Is PF mandatory for all businesses?

EPF registration is mandatory once the establishment crosses 20 employees. Below that threshold, registration is voluntary but recommended for talent retention and credibility.

What is professional tax and who pays it?

Professional Tax is a state-level tax on salaried employees and professionals levied by state governments (e.g. Maharashtra, Karnataka, Kerala, WB). The employer deducts it from salary and remits to the state treasury monthly.

What is Form 16 and when must it be issued?

Form 16 is the annual TDS certificate on salary issued by the employer to the employee. It must be issued by 15 June following the end of the financial year — covering tax deducted under Section 192.

Payroll

Relevant for:For SMEs

Payroll Processing and Compliance for Indian Businesses

End-to-end monthly payroll — salary computation, statutory deductions (PF, ESIC, PT, TDS), payslip generation, Form 16 and Form 24Q. CA-supervised, deadline-tracked and ready for audit.

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What's Included

Monthly salary computation with CTC structuring

TDS on salary under Section 192 and Form 24Q filing

EPF computation (12% + 12%) and ECR upload

ESIC computation and challan filing

Professional Tax (state-specific) deduction and remittance

Payslip generation and employee portal access

Annual Form 16 and Form 12BA issuance

Our Process

STEP 1

Setup

Employer registration verification, CTC structuring and payroll calendar.

Week 1

STEP 2

Monthly Input

Attendance, LOP, new joiners, exits and reimbursement claims received.

By 25th

STEP 3

Processing

Salary, TDS, PF, ESIC, PT computed; payslips generated.

By 1st

STEP 4

Statutory Filings

PF (15th), ESIC (15th), PT, monthly TDS challan (7th).

Monthly

STEP 5

Annual Filings

24Q quarterly returns and Form 16 issuance.

Quarterly / 15 June

Documents Required

Employee master — PAN, Aadhaar, UAN, ESIC IIP, bank details
Appointment letters with CTC breakup
Attendance and leave register
PF, ESIC and PT registration certificates
Investment declarations (Form 12BB) from employees
Reimbursement claims with bills
Full and final settlement inputs (for exits)

Key Statutory References

Item	Reference
TDS on Salary	Section 192, Income Tax Act — Form 24Q quarterly
EPF	EPF & MP Act 1952 — 12% employee + 12% employer
ESIC	Applicable up to wages of Rs21,000/month — 0.75% + 3.25%
Professional Tax	State-specific — Maharashtra, Karnataka, Kerala, WB, TN
Form 16	Issuance by 15 June after FY end

Frequently Asked Questions

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Guides & Resources

Payroll Compliance Checklist India

PF, ESI, PT, and TDS obligations for every Indian employer.

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Bookkeeping Checklist for Small Businesses

Integrate payroll records cleanly into your books every month.

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Outsource payroll the CA way

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