We assist you with payroll management in the following ways:
We provide guidance on how to organise employee salaries and prepare employment contracts.
We keep track of all leaves taken, absenteeism, bonuses, and increments.
We will prepare employee payslips and income tax returns on a monthly basis.
Our team of accounting professionals and payroll specialists work closely to calculate and manage your organisation’s payroll by providing:
A flexible and fixed schedule:
Classify employees on the basis of
Terms of Compensation:
To keep a tab on
At Vakilsearch, our chartered accountants and accounting & taxation experts will take care of your end-to-end payroll processing and compliances in the most efficient way. Our payroll services cover the following:
Designing CTC Structure:
CTC or cost to the company is the total salary package the company pays to an employee directly or indirectly. CTC is inclusive of basic pay, allowances, reimbursements, gratuity, annual bonus, annual variable pay, etc. It may be defined as
CTC = Gross Salary + PF + Gratuity.
Labour law in India governs employers, employees, and trade unions, with a primary focus on the protection of employee rights. All organisations in India are required to adhere to various statutory compliances as set by different acts of the labour law.
All employers are required to file EPF returns on a monthly basis by the 25th. In the event of labour non-compliance, a company may be penalised or its officials may be imprisoned for a period of up to three years. At Vakilsearch, our legal professionals can identify the labour compliance that is applicable to your business and offer you the right guidance. We also ensure timely mandatory labour compliance filings are executed without delays.
Tax Planning for Employees:
Planning of tax payments is essential for salaried individuals as it helps save on taxes. Depending upon your business entity, employees’ designations, and salary components, our taxation professionals can offer the best advice on tax savings in line with the latest amendments and rules.
TDS Deduction and TDS Compliance:
According to the Income Tax Act, every earning individual or company making payments like salary, commission, interest, etc. are required to deduct a percentage before paying the full amount. This is tax deducted at source or TDS.
Setting up of a Reimbursement:
Reimbursement is the amount paid for costs incurred. Some organisations pay the employees back for business-related travel expenses, medical allowances, food and entertainment expenses, etc.
Right from reporting claims to reimbursements, Vakilsearch’s skilled professional help includes your companies’ reimbursement policies. If you want to define reimbursement as part of your employees’ salaries, then we can design the salary structure in a way to ensure all tax compliances are fulfilled (online salary slip generator).
Drafting Employment Agreements:
An employment agreement lays down the conditions of employment and the rights, responsibilities and obligations of both parties during the tenure of employment. This agreement also helps employees in getting a fair understanding of the job responsibilities and the expectations of the company. In addition, it serves as proof in the event of a dispute or misunderstanding among both parties.
Vakilsearch’s legal documentation specialists are adept at creating employment contracts for your consultants, freelancers, part-time, full-time, and contractual employees.
Drafting Your HR Policy:
Every company functions on the basis of certain guidelines, which are set by the top management and the HR team. These guidelines may include the code of conduct for employees, their duties and responsibilities, the company’s obligation towards the workers, discrimination policies, what activities are considered offensive by the company, employee benefits, disciplinary actions, etc.
Our experts will give you the soundest policies for your industry based on our vast experience and learnings from operating within so many different industries and sectors.
Drafting Leave Policy:
Leave policies are regulated by the state legislations’ Shops and Establishments Act and Factories Act as applicable. Generally, all state legislations hold a common provision where they provide seven holidays for national days and festivals. Hence, it is at your discretion to fix the number of leaves and our lawyers will help you frame it better.
Planning Increments and Appraisals for Employees:
Performance appraisals and salary hikes motivate your employees to perform to the best of their abilities. Appraisals provide them with comprehensive, honest feedback on their strengths and scope of improvement. We can assist you in planning out how to assign increments and appraisals to employees.
Payroll management is the process of keeping track of an employee's earnings, wages, net pay, tax deductions, incentives, and other statutory obligations such as PF (Provident Fund) and ESI (Employees' State Insurance). An effective payroll management system guarantees that employees are paid on time, which reflects well on the company's financial soundness and eliminates the possibility of legal ramifications. As a result, the company's morale remains high! Every business, whether small, medium-sized, or large-scale, requires a payroll administration system.
A reliable payroll system that complies with both payroll and labour standards is required for a successful payroll process. Here are some of the benefits of our complete payroll management system:
Improve employee morale: If your employees believe their position is unstable and they are not paid on time, they may begin to hunt for work elsewhere. A Payroll Management system will take care of any last-minute difficulties or manual errors, ensuring that your employees' morale remains high.
Lower tax bills: Managing all of your employees’ records can be difficult and mishandling them can prove to be a nightmare. Throw in compliance issues to the mix and you might find yourself paying fines if you aren’t very careful about all of this.
Easy tax filing and reporting: Payroll software prevents tax mismanagement, which could result in penalties for employees. It also handles all of the company's compliance and legislative needs, making tax filing a breeze.
Beneficial to new startup owners: As a new startup owner, you will already have too many things going on. Instead of adding payroll management to your list of tasks, you can now manage your company's finances with established management software.
Economical and time-saving: Payroll software is typically designed to work with an existing accounting system. This saves time and money for companies when calculating large volumes of data. Rather than outsourcing your payroll, keeping it in-house will save you a lot of money. You'll also have more control over your finances.
Vakilsearch’s double benefit: With other services, you might get great payroll management software. With Vakilsearch, you get double the benefit: high-end payroll management software + legal expertise. We can not only take care of your payroll but have dedicated CAs and taxation experts who can help with end-to-end compliance.
Payroll earnings are amounts paid to employees in the form of various salary components such as basic pay, house rent allowance, sales incentives, etc.
Payroll deductions are amounts deducted from an employee’s salary (or earnings) by the employer for things such as government taxes and employee benefits programs.
Variable pay, often known as pay for performance or risk pay, is a type of remuneration that, unlike fixed pay, must be earned every time. Variable pay is not promised and is only paid if individual employees, teams, or the organisation meet particular qualitative or quantitative goals.
Cost to Company (CTC)
Cost to company is the total cost of monetary & non-monetary benefits that an employer incurs on an employee during one year.
Basic salary or basic pay is the first and core component of your salary structure and a lot of other salary components such as HRA, Provident Fund, Gratuity, ESIC, etc. are calculated as % of basic pay. e.g. Provident fund at 12% of basic pay is deducted from salary.
Leave Travel Allowance (LTA)
Leave travel allowance or leave travel concession, is a salary component that companies include in the CTC of employees to help them save tax on the amount spent on travelling within India when they are on leave from work.
Medical allowance is a fixed allowance paid by an employer to an employee in form of a monthly salary and employees are not required to submit any proof for getting the medical allowance.
Incentive pay is the extra payment given to employees for achieving pre-defined goals or targets and is directly linked to an employee’s individual performance on the job.
Gross salary is the total salary that a company actually pays to an employee, before any deductions.
Take-home pay, in-hand salary, or net pay, is the final salary that you get in your bank account (or through cheque or cash).
Paid leaves are the type of leaves from work during which you receive your normal salary.