What Our Payroll Service Covers
Payroll in India involves much more than calculating salaries. Every pay cycle triggers obligations under the Employees' Provident Fund Act, ESI Act, Income Tax Act (TDS on salary) and Professional Tax laws. Missing any deadline attracts penalties.
Our payroll service handles the full payroll cycle end-to-end so you can focus on running your business.
- Salary Structure Design: Creating tax-efficient salary structures with Basic, HRA, Special Allowance, LTA, Medical Allowance and reimbursements that maximise take-home pay while reducing employer TDS liability.
- Monthly Payroll Processing: Computing net salary for all employees after deductions — PF, ESI, PT, TDS and advances. Generating payslips in PDF format for each employee.
- Provident Fund (PF) Compliance: Monthly PF challan preparation and payment (ECR upload on EPFO portal). PF registration for new employees. UAN generation and KYC verification.
- ESI Compliance: ESI contribution calculation (employee 0.75% + employer 3.25% on wages up to Rs. 21,000/month). Monthly ESI challan and half-yearly return filing.
- Professional Tax (PT): Pondicherry levies Professional Tax. Monthly PT deduction from employee salary and remittance to the Commercial Tax Department.
- TDS on Salary: Calculating monthly TDS on salary under Section 192 based on estimated annual income and declared investments. Deposit of TDS by 7th of following month. Quarterly Form 24Q filing. Annual Form 16 issuance to employees.
- Full & Final Settlement: Calculating F&F for resigned/terminated employees including gratuity eligibility, leave encashment, earned leave balance and PF settlement paperwork.
Payroll Compliance Calendar
| Compliance | Due Date | Penalty for Default |
|---|---|---|
| PF Challan Payment | 15th of following month | Interest @ 12% p.a. + damages up to 25% |
| ESI Challan Payment | 15th of following month | Interest @ 12% p.a. + simple interest |
| TDS on Salary Deposit | 7th of following month | Interest @ 1.5% per month |
| TDS Return (Form 24Q) | 31st of month after each quarter | Rs. 200/day late fee |
| Form 16 Issuance | 15 June (for previous FY) | Rs. 100/day per certificate |
Frequently Asked Questions
Is PF registration mandatory for all businesses in Pondicherry?
PF registration under the Employees' Provident Funds Act is mandatory for establishments with 20 or more employees. Businesses with fewer employees can voluntarily register. PF contribution is 12% of Basic + DA by employee and matching 12% by employer (with 8.33% going to EPS).
Is ESI applicable to all employers in Pondicherry?
ESI applies to establishments with 10 or more employees where any employee earns a gross salary of Rs. 21,000 or less per month. Pondicherry is an ESI-notified area. All qualifying businesses must register with ESIC and make monthly contributions.
What happens if TDS on salary is not deducted correctly?
The employer is liable to pay the shortfall in TDS along with interest and penalty. Under Section 201 of the Income Tax Act, the employer is treated as an "assessee in default". The penalty can be up to the amount of TDS not deducted. Correct salary TDS calculation is critical.
Do you provide payslips that employees can use for loan applications?
Yes. We generate professional payslips in PDF format showing all earnings (Basic, HRA, allowances), deductions (PF, ESI, PT, TDS) and net pay. These are accepted by banks and housing finance companies for loan processing. Form 16 is also issued annually.
Simplify Your Payroll Processing
Let us handle PF, ESI, TDS and payslips so your employees are paid correctly and your statutory compliance is on track.