Payroll Compliance

Payroll processing involves accurate payroll calculations, payslip generation, disbursal, and managing payroll taxes.

Yes, compliance like Income Tax TDS deduction and Professional Tax are to be complied even if there is a single employee.

If you want to issue form 16 to your employees, then it is mandatory to file TDS return. This form 16 can act as evidence of Income to your employees, and he can avail loan based on the same.

No, PF is not required if the salary is above basic limit, but the same is advisable to secure future of employees.

The assessee will be liable to pay fine and may go to imprisonment for the noncompliance under the Income Tax Act for TDS and labour court for PF and ESIC noncompliances.

CTC stands for Cost to Company. It includes all the costs that a company incurred for a particular employee such as PF, ESIC, Gratuity contribution of employer. These deductibles are part of your compensation structure, but you do not get them as a part of the in-hand salary.

Payroll should be mainly outsourced when,

• A small company where the owner is managing payroll.
• You don’t come across last minute compliance change that frequently
• You don’t want to invest in in-house system and infrastructure
• You have to pay at multiple locations

Employer has to maintain the following records for the ESIC.

• Wage record, Muster roll, and books of Account maintained under other laws.
• Accident Register in new Form-11 and
• An inspection book.
• The immediate employer is required to maintain the Employees’ Register for the employees deployed to the principal employer.

Every employer who has deducted TDS of the employee has to issue Form 16 to his employee. The form consists of all the data of salary and deductions that one can claim.

Legal Workmate follows the necessary and best practice of maintaining confidentiality and data protection. The data provided by you will not be shared with anyone and will not be mailed to any person, including government authorities, without your exclusive written permission.

An Employment agreement is an agreement executed between the employee and the employer consisting of all the details regarding data privacy needed to be maintained, non-sharing of any information, resignation and notice period, etc.

CTC refers to the total expense that an employer incurs under the contract with the employer. It contains an amount of PF, ESIC and Gratuity contributed by both employee and employer.

Gross Salary means salary receivable on hand before TDS deduction by the employer. Net salary means the salary received on hand.

Gross Salary = Net Salary + TDS amount deducted.