Post Payroll Processing
Post Payroll Processing
Section titled “Post Payroll Processing”Salary calculation is the biggest step, but several actions remain before a payroll run is complete.
Salary payment
Section titled “Salary payment”Pay the calculated salaries by cash or bank transfer. Bank transfer is safer because it leaves a proof of payment. For cash payments, collect a signed receipt from each employee confirming the amount paid.
Statutory deductions
Section titled “Statutory deductions”Pay the deductions to the government bodies within the prescribed time frames:
- PF and ESI — by the 15th of the following month
- Professional tax — by the date each state prescribes
- TDS — deposited monthly and reported quarterly
See the compliance checklist for the full schedule.
Tax payment
Section titled “Tax payment”Pay the tax deducted from employees to the income-tax department and file the quarterly TDS returns. The deposits reflect in each employee’s Form 26AS, which reconciles the tax deducted against their PAN.
Accounting
Section titled “Accounting”Ensure that all data is entered into respective account heads within your books to ensure clarity and compliance. You will also need to ensure that payroll costs are within budget else discuss with respective departments to understand reason for deviation so that it can be corrected before next month