Payroll Accounting
Why your January salary drops, and what to do about it
Nothing went wrong with payroll. Your employer is recovering eleven months of under-deduction in the last three, because the proof…
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Payroll Accounting
Salary structures, TDS on salary, EPF and ESI, and payslips that stand up to an inspection.
Building the salary structure
Basic pay drives provident fund, gratuity and, indirectly, HRA exemption. A structure that pushes everything into allowances lowers today's contributions but weakens the employee's retirement benefit and often fails a PF inspection. Keep the components explainable.
Monthly obligations #
Tax deducted on salary is deposited by the prescribed date of the following month and reported quarterly in Form 24Q, with Form 16 issued after the year end. Provident fund and ESI contributions are filed and paid monthly through the respective portals, and professional tax where the state levies it.
Records that matter #
An attendance and leave register, a payslip for every employee showing each component and deduction, investment declarations collected at the start of the year and proofs verified before the last quarter, and full and final settlement working for anyone who leaves.
What you will need
- Employee master with PAN, UAN and bank details
- Attendance and leave records for the month
- Investment declarations and proofs
- Previous employer salary details for new joiners
- Challans for TDS, EPF, ESI and professional tax
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Payroll Accounting
Why your January salary drops, and what to do about it
Nothing went wrong with payroll. Your employer is recovering eleven months of under-deduction in the last three, because the proof…
Payroll Accounting
Running payroll in India: PF, ESI, TDS and the dates that matter
Payroll is four separate compliance regimes that happen to share a spreadsheet. Each has its own threshold, its own return…