Common Payroll Compliance Mistakes Indian Employers Make
The most common payroll compliance mistakes Indian employers make include structuring basic pay too low to reduce PF contribution (now explicitly non-compliant under the Labour Codes), excluding contract workers from PF/ESI when the principal employer remains liable, missing the 15th-of-month PF/ESI deposit deadline, incorrect TDS regime
Read MoreGuide: CTC breakdown Salary Structure in India
CTC (Cost to Company) is the total amount a company spends on an employee annually — including basic pay, allowances, employer PF/ESI contributions, and other benefits — not the amount an employee actually receives in hand. Take-home salary is CTC minus employer-side contributions (which never reach
Read MoreGST Reconciliation in Bookkeeping — Why It Matters
GST reconciliation is the process of matching what’s recorded in your books against what’s actually been filed in your GST returns (GSTR-1, GSTR-3B) and what appears in GSTR-2B (auto-populated Input Tax Credit data from your vendors’ filings). Doing this monthly, rather than only at year-end, catches
Read MoreWhat is a Virtual CFO? Does Your Startup Need One?
A Virtual CFO is an outsourced financial strategy service that provides the analytical and planning work of a Chief Financial Officer — cash flow forecasting, investor-ready reporting, budgeting, and fundraise support — without the cost of a full-time in-house hire. It’s distinct from bookkeeping, which handles
Read MoreIn-House vs Outsourced Accounting — Which Is Right?
Outsourced accounting is generally more cost-effective for businesses under roughly 20-30 employees, since a full-time in-house accountant’s salary and overhead often exceed the cost of an outsourced service handling the same scope. In-house accounting starts making sense once transaction volume, payroll complexity, or the need for
Read MorePayroll Processing Checklist for Small Businesses in India
Monthly payroll processing in India involves collecting attendance and leave data, calculating gross salary and statutory deductions (PF, ESI, TDS, Professional Tax), generating payslips, disbursing salaries, and depositing statutory contributions by their respective due dates — PF and ESI by the 15th, TDS by the 7th
Read MoreNew Labour Codes Employers 2026— What Changed for Employers
India’s four Labour Codes — the Code on Wages, the Code on Social Security, the Industrial Relations Code, and the Occupational Safety, Health and Working Conditions Code — came into effect on 21st November 2026, replacing 29 older central labour laws with a consolidated framework. For
Read MoreProfessional Tax in India — Complete State-Wise Guide
Professional Tax is a state-level tax on employment and trades, deducted by employers from employee salaries and remitted to the state government. Not every Indian state levies it — states like Maharashtra, Karnataka, West Bengal, and Tamil Nadu do, while others like Delhi and Haryana don’t.
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TDS on salary calculation | TDS Section 192 | How to Calculate TDS on Salary
TDS on salary under Section 192 (now under the Income Tax Act 2025, effective 1st April 2026) requires employers to estimate each employee’s total annual taxable income, apply the tax regime they’ve chosen (new regime is the default for FY 2026-27), account for declared deductions, and
Read MoreESI Registration and Compliance in India — Everything Employers Need to Know
ESI (Employees’ State Insurance) registration is mandatory for establishments employing 10 or more persons in most regions — a threshold that has expanded under the new Labour Codes to cover more categories and geographies. It applies to employees earning up to ₹21,000 per month (₹25,000 for
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