Payroll Management

Payroll is one of the few processes every employee notices. Salaries must be right and on time, deductions must be correct, and a series of statutory payments and returns must be made every month, quarter and year. Errors cost money in interest and penalties, and they cost employee trust. We run payroll for startups, SMEs and larger businesses, from salary computation to statutory filings.

What payroll management covers

Payroll is the process of paying employees: working out gross pay, deducting tax, PF, ESI and other amounts, paying net salaries, depositing the deductions and filing the returns. A well-run payroll means:

• salaries paid on time, every month;
• correct tax and statutory deductions;
• transparent payslips and benefits;
• compliance with tax and labour laws.

The parts of payroll

1. Employee records: name, designation, salary structure, tax regime, PF and ESI numbers and bank details, kept current.
2. Attendance and leave: accurate days and hours from biometric or software records, including overtime and loss of pay.
3. Gross and net pay: gross pay is basic salary plus allowances, bonuses and overtime; net pay is what remains after deductions.
4. Deductions: statutory (PF, ESI, professional tax, labour welfare fund and TDS) and voluntary (loans, insurance, contributions).
5. Pay schedule: most Indian employers pay monthly; contract or daily workers may be paid weekly or daily.

Statutory payroll compliance

What we do each month

• Collect attendance, leave and changes (joiners, leavers, increments)
• Compute salaries, overtime, reimbursements and deductions
• Calculate TDS under the employee's chosen regime, based on declarations
• Share the payroll register and bank transfer file for approval
• Issue payslips
• Deposit PF, ESI, professional tax and TDS, and file the returns
• Pass payroll entries to the books and reconcile

Annually

• Investment proof verification and final TDS computation
• Form 16 for every employee
• Bonus computation and annual statutory returns
• Full and final settlements, including gratuity and leave encashment

Good payroll practice

• Use payroll software or an outsourced service to reduce manual errors
• Keep employee records current to avoid mismatches with PF and tax data
• Track changes in tax and labour rules
• Use digital attendance
• Reconcile payroll with the accounts every month
• Keep salary data confidential, with limited access

Payroll software

We work with common Indian payroll software such as Zoho Payroll, Saral and others, or with your existing system. For small teams we can run payroll on our own systems and send you the outputs.

Payroll and employees

Accurate, transparent and timely payroll is one of the simplest ways to show employees they are valued. It builds trust and reduces queries and attrition.

Common questions

When do we need to register for PF and ESI?

PF from 20 employees and ESI from 10 employees (in notified areas), although voluntary registration is possible earlier.

Which tax regime applies to employees?

The new regime is the default; employees can choose the old regime for TDS by declaring it to the employer at the start of the year.

Do you handle full and final settlements?

Yes, including notice pay, leave encashment, gratuity and the final Form 16.