Best Payroll
Outsourcing Consultant
India — CA-Led 2025
TAXAJ's CA-led payroll outsourcing handles your complete monthly payroll cycle — salary processing, PF/ESI/PT/LWF/TDS compliance, payslip generation, Form 16, F&F settlements, and New Labour Code restructuring. Trusted by startups, SMEs, and multi-state enterprises across Delhi, Bangalore, Goa, and Bihar. No compliance gaps. No penalty risk. On-time salary disbursement, every month.
2025-26 Update — New Labour Codes, Revised ESI Wage Ceiling, TDS Slab Changes, EPFO Automation
New Labour Codes: India's 4 Labour Codes (Wage Code, Industrial Relations Code, Social Security Code, Occupational Safety Code) will consolidate 29 existing labour laws. When implemented, minimum wage definitions, PF calculation bases, and allowance caps will change significantly — salary structures need restructuring. ESI Wage Ceiling: ESI currently applies to employees earning up to ₹21,000/month (₹25,000 for persons with disability). PF Rates: Both employer and employee contribute 12% of basic + DA. New TDS Slabs FY2025-26: Revised income tax slabs under the new regime affect TDS computation and Form 24Q quarterly returns. Professional Tax: PT rates and slabs vary by state — Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Punjab all have different schedules. TAXAJ monitors all changes and updates your payroll in advance of every deadline.
Payroll Outsourcing India — Why CA-Led Is Different from Software-Only Solutions
Payroll outsourcing is the delegation of your company's complete payroll function — from salary computation and statutory deductions to compliance filings and employee payslips — to a professional third-party service provider. In India, payroll is uniquely complex: employers must simultaneously manage Employees' Provident Fund (EPF), Employee State Insurance (ESI), Professional Tax (PT), Labour Welfare Fund (LWF), Tax Deducted at Source (TDS), Statutory Bonus, Gratuity provisioning, and state-specific Shops and Establishments Act compliance — each with different thresholds, rates, due dates, and filing formats. Layer in multi-state operations, frequent regulatory changes, and the forthcoming New Labour Codes, and payroll becomes one of the highest-risk operational functions a business manages.
TAXAJ's payroll outsourcing is fundamentally different from payroll software subscriptions (Zoho Payroll, GreytHR, Keka, Razorpay Payroll) in one critical dimension: CA professional oversight. Our Chartered Accountants own your payroll compliance — not just your data entry. When a new notification changes ESI applicability, when TDS slabs are revised mid-year, when EPFO issues a new circular on PF contribution basis, or when a state government changes PT slabs — our CA team identifies the impact and updates your payroll proactively, before the next processing cycle. We act as your Virtual CFO for payroll, not just a processing vendor.
Who Needs Payroll Outsourcing?
- Startups scaling fast: 10–50 employee companies that don't yet justify a full-time HR/payroll team but need compliant, professional payroll management from day one
- SMEs with multi-state operations: Companies with employees across 3+ states facing state-wise PT, different minimum wage structures, and LWF applicability
- Companies without a dedicated payroll team: Founders or finance heads managing payroll on spreadsheets — creating audit risk and compliance gaps
- Companies that received EPFO/ESIC notices: Businesses that have been penalised for late PF/ESI deposits or filing errors and want to prevent recurrence
- Foreign companies with India subsidiaries: MNC subsidiaries or Indian arms of overseas businesses that need India-compliant payroll with FEMA-compliant salary repatriation
- Companies undergoing New Labour Code restructuring: Businesses that need salary architecture review and restructuring before the new wage definition takes effect
Complete Payroll Management Services — What TAXAJ Covers Every Month
Our payroll service covers the entire monthly payroll cycle. Click a category to see what's included in detail.
