Payroll Services

Running payroll means more than paying salaries, it means structuring pay correctly, generating payslips, deducting and depositing TDS, PF, ESI, and professional tax, and settling exits on time. Samkhya runs your end-to-end payroll, keeping every pay run accurate and compliant.

Payroll Services: A Detailed Guide

Payroll is the monthly cycle of paying employees and meeting the statutory obligations that go with it. A complete payroll service structures the salary, increasingly so that basic pay and dearness allowance make up at least 50% of the package, in line with the Code on Wages now in force, computes each pay run, and generates payslips. From each salary it deducts and deposits the TDS, PF, ESI, and professional tax, files the related returns, and issues Form 16. It also handles joiners and leavers, including the full-and-final settlement of an exit, now required within two working days. Done well, payroll keeps employees paid correctly and on time and the employer compliant across the income-tax, PF, ESI, and labour requirements, the individual filings of which Samkhya also handles.

Why Outsource Payroll

Outsourcing payroll brings clear benefits:

  • Accuracy: Each pay run is computed correctly.
  • Compliance: TDS, PF, ESI, and PT are all met.
  • Saves Time: It frees the team from a complex monthly task.
  • On-Time Pay: Employees are paid accurately and on time.
  • Right Structure: The salary is structured to the wage rules.
  • Confidentiality: Payroll data is handled with discretion.

What Payroll Covers

A complete payroll service covers:

  • Salary Structuring: Structuring pay to the wage rules.
  • Pay Computation: Computing each month’s payroll.
  • Payslips: Generating payslips for employees.
  • Statutory Deductions: Deducting TDS, PF, ESI, and PT.
  • Deposits and Returns: Depositing and filing each of these.
  • Exits: Handling full-and-final settlements.

What Payroll Involves

Running payroll involves:

  • Employee Data: The salary and details of each employee.
  • Attendance: The attendance and leave for the period.
  • Salary Structure: A structure meeting the wage rules.
  • Deductions: The TDS, PF, ESI, and PT to deduct.
  • Deposits: The deposit of each by its due date.
  • Records: The payslips and registers maintained.

Who Needs Payroll Services

Payroll services suit:

  • Companies and LLPs with employees on the rolls.
  • Startups that want payroll run from day one.
  • Businesses growing their headcount.
  • Employers wanting accurate statutory compliance.
  • Any employer preferring to outsource payroll.

How Payroll Works

A payroll cycle begins with the employee and attendance data for the month and a salary structure that meets the wage rules, with basic and DA at least half the package. Each pay run is computed, applying the TDS, PF, ESI, and professional tax, and payslips are generated. The statutory amounts are then deposited by their due dates, TDS by the 7th, PF and ESI by the 15th, and PT as the state requires, and the related returns filed, with Form 16 issued after the year. Joiners are added and leavers settled, the full-and-final now due within two working days of exit. Samkhya runs this whole cycle, so the employer simply approves the payroll and the rest, payment, deductions, deposits, and filings, is handled.

What Is Needed

For Each Run:

  • The employee master with salary details, and the attendance and leave for the period.
  • Any changes such as joiners or leavers.

For Compliance:

  • The PF, ESI, and PT registration details, and the TAN for TDS.
  • The bank details for salary payment.

Payroll Process

A payroll cycle follows a clear sequence:

  1. Set up the salary structure to the wage rules.
  2. Collect the attendance and changes for the month.
  3. Compute the payroll and generate payslips.
  4. Deduct TDS, PF, ESI, and professional tax.
  5. Deposit each amount by its due date.
  6. File the returns and issue Form 16.
  7. Settle any exits within two working days.

Run Payroll with Samkhya

Running payroll with Samkhya Corporate Services is simple. Just follow these easy steps:

  • Tell us about your team: Share your employees and salaries.
  • We set up payroll: We structure pay and run the cycle.
  • Fill the form: Complete our online form and provide the details.

From there, our team handles the structure, pay runs, deductions, and filings.

Every Month

Payroll is an ongoing cycle:

  • Pay Run: The payroll is run each month.
  • Payslips Issued: Employees receive their payslips.
  • Deductions Deposited: TDS, PF, ESI, and PT are deposited.
  • Returns Filed: The related returns are filed.
  • Exits Settled: Leavers are settled on time.
  • Records Kept: The payroll records are maintained.

Compliance and the Wage Rules

Payroll sits at the meeting point of several statutory obligations, each with its own deadline: TDS deposited by the 7th, PF and ESI by the 15th, and professional tax as the state prescribes, with the related returns and Form 16 to follow. A current consideration is the Code on Wages, now in force, under which basic pay and dearness allowance must be at least 50% of the package, which raises the PF and gratuity base and means many salary structures need revisiting. Exits, too, must now be settled within two working days. A complete payroll service keeps all of these aligned, so the employer meets every deadline without running the cycle in-house. Samkhya also handles each underlying filing, TDS, PF and ESI, and professional tax, as a standalone service.

Payroll Services at a Glance

Element Detail
Salary Structure Basic and DA at least 50%.
TDS Deposited by the 7th.
PF and ESI Deposited by the 15th.
Professional Tax As the state requires.
Year-End Form 16 to employees.
Exit Settled within 2 working days.

Frequently Asked Questions

What do payroll services include?

They include structuring salaries, computing each pay run, generating payslips, deducting and depositing TDS, PF, ESI, and PT, filing the returns, and settling exits.

Why outsource payroll?

Outsourcing keeps each pay run accurate and every statutory deadline met, frees the team from a complex monthly task, and ensures employees are paid on time.

What is the 50% wage rule?

Under the Code on Wages now in force, basic pay and dearness allowance must be at least 50% of the package, which affects PF and gratuity and often requires salary restructuring.

Which deductions does payroll handle?

Payroll handles TDS, provident fund, employees’ state insurance, and professional tax, depositing each by its due date and filing the related returns.

How quickly must an exit be settled?

Under the labour codes, the full-and-final settlement of an employee’s exit must now be made within two working days.

Does Samkhya also handle the individual filings?

Yes. Besides full payroll, Samkhya handles each underlying filing, TDS, PF and ESI, and professional tax, as a standalone service.