Payroll Compliance Pillar

Payroll Compliance: PF, ESI & Professional Tax

Businesses with employees must manage PF deductions, ESI contributions, Professional Tax, TDS, and Shops & Establishments registration. Late filings attract penalties up to ₹10,000/month. Tax Garden handles all payroll compliance so your team gets paid on time and you stay compliant.

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40%+

Businesses with PF-eligible staff

25%

Avg. payroll filing errors

₹100-₹10K

Penalty per month (late)

8+

States with PT

Payroll Services We Handle

PF (Provident Fund) Management

Monthly PF contributions, ECR filings, annual reconciliation. Applies to 20+ employees.

ESI (Employee State Insurance)

Monthly ESI contributions, monthly return (MR-1), annual reconciliation. Applies to 10+ employees earning < ₹21K/month.

Professional Tax Filings

State-wise PT deductions: Telangana, Karnataka, Tamil Nadu, Maharashtra, etc. Monthly/quarterly filings per state law.

Shops & Establishments Registration

Mandatory registration and annual renewals under state labor laws. Failure to register risks closure.

TDS on Salary

Monthly income tax TDS deductions from salaries. Quarterly TDS return filing (24Q).

Payroll Reconciliation & Audits

Annual reconciliation between books and statutory filings. Support for labor department audits.

Payroll Compliance FAQs

Do I need PF if I have fewer than 20 employees?

PF is mandatory for all businesses with 20+ employees. If you have fewer, you can voluntarily register for PF. ESI is mandatory for 10+ employees earning below ₹21,000/month.

What is Professional Tax and who needs it?

Professional Tax (PT) is a state-level employment tax in states like Telangana, Karnataka, Tamil Nadu, Maharashtra, and others. It applies to both employers and employees. Rates vary by state (₹150-₹2,500/year typically). Check your state's specific rules.

What happens if I miss a payroll deadline?

Late PF filing: up to ₹10,000/month + 12% interest on contributions. Late ESI: up to ₹2,500/month. Late PT: varies by state (₹100-₹500/month typical). Worst case: criminal prosecution, business closure, and employee complaints to labor department.

Can I file payroll returns myself?

Yes, you can file via PF portal (epfo.gov.in), ESI portal (esic.nic.in), and state PT portals. However, most businesses delegate to a payroll service due to complexity and monthly deadlines. Tax Garden handles all filings so you focus on business.

Let Tax Garden Handle Your Payroll Compliance

PF, ESI, Professional Tax, Shops & Establishments. All filed on time, every month. Fixed fee, no surprises.