Important Changes to RazorpayX Payroll Contractor Payments

Modified on Wed, 30 Apr at 4:21 PM

RazorpayX Payroll is updating its Contractor Payment Module, effective June 15, 2025, due to regulatory changes and evolving banking guidance. This update primarily impacts how contractor and vendor payments are processed via the Payroll wallet.

What's Changing?

From June 15, 2025, vendor payments will no longer be supported through the Contractor Module via the Payroll wallet.

You CAN still:

Pay individual contractors (freelancers/consultants with a personal PAN under TDS 194J, or no TDS for intern stipend) and Process salary and compliance payouts as usual via the Payroll wallet.

You CANNOT:

Pay vendors with business PANs or under non-194J TDS categories through the contractor payments module via the Payroll wallet.

What You Need To Do

Option 1: Continue making all types of payouts (including vendors)

To continue making all types of payouts (including vendors), open a RazorpayX-powered Current Account and link it to your XPayroll setup.
Rest assured - our team will help you out with the next steps, including the Current Account opening and integration
All your payments - contractor (including vendor payments ✅), salary, and compliances will happen via this linked Current Account
The entire product experience remains the same and even becomes better:
1. Bank Account Verification feature for all your Employees' bank accounts
2. Frictionless money movement: No more manually loading your Payroll wallet
3. Free core plan of our Business Banking Stack: Learn more about Business Banking+

Option 2: Vendor payments to be disabled after June 15, 2025

If you choose not to proceed with- RazorpayX-powered Current Account and link it to your XPayroll setup, then no action is needed
You can continue using your existing Payroll wallet for all payments - contractors (excluding vendors ❌), salaries, and compliances - just like today
Everything else in your product experience stays exactly the same

FAQs

How do I open a RazorpayX-powered Current Account?

Please drop us an email at xpayroll-updates@razorpay.com, or just fill out the form attached in the email, and we’ll get in touch with you.

What will change in the payment process once I link my Current Account?

Once you link your Current Account, all your contractor and vendor payments, along with salary and compliance payments, will be processed seamlessly through this account. You will also enjoy added benefits like better bank account verification, enhanced visibility, and the elimination of manual wallet loading.

Will my existing Payroll experience change?

No, the core Payroll experience will remain the same. However, with the linked Current Account, your experience will be more streamlined.

Do I need to take any action if I don’t need to make vendor payments?

If you don’t need to make vendor payments, you can continue using your existing Payroll wallet for contractor employees (intern/freelances/consultant), salary, and compliance payments. No action is needed on your part.

What’s the deadline for opening a RazorpayX-powered Current Account?

To avoid disruption to your vendor payments, please complete the process of opening and linking your RazorpayX-powered Current Account by June 15, 2025.

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