Zoho Payroll India: Statutory Compliance Checklist
Indian businesses using Zoho Payroll: a complete statutory compliance checklist covering PF, ESI, TDS, professional...
Read articleIndian payroll compliance is a calendar as much as a calculation. Contributions and deductions each have their own registration, rate, wage ceiling, return and deadline, and the rules for professional tax and labour welfare fund change by state. This checklist lists what a compliant payroll cycle covers, without the specific dates and rates, which change and should be confirmed with your consultant.
Quick answer
Every payroll cycle: compute PF and ESI on eligible wages, apply state-specific professional tax and LWF, deduct salary TDS against declarations, generate payslips, deposit each contribution before its due date, file the ECR and other returns, and keep attendance, wage and leave registers ready for inspection. Zoho Payroll automates the calculation and reports; the deadlines still need an owner.
Registrations to hold
- EPF establishment code once employee strength crosses the threshold.
- ESI registration once eligible employees exist in an implemented area.
- Professional tax registration in each state where you employ people, where the state levies it.
- Labour Welfare Fund registration in applicable states.
- TAN for salary TDS.
- Shops and Establishments registration per location.
Every month
| Step | What it involves | Where Zoho helps |
|---|---|---|
| Attendance and leave close | Finalise attendance, overtime, leave without pay and new joiners or exits | Zoho People feeds payroll automatically |
| Salary computation | Earnings, arrears, reimbursements and deductions by structure | Zoho Payroll computes from salary templates |
| PF and ESI | Employee and employer contributions on eligible wages within ceilings | Calculated per statutory rules; ECR file generated |
| Professional tax and LWF | State-wise slabs and periodicity | State rules configured per location |
| Salary TDS | Monthly deduction against declared investments and regime | Declarations in the employee portal; TDS computed |
| Payslips and payout | Payslips issued; salaries paid | Payslips in the app; bank advice file |
| Deposits and returns | Deposit each contribution and file returns before due dates | Challan-ready reports and reminders |
Every quarter and year
Quarterly salary TDS returns, annual Form 16 to every employee, annual returns under state laws where applicable, and year-end reconciliation of contributions deposited against payroll. Zoho Payroll produces Form 16 and the return data; your consultant files.
Registers and records
Attendance, wage, overtime and leave registers, appointment letters, statutory acknowledgements and contract labour records must be available on inspection. Zoho People generates registers from live data. See HR and labour law compliance.
Common mistakes
- Applying one state's professional tax slabs to employees in another state.
- Missing ESI for employees who cross into eligibility mid-year.
- Collecting investment declarations only in March, causing heavy TDS in the last quarter.
- Contract staff attendance kept by the contractor with no company record.
For the full setup, see statutory payroll compliance on Zoho Payroll.
Frequently asked questions
Does Zoho Payroll handle PF, ESI and professional tax?
Yes, with state-specific rules, wage ceilings and the ECR and challan-ready reports needed for deposits and returns.
Who files the returns?
Your payroll consultant or CA files; Zoho Payroll prepares the data and reports.
Can employees declare investments online?
Yes. Declarations and proofs are submitted in the employee portal and TDS is computed monthly.
What about multiple states?
Location-wise professional tax, LWF and ESI applicability are configured, so multi-state companies run one payroll.
