Payroll Management Services: Accurate Salary & Compliance
Expert salary processing (10-500+ employees) with PF/ESI deductions, statutory remittance, digital payslips. Accurate, on-time, audit-ready. 500+ companies.
Our pricing is being updated
We are revising our fees and the new prices will be published shortly. Until then, our team can share a current quote for your business on WhatsApp or over a call on +91-9640290977.
What Changed in 2026
TDS codes and statutory deadlines for FY 2026-27
New TDS minor-head payment codes apply from FY 2026-27. Salary TDS challans must use the updated codes; an old code can trigger a mismatch in the employee's Form 26AS. See [the new TDS payment codes for FY 2026-27](/blog/new-tds-payment-codes-fy-2026-27-india).
Statutory deadlines are unchanged but strictly enforced. Deposit salary TDS by the 7th of the following month, file Form 138 (old Form 24Q) each quarter, and confirm current PF, ESI, and state professional tax rates before each payroll run. We track these dates for every client so nothing slips.
What Is Payroll Management?
Definition
Payroll = complete monthly salary processing including:
- Salary calculation (basic + DA + HRA + allowances)
- Deductions (PF, ESI, TDS, professional tax)
- Net salary payment
- Statutory remittance (PF to EPFO, ESI to ESIC)
- Payslip generation
- Compliance reports
Key Statutory Deductions
PF (Provident Fund): 12% employee + 12% employer deduction
ESI (Employee State Insurance): 0.75% employee + 3.25% employer
TDS (Income Tax): Based on salary & deductions
Professional Tax: State-specific rates
Step-by-Step Monthly Payroll Process
Step 1: Attendance & Allowances (Monthly)
Collect attendance, overtime, bonuses, allowances from department heads
Step 2: Salary Calculation (Before month-end)
Calculate basic, HRA, deductions, net salary for each employee
Step 3: Bank Transfer (Within 5 days)
Process bulk salary payment via NEFT/RTGS
Step 4: Statutory Remittance (Within deadline)
Pay PF to EPFO by 15th, ESI to ESIC by 15th, TDS by 7th of next month (30th April for March)
Step 5: Payslip Generation (Immediately)
Generate & distribute digital payslips to employees
Payroll Compliance Checklist
| Compliance Item | Frequency | Deadline | Penalty if Missed |
|---|---|---|---|
| PF Contribution | Monthly | 15th next month | Interest + damages (Code on Social Security, 2020) |
| ESI Contribution | Monthly | 15th next month | Interest + damages under ESI law |
| TDS Payment | Monthly | 7th next month (30th April for March) | Interest 1%/month if not deducted, 1.5%/month if deducted but not paid (Sec 398(3)) |
| Form 138 (old Form 24Q) Q4 | Yearly | 31st May | ₹200/day, capped at TDS amount (Sec 427) |
| Form 130 (old Form 16) and Form 123 (old Form 12BA) to employees | Yearly | 15th June | ₹500/day, capped at TDS amount (Sec 465(2)(g)) |
Frequently Asked Questions
How is salary calculated with PF/ESI?
Gross salary minus employee PF (12% of basic + DA), employee ESI (0.75% of gross, only if gross is Rs 21,000 a month or less), TDS and professional tax gives net salary.
What's the PF employer contribution?
Employer contributes 12% of basic + DA (HRA is excluded): 8.33% goes to the pension scheme (EPS) on wages up to Rs 25,000 (from 17 September 2026; earlier Rs 15,000), and the rest to EPF. The employer also pays EDLI (0.5%) and admin charges (0.5%). The employee's 12% is deducted from salary.
Do I need to manually calculate payroll?
We automate everything. Just share attendance & allowances. We handle calculations & remittance.
What if an employee's PF is not credited?
EPFO sends notice. We track all contributions and follow up on discrepancies.
Can you handle ESI compliance?
Yes. ESI registration, monthly contributions, employee benefits tracking all covered.
How do employees access payslips?
Digital payslips generated monthly. Employees access via email or payroll portal.
Can you handle year-end Form 16?
Yes. We file the Q4 TDS statement (Form 24Q, now Form 138) by 31 May and generate Form 16 (now Form 130) for all employees by the 15 June statutory date.
What if an employee leaves mid-month?
We calculate pro-rata salary, full & final settlement, issue relieving letter.
Do you handle reimbursements?
Yes. Medical, travel, other reimbursements tracked separately from salary.
When is the Form 16 deadline and why does it matter?
Employers file the Q4 Form 24Q by 31 May and must issue Form 16 by 15 June following the financial year end, so 15 June 2026 for FY 2025-26. Employees need it to file their ITR by 31 July. A late Form 16 pushes employees past that date, where a belated return under Section 139(4) carries a Section 234F fee of ₹5,000, reduced to ₹1,000 if total income is up to ₹5 lakh, plus Section 234A interest. Late issue also costs the employer ₹500 per day per certificate (capped at the TDS amount) under Section 272A(2)(g). Tax Garden issues Form 16 ahead of the 15 June date every year.
Why Hyderabad Companies Choose Tax Garden for Payroll
Serving startups (10 employees) to enterprises (500+ employees) with carefully reconciled payroll. Diligent statutory compliance for growing teams in HITEC City, Gachibowli, Financial District.
Related Resources
Why Tax Garden for Payroll?
Carefully reconciled salary processing
Automatic PF/ESI deductions & remittance
Diligent statutory compliance
Digital payslips to employees
Form 16 & annual compliance
Employee self-service portal
Scalable (10-500+ employees)
Dedicated payroll manager
Questions? Our team is here to help.