Archive for September, 2009

Payroll Calendar (Download) contains a yearly calendar that will help you manage your payroll function by setting reminders for various payouts as well as statutory compliances.

Assuming your salary date as the 7th of every month, which may change from organization to organization, the attached document outlines the cut-off dates every month of statutory compliances (monthly PF, ESI, PT, TDS payments) as well as the cut-off dates for quarterly, half-yearly and yearly return filings.

  • PF – Annual Return Filings
  • ESI – Half Yearly Return Filings
  • TDS – Quarterly Return Filings
  • PT – Annual Return Filings

Download Payroll Calendar for companies in India

As your organization grows, the demands on your operations ensure you hire human resources and pay them salaries based on their responsibilities and deliverables. Salaries may be fixed or based on performance or a combination of both. Additionally you need to conform to various labor laws that ensure employee benefits.

As the number of variables grows each time you are processing salaries, the chances of errors creeping in increase. You need to keep a track of all your employee details, their attendance, Overtime, performance linked incentives, leaves, expense reimbursements as well as various deductions mandated by labor and income tax laws such as PF, ESI, PT, and Income Tax deductions.

Your salary calculations should be efficient enough to provision for any investments that your employees make and which entitle them to various tax exemptions provided by the Government.

The entire process becomes extremely cumbersome and any errors have serious implications in terms of interest and penalties for delayed statutory compliances as well low employee morale.

Eventually every organization outgrows Excel. In fact, it’s never too early to move to an automated payroll system. Below are key advantages that should be the key motivators for you to establish a professional and automated payroll system:

  • Simplifies data entry, saves time and helps reduce errors.
  • Processing payroll becomes fast and easy compared to manual systems; save on time and extra manpower costs
  • Employee Self-help tools helps enhance productivity across the board; employees can view their pay slips, apply for leaves, reimbursements and declare investments without eating into your quality HR time
  • All payroll information remains in one location, giving you extreme control over your payroll systems
  • Auto calculates all deductions related to labor laws and income tax, and ensures you meet all your statutory compliances
  • All government reporting becomes easy, such as filing PF, ESI returns accurately and on time which is India’s first pay-per-use online payroll software helps you automate all your payroll tasks in quick easy steps from employee records, attendance management, salary processing and disbursement, to statutory compliances; at rates which the smallest of businesses can afford.

When you hire employees for your company, it is mandatory to conform to various central and state regulations that ensure employees are well protected and have access to various benefits – from retirement funds, medical insurance, bonuses, to gratuity. Additionally, the government expects you to collect taxes from employees and remit the Tax Deducted at Source on fixed dates. If your hiring needs change as per your business cycles, you may choose to avail of human resources from a labour / manpower contractor. There are regulations that you need to conform to when you hire such contracted labour.

Broadly, whenever you hire employees, statutory compliances (governed by various Central and State Acts) can be categorized into the following groups: (Key Acts are listed within each category)

1) Laws related to wages

  1. The Payment of Wages Act, 1936; The Payment of Wages Rules, 1937; The Payment of Wages (Amendment) Act, 2005
  2. The Minimum Wages Act, 1948; The Minimum Wages (Central) Rules, 1950
  3. The Payment of Bonus Act, 1965; The Payment of Bonus Rules, 1970

2) Laws related to Working Hours, Conditions of Services and Employment

  1. The Factories Act, 1948
  2. The Contract Labour (Regulations and Abolition) Act, 1970
  3. Shops and Establishment Act

3) Laws related to Equality and Empowerment of Women

  1. The Maternity Benefits Act, 1961
  2. The Equal Remuneration Act, 1976

4) Laws related to Social Security

  1. The Workmen’s Compensation Act, 1923; The Workmen’s Compensation (Amendments) Act, 2000
  2. The Employees’ State Insurance Act, 1948
  3. The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952; The Employees’ Provident Fund & Miscellaneous Provisions (Amendment) Act, 1996
  4. The Payment of Gratuity Act, 1972

It is critical that you consult with your Chartered Accountant and/or Labour Consultant to accurately interpret the various laws applicable to your organization before hiring employees.

It is desirable that you move to an automated payroll system, such as,  that gives you the option to auto calculate deductions mandatory as per various labour laws such as PF, and ESI deductions. which is India’s first pay-per-use online payroll software helps you manage all your statutory compliances (PF, ESI, PT, TDS) including monthly deductions and annual filings.