💼 Gross-to-Net Computation
Monthly salary calculation from CTC to take-home — accounting for Basic, HRA, LTA, medical, bonus, and all allowances
Monthly cycle🔄 Variable Pay & Incentives
Integration of variable components — performance bonuses, sales incentives, commissions, special allowances — into monthly payroll
Monthly🏖️ Leave & Attendance
Leave encashment, LWP (Leave Without Pay) deductions, attendance-based salary adjustments, LOP (Loss of Pay) computation
Monthly💸 Arrears & Reimbursements
Salary arrears (increments, revisions), expense reimbursements, travel allowance, medical reimbursement — all integrated into payroll
As applicable📐 Salary Structure Design
Tax-efficient CTC structuring — optimising Basic:Special Allowance ratio, NPS employer contribution, meal vouchers, internet allowance, LTA
One-time + annual review👋 F&F Settlement
Full and Final settlement for exiting employees — pending salary, earned leave encashment, gratuity (if eligible), notice pay, deductions
On separation🏦 EPFO Registration
PF code registration for new businesses — EPFO portal, PF deduction activation, employee UAN generation and activation
One-time setup📊 Monthly PF Computation
Accurate computation of 12% employer + 12% employee PF contribution on Basic + DA (or capped at ₹15,000 EPF wage) monthly
Monthly📤 PF Challan & ECR Filing
Electronic Challan cum Return (ECR) filing on EPFO portal by the 15th of every month — zero delays, zero penalties
By 15th monthly🏥 ESIC Registration
ESI code registration — ESIC portal, employee IP number generation, ESI card facilitation for medical benefits
One-time setup💊 Monthly ESI Computation
3.25% employer + 0.75% employee ESI on gross wages (for employees earning ≤₹21,000/month) — accurate monthly computation
Monthly📤 ESI Return Filing
Monthly ESI payment by 15th + half-yearly ESI return (Form 5) filing — ESIC portal compliance maintained throughout
By 15th monthly📋 Section 80C Declarations
Collecting and validating employee investment declarations (80C, 80D, HRA exemption, LTA claims) to determine correct TDS monthly
April + Jan proofs🧮 Monthly TDS Computation
Accurate monthly TDS computation — old vs new tax regime election, applicable exemptions and deductions, employer perquisites
Monthly💳 TDS Challan Deposit
TDS deposit to government account by 7th of every month (30th April for March) — OLTAS payment with correct minor heads
By 7th monthly📄 Form 24Q & 27A Filing
Quarterly TDS return (Form 24Q) + summary Form 27A for salary deductions — filed before quarterly deadline on TRACES/NSDL portal
Quarterly📋 Form 16 — Part A & B
Annual Form 16 generation for all employees — Part A (TDS deposited quarterly from TRACES) + Part B (salary computation and deductions)
Annual (June)🏦 Perquisite Computation
Taxable perquisites — company car, accommodation, ESOP vesting, gifts, meal vouchers — correctly valued and included in TDS
Monthly📱 Digital Payslips
Password-protected PDF payslips for each employee — salary breakup, all deductions, net pay, YTD summary — delivered monthly
Monthly📊 Payroll Register
Detailed payroll register (master MIS) with all employee salary components, deductions, and net pay — employer finance team copy
Monthly🏦 Bank Disbursement Sheet
Bank transfer file (NEFT/RTGS format) with each employee's net salary — ready for payroll payment processing
Monthly📋 Statutory Compliance Reports
PF challan, ESI challan, TDS challan, PT challan copies — all filed, paid, and confirmed — audit-ready documentation
Monthly📈 Annual Payroll Summary
Year-end payroll summary — total salary cost, employer PF/ESI, PT, bonus, gratuity provisioning — for P&L and audit
Annual🔍 Audit Support
EPFO inspection support, ESIC audit assistance, TDS scrutiny response, Labour Department inspection documentation
On demand🏛️ Professional Tax (PT)
State-wise PT deduction and remittance — Karnataka, Maharashtra, West Bengal, Tamil Nadu, Telangana, AP, MP, Gujarat schedules
Monthly/Annually💼 Labour Welfare Fund (LWF)
State-wise LWF deduction and remittance — applicable in 16+ states with different rates and frequency (June/December)
Semi-annual🎁 Statutory Bonus
Bonus Act 1965 computation — 8.33% minimum bonus on ₹7,000/month wage ceiling — annual bonus provisioning and calculation
Annual🤝 Gratuity Provisioning
Monthly gratuity provisioning based on last drawn Basic pay — 15/26 × monthly wages × years of service. Computation on exit.
