Payroll Management Services in India | Nainit Savla & Associates

Payroll Management Services

Q: Is PF deduction mandatory for all employees?

EPF is mandatory for employees earning basic salary up to ₹15,000/month in establishments with 20+ covered employees. Higher earners can opt in voluntarily. Employee and employer each contribute 12% of basic.

Q: What is the due date for EPF and ESIC payments?

Both EPF and ESIC must be paid by the 15th of the following month. Late payment attracts EPF interest at 12% per annum and damages of 5% to 25% of the delayed amount.

Q: What is Form 16 and when must it be issued to employees?

Form 16 is the annual TDS certificate covering salary paid and tax deducted. It must be issued to employees by 15th June of the assessment year — needed by employees to file their ITR.

Q: How do you handle payroll for employees in multiple states?

We compute state-wise professional tax, file separate PTRC returns for each applicable state, and manage ESIC compliance for each covered establishment location — all from a centralised payroll report.

Q: What documents do you need from us each month to process payroll?

Attendance and leave data, salary structure changes, new joiner/resignation details, variable pay amounts, and reimbursement claims — via a standard monthly input template taking under 30 minutes to complete.

Payroll management is one of the most time-sensitive, compliance-intensive, and employee-sensitive functions in any business. A single payroll error — wrong tax deduction, missed PF payment, or late salary credit — can damage employee trust and attract regulatory penalties. Our payroll management service handles the entire payroll cycle from salary computation to statutory filings, ensuring employees are paid correctly and on time and every statutory obligation is met without exception.

Monthly Salary Processing

Computation of monthly gross pay, allowances, deductions, and net pay for each employee — incorporating attendance data, leaves, variable pay, overtime, and reimbursements.

TDS on Salary (Form 24Q)

Monthly TDS computation on salary under Section 192, investment declaration processing, TDS deduction, monthly challan payment, quarterly Form 24Q filing, and Form 16 issuance.

PF & ESIC Compliance

Monthly EPF and ESIC contribution computation, ECR generation, challan payment before the 15th, and UAN-linked filings through the EPFO Unified Portal for all eligible employees.

Professional Tax

State-wise professional tax computation and deduction, monthly PTRC challan payment, and annual professional tax return filing for Maharashtra, Karnataka, West Bengal, and other applicable states.

Payslips & Employee Communication

Generation and distribution of individual payslips for all employees each month, along with annual Form 16 issuance and investment declaration collection at the start of each financial year.

Full & Final Settlement

Computation of full and final settlement for exiting employees — gratuity, leave encashment, notice pay, bonus, and TDS — with reconciliation against relieving date and last working day.

What Does Our Payroll Management Cover?

Our payroll management service is a complete monthly cycle — starting with employee attendance and leave data collection, moving through gross-to-net salary computation, statutory deduction processing (TDS, PF, ESIC, PT), payslip generation, salary bank transfer advice, and concluding with all statutory payments and filings within due dates. We also handle employee queries on salary structure, Form 16, and investment declarations.

Our payroll service integrates with accounting and tax compliance so that payroll journal entries flow directly into the books of accounts — eliminating the reconciliation gap between payroll records and the general ledger.

Statutory Payroll Compliance We Manage

EPF — Employee and employer contributions at 12% of basic salary; ECR filing and UAN management
ESIC — 0.75% employee and 3.25% employer contribution for employees earning up to ₹21,000/month
TDS on salary — monthly deduction and annual Form 16 issuance under Section 192
Professional tax — state-wise deduction and filing (Maharashtra PTRC, Karnataka PT, etc.)
Gratuity — eligibility computation under Payment of Gratuity Act for employees with 5+ years of service
Bonus — statutory bonus under Payment of Bonus Act for eligible employees
Labour Welfare Fund — state-specific LWF deductions where applicable

Frequently Asked Questions

Is PF deduction mandatory for all employees?

EPF is mandatory for all employees earning a basic salary of up to ₹15,000 per month in establishments with 20 or more employees covered under the EPF & Miscellaneous Provisions Act, 1952. Employees earning more than ₹15,000 per month can opt in voluntarily. The employee contributes 12% of basic salary and the employer contributes a matching 12% — of which 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% to the EPF. New employees can be registered via the EPFO portal and assigned a UAN (Universal Account Number).

What is the due date for EPF and ESIC payments?

EPF contributions for a given month must be paid by the 15th of the following month. For example, EPF for the month of April must be deposited by 15th May. ESIC contributions must also be paid by the 15th of the month following the contribution period. Late payment of EPF and ESIC attracts damages and interest — EPF interest is levied at 12% per annum and damages can range from 5% to 25% of the delayed amount depending on the duration of delay.

What is Form 16 and when must it be issued to employees?

Form 16 is the TDS certificate issued by an employer to an employee certifying the total salary paid and TDS deducted during the financial year. It consists of Part A (details of TDS deducted and deposited, generated from TRACES) and Part B (detailed salary computation and deductions claimed by the employee). Form 16 must be issued by the employer to all employees from whom TDS was deducted by 15th June of the assessment year (e.g., by 15th June 2026 for FY 2025-26). Employees need Form 16 to file their income tax returns accurately.

How do you handle payroll for employees in multiple states?

For businesses with employees across multiple states, payroll compliance becomes significantly more complex — as professional tax rates, slabs, and filing requirements differ by state, and ESIC applicability depends on the establishment's registered location. We manage multi-state payroll centrally — computing state-wise professional tax for each employee based on their work location, filing separate PTRC returns for each state in which the company has employees, and maintaining ESIC compliance for each covered establishment location. All processing is coordinated through a single, centralised payroll report.

What documents do you need from us each month to process payroll?

Our standard monthly payroll inputs include: (a) attendance and leave data for all employees (days worked, leaves taken, overtime if applicable), (b) any changes in salary structure, new joiners, or resignations during the month, (c) variable pay or incentive amounts payable, (d) reimbursement claims to be processed with salary, and (e) any court orders or salary attachment notices received. We provide a standard monthly payroll input template that makes submissions quick and consistent, typically requiring less than 30 minutes of your team's time each month.

Accurate, On-Time Payroll — Every Month Without Fail

Complete payroll management with PF, ESIC, TDS, and professional tax compliance for businesses across India.

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