Technology is changing the world at a rapid pace and the payroll industry is getting completed reimagined with the advent of new products. In the upcoming times, payroll solutions will completely transform the way payroll and compliances are managed.
So, let’s look at the top 4 trends that we can expect in the upcoming times and how new age payroll solutions will be driving those trends.
Payroll will run on autopilot
In a world that is increasingly being run by artificial intelligence and machine learning, you can’t expect customers 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 max, 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 most of the payroll operations will happen on autopilot.
On-premise solutions will become obsolete
Gone are the days when companies used to purchase on-premise applications and get stuck with those products even if they were not happy 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
The payments and compliances for gig workers or freelancers work very differently from the 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 that applies to the gig workers. Same way, since a gig worker works with many companies simultaneously, the income tax calculations also happen very differently.
And therefore, the current payroll solutions aren’t geared to meet the challenges of a gig economy.
But with the way, the gig economy is growing, most payroll solutions will adapt to manage the salary and compliance payment for freelancers.
Right now, many payroll solutions are available to manage the payments for permanent and contract employees, but there are almost none that are built specifically for freelancers.
In the coming times, many payroll solutions will be built specifically to manage the payments of freelancers and most existing payroll solutions will also add the features to manage gig workers.
Niche products will be created for mass adoption by small businesses
On average, more than 15,000+ businesses get registered in India each month as per the official website of the ministry of commerce and most of them are small businesses with less than 50 employees.
That clearly shows 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 only at small businesses in the future.
These solutions will make the life of small business owners very easy and will do most of the heavy work for them.
Small business owners will be able to use these products comfortably even if they know nothing about payroll. These tools will recommend compliances, automatically break down employee salaries into multiple salary components to assist them to 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.