Ensure your organization complies with all Indian labor laws and statutory requirements related to payroll.
The Employees' Provident Fund (EPF) is a retirement benefits scheme applicable to organizations with 20 or more employees.
Applicability: Organizations with 20+ employees
Employee Contribution: 12% of Basic + DA (capped at ₹15,000)
Employer Contribution: 12% (3.67% to EPF + 8.33% to EPS)
Due Date: 15th of following month
Returns: Monthly ECR filing through EPFO portal
Automatic PF calculation based on configured rates
Wage ceiling enforcement (₹15,000)
ECR file generation in EPFO format
UAN-based employee mapping
Monthly PF register
Important
Ensure all employees have valid UAN (Universal Account Number). Update UAN in employee master before processing payroll.
ESI provides medical and cash benefits to employees and their families in case of sickness, maternity, or employment injury.
Applicability: Organizations with 10+ employees (20+ in some states)
Wage Ceiling: Employees earning up to ₹21,000 per month
Employee Contribution: 0.75% of gross wages
Employer Contribution: 3.25% of gross wages
Due Date: 15th of following month
Returns: Half-yearly returns through ESIC portal
Automatic ESI calculation for eligible employees
Wage ceiling enforcement
ESI return file generation
Employee-wise ESI register
Professional Tax is a state-level tax on professions, trades, and employment. Rates vary by state.
Applicability: State-specific (not applicable in all states)
Deduction: Based on salary slabs defined by state
Maximum: ₹2,500 per year (varies by state)
Due Date: Varies by state (usually monthly or quarterly)
Maharashtra, Karnataka, West Bengal, Gujarat, Andhra Pradesh, Telangana, Tamil Nadu, Madhya Pradesh, Assam, Chhattisgarh, Meghalaya, Odisha, Tripura
State-wise PT slab configuration
Automatic PT calculation based on gross salary
PT register and challan generation
Annual PT certificate (Form 5)
Employers must deduct income tax from employee salaries based on their income and tax regime choice.
Applicability: All employees with taxable income
Calculation: Based on income tax slabs and regime (old/new)
Due Date: 7th of following month
Quarterly Return: Form 24Q
Annual Certificate: Form 16
Collect employee investment declarations (80C, 80D, HRA, etc.)
Calculate annual taxable income
Apply tax slabs based on chosen regime
Compute monthly TDS
Deduct from salary
Deposit to government by 7th
File quarterly 24Q return
Issue Form 16 annually
Investment declaration module
Automatic TDS calculation (old and new regime)
Monthly TDS register
Form 24Q generation
Form 16 generation
TDS challan preparation
Tax Regime Choice
From FY 2020-21, employees can choose between old tax regime (with deductions) or new tax regime (lower rates, no deductions). Collect employee choice at the beginning of financial year.
Compliance | Frequency | Due Date |
|---|---|---|
PF Payment & ECR | Monthly | 15th of next month |
ESI Payment | Monthly | 15th of next month |
ESI Returns | Half-yearly | Apr-Sep: 11th Nov, Oct-Mar: 11th May |
PT Payment | Monthly/Quarterly | State-specific |
TDS Payment | Monthly | 7th of next month |
TDS Return (24Q) | Quarterly | 31st July, 31st Oct, 31st Jan, 31st May |
Form 16 | Annual | 15th June |
Penalties for Non-Compliance
Late PF Payment: 12% interest + damages up to 100%
Late ESI Payment: 12% interest + penalty
Late TDS Payment: 1.5% interest per month + penalty
Non-filing of Returns: Penalties and prosecution
Always ensure timely compliance to avoid penalties!