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. ₹3,000-10,000/month. 500+ companies.
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 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 (₹100-1,500/month)
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 by 21st, TDS by 7th of next month
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 + 10% penalty |
| ESI Contribution | Monthly | 21st next month | Interest + 5% penalty |
| TDS Payment | Monthly | 7th next month | Interest + ₹10,000/month |
| Form 16 (Annual) | Yearly | 31st May | ₹100/day |
| Annual Return (Form 12BA) | Yearly | 31st Dec | ₹500/day |
Frequently Asked Questions
How is salary calculated with PF/ESI?
Basic + DA + HRA + allowances - PF (12%) - ESI (0.75%) - TDS - Prof tax = Net salary
What's the PF employer contribution?
Employer contributes 12% of basic + DA + HRA. Employees contribute 12%. Total: 24% deducted.
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.
What's the cost of payroll management?
₹3,000/month (10-25 employees), ₹5,000/month (25-100), ₹10,000+ (100+)
Can you handle year-end Form 16?
Yes. We file the Q4 Form 24Q by 31 May and generate Form 16 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 ₹100 per day per certificate 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.