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Payroll & Statutory Compliance

Payroll That Is 100% Compliant,
Every Single Month.

Payroll compliance in India involves at least 8 statutory deductions and contributions — EPF, ESIC, Professional Tax, TDS, Labour Welfare Fund, Bonus, Gratuity provision, and MLWF. One error triggers cascading corrections, interest, and penalties. CompliCore's fully managed payroll service ensures every rupee reaches the right authority, on time, every month.

8+
Statutory components handled per payroll cycle
₹0
Payroll penalties incurred post-engagement
₹25K+
Monthly minimum fine avoided per client
48hr
Monthly payslip delivery turnaround
Request Payroll Audit Call +91 7278382506
Payroll statutory compliance documents — CompliCore Advisory
₹0
Payroll
Penalties

5,000+

Employees on CompliCore managed payroll

300+

Client organisations across industry sectors

30+

Years of payroll compliance expertise

100%

On-time statutory challan remittances

India's Statutory Payroll Architecture

Eight Statutory Obligations, One Payroll Cycle

India's payroll framework is among the most layered in the world. Every month, a compliant employer must account for: Employee Provident Fund (EPF) — employer contributes 12% of basic wage (split as 8.33% to EPS, 3.67% to EPF account, plus 0.5% EDLI and 0.5% admin charges); Employee State Insurance (ESIC) — employer 3.25% and employee 0.75% of gross wages for employees earning up to ₹21,000 per month; Professional Tax — slab-based deduction per state, with West Bengal requiring monthly deposit; and TDS on Salary under Section 192 of the Income Tax Act, computed on projected annual income and deposited by the 7th of the following month. On a half-yearly basis, the Labour Welfare Fund requires deduction and remittance, and ESIC returns must be filed. Annually, the Payment of Bonus Act requires bonus payment between 8.33% and 20% of annual basic wages for eligible employees, and gratuity provisions must be maintained for employees with five or more years of service.

The Code on Wages 2019, once fully notified, will fundamentally alter payroll structure by mandating that basic wage is no less than 50% of total CTC. For most organisations currently structured with large HRA, conveyance, and special allowance components, this will substantially increase the EPF contribution base and, consequently, total labour cost. CompliCore has already modelled this impact across our entire client portfolio and has transition plans ready to implement on notification day.

Monthly Payroll Compliance Calendar
7th of next month
TDS (Section 192) Deposit
Monthly salary TDS challan to Income Tax via NSDL/TIN-NSDL
15th of month
EPF Challan Remittance
ECR upload + challan payment via EPFO Unified Portal
15th of month
ESIC Challan Remittance
Monthly contribution challan via ESIC employer portal
Last day of month
Professional Tax Deduction
WB P-Tax deducted from salary and remitted to Commercial Tax Dept
30 Apr / 31 Oct
LWF Half-Yearly Remittance
Employee + employer contribution to WB Labour Welfare Board
15 May / 15 Nov
Half-Yearly ESIC Return
Form 5 / Form 6 filing on ESIC employer portal
Our Services

Every Statutory Payroll Obligation — Managed

Six core service pillars covering the full spectrum of payroll statutory compliance, from monthly challans to annual Form 16 issuance.

Employees' Provident Funds Act, 1952

EPF Monthly Compliance

We manage the complete monthly EPF cycle: computation of wages for each employee, generation and upload of the Electronic Challan-cum-Return (ECR) on the EPFO Unified Portal, challan generation, and payment by the 15th. Contribution split: Employer 12% (8.33% EPS + 3.67% EPF) + employee 12% EPF + 0.5% EDLI + 0.5% admin charges. We also manage PF member passbook reconciliation, employee UAN activation, KYC seeding, and transfer of PF accounts for new joiners and leavers.

Penalty for Non-Compliance

Section 7Q: 12% p.a. interest on delayed payment + Section 14B damages up to 25% of arrears + prosecution under Section 14 (up to 3 years imprisonment)

Employees' State Insurance Act, 1948

ESIC Monthly Compliance

We compute ESIC contribution for all employees with gross monthly wages up to ₹21,000 (employer 3.25% + employee 0.75%), generate the monthly challan on the ESIC employer portal, and ensure remittance by the 15th of every month. We file the half-yearly returns (Form 5 and Form 6) by 15 May and 15 November respectively. We also manage ESIC card generation for new employees, IP number linking, and coordination with ESIC branches for medical benefit queries raised by employees.

Penalty for Non-Compliance

Section 85: Fine up to ₹5,000 + continuing penalty of ₹100 per day of default; recovery as arrears of land revenue from employer's assets

WB Professional Tax Act, 1979

Professional Tax (P-Tax) Returns

We deduct Professional Tax from employee salaries each month as per the West Bengal tax slab: employees earning ₹10,001–₹15,000 pay ₹110/month; ₹15,001–₹25,000 pay ₹130/month; ₹25,001–₹40,000 pay ₹150/month; above ₹40,000 pay ₹200/month. We deposit the collected P-Tax with the WB Directorate of Commercial Taxes within the prescribed deadline and file the employer's annual Professional Tax return (Form V), along with maintaining the deduction register for each employee.

Penalty for Non-Compliance

Interest at 1–2% per month on unpaid P-Tax + late filing penalty up to ₹1,000 + personal liability on the employer/director

Income Tax Act, 1961 — Section 192

TDS on Salary (Section 192)

We compute TDS on salary for each employee every month based on projected annual income, applicable income tax slab, eligible exemptions (HRA under Section 10(13A), LTA under Section 10(5), standard deduction of ₹50,000), and declared deductions under Chapter VI-A (Section 80C, 80D, etc.). TDS is deposited with the Income Tax Department by the 7th of the following month using ITNS 281 challan. We file Form 24Q quarterly returns (Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May) and issue Form 16 to each employee by 15 June.

