We will handle your payroll process with accurate on time payouts and all compliances under check.
Every employer is required to comply with the laws applicable in relation to the employees hired in their organization. Some of the compliances under such laws are outlined hereunder:
Provident fund (PF)
PF is the fund which is composed of the contributions made by the employee during the time he has served in an organization along with equal contributions made by his employer. It is calculated as a percentage of the employee's salary. Employee's contribution including interest can be withdrawn at any time by the employee or if he continues to be on a break for more than 60 days from the course of employment or can ask for transfer of balance to the current employer. Contribution, if withdrawn within 5 years of continues service, attracts tax. Hence transferring PF balance available is preferred over withdrawal.
In India PF is administered by the Employees' Provident Fund Organization (EPFO) under the Ministry of Labor and Employment. Every establishment employing 20 or more persons is mandatorily required to maintain such fund and comply with all provisions applicable under the Act. Certain periodical returns in respect of the PF contributions made are required to be filed by the employers with the prescribed authorities.
Employees' State Insurance (ESI)
ESI scheme in India is regulated by Employees' State Insurance Act, 1948. It is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependents covered under the scheme. Every employer to whom the ESI scheme is applicable is required to comply with the provisions prescribed therein.
Gratuity is a lump sum payment made by the employer to the employee as a mark of recognition of the services rendered by him when he retires or leaves service after a continuous period of service of at least 5 years. Gratuity is governed under the Payment of Gratuity Act, 1972. The Act is applicable to every factory, shop or an establishment in which ten or more persons are employed, or were employed on any day of the preceding twelve months. Various obligation of the employer have been laid out under the Gratuity Act such as providing a notice of opening of establishment, payment of gratuity upon determination of services of the employee, obtaining insurance as prescribed therein, etc.
Tax Deducted at Source (TDS)
TDS is deducted by the deductor who will deduct payment at source of specified type and remit the same in the account of Central Government on behalf of any other person. It is deducted as a means of indirect tax collection as per the Income Tax Act, 1961. TDS rule directs employers to deduct a certain amount of tax before full payment is made to the receiver / employee. TDS is calculated on Cost to the Company (CTC) slabs. It is mandatory to have TDS deductions before payroll is initiated.