Accurate Monthly Payroll & PF/ESI Management | Compliance-First Process
Complete salary processing for 10-500+ employees. Automatic PF/ESI deductions, statutory remittance, digital payslips. ₹3,000-10,000/month. 500+ companies served.
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 generate Form 16 for all employees by 31st May with full accuracy.
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.
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
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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.