Payroll Processing Service India — EPF / ESI / PT / TDS Compliance Coordinated through Batchwise
Payroll processing for Indian employers — monthly salary computation, payslip generation, EPF / ESI / Professional Tax compliance, TDS deduction (Form 24Q), and Form 16 issuance. Coordinated by Batchwise; engagement routed to a vetted partner who delivers under their own credentials.
What this is
End-to-end monthly payroll processing for Indian employers — covering salary computation, statutory compliance (EPF, ESI, Professional Tax, TDS under Section 192), payslip generation, and Form 16 issuance. The service is delivered through a marketplace model: you upload your employee master and monthly inputs (LOP, variable pay, reimbursements); engagement is routed to a vetted partner who runs the payroll on their licensed software, prepares all statutory filings under their own credentials, and shares deliverables to your dashboard.
Two access modes: (a) One-time setup at ₹2,999 — covers initial employee master setup, statutory registration verification (EPF / ESI / PT establishment codes), salary structure design, and the first month's payroll run; (b) Monthly subscription tier (₹199 per employee per month, indicative) — currently on the waitlist; coming soon.
Batchwise itself does not run payroll — every engagement is delivered by a vetted partner who takes professional responsibility for the work product.
Statutory framework — what an Indian employer must comply with
Running payroll in India means navigating four parallel statutory regimes simultaneously, plus state-specific labour-welfare obligations. The vetted partner manages all of these:
| Regime | Applicability trigger | Employer obligations |
|---|---|---|
| EPF (Employees\' Provident Fund) | 20+ employees (10+ for specified industries under Schedule I) | Establishment registration, monthly UAN allotment for new employees, ECR filing by 15th of following month, contribution: 12% employee + 12% employer |
| ESI (Employees\' State Insurance) | 10+ employees (20+ in some states) earning ≤ ₹21,000/month (₹25,000 for PWD) | Establishment registration, monthly contribution by 15th: 0.75% employee + 3.25% employer; half-yearly returns |
| Professional Tax (PT) | State-level — applicable in 17 states; monthly deduction per state slab | Establishment registration per state, monthly / quarterly / annual filing per state cadence; maximum ₹2,500/year per person (Constitutional cap, Article 276(2)) |
| TDS on salary (Section 192, Income Tax Act) | Any employer with TAN paying salary above the basic exemption limit | Monthly deduction per estimated annual tax; deposit by 7th of following month (30 April for March); quarterly Form 24Q return; annual Form 16 by 15 June |
| Labour Welfare Fund (LWF) | State-level — applicable in 16 states; small monthly / annual contribution | Per state portal — typically ₹6 to ₹50 per employee per period |
| Gratuity (Payment of Gratuity Act, 1972) | 10+ employees (the establishment, not just the eligible) | Provision for gratuity payable at separation after 5+ years of continuous service; calculation: 15 days salary × completed years (capped per Act) |
Who needs this service
- SMEs and startups with 5+ employees — even where EPF / ESI thresholds are not yet crossed, structured payroll prevents downstream disputes and supports loan / investor diligence.
- Companies and LLPs at the EPF / ESI threshold — registration becomes mandatory; in-house payroll without specialist support typically misses statutory deadlines.
- Multi-state operations — Professional Tax and Labour Welfare Fund have state-specific cadences; a centralised payroll partner ensures all state filings happen on time.
- NGOs and trusts with employees — most labour-law obligations apply equally to non-profit employers.
- Companies undergoing audit / due diligence — statutory compliance evidence (EPF / ESI / PT challans, Form 16, Form 24Q) is a standard diligence checklist item.
- Employers issuing Form 16 — if you employ even one person on payroll above the exemption limit, Form 16 issuance is a Section 203 obligation; non-issuance attracts penalty under Section 272A.
How the engagement works
- Sign up + select service. Sign in; pick "Payroll Processing".
- Pay ₹2,999 setup fee. Razorpay; covers initial employee master setup, statutory registration verification, salary structure design, and the first month\'s payroll run.
