Home/Practice/payroll-and-statutoryFiled under [01] · Operational

Payroll & Statutory Compliance.

Lede

Payroll is not a function. It is a covenant — between an employer and every person who relies on a salary credit landing on the same day of the month, every month, without explanation. We hold that covenant on behalf of eighty-odd Indian businesses, across twenty-five thousand-plus employees, in seven state jurisdictions.

[i]Mandate

The posture of the firm — what we hold ourselves to, and what we ask of those who engage us.

A payroll engagement, as we run it, is not a software cutover. It is a transfer of duty — from a tired in-house team that has been carrying the calendar alone, to a firm that holds the calendar for a living. The day of the month is the only metric that matters. Everything we do is in service of it.

We take charge of the entire arithmetic — Basic restructured under the new wage code, statutory contributions calculated on the right wage base, TDS reconciled against the regime the employee has actually chosen, and the disbursement file released without exception on the day promised. The pay-slip you see is the visible quarter; everything else is the iceberg of register-keeping, return-filing and audit-trail archival that the law expects and the regulator eventually asks for.

What you should expect of us, more than anything else, is reliability. We do not surprise our clients. We close every month before we close ourselves.

[ii]Scope

The work,
line by line.

9 mandates form the standing scope. Bespoke additions are documented on engagement.

Payroll processing

Monthly cycle on a fixed calendar — inputs received by D-3, run by D-2, partner sign-off by D-1, disbursement file released by D-day.

Structuring under the Code on Wages

CTC restructured so Basic is exactly fifty per cent of statutory wages — Section 2(y) compliant, gratuity outside the denominator.

Employees' Provident Fund

UAN generation, monthly ECR, transfer and withdrawal claims, KYC reconciliation. Capped and uncapped variants both supported.

Employees' State Insurance

Coverage assessment, contribution computation, half-yearly returns, branch-office liaison for benefit claims.

Professional Tax

State-by-state — Karnataka, Maharashtra, Tamil Nadu, Telangana, West Bengal, Andhra Pradesh, Kerala, Gujarat, Odisha. Slab maintained, challan filed, register kept.

Labour Welfare Fund

Half-yearly contributions across the seven states that levy LWF, on the calendar each state notifies.

Income-tax & TDS

Form 16, quarterly 24Q, declarations under both regimes. Old-vs-new comparator issued to every employee in May.

Gratuity & full-and-final

15/26 × last drawn basic × completed years — computed, audited, released within seven working days of last working day.

Statutory registers

Form 11, Form 22, muster, wages, fines, deductions, advances — bound and retained for the period prescribed by each statute.

[iii]Cadence

The operating
calendar.

The rhythm we hold ourselves to. Where the calendar slips, the engagement partner answers for it.

D-3 to D-1

Inputs, run, sign-off

D-day

Disbursement file released to employer

D+1 to D+3

Pay-slips, query window opens

D+7

TDS challan filed

D+15

EPF ECR uploaded; PT challan paid

D+21

ESI return filed (where applicable)

Quarter-end

24Q, 26Q reconciliation

Annual

Form 16, PF annual return, LWF, gratuity actuarial

[iv]Frame

The statutes
we work under.

The standing reference. Where a statute does not appear, the work is not undertaken.

[01]

Code on Wages, 2019

§ 2(y), § 5, § 17

Definition of wages, payment of minimum wages, time-of-payment — the basis of the fifty-per-cent Basic rule.

[02]

Employees' Provident Funds & MP Act, 1952

§ 6 read with EPF Scheme 1952

Twelve-per-cent contribution on Basic + DA, employer matched, with the ₹15,000 statutory ceiling at the employer's election.

[03]

Employees' State Insurance Act, 1948

§ 39, § 46

0.75-per-cent employee and 3.25-per-cent employer contribution for wages up to ₹21,000/month — medical, sickness, maternity benefits.

[04]

Payment of Gratuity Act, 1972

§ 4

Fifteen days' wages for every completed year of service, paid after five years (or on death/disablement, regardless of tenure).

[05]

Payment of Bonus Act, 1965

§ 10, § 31A

Minimum 8.33% and maximum 20% of Basic + DA, for employees drawing up to ₹21,000/month.

[06]

Income-tax Act, 1961

§ 192, § 115BAC

Salary TDS, with the new tax regime as default from FY 2023–24 and the old-regime opt-in declaration on file.

[07]

Maternity Benefit Act, 1961 (as amended 2017)

§ 5, § 11A

Twenty-six weeks of paid maternity leave; crèche obligation for establishments with fifty or more employees.

[08]

State Professional Tax Acts

State-specific schedules

Slab-based deduction and remittance — Karnataka, Maharashtra, Tamil Nadu, Telangana, West Bengal, Andhra Pradesh, Kerala, Gujarat, Odisha.

[09]

State Labour Welfare Fund Acts

Half-yearly schedules

Karnataka, Maharashtra, Tamil Nadu, Kerala, Andhra Pradesh, Telangana, West Bengal — employer + employee contributions in each.

References current to the Indian statute book as on filing. Where new codes consolidate or supersede the above, the firm moves with the codes — without an invoice for the migration.

[v]See also