Do you pay penalty for not adhering to the statutory norms properly? Are you not satisfied with your current team for statutory compliance and payroll management? Is your organization facing trouble to deal with payroll related legal frameworks? No need to get worried about this as long as there are top class payroll and statutory compliance services in the market. Note that every single company, big or small, is abide by certain state and central labour laws of the country, failing which may result into heavy penalties. Hence, it is quite suggestible to pay an extra heed towards all the statutory requirements that are meant for proper functioning of companies’ payroll.
Take out some time from your busy schedule and do online research to shortlist some highly reputed consultants for statutory and payroll management services. Choosing the most competent firm to handle these services for your company is something that unburdens you from keeping the updates of legal regulations pertaining to payroll. Not only this, your company would also be in the safe zone and need not to pay any kind of penalty from time to time. Let’s discourse about the checklist that the firms follow to set you free from any kind of penalty:
Adhering to the laws of minimum wages
The Central and State Government have fixed the rates of minimum wages on the basis of sector, employee’s experience and type of occupation under Minimum Wages Act, 1948. As per this law, the employers are obliged to fix the wage period( daily, weekly or monthly) and pay on time at least once a month.
Following the norms of EPFO
As per the EPFO regulations, the employers and employee contribute on monthly basis in the form of Provident Fund. The company is supposed to be registered for Provident Fund if the number of employees is 20 or more. In case, the organization fails to follow this norm, the penalty would be levied.
Sticking to the regulations of ESIC
Under ESIC health security scheme of the Government, all the employees and their dependents will get the benefit. The companies need to be registered under Employees’ State Insurance Corporation Act if they possess more than 20 employees with monthly gross salary of 21,000.
Abiding by the laws of EDLI
If your company is registered for EPF, Employees’ Deposit Linked Insurance Scheme or EDLI will be applied and as an employer, you need to pay 0.5% of employees’ wages for this scheme. Here the employees are exempted from contributing anything. The maximum amount of contribution by the employer should be 6500/-.
Inclusion of Gratuity to employees’ CTC
As per the Gratuity Act 1972, all the companies, organizations, NGOs, educational institutes etc with number of employees 10 or more are liable to contribute some fixed amount as the gratuity. This would be considered as the part of employees’ CTC and any deviation from this norm may lead to heavy penalties.
Complying with the regulations of TDS deductions
Every employer will have to ensure the deduction of TDS from the employees’ payment if they are eligible for Income Tax. As per the TDS rule in Income Tax Act 1961, the deductions are supposed to be made before the final payment is credited, failing which may levy penalties.
Count upon the competency of some efficient statutory compliance and payroll service providers and streamline various segments of your company like expense management, leave policy, employee self service and much more. Note that they use cutting-edge software to render the best payroll solutions and save your company from various kinds of legal penalties.