Monthly + on exit📐 Minimum Wage Compliance
State and zone-wise minimum wage tracking — ensuring all employee wages meet the applicable minimum wage across all your states
Monthly📜 Labour Code Readiness
4 Labour Codes impact analysis on your current salary structures — PF base increase modelling, CTC restructuring advisory
Advisory8 Key Benefits of CA-Led Payroll Outsourcing for Indian Businesses
Zero Compliance Risk — CA-Backed Statutory Oversight
Every PF, ESI, PT, TDS deadline is tracked by our CA team — not by a reminder on your calendar. We monitor EPFO circulars, ESIC notifications, CBDT TDS updates, and state-level labour law amendments. One missed PF deposit triggers 12% penal interest per year + damages under EPF Act. One wrong TDS return triggers penalties under Section 271C. Our CA-led model eliminates this risk category entirely for your business.
Zero missed deadlinesCost Savings vs In-House Payroll Team
A dedicated in-house payroll team (1 payroll executive + compliance support) costs ₹50,000–₹1,20,000/month in salary + tools + benefits + training + infrastructure. TAXAJ's outsourcing service costs a fraction of this — with CA-level expertise, software, and multi-person coverage included. The true cost comparison also includes compliance error risk — one EPFO penalty notice can exceed 3 months of outsourcing fees.
60%–70% cost reductionFounder and Finance Team — Focus on Core Business
Payroll processing, statutory filing tracking, employee query resolution, and year-end Form 16 generation collectively consume 3–8 hours per month per employee for in-house teams — scaling linearly with headcount. Outsourcing to TAXAJ converts this fixed overhead into a managed service, freeing founders, CFOs, and finance heads to focus on revenue, growth, and strategic decisions instead of payroll operations.
10+ hours/month savedMulti-State Payroll — One Partner, All States
Companies with employees across multiple Indian states face the most complex payroll environment in the world: state-specific PT slabs (Karnataka ₹200/month, Maharashtra ₹200/month, West Bengal ₹110–₹110/month), city-based minimum wage differentials, state LWF applicability and rates, and Shops & Establishments Act compliance in each state of operation. TAXAJ manages all this centrally — one team, all states, zero gaps.
10+ states managedEmployee Trust & Satisfaction — On-Time, Accurate Payslips
Payroll errors destroy employee trust faster than almost any other HR failure. An underpaid salary, a wrong TDS deduction, or a delayed payslip generates immediate employee friction and potential legal complaints. TAXAJ's process-driven payroll management ensures accurate salary disbursement with professional payslips, responsive query resolution, and error-free Form 16 — building genuine employee confidence in your payroll function.
Employee satisfaction index ↑Salary Structuring for Tax Optimisation
Beyond compliance, TAXAJ's CAs advise on tax-efficient salary architecture — the optimal split between Basic, HRA, LTA, medical reimbursement, NPS employer contribution, conveyance, internet, and special allowances. A well-structured CTC minimises TDS outgo for employees and optimises employer PF/ESI contribution base — creating a win-win that pure payroll software cannot replicate. Linked directly to your income tax planning.
CA tax optimisationScalability — From 5 to 500 Employees
TAXAJ's payroll outsourcing scales with your business. Whether you're a 5-person startup just hiring your first employees or a 500-person company expanding to new states, the service scales without operational disruption. New employee onboarding, new state entry, new entity addition — all handled within the same engagement without repricing surprises or process gaps that typically accompany in-house team scaling.
