Expert payroll outsourcing, salary computation, income tax deduction, PF and ESI compliance, professional tax filing, full and final settlement processing, and payroll reporting for businesses of all sizes across India. From employee registration with statutory authorities and monthly payroll processing to Form 16 issuance, labour law compliance, and multi-location payroll management — KDP handles every aspect of your payroll obligations under one roof.
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For any business, a team is its most important asset. And behind every well-functioning team is a payroll system that pays the right people the right amount at the right time, deducts the correct statutory contributions, deposits them with the right government authorities, and does all of this without error, every single month. Payroll is not a background administrative task. It is a compliance obligation that touches the Income Tax Act, the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Employees' State Insurance Act, 1948, the Payment of Gratuity Act, 1972, state-specific Professional Tax legislations, and the Payment of Bonus Act, 1965, simultaneously.
The consequences of payroll errors are not theoretical. Short deduction of TDS under Section 192 of the Income Tax Act triggers demand notices and interest under Section 201. Late deposit of Provident Fund contributions attracts damages under Section 14B of the EPF Act at rates ranging from 5% to 25% per annum. Incorrect ESI deductions expose the employer to prosecution under the ESI Act. Errors in Form 16 issuance create downstream problems for employees filing their individual income tax returns.
At KDP (Kamdar Desai & Patel LLP), our Chartered Accountants and compliance specialists have been managing payroll and statutory HR compliance for businesses across industries since long before payroll software existed. We bring seven decades of tax and compliance expertise to every payroll engagement, combining deep knowledge of applicable statutes with the operational rigour required to ensure that salaries go out on time, statutory payments are deposited without delay, and your payroll records are clean, accurate, and audit-ready at every point in the year.
Payroll outsourcing to KDP is not merely a cost decision. It is a risk management decision. When your payroll is managed by a CA firm rather than an internal administrator, you receive professional accountability, regulatory expertise that keeps pace with every budget change and statutory amendment, and a documented compliance trail that protects your business in the event of a government audit or labour inspection.
Get StartedEnd-to-end computation of monthly gross salary, allowances, deductions, and net pay for each employee, including variable components such as performance bonuses, overtime, and leave encashment.
Monthly computation and deduction of TDS under Section 192, quarterly Form 24Q return filing, and annual Form 16 issuance to all employees.
Monthly PF contribution computation at 12% each for employer and employee, timely deposit with EPFO, and ECR filing. Covers new employee registration and UAN activation.
Monthly ESI contribution computation and deposit with ESIC, half-yearly return filing, and state-specific Professional Tax deduction and deposit across Maharashtra, Karnataka, West Bengal, Gujarat, and all other states.
Computation and processing of full and final settlement for exiting employees, including earned leave encashment, gratuity calculation, notice pay, and TDS deduction on settlement components.
The following categories of businesses benefit most from professional payroll outsourcing to a CA firm with deep statutory compliance expertise.
Foreign companies and multinational subsidiaries operating in India without a dedicated India HR or finance team — needing compliant local payroll managed entirely by a CA firm.
Startups and early-stage companies that need compliant payroll from day one without building an in-house payroll function, keeping overheads lean while maintaining full statutory coverage.
Small and mid-sized businesses whose internal finance teams handle accounting but lack specialist payroll compliance expertise for TDS on salary, PF, ESI, and Professional Tax.
Companies with employees across multiple Indian states, requiring management of state-specific Professional Tax, Labour Welfare Fund, and Shop and Establishment Act compliance across all locations.
Businesses undergoing rapid headcount growth where payroll complexity is increasing faster than internal capacity — needing a scalable, professional payroll infrastructure immediately.
Businesses that have received a statutory notice or audit query related to TDS on salary, PF arrears, or ESI contributions and need to regularise their compliance position urgently.
Our payroll outsourcing service covers every obligation a business faces with respect to Indian payroll and statutory compliance law. Each area is handled by our dedicated team of Chartered Accountants.
Before the first payslip is generated, every new employee must be registered with the applicable statutory authorities and their payroll structure must be correctly designed. We manage the complete onboarding compliance process.
We run the complete monthly payroll cycle for your business, from data collection to final payslip delivery and salary disbursement advice. Every payroll run is reviewed by a qualified CA before payslips are issued.
TDS on salary under Section 192 is the most scrutinised payroll compliance obligation in India. The computation must account for each employee's projected full-year income, all declared deductions under Chapter VI-A, HRA exemption, LTA exemption, and applicable tax-exempt allowances.
PF and ESI contributions must be computed correctly, deposited by the 15th of the following month, and reported through the respective authority portals. Delays and errors attract damages, interest, and inspection liability. We manage the complete monthly cycle.
When an employee leaves, the full and final settlement must be computed accurately and paid within the statutory timeline, failing which the employer is exposed to claims under applicable labour laws. The settlement must also account for gratuity eligibility, TDS on exit components, and PF withdrawal or transfer.
For businesses that have been managing payroll internally and suspect gaps in historical TDS deductions, PF deposits, or ESI contributions, we conduct a comprehensive payroll compliance audit covering the last three years and assist in regularising any identified defaults.
We make onboarding simple. Here is what we typically require from the employer and from each employee to begin processing payroll immediately.
Existing PF and ESI registration certificates from EPFO and ESIC. If not yet registered, KDP manages the complete registration process.
Professional Tax registration certificate if already obtained in applicable states. KDP handles new PT registrations where required.
Existing employee master data — name, date of joining, designation, CTC, bank account, PAN, Aadhaar, and UAN — for all current employees.
Existing salary structure template showing the split of fixed and variable components for each employee grade or individual.
Current month attendance and leave records, and details of any variable pay, bonus, or arrear payments for the first payroll run.
