Article · 15 min read

Payroll Compliance: PF, ESI, PT and TDS Explained

RazorpayX Payroll · Razorpay Free Beginner India

This breaks down the four things you will run monthly (TDS under Section 192, PF via UAN, ESI for sub-21,000 wages, PT capped at 2,500 a year) and ties each to what a payroll provider actually automates, so you can decide what to hand to RazorpayX Payroll, Zoho, or Keka instead of filing 24Q by hand. It answers the exact 'do I need an HR hire yet' question: no, you need TAN, TRACES, and a payroll tool.

  • TDS on salary needs a TAN and TRACES registration up front, and is computed on the employee's average annual tax rate, not a flat cut
  • Both employer and employee contribute equally to EPF each month, and every employee needs a UAN, which the payroll tool provisions for you
  • A payroll provider files your PF/ESI/PT/24Q returns automatically, which is why one is worth setting up before your first employee, not after an audit
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The question it answers

  1. How do I set up basic HR and statutory compliance in India without a full HR hire?

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