India's one of the highest-rated legal tax and compliance guidance platform.
4.9 out of 5 (8521+ ratings)
Verified
Siddhu ManojFounder & CEO of Two-LYP Computations Pvt. Ltd.
“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”
Abhishek LohaniDirector at Lohani Learnings
“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”
Chandan Kr. ChaudharyFounder of Creative Minds
“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”
Jayavijaya SJFounder of Agro Farms
“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”
Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
Ramesh LankeFounder of EKnal Technologies
“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”
700+
Businesses Incorporated Every Month
1000+
Ratings Trusted by 2000+ Clients
250+
Professional Network
Why Choose Us
Why Choose Us?
Expert Legal Team
Experienced legal experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
Dedicated Support
Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
Business Growth Tools
Free business resources to fuel your company's success from day one.
24/7 Customer Service
Round-the-clock assistance for all your concerns.
Need Reliable Payroll Management for Your Business?
Let our HR experts handle salary processing, PF/ESI, TDS filing, and statutory compliance while you focus on growing your business. Starting at ₹2,999/month.
Simple Process
Here's How It Works
01
Fill the Form
Simply fill the above form to get started.
02
Call to discuss
Our startup expert will connect with you & complete legalities.
03
Set Up Your Payroll in 5 to 7 Days
From onboarding to first payroll run, we handle salary processing, all statutory deductions, compliance filings, and reporting for your business.
Pricing
Simple & Transparent Pricing
MOST POPULAR
HR & Payroll Services Package
From ₹2999 one-time professional fee
Complete within 7 days
7-day turnaround 100% guaranteed
Monthly Salary Processing & Net Pay Disbursement
PF & ESI Registration & Monthly Filing
TDS on Salary Computation & Form 24Q
Professional Tax Deduction & Filing
Digital Payslip Generation for All Employees
Leave & Attendance Tracking
Reimbursement Processing
Full & Final Settlement at Exit
Annual Form 16 Issuance by June 15
Dedicated HR Manager for Your Account
*Government fees are additional and vary based on company structure
4.9/5 based on 1000+ reviews
Money back guarantee
Secure payment
Top rated service
AI-Powered Platform
Meet IncorpX Nova
Our proprietary AI engine streamlines every step of business setup, from intelligent name suggestions to automated document drafting and compliance tracking.
AI-Powered Business Name Approval Check
Auto-Generated MoA & AoA Drafts
Real-Time Compliance Monitoring
3x Faster Processing Than Traditional CAs
24/7 AI Chatbot + Human Expert Support
NOVA AI
Premium Plan
IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
Payroll management is the administrative process of computing employee salaries, deducting statutory contributions (PF, ESI, TDS, professional tax), generating payslips, and filing monthly returns with EPFO, ESIC, and the Income Tax Department under Indian labour and tax laws.
Payroll management in India involves calculating gross salary from CTC, applying statutory deductions mandated by the Employees' Provident Funds Act, 1952 (12% employer and employee PF contribution), ESI Act, 1948 (3.25% employer, 0.75% employee for wages up to ₹21,000/month), Section 192 of the Income Tax Act (TDS on salary), and state-level professional tax (maximum ₹2,500/year). A compliant payroll cycle includes attendance processing, salary computation, statutory deduction calculation, net pay disbursement, PF ECR filing by the 15th, ESI challan by the 15th, TDS deposit by the 7th, and payslip distribution. Non-compliance carries significant penalties: late PF deposits attract 12% interest plus damages up to 100% of arrears under Section 14B of the EPF Act, while late TDS deposit incurs 1.5% monthly interest under Section 201(1A). Businesses with 5 to 500+ employees outsource payroll to reduce compliance risk and save ₹30,000 to ₹62,000 monthly compared to maintaining an in-house HR team.