- Upload data. Employee master (PAN, Aadhaar, UAN, bank details, salary structure, joining date), establishment registration certificates (EPF allotment letter, ESI registration code, PT establishment code, TAN), prior month\'s payroll register (for reconciliation), employee Form 12BB declarations (regime selection + investment declarations).
- Partner assignment. Vetted payroll partner is assigned and contact details surface in your dashboard.
- Statutory registration audit. Partner verifies all applicable statutory registrations are in place. Missing registrations are flagged with a quote for separate registration filing.
- Salary structure review. Partner reviews salary structure for tax efficiency (basic-DA-HRA-special split, NPS / EPF voluntary contribution opportunities, regime-aware structuring) and shares recommendations.
- First payroll run. Partner runs the first month\'s payroll: salary computation, statutory deductions (EPF / ESI / PT / TDS), payslip generation, EPF ECR file, ESI challan, PT challan, TDS challan (ITNS 281). Bank salary disbursement file shared as CSV / Excel.
- Compliance filings. Partner files EPF ECR by 15th, ESI return by 15th, PT return per state cadence, TDS deposit by 7th of following month. Acknowledgments uploaded to your dashboard.
- Monthly continuation (subscription tier). Subsequent months follow the same flow — you upload only the month\'s inputs (LOP, variable pay, reimbursements, new joiners, exits); partner runs payroll within 2 working days. Subscription tier currently on waitlist.
- Annual deliverables. Form 16 to each employee by 15 June (generated from year\'s four Form 24Q returns); EPF annual return; ESI half-yearly returns.
Pricing
| Engagement | Price (₹) | Coverage |
|---|---|---|
| One-time setup + first month | 2,999 | Setup, registration audit, salary structure review, 1 month payroll, up to 25 employees |
| One-time setup + first month — large team | 4,999 | Same as above, 26–100 employees |
| Subsequent month payroll (à la carte) | 1,999 | 1 month payroll, all statutory filings, up to 25 employees |
| Subscription — monthly recurring | Coming soon — indicative ₹199/employee/month with tier minimums (~₹3,000 floor); join waitlist | |
| Form 24Q quarterly TDS return (bundled) | +₹999/quarter | Bundled with payroll for the quarter; covers salary TDS only |
| Statutory registration filing (EPF / ESI / PT) — per registration | From 1,999 | Establishment registration filing if missing |
| Year-end Form 16 generation | +₹49/employee | Generated from TRACES; bundled in subscription |
All prices GST-exclusive. Setup fee covers one-time onboarding work; monthly à la carte covers ongoing processing. The subscription tier offers materially lower per-month per-employee pricing for ongoing engagements.
What you get every month
- Salary computation register — employee-wise gross-to-net with all components and deductions
- Payslips — PDF for each employee, customisable to your branding
- Bank disbursement file — CSV / Excel in your bank\'s format (HDFC / ICICI / Axis / SBI / Kotak / others)
- EPF ECR (Electronic Challan-cum-Return) — generated and submitted on EPFO portal
- ESI challan — generated and submitted on ESIC portal
- PT challan(s) — per applicable state portal
- TDS challan (ITNS 281) — for Section 192 salary TDS deposit
- MIS dashboard summary — payroll cost, statutory liability, headcount movement, average CTC trend
- Compliance calendar — upcoming statutory deadlines flagged in your dashboard
What you get annually
- Form 16 for each employee by 15 June (Section 203 obligation) — generated from the year\'s Form 24Q returns via TRACES
- EPF annual return (Form 3A / 6A consolidated)
- ESI half-yearly returns (Form 5)
- Annual payroll register — full-year salary / deduction / payment register, audit-ready
- Statutory cost reconciliation — payroll cost per the books reconciled to EPF / ESI / PT / TDS deposits made during the year
The marketplace model
Batchwise is a coordination platform, not a payroll firm. Every payroll engagement is delivered by a vetted partner — a Chartered Accountant in practice, payroll specialist firm, or HR-technology consultant — under their own credentials. The partner runs the payroll on their licensed software (RazorpayX Payroll / Zoho Payroll / Keka / GreytHR / or a CA-firm payroll system), files statutory returns under their own login on the EPFO / ESIC / state PT portals, and signs Form 16 as the employer\'s authorised signatory only after your designated signatory has signed off.
