Payroll Compliance: Ensuring Timely ESI, EPF, and PT Payments with Automated Processes

Payroll Compliance Service

Payroll compliance in India entails adhering to intricate regulations covering tax deductions, statutory contributions (like EPF and ESI), minimum wages, leave policies, and benefits. Principal employees are liable to accurately calculate and record salaries, maintain records, and ensure timely reporting to authorities when audited. Non-compliance leads to penalties, legal issues, and reputational damage and is usually irrevocable. Staying updated with ever-evolving laws and using robust payroll systems are crucial to meeting such obligations effectively.

The Key Elements of Payroll Compliance

Statutory Deductions: Employers must deduct contributions for various statutory schemes, such as the Employees' Provident Fund (EPF) and the Employees' State Insurance (ESI), from eligible employees' salaries. These deductions are aimed at providing social security benefits to employees.

Taxation: Companies are responsible for deducting income tax at source from employees' salaries and remitting it to the government. Employers must accurately calculate and withhold the correct amount of tax based on the employee's income and applicable tax slabs.

Minimum Wages: Companies must ensure they pay employees at least the minimum wage mandated by state or central government regulations. Failing to do so can result in legal consequences.

Overtime and Leave: Employers need to comply with labour laws that dictate rules related to overtime pay, leave entitlements, and working hours. Accurately calculating and managing these aspects is essential.

Bonuses and Benefits: Compliance with laws related to bonuses, incentives, and other employee benefits is crucial. Companies need to adhere to regulations governing the distribution and taxation of these payments.

Record Keeping: Maintaining accurate records of employee attendance, leaves, salary payments, deductions, and contributions is essential for compliance. These records are often subject to government audits.

Contract & Subcontract Workers: Differentiating between permanent employees, temporary workers, and contractual staff is vital. Each category has distinct compliance requirements that must be met.

Our Scope

Automated registrations: Swiftly enroll under EPF and ESI Acts for compliance ease.
Daily UAN Generation: Instantly create/insert UANs for workforce management.
Daily IP Generation: Effortlessly allocate/generate IPs for streamlined processes.
Contribution Reconciliation: Automatically cross-verify contribution data for accuracy.
Hassle-free Wage Processing: Generate contribution challans from wage details seamlessly.
Employee Benefits Support: Offer automated aid for accessing entitled benefits.
Online KYC Updates: Simplify member KYC refresh with automated tools.
Timely Statutory Filings: Ensure punctual filings through automated systems.
Cloud-Based Repository: Store records, Challans, and more in one centralized location.
Stress-Free Remittance: Monthly automated payments ensure compliance and peace of mind.

Points to Ponder

Procure Registrations (Main Code / Sub Code)
Prepare and maintain registers, challans, ECR, contribution history, paid records and returns (employee wise, contractor wise, and location wise)
Monitor contributions made at least in line with the minimum wages notified and deemed applicable
Facilitate on-monthly reconciliations matching the wage registers with paid contributions employee-wise for hassle-free handling of inspection
Facilitate members' access to their benefits under EPF and ESI
Extend accident report filing support online
Extend return filing support as deemed appropriate