Governing Acts: Employees' Provident Funds Act, 1952 | ESI Act, 1948 | Income Tax Act, Section 192 | Payment of Wages Act, 1936 | Payment of Bonus Act, 1965 | Payment of Gratuity Act, 1972 | Code on Wages, 2019 (awaiting notification)
Parameter
Details
Governing Laws
EPF Act 1952, ESI Act 1948, Income Tax Act (Section 192), Payment of Wages Act 1936
Regulators
EPFO, ESIC, Income Tax Department, State Labour Departments
Onboarding Time
5 to 7 working days
Monthly Deadlines
TDS deposit: 7th | PF (ECR): 15th | ESI: 15th
Professional Fee
Starting ₹2,999/month (IncorpX)
Employee Range
5 to 500+ employees
Key Deliverables
Payslips, ECR challans, TDS sheets, Form 24Q, Form 16
IncorpX provides complete HR and payroll management services for businesses across India. Our dedicated HR managers handle the entire payroll cycle, from PF registration and ESI registration for employers to monthly salary processing, TDS computation, and annual Form 16 issuance. Based on our experience managing 2,500+ employees across 500+ businesses, outsourcing payroll eliminates compliance risk and gives business owners 40+ hours back every month.
CA Priya Sharma, Senior Payroll Consultant at IncorpX: "The biggest payroll mistake we see among growing businesses is treating compliance as a once-a-year task. PF ECR filing, ESI deposits, and TDS payments are monthly obligations with hard deadlines. A single missed PF deposit on the 15th triggers 12% interest from day one under Section 7Q of the EPF Act. We have helped 500+ businesses set up automated compliance calendars that ensure zero penalties, and the cost saving from avoiding just one PF penalty often exceeds an entire year of outsourcing fees."
Benefits of Outsourcing Payroll in India
Outsourcing payroll saves money, eliminates compliance risk, and frees your team to focus on revenue-generating activities. Here is why 500+ businesses choose IncorpX for payroll management:
Save ₹30,000 to ₹62,000 Monthly
An in-house HR executive costs ₹25,000 to ₹40,000/month plus ₹3,000 to ₹15,000 for software. IncorpX starts at ₹2,999/month with everything included. You save 80% or more compared to building an internal payroll function.
Zero Penalty Guarantee
Late PF deposits attract 12% interest plus damages up to 100% of arrears under Section 14B. Late TDS invites 1.5% monthly interest under Section 201(1A). IncorpX deposits all contributions 5 days before deadlines, eliminating penalty risk entirely.
3-Level Accuracy Verification
Each payroll run passes through automated calculation, manual review by a senior accountant, and final approval. This process maintains 100% accuracy across salary computation, PF/ESI deductions, and TDS calculation for every employee.
Multi-State Compliance
Professional tax rates differ across states (Maharashtra ₹2,500/year, Karnataka ₹2,400/year, Delhi: nil). Minimum wages vary by state and industry. IncorpX handles state-specific professional tax registration, LWF, and Shop & Establishment compliance for all your locations.
256-bit Data Security
Employee data (PAN, Aadhaar, bank details) is encrypted at rest and in transit using 256-bit SSL. We sign NDAs with every client, maintain audit logs, and retain records for 8 years as required by the Income Tax Act.
Scale Without Overhead
Add 5 or 50 new employees without hiring additional HR staff. IncorpX adjusts billing based on actual headcount each month. From 5-person startups to 500+ employee companies, the same dedicated HR manager handles your entire workforce.
Join 500+ businesses that trust IncorpX for their payroll needs!
