Payroll Processing, PF & ESI Compliance Services in India
Monthly salary processing with PF, ESI, professional tax and TDS on salary handled as one dependable cycle.
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Payroll compliance is the monthly job of paying employees correctly while deducting and depositing the statutory dues that sit on top of every salary: provident fund, ESI, professional tax, labour welfare contributions and TDS on salary. Any employer with staff on its rolls needs it, from a ten-person startup to a multi-state business. Our team collects your inputs, computes net pay, issues payslips, deposits the dues with the right authorities and files the periodic returns, so errors do not turn into employee complaints, interest or notices from EPFO, ESIC or the tax department.
Who provides this service: our team of Chartered Accountants.
Who Needs Payroll, PF & ESI?
- Startups and small businesses hiring their first employees who want payroll set up correctly from day one
- Growing companies whose HR team spends most of the month on salary and statutory filings
- Employers with staff in more than one state who face different professional tax and welfare fund rules
- Businesses that received a notice or query from EPFO, ESIC or the tax department about contributions
- Contractors and service companies with many shifting or contract workers on their rolls
Key Benefits
- Salary computed from attendance, leave, arrears and deductions with a reviewed payroll register before every release
- PF contributions and the monthly electronic challan-cum-return handled through the EPFO portal against each UAN
- ESI contributions and monthly filing for covered employees through the ESIC portal
- State-wise professional tax and labour welfare fund tracking for teams spread across more than one state
- TDS on salary worked out from investment declarations, with quarterly returns and Form 16 prepared from the same data
- Clean joiner, exit and full-and-final settlement processing so every employee record stays consistent
How It Works
Set up the salary structure and statutory profile
We record each salary component, review how it is treated for PF, ESI and tax, and confirm your PF, ESI and professional tax registrations and state coverage before the first payroll cycle begins.
Collect monthly inputs
You share attendance, leave, overtime, arrears, new joiners, exits and reimbursements by an agreed cut-off date. Missing inputs are the most common cause of reruns, so the cut-off is fixed in writing.
Process payroll and share the draft
We compute earnings and deductions, produce the payroll register and bank transfer sheet, and send a draft for your approval. Variances against the previous month are flagged so you can query them early.
Issue payslips and release salary
After approval, payslips are generated for each employee and the bank file is handed over for salary release. Any correction request from an employee is checked against the register before it is changed.
Deposit dues and file returns
We prepare PF and ESI contribution files, professional tax payments and TDS challans, and file the monthly and quarterly returns on the respective portals within their due dates, then share the acknowledgements.
Year-end closing and records
At year end we reconcile salary, TDS and contribution data, issue Form 16, support employee investment proof collection and keep an organised record that is ready for inspection or audit.
Documents Required
- PAN, Aadhaar and bank account details of every employee
- Appointment letters and the current salary structure for each employee
- UAN and ESIC insurance number of existing employees, where already allotted
- PF, ESI and professional tax registration details of the establishment
- Monthly attendance and leave records and details of arrears or overtime
- Joiner and exit list with dates of joining and leaving
- Investment declarations in Form 12BB and supporting proofs at year end
- Previous employer income details for employees who joined mid-year
- TAN of the employer and TDS login details
Timeline and Fees
Indicative timeline: Payroll runs on a monthly cycle, usually a few working days after inputs are received. Statutory deposits and returns follow the due dates set by EPFO, ESIC, the state authorities and the Income Tax Department.
Professional fee: The monthly fee depends on the number of employees, the states covered, the registrations to be managed and whether year-end Form 16 work is included. Contact our team with your headcount for a written proposal.
What Can Go Wrong if This Is Missed or Done Incorrectly
- Late or short PF and ESI deposits attract interest and damages and can lead to inspection by the authorities
- Wrong salary calculation leads to employee grievances, repeated corrections and loss of trust
- Errors in salary TDS can result in demands, interest and mismatches between Form 16 and the department record
- Non-registration or non-payment under state laws such as professional tax can invite state-level penalties
- Continued default under the EPF law can lead to prosecution of the employer, not only monetary dues
Frequently Asked Questions
What does payroll outsourcing include besides salary calculation?
It usually covers payslips, bank transfer files, PF and ESI contribution filings, professional tax, TDS on salary, Form 16, joiner and exit formalities and full-and-final settlements. The exact scope is agreed in writing, so you know which tasks sit with our team and which remain with your HR.
When does an employer need to register for PF and ESI?
Both are linked to the number of persons employed and, for ESI, to wage limits notified by the government. Once your establishment crosses the applicable threshold, registration becomes mandatory. Current limits are published by EPFO and ESIC, and we check them for your headcount and state before advising.
What happens if PF or ESI is deposited late?
Late deposits generally attract interest and, depending on the delay, damages under the respective Acts. Repeated default can lead to inspection and recovery proceedings. Depositing in the window before the statutory date, rather than on the last day, also avoids portal and bank delays turning into default.
Is professional tax the same in every state?
No. Professional tax is a state levy, and only some states charge it. Slabs, registration rules, payment frequency and return dates differ. If your employees work in several states, each location needs its own check, which is why we track state coverage during setup rather than assume one rule.
Do you handle TDS on salary and Form 16?
Yes. Tax on salary is estimated from each employee's declarations and the regime they choose, deducted every month, deposited and reported in the quarterly salary TDS return. Form 16 is then issued from the same data after the year closes, so employee records and department records match.
Can I switch my payroll to your team in the middle of a year?
Yes, but the handover needs care. We collect year-to-date salary, PF, ESI and TDS figures from the previous setup and reconcile them so contributions and tax deducted so far are carried forward correctly. Mid-year changes done without this step often cause mismatches in Form 16 later.
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Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.