Payroll Reports – Statutory compliance & MIS Reports

The following are the list of compliances required with respect to payroll.

Type of compliance

Deduction

(Employee)

Contribution

(Employer)

Frequency

Coverage

Income tax

(TDS)

Yes

No

Monthly

Slab based- Tax is computed on potential annual earnings and deducted every month

Professional Tax (PT)

Yes

Can pay on behalf of employee

Monthly

Slab based- State levy, which depends on the amount of income earned. Employee contributions are eligible for income tax deductions.

Provident Fund (PF)

Yes

Yes

Monthly

Percentage based- Accumulates to provide a good corpus (with interest) for retirement. Allows an employee to contribute additionally. Employee contributions are eligible for tax deductions.

Employee State Insurance

(ESI)

Yes

Yes

Monthly

Percentage based- Covers eligible employees and family members for medical and hospitalization costs

Labour Welfare Fund

Yes

Yes

Annually

Fixed amount- One-time contribution

Type of compliance

Contribution

(Employee)

Payment (Employer)

Frequency

Coverage

Statutory Bonus

No

Yes

Depends on Company’s policies but to be disbursed once a year

Percentage based- Depending on the profitability of the organization. Payable to eligible employees only

Gratuity

No

Yes

One time

Percentage based- Payable only upon completion of 5 years AND upon conclusion of employment contract

Maternity Bonus

No

Yes

One time

Fixed amount- Payable as and when claimed by the employee in a prescribed form

Similarly, corresponding documents have to be generated concerning the above, either for statutory filings or for internal purposes.

Payslip

A Payslip is a document issued by an employer containing a detailed breakdown of monetary components of the employee's salary. For further information, refer our article Payslip (provide a link to our article)

Salary Sheet

A Salary Sheet or Payroll or payroll sheet is a complete list of details of the amounts payable to employees for work done during a particular period. For further information, refer our article Salary Sheet (provide a link to our article)

Muster Roll

A muster roll is an employment attendance register, about a specific worksite; contractor or employer, and a specific period. For further information, refer our article Muster Roll (provide a link to our article)

PF .txt File

In order to generate monthly EPF challans, employers need to upload text files in the EPF portal. The unified PF portal accepts only text files. For further information, refer our article PF .txt File (provide a link to our article)

ESI Excel file

In order to generate monthly ESI challans, employers need to upload excel files in the format specified as per ESI norms. For further information, refer our article ESI Excel file (provide a link to our article)

Form T

A combined Muster Roll-cum-Register of Wages (Form T) is to be maintained by each employer consisting of the workforce's particulars on the payroll; including details of Over Time worked. For further information, refer our article Form T. (provide a link to our article)