What is payroll?
Reviewed by Ranga & Company
Payroll: Payroll is the process of calculating and paying employee salaries, including deductions for TDS, provident fund and ESI, and filing the related statutory returns.
At a glance
- TDS on salary
- Section 192; quarterly Form 24Q; Form 16 by 15 June
- EPF
- 12% of basic wages each from employee and employer; 20+ employees
- ESI
- 0.75% employee, 3.25% employer; wages up to ₹21,000 a month
- Professional tax
- Not levied in Rajasthan
- Payment deadlines
- EPF and ESI by the 15th of the next month; TDS by the 7th
Monthly payroll checklist
- Record attendance, leave and new joiners or exits
- Calculate gross salary, then PF, ESI and TDS deductions
- Pay salaries and issue payslips
- Deposit TDS by the 7th, and PF and ESI by the 15th
- File quarterly TDS returns (24Q) and issue Form 16 annually
Rajasthan specifics
Rajasthan does not levy professional tax, so Jodhpur payrolls have no PT deduction, unlike states such as Maharashtra or Karnataka. Labour welfare and shops-and-establishments rules still apply.
Common mistakes
- Late PF or ESI deposits, which attract interest and damages
- Restructuring salary to cut PF in ways the wage definition doesn't allow
- Employers deducting TDS under the wrong regime for an employee
Frequently asked questions
Is professional tax deducted in Rajasthan?
No. Rajasthan does not levy professional tax on salaries.
When is PF registration mandatory?
Once an establishment has 20 or more employees. Smaller employers can register voluntarily.
Who must be covered under ESI?
Employees earning up to ₹21,000 a month in establishments covered by the ESI Act, typically those with 10 or more employees.
Related terms
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