Our HR & Payroll Management Services
IncorpX delivers a complete payroll outsourcing solution covering every aspect of employee compensation and statutory compliance. Each service below is included in our ₹2,999/month starting package:
Service Category
What We Handle
Frequency
Salary Processing
Gross-to-net calculation, statutory deductions, net pay computation, NEFT/RTGS bank file generation, salary disbursement
A well-designed salary structure balances take-home pay with tax-efficient components and statutory compliance. Here is how a typical ₹6,00,000 annual CTC breaks down for an employee in India:
Component
Monthly (₹)
Annual (₹)
Tax Treatment
Basic Salary (50%)
₹25,000
₹3,00,000
Fully Taxable
HRA (40% of Basic)
₹10,000
₹1,20,000
Partially Exempt (Section 10(13A))
Special Allowance
₹7,500
₹90,000
Fully Taxable
LTA
₹1,667
₹20,000
Exempt with Conditions
Employer PF (12% of Basic)
₹3,000
₹36,000
Exempt up to ₹2.5 lakh/year
Gratuity (4.81% of Basic)
₹1,202
₹14,423
Exempt up to ₹20 lakh
ESIC (3.25% of Gross)
₹1,603
₹19,237
Employer Cost
CTC = ₹50,000/month | ₹6,00,000/year
Take-Home = ₹37,892/month after PF (₹3,000), ESI (₹371), PT (₹200), TDS deductions
Code on Wages Impact: The Code on Wages, 2019 mandates that basic salary must be at least 50% of gross salary. Companies currently keeping basic below 50% will need to restructure, increasing PF and gratuity costs by 8% to 10%. IncorpX helps you restructure CTC to comply with the new wage code while minimizing the impact on employee take-home pay.
Statutory Compliance for Payroll in India
Statutory compliance in payroll refers to the mandatory adherence to Indian labour laws governing employee compensation, including PF contributions under the EPF Act, 1952, ESI under the ESI Act, 1948, TDS under Section 192 of the Income Tax Act, professional tax under state Acts, and minimum wages under the Minimum Wages Act, 1948.
Every employer in India must comply with these payroll-related labour laws. Non-compliance carries monetary penalties, interest charges, and in some cases criminal prosecution. Here is a complete breakdown of every statutory obligation IncorpX manages for you:
Professional tax is a state-level tax deducted from employee salary. Rates and filing frequency differ significantly across states:
State
Max Annual PT (₹)
Filing Frequency
Threshold
Maharashtra
₹2,500
Monthly
Salary > ₹7,500/month
Karnataka
₹2,400
Monthly
Salary > ₹15,000/month
West Bengal
₹2,500
Monthly
Salary > ₹10,000/month
Tamil Nadu
₹2,500
Half-yearly
Salary > ₹21,000/month
Andhra Pradesh
₹2,500
Monthly
Salary > ₹15,000/month
Telangana
₹2,500
Monthly
Salary > ₹15,000/month
Gujarat
₹2,500
Monthly
Salary > ₹12,000/month
Kerala
₹2,500
Half-yearly
Salary > ₹11,000/month
Delhi
Not levied
Warning: Late PF deposits attract 12% interest per annum plus damages up to 100% of arrears under Section 14B of the EPF Act. Late TDS deposit incurs 1.5% interest per month under Section 201(1A) of the Income Tax Act. For willful TDS non-deposit, Section 276B prescribes imprisonment of 3 months to 7 years. IncorpX deposits all contributions 5 days before every deadline.
Payroll Outsourcing vs In-House vs Software: Comparison
Payroll outsourcing is the practice of delegating salary processing, statutory compliance (PF, ESI, TDS, professional tax), and HR administration to an external service provider, eliminating the need for in-house HR staff and reducing compliance liability.
Deciding between outsourcing payroll, hiring in-house HR staff, or buying payroll software? This comparison covers 10 key factors to help you choose the right approach for your business:
Factor
IncorpX (Outsourcing)
In-House HR
DIY Software (Zoho/greytHR)
Monthly Cost
₹2,999 to ₹14,999
₹33,000 to ₹65,000
₹30 to ₹149/employee + HR salary
PF/ESI Filing
Included (we file)
HR person files
Software generates; you file
TDS Computation
Included with Form 24Q
HR + CA coordination
Auto-calculated; you review
Compliance Risk
IncorpX assumes risk
Your company bears risk
Your company bears risk
Dedicated Expert
Named HR manager assigned
One generalist
Email/chat support only
Form 16 Generation
Included (by June 15)
HR + CA coordination
Auto-generated; you verify
F&F Settlement
Processed in 3 working days
Depends on HR bandwidth
Template only; manual calc
Multi-State PT
All states handled
HR must learn each state
Limited state support
Error Correction
24-hour correction guarantee
Depends on HR skill
Self-service troubleshooting
Best For
5 to 500+ employees, compliance-focused
500+ employees with budget
Tech-savvy teams, <20 employees
Save ₹30,000 to ₹62,000 monthly compared to in-house HR. Migration in 7 to 10 working days.
