Payroll Management Services in India: Process, Compliance & Pricing (2026)
Running payroll isn't just paying salaries on time - it's PF, ESI, professional tax, TDS on salary, payslips, Form 16, and a dozen statutory deadlines every single month. One missed filing and you're staring at penalties. This guide covers what payroll management includes, the compliance it wraps around, and how KanoonPe runs it for you/month, all-inclusive.
Quick summary
- What it is: End-to-end salary processing plus statutory compliance (PF, ESI, PT, TDS) for your employees.
- Governed by: EPF Act 1952, ESI Act 1948, state Professional Tax Acts, and Section 192 (TDS on salary) of the Income Tax Act, 1961.
- Needed by: any business with salaried employees, from a 2-person startup to a growing team.
- KanoonPe price: Flat, all-inclusive quote - request a free callback.
Quick facts
| Detail | Information |
|---|---|
| Governing laws | EPF Act 1952, ESI Act 1948, state PT Acts, Income Tax Act 1961 (Sec. 192) |
| Authorities | EPFO, ESIC, state Professional Tax department, Income Tax Department |
| Core deliverables | Payslips, salary registers, PF/ESI/PT challans, Form 16, TDS returns |
| Frequency | Monthly processing; annual Form 16 and returns |
| KanoonPe price | Flat, all-inclusive quote - request a free callback |
| Who needs it | Startups, SMEs, and companies with any number of salaried staff |
What is payroll management?
Payroll management is the process of calculating employee salaries, deducting statutory contributions and taxes, and filing the related compliances every month - covering Provident Fund (PF), Employee State Insurance (ESI), Professional Tax (PT), and TDS on salary under Section 192 of the Income Tax Act, 1961.
Beyond just running numbers, payroll management includes generating payslips, maintaining salary registers, computing full-and-final settlements, issuing Form 16 at year-end, and staying current with changing statutory rates and slabs - so your team gets paid accurately and your business stays compliant.
Who needs payroll management services?
- Startups hiring their first employees who don't yet have an in-house HR/payroll function.
- SMEs where the founder or a single accountant currently handles payroll manually and needs it professionalised.
- Growing companies crossing PF (20+ employees) or ESI (10+ employees, wage-based) thresholds and needing structured compliance.
- Businesses with contractual/variable pay structures needing accurate TDS computation each month.
- Companies undergoing audits or fundraising that need clean, auditable payroll records.
Benefits of professional payroll management
- Statutory compliance handled end-to-end - PF, ESI, PT and TDS filed on time, every time.
- Accurate, error-free salary processing - no manual calculation mistakes on deductions or overtime.
- Employee trust - timely, transparent payslips and Form 16 build credibility.
- Frees up founder/HR time from repetitive monthly admin work.
- Audit-ready records - salary registers and challans organised for statutory or investor due diligence.
- Avoids penalties for late PF/ESI deposits or incorrect TDS deduction.
What's included in KanoonPe's payroll management
Salary processing
- Monthly salary computation (gross to net), payslip generation, and salary register maintenance
Statutory compliance
- PF computation and challan filing (if registered) - see PF Registration
- ESI computation and challan filing (if applicable) - see ESI Registration
- Professional Tax deduction and return filing - see Professional Tax Registration
- TDS on salary (Section 192) computation and deposit
Year-end compliance
- Form 16 generation and issuance to employees
- Annual TDS return (Form 24Q) filing
- Full-and-final settlement processing for exits
Documents required to set up payroll
- List of employees with CTC structure and salary breakup
- PAN and Aadhaar of employees
- PF and ESI registration numbers (or assistance to register, if not yet done)
- Bank account details for salary disbursement
- Attendance/leave records or HRMS access, if applicable
- Prior payroll records, if migrating from another provider
Payroll management process (step by step)
- Onboarding & setup. We collect employee data, salary structures, and existing statutory registration numbers.
- Monthly inputs. You share attendance, leaves, incentives, and any new joiners/exits each cycle.
- Salary computation. Gross-to-net calculation with all statutory deductions applied.
- Compliance filing. PF, ESI, PT challans and TDS deposited within statutory due dates.
- Payslip & register generation. Digital payslips issued to employees; salary register maintained for records.
- Year-end processing. Form 16 and annual TDS returns filed at financial year-end.
Ready to get started? Talk to a verified expert → - get a transparent, all-inclusive quote for payroll management within one business hour.
Payroll management cost in India
Payroll pricing typically depends on headcount and complexity (multiple states, variable pay, contractors).
KanoonPe offers a flat, all-inclusive quote/month, all-inclusive for a base team size, covering salary processing, PF/ESI/PT compliance, payslips, and TDS deposit - one transparent monthly number, no hidden per-filing charges.
Payroll processing timeline (monthly cycle)
| Stage | Typical timing |
|---|---|
| Input collection (attendance, changes) | 1st–5th of the month |
| Salary computation & review | 5th–7th |
| Statutory payments (PF, ESI, PT, TDS) | Before respective due dates (typically 15th/20th/end of month) |
| Payslip issuance | On or before salary disbursement date |
Penalties for payroll non-compliance
- PF late deposit: interest under Section 7Q and damages under Section 14B of the EPF Act.
- ESI late deposit: interest at 12% per annum and penal damages under the ESI Act.
- TDS on salary shortfall/delay: interest under Sections 201(1A) and late filing fee under Section 234E for TDS returns.
- PT non-compliance: state-specific penalties and interest for late deduction or return filing.
Why choose KanoonPe
- Transparent flat pricing - one all-inclusive monthly number, no surprise add-ons.
- Filed-on-time or refund - every statutory deadline ships with a written SLA.
- One accountable case owner - a single named manager runs your payroll cycle.
- Live status tracking - see filing status for PF, ESI, PT and TDS every month.
Trusted by 50,000+ businesses, rated 4.7/5, with 500+ verified CAs, CS and lawyers.