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Financial year-end pay-roll procedure checklist


Pro Legal HR Outsourcing Processing of Payroll Company Services in Ahmedabad, India, Global and USA. As pay-roll year-end draws near, payroll managers and HR specialists need to prepare for a big annual chore. The Indian pay-roll year-end process is crucial for businesses of all sizes in terms of governance and compliance. After a busy fiscal year, HR managers have a lot on their plates. The pay-roll administration process is far from straightforward, though.


1:- Filing Tax Returns and


The fiscal year cannot end unless your yearly reports for the taxes you collected and the deductions you made from your employees' paychecks are submitted. As the employer processes the monthly salary, TDS would be subtracted. Every quarter, all organizations must submit Form 24Q and deposit the applicable tax. You are able to deduct TDS from employee payments under Section 192. Annexures 1 and 2 are the two components that make up Form 24Q. Each quarter, Annexure 1 has to be submitted. Only the most recent quarter's tax liabilities for all of your workers are included in Annexure 2, which is available for download.


Check to be sure that all of the previous quarters—July through September, April through June, and October through December—have been correctly submitted.


Get ready to submit the latest quarter's TDS calculations, which cover January through March. Remember that May 31 is the deadline for reporting Q4. Consider scenarios where a recalculation is required if the employees' tax declarations and the actual evidence differ.

2: Creating Form 16


The employer provides Form 16, a certificate of tax deduction at source, on behalf of the workers. For different types of deductor-deductee interactions, these certificates provide information concerning TDS. Each taxpayer must receive one of these certificates. The 15th of June is the deadline for workers to generate their Form 16 for the fiscal year. In the same way as TDS returns are filed using Form 24Q, employees should file their tax returns using Form 16.


3:-Deductions from obligated spending


Organizations must close off expenses related to the Provident Fund, Professional Tax, ESI, Labour Welfare Fund (LWF), reimbursements, and other expenses by March 31st. Each month, the employer's withdrawal from the employee's EPF and the employee contribution must be made. The deadline for the annual return is April 25. Make sure there are no outstanding issues or irregularities before closing this by March 31st.


Every two years, all ESI-registered businesses must file their returns. At year's end, they have to provide a list of all the changes they made. They also have to provide the amount of their biannual ESI payment. The periods for contributions are April 1 through September 30 and October 1 through March 31. Contributions must be sent to the ESIC regional commissioner or the nearest branch office. Contributions must be sent in within 42 days at the end of each half-year term. Therefore, ensure that there are no unanswered questions or discrepancies, and take care of this by March 31st.


Pro Legal HR Outsourcing Processing of Payroll Company Services in Ahmedabad, India, Global and USA. According to the regulations of each Indian state, it is your responsibility as an employer to withhold professional tax from employees. However, the exact amount and time of the deduction are limited by state-specific legislation. PT returns must be turned in each month. At the end of the year, all that has to be done is add up all of the submitted returns. Unlike income tax, professional tax (PT) is not applicable in all states and does not follow the fiscal year (FY). It is necessary for organizations to routinely deduct and deposit PT. Pay-roll purposes require that PT calculation and accounting be finished by March 31.


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