Payroll Outsourcing Cost in India (2026)
IncorpX offers transparent, tiered pricing based on your employee count. All plans include salary processing, PF/ESI filing, TDS computation, payslip generation, and a dedicated HR manager. No hidden charges. Every new client receives a free payroll cost analysis report comparing their current in-house costs against our outsourcing fees.
Employee Count
Monthly Fee (₹)
Per Employee Cost
Included Services
5 to 25 Employees
₹2,999 to ₹5,999
₹120 to ₹600
All 10 services + dedicated HR manager
25 to 50 Employees
₹5,999 to ₹9,999
₹120 to ₹240
All 10 services + senior HR manager
50 to 100 Employees
₹9,999 to ₹14,999
₹100 to ₹200
All 10 services + HR team of 2
100+ Employees
Custom Quote
Below ₹100
Full HR team + priority support
Government Fee Breakdown (Recurring Monthly)
In addition to IncorpX's professional fees, employers must deposit the following statutory contributions directly with government authorities:
Fee Component
Rate/Amount
Notes
PF Employer Contribution
12% of Basic + DA
Split: 3.67% EPF + 8.33% EPS
PF Admin Charges
0.50% of Basic (min ₹75)
Paid by employer monthly
EDLI Contribution
0.50% of Basic
Employer contribution for life insurance
ESI Employer Share
3.25% of Gross Wages
For employees earning up to ₹21,000/month
ESI Employee Share
0.75% of Gross Wages
Deducted from employee salary
Professional Tax
Varies by state (max ₹2,500/yr)
Monthly or half-yearly deduction
TDS on Salary
As per income tax slab
Monthly deposit by 7th via Challan 281
Cost Comparison: In-House vs IncorpX
An in-house HR executive costs ₹25,000 to ₹40,000/month in salary alone. Add payroll software (₹3,000 to ₹15,000/month) and compliance advisory (₹5,000 to ₹10,000/month), and your total monthly cost reaches ₹33,000 to ₹65,000. IncorpX's all-inclusive payroll outsourcing starts at ₹2,999/month, saving you ₹30,000 to ₹62,000 every month. Over 12 months, that is ₹3.6 lakh to ₹7.4 lakh in annual savings while getting a team of payroll specialists instead of a single HR generalist.
All-inclusive payroll management. No hidden fees. No lock-in contracts.
Step-by-Step Payroll Processing Workflow
Setting up payroll outsourcing with IncorpX takes 5 to 7 working days from document submission to first payroll run. Here is our 7-step onboarding and monthly processing workflow:
Step 1: Book a Free Payroll Consultation
Schedule a consultation with our HR experts to discuss your employee count, current payroll setup, compliance status, and specific requirements. We assess your PF, ESI, PT, and TDS obligations based on your establishment type, employee strength, and operating states. This consultation is free and takes 1 working day.
Step 2: Submit Company and Employee Documents
Share your company PAN, Certificate of Incorporation, TAN number, existing PF/ESI establishment codes, and a complete employee master list with salary details (name, PAN, Aadhaar, bank account, CTC breakup). Our team verifies document completeness and flags any missing registrations within 1 working day.
Step 3: PF, ESI, and PT Registration (If Needed)
If your company lacks PF or ESI registration, we handle the complete registration process. PF registration on the EPFO Unified Portal takes 3 to 5 working days. ESI registration on esic.gov.in takes 2 to 3 working days. Professional tax registration is filed with the respective state authority.
Step 4: Configure Salary Structure and Compliance Rules
We design a tax-efficient salary structure (Basic, HRA, Special Allowance, LTA) compliant with the EPF Act, 1952 and applicable state minimum wage rules. TDS computation is configured as per the employee-chosen tax regime (old or new) under Section 192 of the Income Tax Act. Completed within 1 working day.
