Strategic Capital Solutions

Payroll set-up & Processing

Strategic Capital Solutions

Payroll set-up & Processing

If you are starting or expanding a business in India, you will often need to address personnel-related matters. What obligations must you keep in mind?

Which social security taxes are payable?

What is the withholding tax rate applicable?

Our advisors are here to support you with all the legal aspects you need to consider.

Payroll set-up and Processing

Payroll set-up and management services are very important part of any business entering India.
Our team of specialists at InCorp offers customized solutions to ease the process of the initial payroll set-up in India. This includes guidance and end-to-end support in terms of processes and documentation required across the entire recruitment cycle of an employee to be hired on the payroll of an Indian entity. Along with this, depending on the industry & its norms, our payroll specialists advise on employee policies & code of contact practices, which includes drafting of employee handbook, requisite non-disclosure agreement, confidential and intellectual property assignment agreement.

Our ongoing payroll processing service would include – monthly payroll processing, calculation and payment of statutory dues return filings with respective government authorities, issuance of monthly salary slips, issuance of annual Form-16 and other statutory compliances.

Payroll Processing Services offered by Incorp India

Here are the end to end services offered by our expert team to help you set-up your Payroll in India:

Payroll Processing
Compliance Labor Law Support
Employee Self-Service Portal
Employee Payroll Helpdesk Support

Onboarding and Offboarding
Establishment Compliances
Payroll Labor Law Advisory

Downloadable Content

Comprehensive Guide to Hiring Employees in India

FAQs

What are the benefits of setting up payroll software?

Setting up payroll software provides businesses with greater accuracy and efficiency by automating salary calculations. It saves time and minimizes manual errors. India Company Incorporation (ICI) can assist in seamlessly implementing and configuring the appropriate payroll software tailored to your needs, ensuring a smooth payroll setup and efficient processing.

What documents are required to enable payroll payment?

To enable payroll payment, businesses need to collect and maintain both company-level and employee-level documents to ensure smooth salary disbursal and statutory compliance:
For the Company: PAN, TAN, Provident Fund Registration, Employee State Insurance Corporation Registration, and Shops & Establishment License
For Employees: PAN, Aadhaar, Bank account details, and Proof of address.

Are labour laws uniform across India?

No, labour laws are not uniform across India and vary from state to state. India Company Incorporation (ICI) helps businesses navigate both central and state-specific compliance, ensuring timely registrations and filings

Which labour law registrations are required at the time of incorporation, and which are required after incorporation?

Labour laws registration required during the set-up process of entity include Provident Fund registration, Employees’ State Insurance registration, and Professional tax registration. Registration such as Shop and Establishment, Professional Tax registration for employees, Labor welfare are required after incorporation.

What social security laws are applicable under payroll in India?

In India, social security contributions form a key part of payroll processing and are mandated by law. The major labour laws include:

Provident Fund (PF) : (This mandates contribution from both the employer (12%) and employee (12%) on basic pay and dearness allowance)
Employee State Insurance (ESI): Requires contributions from both the employer and employee, based on specific wage limits. Employees earning monthly upto INR 21,000/- are eligible for the scheme and provides medical coverage for various contingencies.
Gratuity:The same is payable after 5 years of service.
Professional Tax : This is State-imposed tax deducted from salaries.

Is medical insurance mandatory for all employees in India?

Medical insurance is not mandatory for all employees in India; however, under the Employees’ State Insurance (ESI) Act, employers are required to provide medical coverage to employees earning less than ₹21,000. For employees above the threshold offering medical insurance is not legally required, but is commonly provided by employers as part of a competitive benefits package. India Company Incorporation (ICI) can assist in evaluating your workforce's eligibility under ESI, ensuring compliance, and providing tailored solutions to meet your organization’s needs.