Automated Payroll Management

Common questions

Frequently asked

What is included in the monthly payroll run?

The monthly engagement covers: computation of all salary components (basic, HRA, DA, special allowance, variable pay), generation of the bank transfer instruction file, preparation and filing of PF ECR, ESI challan, TDS challan (ITNS 281), and PT challan, and issuance of password-protected salary slips to employees. Quarterly Form 24Q TDS returns and annual Form 16 generation are included in the annual scope. Full & Final settlements are processed as exits occur.

When are PF and ESI challans due each month?

PF contributions (employer and employee combined) must reach the EPFO by the 15th of the following month. ESI contributions are also due by the 15th. TDS deducted from salaries must be deposited by the 7th of the following month (or the 30th for March). Professional Tax due dates vary by state — for Punjab and Haryana, it falls on the 15th. Missing these deadlines triggers damages under Section 14B (PF) and 7Q (ESI), which compound at 12–25% per annum and can lead to prosecution.

How does CTC restructuring reduce an employee's tax liability?

Many employers load CTC with a high Basic Pay, which maximises PF liability and minimises take-home. Restructuring to the new Wage Code — calibrating Basic to the statutory 50% floor, allocating the remainder to HRA (40–50% of Basic), LTA, food coupons, and transport — can reduce an employee's annual tax by ₹20,000 to ₹80,000 in the ₹8–15 lakh income band, at no additional cost to the employer. The restructuring must satisfy the Wage Code's Basic floor while remaining Income Tax Act-compliant.

Is Full & Final settlement processing included in the engagement?

Yes. F&F processing covers earned leave encashment (based on leave policy and last drawn Basic), gratuity for employees with five or more years of service under the Payment of Gratuity Act, notice pay recovery or payout, and variable pay adjustments. We handle TDS on the F&F payout and issue Form 16 for the part-year of service. Settlement computation is delivered within 24 working hours of receiving the exit date and attendance data.

At what headcount do PF and ESI registration become mandatory?

EPFO registration is mandatory once an establishment employs 20 or more persons. ESI registration triggers at 10 employees for most establishments. Once registered, coverage extends to all employees earning below the threshold: ₹15,000 per month for PF, ₹21,000 per month for ESI. Headcount includes contract workers, and both thresholds once crossed are permanent — the obligation does not lapse if headcount later falls below the threshold.

We currently run payroll in Excel. How does the transition work?

The transition is managed through a parallel-run month: we reproduce the last three months of your payroll in the new system and reconcile to your existing registers before go-live. This validates the employee master, salary structures, and leave balances. The typical transition period is six to eight weeks. We handle data migration, configuration, and testing — you review and approve reconciled output before the new system takes over.