Step 5: Run First Payroll and Generate Payslips
We process your first monthly payroll: gross salary calculation, statutory deductions (PF 12%, ESI 0.75%, PT, TDS), reimbursements, and net pay computation. Each employee receives a detailed digital payslip via email. The bank transfer file (NEFT/RTGS format) is generated for salary disbursement. Completed within 2 working days of receiving attendance data.
Step 6: File Statutory Returns and Deposit Contributions
PF contributions are deposited via ECR (Electronic Challan-cum-Return) by the 15th of each month. ESI contributions are deposited by the 15th. TDS on salary is deposited by the 7th using Challan 281 on the Income Tax e-Filing portal. Professional tax is remitted as per state deadlines. All challan receipts are shared with you.
Step 7: Monthly Reports and Ongoing Management
Receive 8 monthly reports: salary register, bank transfer file, PF ECR challan receipt, ESI contribution challan, TDS computation sheet, professional tax payment receipt, attendance summary, and cost variance report. Our dedicated HR manager handles employee queries, investment declarations (Form 12BB), leave adjustments, and full and final settlements on an ongoing basis.
Common Mistake: Many businesses process payroll late and miss the 7th-of-month TDS deadline or the 15th-of-month PF/ESI deadline. IncorpX processes payroll by the 25th of each month, ensuring all statutory deposits are completed 5 days before their respective deadlines. This buffer eliminates penalty risk from banking delays or portal downtime.
Onboarding in 5 to 7 working days. Starting at ₹2,999/month.
Monthly Payroll Compliance Calendar and Penalties
Every payroll cycle has fixed statutory deadlines. Missing even one deadline triggers automatic penalties and interest. Here is the monthly compliance calendar IncorpX follows for every client:
Deadline
Compliance
Form/Portal
Penalty for Delay
7th of Month
TDS on salary deposit
Challan 281 via incometax.gov.in
1.5% interest/month (Section 201(1A))
15th of Month
PF contribution via ECR
EPFO Unified Portal
12% interest + damages up to 100% (Section 14B)
15th of Month
ESI contribution deposit
ESIC Portal
12% interest + 25% damages
30th/31st of Month
Professional Tax (varies by state)
State PT portal
10% to 15% of tax amount + interest
31st Jan/Jul (quarterly)
TDS Return (Form 24Q)
TRACES portal
₹200/day (Section 234E, max = TDS amount)
June 15 (annual)
Form 16 issuance to employees
Generated from Form 24Q data
₹100/day per employee (Section 272A)
Apr 30 (annual)
ESI Annual Return
ESIC Portal
Penalty at discretion of ESIC
Penalties for Payroll Non-Compliance
Compliance Area
Penalty
Criminal Consequences
EPF Late Payment
12% interest p.a. + damages up to 100% of arrears
Prosecution under Section 14 of EPF Act
ESI Non-Compliance
12% interest p.a. + damages up to 25%
Imprisonment up to 2 years (Section 85)
TDS Non-Deposit
1.5% interest/month + ₹200/day late return fee
Imprisonment 3 months to 7 years (Section 276B)
Minimum Wage Violation
Fine up to ₹10,000
Imprisonment up to 3 months
Gratuity Non-Payment
Simple interest on delayed amount
Imprisonment up to 1 year (Section 9 of Gratuity Act)
Bonus Non-Payment
Fine up to ₹1,000
Imprisonment up to 6 months (Section 28)
Pro Tip: Set up automated calendar reminders for the 5th (payroll processing), 7th (TDS deposit), and 12th (PF/ESI deposit) of each month. IncorpX maintains these internal deadlines with 3-day buffers, ensuring your company never faces a penalty. We share challan receipts within 24 hours of every statutory deposit.
HR & Payroll Services for Startups
Startups face unique payroll challenges: limited HR bandwidth, rapidly changing headcount, ESOP complexities, and compliance obligations that begin from day one of hiring the first employee. IncorpX's payroll services are designed for growing companies that need professional HR support without the overhead of a full-time HR hire.
