WebSoftOSA monthly payroll compliance checklist for Indian employers
Payroll mistakes are rarely about maths. They are about missed steps. Use this checklist each month and adapt it to the states and registrations you operate in. Rates and ceilings are revised from time to time, so verify the current figures.
Before you run payroll
- Attendance and leave finalised and approved.
- New joiners and exits updated, with joining and last working dates.
- Arrears, bonuses, loan recoveries and reimbursements entered.
- Salary structure changes approved and effective-dated.
Statutory items to check
| Item | What to confirm |
|---|---|
| PF | Employee 12% of PF wages; employer share split between EPF and EPS; wage ceiling treatment as per your policy |
| ESI | Applicability based on gross wage limit; employee and employer contribution rates |
| Professional tax | State-wise slabs and due dates; not applicable in every state |
| TDS on salary | Regime declared by the employee; investment proofs; monthly projection |
After payroll
- Review the variance against last month: new names, big changes, zero or negative pay.
- Generate payslips and the bank transfer file; release after approval.
- File and pay PF, ESI and PT by their due dates.
- Deposit TDS and keep challans for the quarterly return.
- Archive the payroll register and statutory reports.
Common errors to avoid
- Applying one state’s professional tax slab to staff in another state.
- Not updating the employee’s tax regime choice.
- Paying the bank file before the variance review.
- Missing ESI applicability changes when a wage crosses the limit.
Frequently asked questions
Which rates apply to me?
Rates, ceilings and due dates depend on current notifications and your state. Our calculators show the formula used, but confirm with your CA or payroll consultant.
Related resources
PF Calculator
Free PF calculator: compute employee 12% PF, employer EPF 3.67%, EPS 8.33% (₹15,000 ceiling), EDLI and admin charges per month and per year.
Use calculator → Free toolESI Calculator
Free ESI calculator: check ESI applicability (₹21,000 limit) and compute employee 0.75% and employer 3.25% ESIC contribution per month.
Use calculator → Free toolTDS on Salary Calculator
Free income tax and TDS on salary calculator for FY 2025-26: compare old vs new tax regime with standard deduction, 87A rebate, 80C, 80D, HRA and home-loan interest.
Use calculator → Free toolSalary Calculator
Free in-hand salary calculator for India: convert annual CTC to monthly take-home after PF, ESI, professional tax and income tax (new regime FY 2025-26).
Use calculator → GuideHow to run payroll for multiple companies in India
How to run payroll for multiple companies or clients in India: entity setup, state-wise PT and LWF, PF/ESI codes, cost allocation, approvals, bank files and client billing.
Read guide → CompareManual payroll vs payroll software
Compare manual Excel payroll with payroll software: processing time, PF/ESI/PT/TDS accuracy, arrears, bank files, audit trail and compliance risk.
Read comparison →