Payroll Services Overview
Payroll management is a critical business function involving calculation of salaries, deductions, statutory contributions, and ensuring compliance with multiple laws such as:
- Income Tax Act, 1961 (TDS on Salary – Section 192)
- Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
- Employees’ State Insurance Act, 1948
- Payment of Bonus Act, 1965
- Payment of Gratuity Act, 1972
- Professional Tax (State specific)
Why Professional Payroll Management?
- Prevents statutory penalties
- Ensures employee satisfaction
- Maintains accurate tax compliance
- Reduces HR and compliance risk
Key Components of Payroll
- Salary structuring (CTC breakup)
- Monthly payroll processing
- Generation of payslips
- Leave & attendance integration
- Full & Final settlements
PF & ESI Compliance
Employees’ Provident Fund (EPF)
- Applicable when employee strength ≥ 20.
- Employer Contribution: 12% of Basic + DA.
- Employee Contribution: 12% of Basic + DA.
- Due Date: 15th of next month.
- Forms: ECR filing monthly.
Employees’ State Insurance (ESI)
- Applicable when employee count ≥ 10 (state specific).
- Employer Contribution: 3.25% of wages.
- Employee Contribution: 0.75% of wages.
- Applicable if salary ≤ ₹21,000 per month.
Penalties for Non-Compliance
- Interest @12% p.a. on delayed payment.
- Damages up to 25% of contribution.
- Prosecution in serious defaults.
TDS on Salary (Section 192)
- Employer must estimate annual income.
- Allow deductions under Chapter VI-A.
- Adjust previous employer salary.
- Issue Form 16 annually.
- File quarterly TDS return (Form 24Q).
Due Dates for TDS Return
- Q1 – 31st July
- Q2 – 31st October
- Q3 – 31st January
- Q4 – 31st May
Interest & Penalty
- 1% per month for late deduction.
- 1.5% per month for late deposit.
- Late filing fee ₹200 per day u/s 234E.
Labour Law & Statutory Compliance
- Maintenance of wage register
- Minimum wages compliance
- Bonus calculation (8.33% – 20%)
- Gratuity computation (15/26 × last drawn salary × years)
- Professional Tax registration & return filing
- Shops & Establishment compliance
Non-compliance may lead to heavy penalties, cancellation of registration, and labour department prosecution.
Our Payroll Process
- Employee data collection & structuring
- Salary computation & validation
- Statutory deduction calculation
- Payslip generation
- Bank advice preparation
- Monthly compliance filing
- Year-end Form 16 issuance
We Also Provide
- HR advisory support
- Compensation structuring
- ESOP & incentive tax planning
- Payroll audit & reconciliation