Why startups choose IncorpX:
₹2,999/month vs ₹25,000+/month for an in-house HR executive. Startups save 80%+ on HR costs from day one.
Tax-efficient CTC structuring that maximizes employee take-home while keeping PF and gratuity costs optimal.
ESOP perquisite valuation and stock option tax computation for funded startups offering equity to employees.
Flexible scaling: Add or remove employees monthly without contract lock-ins or additional infrastructure costs.
Virtual CFO support for investor-ready financial reporting and payroll cost projections.
Planning to register your private limited company? IncorpX offers a bundled package covering company incorporation, PF/ESI registration, and payroll setup in a single onboarding cycle.
Startup Tip: If you have fewer than 20 employees, PF registration is voluntary. But registering early signals credibility to employees and investors. ESI becomes mandatory at 10+ employees in notified areas. IncorpX advises you on the optimal timing for each registration based on your hiring plan and compliance obligations.
SaaS Startup: 8 Employees to 45 in 12 Months
A Bangalore-based SaaS startup onboarded with IncorpX at 8 employees. Over 12 months, headcount grew to 45 across 3 states (Karnataka, Maharashtra, and Telangana). IncorpX handled PF registration at the 20-employee threshold, ESI registration at 10 employees, multi-state professional tax (Karnataka ₹2,400/year and Maharashtra ₹2,500/year), and monthly TDS computation under the new tax regime. Result: Zero compliance penalties, ₹4.2 lakh saved annually versus hiring an in-house HR executive, and payroll processed by the 25th of every month across all 12 months.
Industries We Serve
IncorpX manages payroll and HR compliance for businesses across 8+ industry sectors. Each industry has specific payroll requirements, from variable pay structures in IT to overtime calculations in manufacturing:
IT & Software: Variable pay, ESOP valuation, multi-state PT for remote teams, 15+ salary components
IncorpX is trusted by over 500 businesses across India for payroll processing and HR compliance. Our team includes qualified Chartered Accountants (CAs), Company Secretaries (CS), and certified HR professionals with 10+ years of payroll management experience. We have processed 2,500+ employee payrolls with 100% on-time disbursement and zero compliance penalties in FY 2024-25.
Zero Penalty Guarantee: All PF, ESI, TDS deposits made 5 days before every statutory deadline
100% On-Time Payroll: Salaries processed by the 25th, disbursed on your chosen pay date every month
Dedicated HR Manager: Named account manager for personalized service, employee queries, and compliance guidance
Transparent Pricing: Starting at ₹2,999/month. No hidden fees, no per-employee surcharges, no lock-in contracts
3-Level Accuracy Check: Automated calculation, senior accountant review, and final approval before every disbursement
Enterprise-Grade Security: 256-bit SSL encryption, NDA with every client, 8-year data retention per Income Tax Act
Pan-India Coverage: Multi-state PT, LWF, minimum wages, and Shop & Establishment compliance across all Indian states
24-Hour Error Resolution: If any payroll error occurs, we correct it within 24 hours and file revised returns at no extra charge
"IncorpX handled our payroll migration from our previous provider without a single missed deadline. PF ECR filings are now completed by the 10th every month, and our finance team saved 45+ hours monthly on compliance tasks. The dedicated HR manager resolves employee queries the same day." - HR Director, 120-employee IT company, Pune
Frequently Asked Questions About HR & Payroll Services in India (2026)
Managing payroll and HR compliance involves multiple statutory requirements, deadlines, and calculation rules. Below, we answer the most common questions about payroll outsourcing, PF/ESI compliance, TDS on salary, professional tax, salary structuring, and full and final settlements, sourced from real search queries and our experience managing payroll for 500+ businesses and 2,500+ employees across India.
Payroll management is the process of calculating employee salaries, deducting statutory contributions like PF (12%), ESI (0.75%), TDS under Section 192, and professional tax, generating payslips, and filing monthly returns with EPFO, ESIC, and the Income Tax Department. It covers the entire pay cycle from attendance to bank transfer.
