Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Salary structure + registrations
Define components, then register for PF/ESI/PT where applicable.
Monthly cycle
Compute, deduct, pay net salary, deposit dues by their due dates, and file returns.
Getting the structure and statutory pieces right
A well-designed salary structure does more than split a number: the ratio of basic to allowances drives PF (12% on basic plus DA), gratuity, and the tax value of components like HRA and LTA, so it’s worth setting thoughtfully at the start. Before the first payroll run, register for PF, ESI and professional tax wherever the thresholds are met, and obtain a TAN for deducting TDS on salaries. Each month the cycle is: compute gross pay, deduct PF, ESI and PT and TDS under Section 192, pay the net salary, then deposit PF and ESI by the 15th, TDS by the 7th, and PT by the state’s date. Quarterly, file Form 24Q for salary TDS; annually, issue Form 16 by 15 June and complete the PF and ESI annual formalities. Keeping an employee master with wages, joining and exit dates, and issuing monthly payslips, ties the whole cycle together and makes the year-end returns and audit straightforward. As headcount grows, payroll software or an outsourced run keeps the statutory pieces from slipping.