Payroll Processing

Why should you outsource Payroll?

Any business that has more than one employee must have a payroll system. Paying employees consistently and with no delays not only impacts their morale, but it also reflects the company’s financial stability. Moreover, it is a requirement for compliance under income tax laws and state laws. While this is a complex process, having an efficient system helps streamline and centralize the payroll method.

In essence, the payroll management process refers to the administration of an employee’s financial records which includes the salaries, wages, bonuses, deductions, and net pay. These records must be maintained and kept by the employer, especially when it pertains to payroll taxes such as Income Tax TDS (Tax Deducted at Source), Labor Laws (Provident Fund, Employee State Insurance Scheme etc.) and State Taxes (Professional Tax, Labor Welfare Fund Etc.) and Payroll isn’t just about paying your people. And let’s face it, you didn’t get into business to manage paperwork and keep track of payroll legislation.

What are the deductions that are needed to be taken care while processing salary?

  1. TDS – Applicable if the salary crosses the tax limits
  2. Provident Fund- Applicable when there are more than 20 Employees in the organization
  3. Employee State Insurance- Applicable if there are more than 10 employees
  4. Profession Tax- Applicable even if there is single employee
  5. Labor Welfare Fund

What after processing payroll what are the various returns that needs to be filed by the organization ?

  1. Quarterly TDS Returns in form 24Q needs to be filed
  2. Monthly PF, ESIC & MLWF Returns
  3. PT returns differs from State to State

What is included in payroll processing?

  1. Set Pay Policy – We help organization in defining optimum tax efficient salary structure along with defining pay components
  2. Gathering Payroll Inputs- Collecting Employees Declaration for various deductions allowed as per the income tax act and the pay policy
  3. Issuing Pay Slips
  4. Leave Management system- Managing leave balance of employees as per the organization policy
  5. Payroll Compliance- Ensure accurate calculations and processing of the compliances like TDS Returns, PF & ESI Returns, PT Returns etc.
  6. Processing Reimbursement & Arrears- Managing employees claim for Reimbursement of expenses based on the organizations policy
  7. Full & Final Settlements- Ensuring F&F’s Settlements at the time of Exit of Employee with regards to
    • Calculation of Payable Days
    • Notice Period Recovery
    • Other Payments/Deductions
  8. Issuing Form 16 to employees at the end of Financial Year

What are the packages for available for payroll processing?

The charges depend on the number of employees in the organization.
For 0-20 21-50 50+
Rs 2000/month Rs 10000/month Rs 20,000/month

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