What Batchwise does: dashboard, secure document workspace, partner assignment, payment processing, status tracking, deliverable storage, methodology consistency.
What the partner does: salary computation, statutory deduction calculation, ECR / challan generation, portal filings, Form 16 generation, addresses your queries, owns the post-engagement statutory follow-up.
Salary structure design — what good looks like
The vetted partner reviews your salary structure during setup. Common optimisations observed in practice (none of these are tax-evasion strategies — all are within the framework of the Income Tax Act and Companies Act):
- Basic-to-CTC ratio — typically 30–40% of CTC; lower basic reduces EPF and gratuity exposure (employer cost) but also reduces employee retirement corpus. Industry benchmark for India is around 35–40%.
- HRA component — for employees in metro / non-metro cities under the old regime, structuring HRA properly enables the lower-of formula exemption (Section 10(13A)) to maximise tax efficiency.
- Special allowance vs reimbursements — taxable special allowance is fully taxable; structured reimbursements (LTA, books and periodicals, internet, etc.) carry conditional exemptions under various sections.
- Variable pay timing — annual bonus paid in March is fully taxable in that month\'s TDS; spreading into quarterly variable smooths the TDS impact.
- NPS contribution (Section 80CCD) — employer contribution up to 14% of basic + DA (10% in non-Government cases) is deductible as employer cost AND not taxable in the employee\'s hands within limits; voluntary employee contribution offers additional Section 80CCD(1B) deduction up to ₹50,000.
- Voluntary EPF contribution — employees can contribute beyond the statutory 12% (capped at the wage ceiling for matching) — entirely employee\'s call.
Decisions on structure remain with you; the partner provides options and quantifies impact.
State-specific Professional Tax cadences
Selected state PT filing cadences (illustrative — the partner manages all applicable states):
| State | PT slab (illustrative) | Filing cadence |
|---|---|---|
| Maharashtra | ₹175 to ₹2,500 / year (2 slabs above thresholds) | Monthly (large) / annual (small) |
| Karnataka | ₹200 / month above ₹15,000 monthly salary | Monthly |
| West Bengal | ₹150 to ₹2,500 / year | Annual |
| Tamil Nadu | ₹160 to ₹2,500 / year | Half-yearly |
| Gujarat | ₹200 / month at higher slabs | Monthly |
| Andhra Pradesh / Telangana | ₹150 to ₹2,500 / year | Monthly |
| Madhya Pradesh | ₹125 to ₹2,500 / year | Monthly |
Slab structures and cadences change periodically by state notification. Partner monitors per-state updates.
Related reading
- Payroll compliance overview India — pillar guide (coming soon)
- EPF employer obligations (coming soon)
- ESI employer obligations (coming soon)
- Professional Tax employer deduction (coming soon)
- Gratuity Act applicability and calculation (coming soon)
- Form 12BB investment declaration (coming soon)
- Form 16 issuance process for employers (coming soon)
- TDS return filing — bundled with payroll for Form 24Q quarterly returns
- Bookkeeping — payroll cost flows into your books
Authoritative sources
- EPFO — Employees\' Provident Fund Organisation (EPF Act 1952; ECR filing portal)
- ESIC — Employees\' State Insurance Corporation (ESI Act 1948)
- Income Tax Department — Section 192 (TDS on salary), Section 203 (Form 16), Form 12BB
- TRACES — Form 16 and Form 24Q infrastructure
- State Professional Tax portals (per applicable state — managed by the vetted partner)
- Ministry of Labour & Employment — Payment of Gratuity Act 1972, Payment of Bonus Act 1965, Maternity Benefit Act 1961, Payment of Wages Act 1936
How to start
- Sign up via Google or magic-link email.
- From the dashboard service catalog, select Payroll Processing.