Penalty for Non-Compliance

Interest under Section 234B/234C + Section 271C penalty equal to TDS amount + prosecution under Section 276B (rigorous imprisonment 3 months to 7 years)

Income Tax Act, 1961 — Annual Compliance

Form 16 & Annual Returns

Form 16 is a consolidated TDS certificate that every employer must issue to each employee by 15 June following the financial year end. Part A of Form 16 contains the tax deducted and deposited with the government (generated from TRACES); Part B contains the detailed salary breakup, exemptions, and deductions. We generate both parts, verify against the Form 24Q returns, and ensure the certificate is accurate and delivered on time. For employees receiving perquisites, we additionally prepare Form 12BA. We also provide ITR filing support coordination for employees who need assistance.

Penalty for Non-Compliance

Section 272A: ₹100 per day of delay in issuing Form 16 + interest liability on employees who cannot file accurate ITR; employer subject to demand and scrutiny

WB Labour Welfare Fund Act, 1974 & Payment of Bonus Act, 1965

Labour Welfare Fund & Bonus Administration

We manage the WB LWF cycle: monthly deduction of ₹3 per employee, employer contribution of ₹6 per employee, half-yearly remittance to the WB Labour Welfare Board (by 30 June and 31 December), and maintenance of Form A (register of contributions). Under the Payment of Bonus Act 1965, we compute the annual bonus liability for all eligible employees (those with wages up to ₹21,000 per month and at least 30 working days in the year), at 8.33% minimum up to 20% of annual basic wages as per the bonus calculation formula, prepare the bonus register, and ensure statutory payment within 8 months of the financial year end.

Penalty for Non-Compliance

LWF: Fine + interest on arrears. Bonus: Section 28 — imprisonment up to 6 months + fine up to ₹1,000; employees can file claims before Labour Court

Our Process

How We Deliver Payroll Compliance Every Month

A five-step monthly cycle that runs like clockwork — from salary inputs to payslip delivery to every statutory challan, on time without exception.

1
Salary Structure Review & Statutory Mapping

At onboarding, we review every existing salary structure — basic, HRA, allowances, LTA, special pay — and map applicable statutes: EPF ceiling, ESIC applicability, TDS bracket, P-Tax slab, Bonus eligibility, and LWF coverage for each employee category.

2
Monthly Payroll Processing & Calculation

Each month we receive the salary input data (attendance, LOP, new joiners, exits, increments, arrears), process the payroll, compute all statutory deductions and employer contributions, generate payslips, and share a payroll register with the client for approval before finalisation.

3
Challan Generation & Portal Remittance

Upon payroll approval, we generate challans for EPF (EPFO Unified Portal, by 15th), ESIC (ESIC portal, by 15th), TDS (ITNS 281, by 7th of following month), and P-Tax (WB CT Dept). Each remittance is confirmed and the acknowledgement receipt is archived and shared with the client.

4
Return Filing & Acknowledgement

We file all periodic statutory returns — Form 24Q (quarterly TDS), half-yearly ESIC returns (Form 5/6), annual P-Tax return, LWF remittance intimation — and obtain and archive acknowledgements for each. Clients receive a monthly compliance confirmation report.

5
Annual Reconciliation & Form 16 Issuance

At financial year end, we reconcile full-year payroll with Form 26AS and TRACES data, resolve any TDS mismatch, compute final tax liability or refund for each employee, file the Q4 Form 24Q, and issue accurate Form 16 (Part A + B) to every employee by 15 June.

Why CompliCore

Three Reasons 300+ Organisations Trust CompliCore With Their Payroll

Zero-Error Payroll Guarantee

Our dual-check process — where every payroll run is independently verified before challan generation — has produced a zero payroll error record across 300+ client organisations over 30 years of operation. Every statutory computation is cross-checked against the source data, the applicable rate schedule, and the previous month's figures. If an error ever occurs, we absorb the cost of correction and the associated penalties — that is the CompliCore guarantee.

Code on Wages Ready

Most payroll vendors are waiting to react after the Code on Wages is notified. CompliCore has already modelled the impact of the 50% basic wage rule on every client's payroll — calculating the projected increase in EPF base, employer EPF liability, EPS liability, and gratuity provisioning. Every client has a transition plan ready to activate. When notification comes, we implement changes from the very next payroll cycle with zero disruption to the client's HR or finance teams.

Employee Query Handling

Payslip queries, PF withdrawal assistance, ESIC card issues, Form 16 clarifications — these consume significant HR bandwidth. CompliCore handles all employee-facing payroll and statutory queries directly through a dedicated contact for each client organisation. Your HR team is never burdened with payroll compliance detail. Employees get accurate, timely answers. And your internal team can focus on people management rather than statutory paperwork.

Free Audit

Request a Payroll
Compliance Audit

We will identify gaps in your current payroll compliance and fix them before penalties hit. Our audit covers EPF, ESIC, TDS, P-Tax, LWF, and bonus — across your entire employee base.

No commitment required — identify gaps before an inspector does
Response within 24 hours on all working days
30+ years managing payroll compliance across West Bengal and India

Request a Payroll Compliance Audit

We will identify gaps in your current payroll compliance and fix them before penalties hit.

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