HR & Payroll Service
Managing HR and payroll efficiently is crucial for any busine
ss, and IndiaFilings simplifies this process with LEDGERS HR
Software an all in one, cloud based payroll software designed to
streamline employee management systems, payroll processing
software, PF and ESI compliance, and automated salary tax
calculation. Whether you're a startup seeking affordable payroll
software for startups or an enterprise requiring advanced HR
management software features, LEDGERS HR Software ensures
accuracy, efficiency, and full compliance with Indian labour
laws, making payroll sea mless and hassle free.
What is HR & Payroll Compliance?
HR & Payroll Compliance involves the accurate processing of
employee salaries, deductions, benefits, and reporting in
accordance with applicable labour laws , tax regulations , and
statutory frameworks in India.
For any organization whether a startup, SME, or large enterprise
non compliance with payroll rules can result in:
- Heavy penalties
- Employee disputes
- Labour law litigation
- Reputational damage AY
AY 2025 26 has brought several important amendments in TDS, PF,
ESI , and gratuity thresholds , making timely payroll compliance
more critical than
Payroll Compliance Checklist – AY 2025-26
| Compliance Item |
Frequency |
Due Date / Rule |
|
Salary Calculation & Payslip
|
Monthly |
As per employment agreement
|
|
TDS Deduction & Deposit
|
Monthly |
By 7th of following month (Section 192)
|
|
TDS Return (Form 24Q)
|
Quarterly |
31st Jul / 31st Oct / 31st Jan / 31st May
|
| Form 16 Issuance |
Annual |
By 15th June 2025 for FY 2024-25
|
|
PF Contribution (EPF)
|
Monthly |
By 15th of following month
|
| ESI Contribution |
Monthly |
By 15th of following month
|
|
Professional Tax (PT)
|
Monthly/Quarterly |
Varies by State (e.g., 20th monthly in MH)
|
|
Labour Welfare Fund (LWF)
|
Half-Yearly |
June & December (varies by State)
|
|
Leave & Attendance Record
|
Ongoing |
Maintain for 5 years minimum
|
|
Employment Agreements
|
At hiring |
Signed & stamped at onboarding
|
What Does Payroll Compliance Include?
| Compliance Area |
Key Inclusions |
|
Payroll Processing
|
Salary computation, bonuses, arrears
|
|
TDS on Salaries (Section 192)
|
Calculation, deduction, Form 24Q, Form 16
|
|
Provident Fund (PF)
|
Employee + Employer contribution, ECR filing
|
|
Employee State Insurance (ESI)
|
Deductions, return filing
|
|
Professional Tax
|
State-wise deduction and payment
|
|
Gratuity & Bonus
|
Compliance with Bonus Act and Gratuity Act
|
|
Labour Welfare Fund
|
Deduction/payment as per state rules
|
|
Leave Encashment, LTA, HRA
|
Tax calculation and declaration verification
|
|
Employment Registers
|
Attendance, wage, muster rolls (for audit/inspection)
|
Payroll Compliance in Different Business Categories
| Category |
Key Considerations |
|
Startups
|
Payroll outsourcing, ESOP taxation, flexible CTC
structures
|
|
SMEs/Manufacturing
|
Shift allowances, wage code readiness, shop floor
compliance
|
|
IT/ITES
|
TDS on remote employees, hybrid work policy formalization
|
|
Contract Workforce
|
CLRA registration, monthly contractor ECR/ESI follow-up
|
Consequences of Non-Compliance
| Non-Compliance Area |
Penalty / Consequence
|
| TDS on Salary |
Interest @ 1.5% p.m. + ₹200/day late fee + penalty u/s
271H
|
|
EPF / ESI Non-payment
|
Damages up to 25% + interest + prosecution in extreme
cases
|
|
Professional Tax Default
|
₹1,000 – ₹5,000 per month (varies by State)
|
| Labour Law Violation |
₹10,000 – ₹1,00,000 + imprisonment (depending on Act and
severity)
|
| No Form 16 Issued |
₹100/day delay under Section 272A
|
Payroll Compliance in Different Business Categories
| Category |
Key Considerations |
|
Startups
|
Payroll outsourcing, ESOP taxation, flexible CTC
structures
|
|
SMEs/Manufacturing
|
Shift allowances, wage code readiness, shop floor
compliance
|
|
IT/ITES
|
TDS on remote employees, hybrid work policy formalization
|
|
Contract Workforce
|
CLRA registration, monthly contractor ECR/ESI follow-up
|
Essential Payroll Compliance Due Dates AY 2025 26
| Compliance |
Due Date |
|
TDS Payment (Salaries)
|
7th of every month |
|
TDS Return (Form 24Q, Q1–Q4)
|
31st Jul / 31st Oct / 31st Jan / 31st May
|
| Form 16 Issuance |
15th June 2025 |
| PF Payment |
15th of every month |
| ESI Payment |
15th of every month |
| Professional Tax |
Varies state-wise (monthly/annually)
|
|
Bonus & Gratuity Payment
|
As per respective Acts within prescribed timelines
|
Documents & Information Required
- Employee master data (PAN, Aadhaar, DOB, bank details)
- Salary structure (CTC components)
- Investment declarations (80C, 80D, HRA, etc.)
- Attendance and leave records
- TDS challans and previous Form 24Q filings
- PF, ESI, PT registration numbers and login credentials
- Any voluntary deductions or advances
How CACSFinacc Simplifies HR & Payroll Compliance
-
Complete Payroll Processing:
-
Salary, tax, bonus, reimbursements, and payslip generation
-
TDS Computation & Filing (24Q):
-
Monthly TDS calculation and quarterly returns with Form 16
issuance
-
PF, ESI & PT Filing:
-
Monthly challan creation, payment, and compliance
documentation
-
Labour Law Registers & Returns:
-
Maintenance of wage, muster, bonus, and overtime registers
-
Audit & Inspection Support:
-
End-to-end assistance during EPFO, ESIC, Income Tax, and
Labour inspections
-
Custom Software Integration:
-
We work with Zoho Payroll, GreytHR, Keka, QuickBooks, and
Tally ERP HRMS
Why Choose CACSFinacc for HR & Payroll Compliance?
-
One-Stop Solution – Payroll, TDS, EPF, ESI,
PT, Bonus, Gratuity – all covered
-
Expert Advisory – Tax-optimized payroll
structuring for different industries
-
Automation Ready – Tally, Zoho Payroll,
GreytHR, RazorpayX, and other tools supported
-
Secure & Confidential – 100% data protection
and employee privacy compliance
-
Monthly HR Reports – HRMIS dashboards,
employee cost analysis, attrition logs