- Pay ₹2,999 setup fee via Razorpay (₹4,999 for 26+ employees).
- Upload employee master, statutory registration certificates, and prior payroll register per the dashboard checklist.
- Partner completes setup + first payroll within 5 working days; subsequent months within 2 working days of input upload.
For ongoing monthly payroll, join the subscription waitlist — early-access pricing will be honoured at launch.
Frequently asked questions
What does payroll processing include?
Monthly salary computation per employee (basic + DA + HRA + special allowance + variable + reimbursements – LOP – statutory deductions), payslip generation in PDF + Excel formats, statutory deduction computation (EPF employee + employer share, ESI employee + employer share, Professional Tax per state slab, TDS per Section 192), salary disbursement file (bank-format CSV / Excel), EPF challan generation (ECR — Electronic Challan-cum-Return), ESI challan generation, PT challan generation per state portal, and TDS payment challan (ITNS 281). Annual deliverables: Form 16 to each employee by 15 June, Form 24Q quarterly returns (separate TDS service or bundled).
When is EPF registration required?
EPF (Employees' Provident Fund) registration is mandatory under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 once the establishment employs 20 or more persons (for most industries) or 10 or more persons (for specified establishments under Schedule I). Voluntary registration is available below the threshold and is often beneficial for SME branding and employee retention. The EPF rate is currently 12% of basic + DA from the employee, matched by 12% from the employer (with the employer share split between EPF 3.67% and EPS 8.33% subject to the wage ceiling of ₹15,000 for EPS).
When is ESI registration required?
ESI (Employees' State Insurance) registration is mandatory under the ESI Act, 1948 once the establishment employs 10 or more persons (20 or more in some states like Maharashtra and Chandigarh) earning gross wages up to ₹21,000 per month (₹25,000 for persons with disability). Above the wage ceiling, the employee is exempt from ESI. The ESI rate is 0.75% from the employee and 3.25% from the employer on gross wages.
How is Professional Tax handled across states?
Professional Tax (PT) is a state-level tax levied by 17 states in India (currently — Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Madhya Pradesh, Chhattisgarh, Gujarat, Kerala, Odisha, Bihar, Jharkhand, Assam, Manipur, Meghalaya, Sikkim, Tripura, and Nagaland). Each state has its own slab rates and thresholds. The vetted partner determines the applicable PT per employee based on the employee's state of work, deducts it monthly, and files PT returns per state portal cadence (monthly / quarterly / annually depending on state). Maximum PT is statutorily capped at ₹2,500 per year per person under Article 276(2) of the Constitution.
Does Batchwise process the payroll itself?
No. Batchwise is a coordination platform. Each engagement is routed to a vetted partner — typically a Chartered Accountant in practice or experienced payroll specialist — who runs the payroll on their licensed payroll software (or the employer's preferred system), prepares all statutory filings under their own credentials, and shares deliverables to the employer's dashboard. Batchwise handles workflow, partner assignment, document workspace, and payment infrastructure.
How is the new vs old tax regime handled in salary TDS?
Each employee submits a regime declaration at the start of the financial year (typically via Form 12BB along with investment proofs). The vetted partner factors the regime selection into monthly TDS computation — under the new regime (default from FY 2023–24 onwards), employees lose most exemptions (HRA, LTA, Section 80C / 80D) but get higher slab thresholds and a standard deduction of ₹75,000 (FY 2024–25 onwards). Under the old regime, exemptions are available subject to declaration and proof submission. The partner runs a year-end true-up to ensure TDS aligns with the regime actually opted at year-end.
Can payroll processing be bundled with TDS return filing?
Yes — many employers bundle Payroll Processing with TDS Return Filing (Form 24Q quarterly) since salary TDS is a direct output of payroll. The vetted partner doing your payroll typically handles the Form 24Q quarterly filing as a continuation. Bundled pricing is available — see Pricing section. Form 26Q (non-salary TDS) and Form 27Q (non-resident TDS) are separate and depend on whether the employer also makes those payment categories.