PAN card, Aadhaar card, and bank account details with cancelled cheque from each employee — required for statutory registration and TDS compliance.
Previous employer's Form 16 or salary certificate for mid-year joiners — required for accurate TDS computation on projected annual income.
Form 12BB declaration from each employee for tax-saving investments, HRA eligibility, and LTA claims — used for monthly TDS deduction computation.
Existing UAN of each employee if they were covered under PF in a prior employment — required to initiate PF transfer from previous employer's account.
KDP provides a personalised document checklist after the initial consultation, tailored to your specific business structure, number of employees, and states of operation. For companies with no existing statutory registrations, we handle all registrations as part of the onboarding process before the first payroll run.
KDP manages the entire payroll process on your behalf. Here is exactly how the engagement works from setup to year-end.
We review your existing payroll structure, statutory registrations, and compliance history — identifying any gaps in PF, ESI, PT, or TDS records before the first payroll run.
We create a complete employee master capturing all relevant data — CTC components, statutory identifiers (UAN, ESIC IP, PAN), tax declarations, and bank account details.
Each month, we collect payroll inputs from your HR or operations team — attendance, leave, new joiners, exits, salary revisions, and variable pay — through a standardised monthly input template.
We process the monthly payroll, compute all gross-to-net figures, generate the payroll register, and have the output reviewed by a qualified CA before payslips are finalised and issued.
We prepare all monthly statutory payment challans — TDS by the 7th, PF and ESI by the 15th — and coordinate payment by due date. Quarterly and annual filings are managed within prescribed deadlines.
Finalised payslips are shared with employees through the agreed channel, and monthly MIS reports — payroll register, CTC summary, and statutory payment summary — are shared with your management team.
At the close of each financial year, we manage Form 16 preparation and issuance, annual PF return filing, ESI annual return, and payroll reconciliation with the company's books of accounts.
KDP (Kamdar Desai & Patel LLP) has been managing payroll and statutory HR compliance for businesses across industries since long before payroll software existed. Here is what distinguishes us.
Our CA team has managed payroll and statutory compliance across industry cycles, tax regime changes, and labour law amendments for seven decades. We do not rely on payroll software alone. Every payroll run is backed by CA-level understanding of the underlying statutory framework, which matters when edge cases arise.
Most businesses manage their accounting and payroll through separate service providers, creating coordination gaps that produce reconciliation errors, missed deductions, and inconsistent financial records. KDP manages both accounting and payroll for its clients, ensuring complete consistency between payroll records, TDS accounts, and the company's books of accounts.
Our payroll compliance calendar is managed with statutory due dates built in as hard deadlines, not targets. PF by the 15th, ESI by the 15th, TDS by the 7th of the following month, Form 24Q within the due date for each quarter. Clients do not receive late payment notices or interest demands because of missed deadlines on our watch.
Every payroll client is assigned a dedicated Chartered Accountant as the primary point of contact. Employee tax queries, management MIS requests, and statutory notices are all handled by the same person who runs your payroll, ensuring continuity, accountability, and no information loss in handoffs.
Reach out to our experts today for a personalised consultation. We'll guide you from payroll setup and statutory registration to full monthly processing, Form 16 issuance, and year-end compliance.
Clear answers to the most common queries about payroll outsourcing and statutory compliance in India.
Our payroll outsourcing service covers the complete statutory payroll compliance stack: TDS on salary under Section 192 of the Income Tax Act (including Form 24Q quarterly returns and Form 16 annual issuance), Provident Fund contributions and ECR filing with EPFO, ESI contributions and half-yearly returns with ESIC, and Professional Tax deduction and filing under applicable state legislation. Labour Welfare Fund deductions are also managed where applicable.
TDS deducted from employee salaries must be deposited with the government by the 7th of the month following the month of deduction. For the month of March, the due date is 30 April. Quarterly TDS returns in Form 24Q must be filed by 31 July (Q1), 31 October (Q2), 31 January (Q3), and 31 May (Q4) of the relevant financial year.
PF contributions (employer 12% and employee 12%) must be deposited with EPFO by the 15th of the month following the wage month. ESI contributions (employer 3.25% and employee 0.75%) must similarly be deposited with ESIC by the 15th of the month following the wage month. KDP tracks and meets both deadlines without exception.
ESI is applicable only to employees whose gross monthly salary is up to ₹21,000 (₹25,000 for persons with disability). Employees earning above this threshold are exempt from ESI coverage. The ESI scheme applies to establishments covered under the ESI Act, which covers factories and specified categories of commercial establishments based on employee count and location.
Late deposit of TDS on salary attracts interest at 1.5% per month (or part of a month) from the date of deduction to the date of actual deposit, under Section 201(1A) of the Income Tax Act. Additionally, the employer may be treated as an assessee-in-default and subject to penalty proceedings. KDP's payroll process ensures TDS is deposited by the 7th of every month without exception.
Yes. We manage multi-state payroll for businesses with employees across India, handling state-specific Professional Tax slabs and return filing schedules, applicable Shop and Establishment Act variations, and location-specific ESI establishment coverage. Each state's requirements are tracked separately within the unified payroll output for the business.
Each month, we collect a standardised payroll input file from your HR or operations team containing attendance days, leave taken, new joiners and their CTC details, employee exits and last working day, salary revisions effective that month, and any one-time payments such as bonuses or arrears. We provide the input template, and the entire process from input submission to payslip delivery is completed within the agreed turnaround.
Yes. As part of the year-end payroll compliance process, we prepare and issue Form 16 (Part A and Part B) to all employees by 15 June following the close of each financial year. Form 16 is generated based on the full-year payroll data, TDS deposited, and quarterly Form 24Q returns filed throughout the year, ensuring complete consistency with the employee's Form 26AS and AIS.
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