HR and Payroll
- Art Teacher
- London, UK
- 5-7 Hrs
In any organization, whether a startup, SME, or corporate enterprise, the Human Resource (HR) and Payroll function forms the backbone of effective workforce management. It goes far beyond hiring and salary disbursement, covering crucial processes such as recruitment, onboarding, statutory compliance, attendance, performance tracking, salary calculation, tax deductions, and employee benefits. For businesses, a timely and compliant payroll system not only builds employee trust but also safeguards against penalties under Indian labor laws, including PF, ESI, income tax, and other statutory requirements. With employment laws in India evolving rapidly—covering areas like minimum wages, social security codes, maternity benefits, and gratuity—it has become essential for businesses to align their HR & Payroll systems with legal mandates to ensure smooth operations, compliance, and employee satisfaction.
- Employee master data (name, PAN, Aadhaar, bank details, DOB, DOJ, designation)
- Employment contract or appointment letter
- Attendance and leave records
- Salary structure and CTC breakup
- Income tax declaration and investment proofs
- Bank account details for salary credit
- PF, ESI, and Professional Tax registration numbers
- Bonus, incentives, and reimbursement records
- Exit documents (for full & final settlement)
- Payslip and payroll registers
- Employee Onboarding: Collect and verify KYC, employment documents, and contractual terms
- Attendance Management: Record working days, leaves, holidays using software or manual system
- Salary Calculation: Calculate earnings and deductions (PF, ESI, PT, TDS, LOP, bonus)
- Payroll Processing: Generate payslips, salary sheets, and bank transfer statements
- Statutory Compliance: Deposit and file returns for EPF, ESI, PT, and TDS within deadlines
- Payslip Distribution: Provide monthly salary slips to employees
- Reporting: Maintain payroll register, statutory challans, and compliance reports
- Exit Formalities: Conduct full & final settlement, issue relieving letters, process gratuity
FAQs
Payroll management is legally mandatory for businesses that have employees to ensure compliance with multiple Indian labor laws and tax regulations; it’s not optional for such employers.
Issuing payslips to employees is mandatory as it provides a legal document of salary paid and deductions made under Indian payroll compliance rules.
A detailed CTC breakup is not mandatory in law but wage components must meet statutory compliances.
Bonuses and incentives are treated as part of the employee’s remuneration and must be included in payroll calculations and reported according to the Payment of Bonus Act and Income Tax rules.
Gratuity is mandatory under the Payment of Gratuity Act for employees who have worked for five or more years continuously with the employer.
Minimum wages are legally prescribed by the Minimum Wages Act and vary by state and industry; employers must pay at least the minimum wage applicable to their sector and region.
Non-compliance in payroll can result in penalties, fines, interest on unpaid amounts, prosecution, and reputational damage for the business.