Payroll Compliance Services
Payroll is one of the most compliance-intensive functions in a business, intersecting with income tax, provident fund, employee state insurance, professional tax, and labour law obligations. Hegde Hegde and Associates LLP provides payroll compliance services structured to keep payroll processing accurate, timely, and aligned with statutory requirements.
Partner reviewedDocumented processBengaluru office
Why Payroll Compliance Matters
Payroll processing involves multiple statutory obligations administered by different authorities: TDS under the Income Tax Act, contributions under the Employees’ Provident Fund and Miscellaneous Provisions Act, Employees’ State Insurance, Professional Tax, and applicable state-level labour regulations.
An error in payroll tax computation or a missed statutory filing carries direct financial and regulatory consequences. Beyond compliance, consistent payroll processing supports employee trust and reduces the administrative burden on internal HR and finance teams.
Why Businesses Need This Service
- Growing headcount that has outpaced manual or informal payroll processing.
- Statutory obligations under EPF, ESI, Professional Tax, and TDS requiring accurate, timely computation.
- Multi-state operations, where payroll compliance requirements vary by state.
- A need for a payroll compliance practitioner to review existing processes for gaps or exposure.
- Transition from an in-house payroll team to an outsourced, CA-reviewed process.
- Upcoming statutory audit requiring documented payroll records and reconciliations.
Our Approach
- 01
Assessment
Reviewing current payroll structure, employee categories, and applicable statutory registrations.
- 02
Planning
Establishing a payroll calendar aligned with statutory due dates.
- 03
Documentation
Setting up salary structures, statutory registers, and supporting records.
- 04
Execution
Processing payroll, computing statutory deductions, and generating payslips.
- 05
CA Review
Independent review of payroll computations before disbursement and filing.
- 06
Compliance Verification
Checking deductions and filings against EPF, ESI, Professional Tax, and TDS requirements.
- 07
Reporting
Delivery of payroll registers, statutory challans, and management reports.
- 08
Continuous Support
Ongoing monitoring of payroll-related regulatory changes.
Scope of Services
- Monthly payroll processing and payslip generation
- TDS computation and deduction under Section 192 of the Income Tax Act
- Provident Fund (EPF) registration, computation, and filing support
- Employees’ State Insurance (ESI) registration, computation, and filing support
- Professional Tax computation and filing across applicable states
- Full and final settlement processing
- Statutory register maintenance under applicable labour laws
- Payroll reconciliation and management reporting
Business Benefits
- Reduced compliance gaps arising from missed statutory deadlines.
- Improved accuracy in payroll tax computation and statutory deductions.
- Consistent, documented payroll records supporting audit readiness.
- Reduced administrative burden on internal HR and finance functions.
- Clearer visibility into payroll costs across departments and locations.
Why Choose Hegde Hegde and Associates LLP
- CA-reviewed payroll computations, not delegated to unsupervised payroll operators.
- Payroll compliance integrated with our taxation and company secretarial practices.
- Working knowledge of multi-state Professional Tax and labour law requirements.
- Structured documentation standards suited to statutory and internal audit review.
- Consistent, assigned engagement team familiar with the client’s payroll structure.
Industries We Serve
Our payroll compliance engagements support technology and IT services companies, D2C and e-commerce businesses, manufacturing enterprises with factory-floor labour law considerations, and startups scaling their workforce across multiple states.
Technology & IT services
D2C & e-commerce
Manufacturing
Startups & funded ventures
Professional services
NRI individuals
Healthcare
Real estate
Financial institutions
NGOs & trusts
Hospitality
Education
Our Process
Each stage produces a defined deliverable, and nothing is issued to a client before the Chartered Accountant review stage is complete.
- 01
Discovery
Understanding the client’s current payroll structure and statutory registrations.
- 02
Assessment
Reviewing salary structures, employee categories, and applicable compliance obligations.
- 03
Documentation Review
Identifying gaps in statutory registers and supporting records.
- 04
Execution
Processing payroll and statutory computations on an agreed schedule.
- 05
CA Review
Independent review before disbursement and filing.
- 06
Reporting
Delivery of payroll registers and statutory filing confirmations.
- 07
Ongoing Support
Continued monitoring of payroll-related regulatory changes.
Frequently Asked Questions
Statutory obligations such as TDS under the Income Tax Act apply to all employers. EPF and ESI registration become mandatory once employee count and wage thresholds specified under the respective Acts are met.
Payroll tax computation includes TDS deduction under Section 192, Professional Tax where applicable, and employee and employer contributions to EPF and ESI, computed in line with current statutory rates.
Yes. Professional Tax and certain labour law requirements vary by state, and our team accounts for the specific applicable requirements in each state of operation.
Yes. Full and final settlement processing, including leave encashment, gratuity computation where applicable, and final TDS reconciliation, is part of our payroll compliance scope.
Payroll data is handled under restricted access within our engagement team, with documentation and data-handling practices aligned to our internal confidentiality standards.
Discuss Your Payroll Compliance Requirements
Whether you are setting up payroll for the first time, expanding into new states, or reviewing existing payroll processes for compliance gaps, our team is available to discuss your specific requirement.
Content reviewed by CA Ramkumar Hegde, Partner, Hegde Hegde and Associates LLP.