5 to 500+ employeesAudit-Ready Records — EPFO, ESIC, Labour Department
EPFO inspections, ESIC audits, and Labour Department inspections are regular occurrences for businesses in India. TAXAJ maintains complete, timestamped payroll records — ECR filings, ESI returns, PT challans, TDS returns, Form 24Q acknowledgements, payroll registers, Form 16 copies — in audit-ready format. When an inspection notice arrives, TAXAJ has all records ready, significantly reducing management time and audit risk.
Audit-ready documentationIndia Payroll Compliance Calendar 2025-26 — All Statutory Deadlines TAXAJ Manages
Missing even one of these deadlines can trigger penalties, interest charges, and regulatory notices. TAXAJ manages every deadline below for all clients.
| Statutory Obligation | Deadline | Penalty for Default | TAXAJ Status |
|---|---|---|---|
| Monthly Filings — Every Month | |||
| PF (EPF) Challan + ECR Filing — Employee + Employer PF (12%+12%) | By 15th of next month | Penal interest 12% p.a. + damages 5%–25% | Managed ✓ |
| ESI Contribution — Employee (0.75%) + Employer (3.25%) | By 15th of next month | 12% interest p.a. + penalty under ESI Act | Managed ✓ |
| TDS Deposit — Salary TDS under Section 192 | By 7th of next month (30 Apr for March) | 1.5% interest p.m. under Section 201(1A) | Managed ✓ |
| Professional Tax — State-wise (Karnataka, Maharashtra, etc.) | State-specific: monthly/quarterly | State-specific penalties + interest | Managed ✓ |
| Quarterly Filings | |||
| TDS Return Form 24Q — Q1 (Apr–Jun), Q2 (Jul–Sep), Q3 (Oct–Dec), Q4 (Jan–Mar) | 31 Jul / 31 Oct / 31 Jan / 31 May | ₹200/day under Section 234E + Section 271H penalty up to ₹1 lakh | Managed ✓ |
| Half-Yearly and Annual Filings | |||
| ESI Return (Form 5) — Half-yearly | 31 May (Apr–Sep) and 30 Nov (Oct–Mar) | Penalty under ESIC Act | Managed ✓ |
| Labour Welfare Fund (LWF) — 16+ states | June 30 and December 31 (varies by state) | State-specific LWF penalty | Managed ✓ |
| Form 16 (TDS Certificate) — All employees | By June 15 each year | ₹100/day per Form 16 under Section 272A(2)(g) | Managed ✓ |
| Annual PF Return (Form 3A/6A) — EPFO | By September 30 | Penalties under EPF Act | Managed ✓ |
| Statutory Bonus — Payment of Bonus Act 1965 | Within 8 months of financial year end (by November 30) | Penalties under Bonus Act | Managed ✓ |
TAXAJ Payroll Outsourcing — Across Every Industry Vertical
Our CA-led payroll team understands sector-specific payroll complexity — from IT employee stock options to healthcare shift allowances to manufacturing piece-rate computation.
IT & Software
ESOP vesting, shift allowances, multi-city salary
Healthcare
Shift differentials, on-call pay, consultants vs employees
Manufacturing
Factory Act, piece-rate, contractor workers, overtime
Retail & FMCG
Large distributed salesforce, city-wise minimum wage
Construction
Contract labour, BOCW, CLRA compliance, site workers
Education
Teaching + non-teaching staff, term bonuses, gratuity
Hospitality
Shift allowances, service charges, high attrition F&F
MNC India Subsidiary
Expat payroll, shadow payroll, FEMA compliance
Startups
ESOP planning, early-stage compliance setup, NPS
Professional Firms
CA, CS, law firms — partner vs employee TDS distinction
BFSI
Variable pay, branch PT, performance-linked structures
Logistics
Driver allowances, multi-state operations, piece-rate
Getting Started with TAXAJ Payroll Outsourcing — 5-Step Onboarding
Switching payroll to TAXAJ takes 2–3 working days. Here's how we make the transition seamless.
