Payroll Processing & TDS Compliance
Run payroll smoothly and stay fully compliant — accurate salary computations, PF/ESI deductions, monthly statutory deposits, quarterly TDS returns (Form 24Q & 26Q), and annual Form 16 generation handled end-to-end.
Once your startup or company begins hiring, payroll ceases to be a simple spreadsheet exercise and becomes a multi-layered statutory compliance mandate. Monthly salaries require accurate computation of Tax Deducted at Source (TDS under Section 192), Provident Fund (EPF), Employee State Insurance (ESIC), and Professional Tax (PT). Calculating or depositing these dues incorrectly triggers penal interest under Section 201(1A), late filing fees of ₹200/day under Section 234E, and employee dissatisfaction.
Our Comprehensive Payroll & TDS Services Include:
- Monthly gross-to-net salary processing, employee reimbursements, and password-protected digital payslip generation
- Provident Fund (PF) and Employee State Insurance (ESI) monthly contribution computation, ECR challan generation, and portal deposit
- TDS computation on employee salaries (Section 192) based on Old vs. New tax regime declarations
- Withholding tax computation on contractor, rent, and professional payments (Sections 194C, 194J, 194I, 194H)
- Quarterly TDS return preparation and e-filing: Form 24Q (Salaries) and Form 26Q (Vendor Payments)
- TRACES portal integration for generating and issuing digital Form 16 (Part A & B) and Form 16A certificates
Overview of Payroll & TDS Compliance
SNB Consultancy acts as your extended payroll and tax compliance office. We run structured monthly payroll cycles, ensure all statutory dues are deposited by their due dates (7th of every month for TDS; 15th for PF/ESI), and file quarterly TDS returns without fail.
Why Disciplined Payroll & TDS Management Matters
| Compliance Factor | Operational Value & Legal Protection |
|---|---|
| Employee Trust & Morale | Accurate, on-time salary disbursements and detailed payslips build team satisfaction and retention. |
| Avoid Penalties under Section 234E | Eliminates mandatory late filing fees of ₹200 per day for delayed quarterly TDS returns (24Q & 26Q). |
| Prevent Penal Interest & Disallowance | Prevents 1%–1.5% monthly penal interest under Section 201(1A) and statutory 30% expense disallowance under Section 40(a)(ia). |
| Seamless TRACES Form 16 Generation | Ensures error-free quarterly filings so employees receive valid Form 16s on time to file their personal income tax returns. |
| Labour Law & PF/ESI Safeguards | Protects enterprise leadership against labor inspections, damages, and penalty proceedings under the EPF & MP Act. |
Key Payroll & TDS Components Handled
| Service Component | Scope of Work & Deliverables |
|---|---|
| Salary Processing & Payslips | Attendance/leave inputs, basic salary, HRA, special allowances, overtime, deductions, and confidential payslip PDFs. |
| PF & ESI Statutory Filings | Monthly wage reporting, Electronic Challan cum Return (ECR) generation, and payment validation on EPFO & ESIC portals. |
| Form 24Q (Salary TDS) | Quarterly return detailing tax deducted from employee salaries, Annexure-II salary breakouts, and chapter VI-A deductions. |
| Form 26Q (Non-Salary TDS) | Quarterly return for TDS on vendor bills, professional fees (194J), contractor payments (194C), and commercial rent (194I). |
| Form 16 & Form 16A Issuance | TRACES-certified digitally signed annual Form 16 for employees and quarterly Form 16A certificates for vendor deductees. |
| Professional Tax (PT) Compliance | State-wise professional tax deductions and periodic return filings as per respective state government slabs. |
Documents & Inputs Required
- Employee Master & Salary Structures: Employee names, PAN numbers, CTC breakdowns, bank account details, and tax regime elections.
- Monthly Attendance & Leave Records: Days worked, unpaid leaves, overtime hours, and variable incentive approvals.
- Vendor Invoices for TDS (Sec 194): Invoices from contractors, consultants, landlords, and service providers for 26Q reporting.
- Portal Credentials: Tax Deduction Account Number (TAN), TRACES login, EPFO, and ESIC credentials.
- Tax Investment Declarations: Proof of employee tax-saving investments (Section 80C, 80D, NPS, home loan interest) under the Old Regime.
Our 5-Step Payroll & TDS Process
- Payroll Setup & Employee Master Alignment: Configure CTC structures, statutory wage thresholds, and tax regime preferences.
- Monthly Payroll Computation: Calculate gross-to-net pay, PF/ESI contributions, and Section 192 TDS deductions based on monthly attendance.
- Client Approval & Payslip Dispatch: Share the payroll register for management sign-off and distribute encrypted payslips to staff.
- Statutory Dues Deposit: Generate payment challans and deposit monthly TDS, PF, ESI, and PT before statutory deadlines.
- Quarterly TDS Filing & Form 16 Distribution: Prepare, validate (FVU), and e-file Form 24Q & 26Q returns, downloading Form 16/16A from TRACES.
Who Needs Outsourced Payroll & TDS Services?
- Scaling Startups & Tech Companies: Needing compliant payroll without adding administrative in-house HR/finance headcount.
- Growing SMEs & Trading Houses: Transitioning from cash/manual salary payments to formal PF/ESI and banked payroll structures.
- Businesses Deducting High Vendor TDS: Managing numerous vendor, consultant, and contractor payments requiring Form 26Q filings.
- Companies Migrating Mid-Year: Onboarding historical year-to-date payroll figures seamlessly without disrupting compliance continuity.
Why Choose SNB Consultancy for Payroll & TDS?
- Accurate & Zero-Disallowance Guarantee: Exact withholding computations prevent Section 40(a)(ia) disallowances in corporate income tax.
- Proactive TRACES & FVU Validation: Error-free return filing using the latest NSDL File Validation Utilities to eliminate CPC-TDS demand notices.
- Full Employee Support: Timely issuance of Form 16 and responsive query resolution for employee tax queries.
- Integrated Virtual CFO: Synchronized with your monthly bookkeeping, accounting ledgers, and annual corporate ITR filings.
Related services
Other Virtual CFO & Compliance services SNB handles.
Automate Payroll Processing & TDS Compliance Today
Partner with SNB Consultancy for accurate payslips, PF/ESI compliance, monthly TDS deposits, and timely quarterly Form 24Q/26Q returns.
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