--- title: "Monthly Payroll Processing — PF, ESIC & TDS" url: https://www.anukram.in/payroll-processing.html description: "End-to-end monthly payroll processing at ₹1,999/month. Salary slips, PF (EPF), ESIC compliance, TDS deduction. For companies up to 20 employees. Expert-led." updated: 2026-10-04 source: Anukram, Hyderabad (anukram.in) license: Free to read, quote and cite with a link to anukram.in. General information, not professional advice. --- Payroll & HR Compliance # Monthly Payroll Processing — PF, ESIC & TDS End-to-end monthly payroll for your team. Salary slips, PF (EPF) and ESIC compliance, TDS deduction and computation. For companies with up to 20 employees — fully handled every month. Anukram price ₹1,999/month Others charge ₹3,999/month You save ₹2,000/month [WhatsApp us →](https://wa.me/919631526999?text=Hi+Anurag,+I+need+monthly+Payroll+Processing.) ## Why Outsource Payroll? Payroll compliance involves four different statutory obligations every month — PF, ESIC, TDS, and salary slips. One mistake affects all your employees. 01 ### Multiple Compliance Deadlines PF by 15th, ESIC by 15th, TDS by 7th — every month. Payroll must be processed accurately before these deadlines to avoid interest and penalties. 02 ### Accurate Salary Slips Employees need payslips for home loans, rental agreements, and bank applications. Incorrect slips or missing TDS deductions create personal demand notices for employees. 03 ### Avoid PF/ESIC Inspections Non-deposit or short deposit of PF/ESIC attracts interest, penalty, and departmental inspection — disrupting operations and reputation. 04 ### HR Stays Focused Founders and HR teams focus on hiring and performance while payroll compliance runs on schedule — handled completely by compliance experts. ## Legal Framework Payroll compliance spans four major statutes — all with independent penalty provisions. **EPF & Miscellaneous Provisions Act 1952:** PF contribution mandatory for establishments with 20 or more employees. Employer contributes 12% of basic salary; employee contributes 12%. Deposit due by 15th of each month. Non-deposit: interest 12% p.a. + penalty up to 25% of arrears. **Employees State Insurance Act 1948:** ESIC applies to employees earning ₹21,000/month or below (₹25,000 for persons with disability). Employer: 3.25%; Employee: 0.75% of gross wages. Deposit due by 15th of each month. **IT Act 1961, Section 192:** TDS on salary must be deducted at estimated annual tax rates and deposited by 7th of the following month. Quarterly TDS return (24Q) filed with Form 16 issued annually. **Payment of Wages Act 1936:** Wages must be paid by the 7th of the following month (for establishments below 1,000 employees) or by the 10th (for larger establishments). ## Monthly Payroll Process Full-cycle payroll — from structure setup to statutory filings — handled every month without fail. 1 ### Set Up Payroll Structure (One-Time) CTC breakup designed — basic salary, HRA, allowances, and deductions configured for each employee. Investment declarations collected for TDS estimation. 2 ### Monthly Attendance & Leave Reconciliation Attendance records reviewed. LOP (loss of pay), leaves, and bonuses factored into the gross salary computation for the month. 3 ### Compute Gross Salary, PF/ESIC Deductions, TDS Gross salary calculated. PF (12% employee + 12% employer) and ESIC (0.75% employee + 3.25% employer) deducted. TDS computed on projected annual income. 4 ### Generate Salary Slips for All Employees Detailed payslips generated for each employee showing gross pay, all deductions (PF, ESIC, TDS, professional tax), and net take-home salary. 5 ### File PF (ECR), ESIC Return & Deposit TDS PF Electronic Challan-cum-Return (ECR) filed on EPFO portal. ESIC contribution challan generated. TDS deposited by 7th of next month. All challans shared with employer. ## Documents Required Required once at onboarding, then only monthly attendance updates are needed. - Employee details — name, PAN, Aadhaar, date of birth, date of joining - Bank account number and IFSC of each employee - UAN (Universal Account Number) for PF-registered employees - CTC structure / offer letters for each employee - Monthly attendance records or leave register - Previous month payroll data (for first month onboarding) - Investment declaration forms (Form 12BB) for TDS calculation - EPFO employer credentials and ESIC employer code ## Timeline Payroll by 28th of each month. All statutory deposits completed before their respective due dates. 28th Payroll Processed 7th TDS Deposit Due 15th PF & ESIC Due Quarterly TDS Return (24Q) ## Benefits & Risks ### Benefits of Compliant Payroll - Fully compliant payroll — avoid PF/ESIC inspection and penalty notices - Employees receive accurate salary slips required for loans and rental agreements - TDS deducted correctly — no demand notices on employees at year-end - Monthly statutory filings on time — zero default record - HR and founders free to focus on business instead of compliance deadlines ### Risks of Non-Compliance - Non-deposit of PF: interest 12% p.a. + penalty up to 25% of arrear amount - ESIC non-compliance: employer penalized and employees lose medical coverage - Wrong TDS deduction: employees receive income tax demand notices - Late TDS deposit: interest 1.5%/month from deduction date - All defaults attract potential prosecution under respective Acts ## Related Services [TDS Return Filing₹999](https://www.anukram.in/tds-return-filing.html) [ROC Annual Filing ₹1,499](https://www.anukram.in/roc-annual-filing.html) [Pvt Ltd Registration ₹2,499](https://www.anukram.in/private-limited-company-registration.html) ## Ready to hand off payroll completely? WhatsApp Anurag with your employee count. We'll set up the payroll structure and take over from next month. [WhatsApp us → ₹1,999/month](https://wa.me/919631526999?text=Hi+Anurag,+I+need+monthly+Payroll+Processing.) > Anukram professional fee: INR 1,999 per month. Government fees, stamp duty and taxes are extra where applicable. Contact: WhatsApp +91 96315 26999. --- Page: https://www.anukram.in/payroll-processing.html Contact: WhatsApp +91 96315 26999 | hello@anukram.in | Hyderabad, Telangana, India