Free Payroll Audit & Consultation
We start with a free 45-minute consultation where our CA reviews your current payroll setup — employee headcount, states of operation, current payroll software/process, existing PF/ESI registrations, PT applicability, and salary structures. We identify compliance gaps (missed filings, wrong PF wages, PT arrears), flag any immediate risk areas, and propose a remediation and ongoing management plan. No obligation — just clarity on your payroll health. TAXAJ's payroll audit often identifies potential savings in salary structuring that pay for months of outsourcing fees.
Data Collection & Payroll System Setup
We collect all historical payroll data needed for transition: employee master list with PAN, Aadhaar, UAN (PF account), IP number (ESI), bank account details, salary structure (CTC breakup for each employee), and investment declarations (Form 12BB or employer's investment declaration form). For new clients, we also set up PF/ESI registrations if not already done, generate UANs for new employees, and activate ESI IP numbers. All data is migrated into our secure payroll processing system. This entire setup happens within 2–3 working days of document receipt. We share a comprehensive employee data template to make collection systematic.
Monthly Input Collection & Payroll Processing
Every month, by a pre-agreed date (typically the 20th), you share: new joiners, exiters, salary changes, variable pay components, leave records, and any other payroll inputs. TAXAJ processes the complete payroll within 2 business days — computing gross-to-net salary, all statutory deductions (PF, ESI, PT, TDS), reimbursements, F&F settlements for exiters, and bonus provisions. The processed payroll is shared as a draft for client review and approval. Any corrections are incorporated and final outputs (payroll register, bank transfer file, statutory challans) are generated. The entire cycle is designed to complete payroll before the 30th (or agreed salary date).
Statutory Filing & Compliance
Immediately after salary disbursement, TAXAJ manages all statutory filings: (1) PF ECR filing + challan deposit by the 15th, (2) ESI contribution + challan deposit by the 15th, (3) TDS deposit by the 7th, (4) PT remittance per state-specific schedule. All filings are done online through respective government portals (EPFO unified portal, ESIC portal, OLTAS for TDS, state treasury for PT). Filing acknowledgements and payment receipts are shared with the client for records. Quarterly TDS return Form 24Q is filed within the applicable deadline. TAXAJ maintains complete filing history accessible to clients on request.
Employee Delivery — Payslips, Form 16, Query Resolution
TAXAJ delivers password-protected digital payslips to each employee (via email or your internal distribution mechanism) every month. Employee queries about payslip components, TDS deductions, leave encashment calculations, or Form 16 requests are handled through TAXAJ's payroll helpdesk. At year-end (by June 15 annually), Form 16 (Part A + Part B) is generated for all employees and delivered. For exiting employees, F&F statements and relieving salary computations are handled within 5 working days of exit. TAXAJ also assists employees with TDS computation corrections for revised tax regime choices mid-year.
Payroll Outsourcing India — Frequently Asked Questions
Payroll Outsourcing — Transparent Pricing
Per-employee-per-month pricing — all-inclusive. No hidden fees for statutory filings, Form 16, or compliance support. CA oversight included.
- ✓Monthly salary processing
- ✓PF + ESI + TDS monthly filing
- ✓Digital payslips for all employees
- ✓Form 16 (annual)
- ✓PT (1 state) + F&F settlements
- ✓All Startup Plan services
- ✓Multi-state PT + LWF management
- ✓Salary restructuring advisory
- ✓Labour Code impact modelling
- ✓Dedicated CA payroll point of contact
- ✓All Growth Plan services
- ✓HRMS integration support
- ✓Expat/shadow payroll (MNC)
- ✓EPFO/ESIC audit representation
- ✓Custom SLA + monthly review call