid correctly and on time. This is where an Employer of Record (EOR) platform comes into play, offering companies a centralized system to handle payroll, compliance, and HR management tasks efficiently. Here’s a detailed look at the top features of EOR platforms in India.

Learn how to hire employees and contractors through an employer of record (EOR) in India.

Fully Automated Payroll Processing

A standout feature of modern EOR platforms is fully automated payroll processing. Businesses can disburse salaries, manage reimbursements, and even handle mid-month revisions with just a few clicks. This automation helps ensure that payroll processes are accurate and timely, freeing HR teams from repetitive manual tasks.

With EOR platforms, companies can set payroll schedules, automate deductions such as taxes and insurance contributions, and ensure that both full-time employees and contractors are paid correctly. Automated payroll systems also minimize the risk of human errors, which can lead to costly mistakes and legal issues.

Automated Compliance with Local Regulations

India’s payroll regulations are vast and vary between states. For example, organizations must comply with central laws like TDS (Tax Deducted at Source), PF (Provident Fund), and ESIC (Employee State Insurance Corporation), while also ensuring they meet state-specific requirements for professional tax (PT) and labor welfare fund contributions. EOR platforms provide automated compliance with these regulations, ensuring that all statutory requirements are met without manual intervention.

The best EOR platforms also generate compliance reports and provide businesses with real-time updates on regulatory changes. This not only helps companies avoid penalties but also simplifies audits and ensures complete transparency in their operations.

Direct Salary Deposits

One of the most appreciated features by both employees and employers is the ability to deposit salaries directly into employees’ bank accounts. Whether you’re dealing with full-time employees, freelancers, or contractors, EOR platforms ensure that salaries are paid accurately and on time.

This direct deposit feature helps improve employee satisfaction by providing transparency and reliability. Employees can expect their salaries to be credited on the scheduled date without any delays or errors, improving overall workplace morale.

Fast Onboarding of New Employees

Speed is essential when hiring new employees, especially when you have large volumes to onboard. Many EOR platforms offer streamlined onboarding processes that allow HR teams to add new employees to the payroll system in minutes. Bulk onboarding features enable companies to import workforce data quickly, while self-onboarding options give employees the ability to input their details into the system, ensuring accuracy from the get-go.

The fast onboarding feature significantly reduces the administrative burden on HR teams, allowing businesses to focus on growth rather than paperwork.

Comprehensive Payroll and HR Management

Modern EOR platforms go beyond just payroll processing. They offer comprehensive HR management tools that cover the entire employee lifecycle, from onboarding to exit. These platforms can generate CTC (Cost to Company) calculations, issue offer letters, and even track leave, attendance, and reimbursements—all from a single dashboard.

This holistic approach to HR management ensures that businesses can centralize all their employee data and HR processes, making it easier to manage and maintain records. It also enhances employee experience, providing them with self-service access to payslips, Form 16s, and other essential documents.

Attendance and Leave Management

Integrating attendance management with payroll can save a significant amount of time and reduce errors. EOR platforms offer tools that automatically calculate attendance and leave balances, syncing them directly into payroll computations. This eliminates the need for manual intervention and ensures that salaries are accurate, accounting for any paid or unpaid leave.

EOR platforms can also integrate with existing time-tracking or HR management systems, making it easy for companies to adopt the software without overhauling their current processes.

Arrears and Salary Revisions

Handling salary revisions and arrear payments can be a complex task, especially when adjustments are needed mid-month. EOR platforms simplify this process by automating salary revisions for any past or future dates, ensuring that employees receive accurate arrear payments without HR teams having to manually calculate the amounts owed.

This feature is particularly beneficial for businesses with dynamic compensation structures, helping them avoid payroll discrepancies and ensuring that employees are compensated fairly.

Statutory Compliance Automation

Statutory compliance in India involves several mandatory filings, such as TDS returns, PF contributions, and ESIC payments. EOR platforms automate these tasks, ensuring that all tax filings and payments are made on time. Businesses can also access digital versions of compliance reports and challans on a self-service dashboard, making it easier to manage audits and regulatory checks.

In addition to automating tax filings, EOR platforms help businesses stay updated on changing regulations, providing alerts and updates to ensure that all compliance requirements are met.

Customizable Reporting and Analytics

One of the most valuable aspects of an EOR platform is its ability to provide data insights. Advanced platforms offer pre-built and customizable reports, allowing businesses to track payroll expenses, monitor workforce data, and gain valuable insights into their financial operations. With role-based access controls, businesses can ensure that sensitive data is only accessible to authorized personnel, enhancing security.

The centralized dashboard on EOR platforms simplifies complex data and offers advanced data visualization tools, helping HR teams and business leaders make informed decisions based on real-time information.

Seamless Integrations

An EOR platform is only as good as its ability to integrate with your existing systems. The top platforms offer integrations with various HR management systems (HRMS), time-tracking tools, and other software solutions, ensuring that payroll and HR processes are connected seamlessly. Whether your company uses Zoho People, Ubitech, or Jibble, these integrations make it easy to adopt an EOR platform without disrupting existing workflows.

For businesses without an existing HRMS, many EOR platforms also offer integrations with time and attendance partners, enabling a full suite of HR management tools to be utilized without extra investment in software.

Learn how to run payroll in India.

Why Choose Mercans for Your EOR Needs?

While there are several Employer of Record platforms available in India, Mercans stands out for its global expertise and local knowledge, making it the ideal choice for businesses looking for a reliable EOR solution. Here’s why Mercans should be your go-to partner for payroll and compliance management:

• Global Reach, Local Expertise With operations in over 160 countries, Mercans offers unparalleled global expertise combined with deep local knowledge. For businesses expanding into India, Mercans ensures full compliance with both federal and state-level labor laws, covering everything from tax deductions to employee benefits.
• Full Automation for Seamless Operations Mercans takes payroll automation to the next level. Beyond just disbursing salaries, the platform ensures real-time tracking, automated compliance updates, and seamless salary revisions, giving businesses peace of mind that their payroll processes are efficient and error-free.
• 100% Statutory Compliance Compliance errors can lead to significant fines and penalties. Mercans ensures that businesses stay fully compliant with local laws by automating statutory filings like TDS, PF, PT, and ESIC. The platform also provides real-time alerts on any regulatory changes, ensuring that your business is always up to date.
• Customizable and Scalable Solutions Whether you’re a startup or a multinational corporation, Mercans offers customizable EOR solutions that fit your specific business needs. With scalable options, Mercans grows with your company, ensuring that your HR and payroll processes remain smooth and efficient at every stage of growth.
• Real-Time Analytics and Reporting Mercans provides businesses with actionable insights through advanced data analytics and reporting features. With the ability to customize reports and gain real-time access to workforce data, businesses can make strategic decisions that drive efficiency and growth.

By choosing Mercans, businesses can focus on their core competencies while leaving the complexities of payroll and compliance to the experts. Whether you are managing payroll for a small team or thousands of employees, Mercans provides the tools and expertise to ensure seamless HR operations, making them the ideal partner for businesses operating in India.