CTC (Cost to Company) includes all employer costs: basic pay, allowances, employer PF (12%), ESI (3.25%), bonus, and gratuity. Gross salary is CTC minus employer statutory contributions. Net salary (take-home) is gross salary minus employee deductions: PF (12%), ESI (0.75%), professional tax, and TDS.
PF registration under the Employees' Provident Funds Act, 1952 is mandatory for every establishment employing 20 or more persons. Establishments with fewer than 20 employees can register voluntarily. Both employer and employee contribute 12% of basic wages, with the employer share split as 3.67% EPF and 8.33% EPS.
Under the ESI Act, 1948, ESI coverage applies to employees earning gross wages up to ₹21,000 per month. Establishments with 10 or more employees in notified areas must register. The employer contributes 3.25% and the employee contributes 0.75% of gross wages towards ESI.
TDS on salary is calculated under Section 192 of the Income Tax Act. The employer estimates the employee's annual taxable income, applies the applicable slab rate (old or new tax regime), deducts eligible exemptions (HRA, Section 80C up to ₹1.5 lakh), and divides the annual tax liability by 12 for monthly TDS deduction.
Form 16 is a TDS certificate issued by employers under Section 203 of the Income Tax Act. It contains salary details, deductions, and TDS deposited during the financial year. Employers must issue Form 16 to every employee by June 15 of the following assessment year.
Statutory deductions are government-mandated salary deductions: PF (12% of basic), ESI (0.75% of gross) for wages up to ₹21,000/month, Professional Tax (max ₹2,500/year, varies by state), and TDS on salary per applicable income tax slab. These are deposited with EPFO, ESIC, and the Income Tax Department respectively.
EPF (Employee Provident Fund) receives 3.67% of basic wages from the employer's 12% contribution; the employee can withdraw the full balance on retirement. EPS (Employee Pension Scheme) receives the remaining 8.33% (capped at ₹15,000 basic); it provides a monthly pension after 10 years of service and age 58.
Labour Welfare Fund (LWF) is a statutory contribution for employee welfare under state-specific Acts. States mandating LWF include Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, West Bengal, Delhi, Gujarat, and Madhya Pradesh. Contribution amounts and filing frequency (half-yearly or annual) vary by state.
Under the Payment of Gratuity Act, 1972, gratuity is payable after 5 years of continuous service. The formula is: (Last drawn basic + DA) x 15/26 x years of service. The tax-free ceiling is ₹20 lakh. An employee with ₹30,000 basic and 10 years of service receives ₹1,73,077 as gratuity.
The Code on Wages, 2019 mandates that basic salary must be at least 50% of gross salary. This increases PF and gratuity contributions, raising employer costs by an estimated 8% to 10%. Take-home salary will decrease while retirement benefits increase. The 4 labour codes await final notification.
The old regime allows deductions under Section 80C (₹1.5 lakh), HRA, LTA, and others, resulting in lower TDS for employees with investments. The new regime (default from FY 2023-24) offers lower slab rates but no deductions except ₹75,000 standard deduction. Employers compute TDS based on the employee's chosen regime.
PF registration is mandatory for establishments with 20 or more employees under the Employees' Provident Funds Act, 1952. Establishments with fewer than 20 employees can opt for voluntary PF registration. Once registered, an establishment remains covered even if employee count drops below 20 in subsequent months.
IncorpX's payroll outsourcing starts at ₹2,999 per month, covering salary processing, PF/ESI filing, TDS computation, payslip generation, and a dedicated HR manager. Cost varies by employee count: 5 to 25 employees (₹2,999 to ₹5,999/month), 25 to 50 employees (₹5,999 to ₹9,999/month), and 50 to 100 employees (₹9,999 to ₹14,999/month).
IncorpX's payroll service includes 10 components: monthly salary calculation, PF and ESI registration and filing, TDS on salary computation and Form 24Q filing, professional tax deduction, payslip generation, leave and attendance tracking, reimbursement processing, full and final settlement, Form 16 issuance by June 15, and a dedicated HR manager.
Submit 7 documents for payroll onboarding: company PAN card, Certificate of Incorporation or partnership deed, employee master list (name, PAN, Aadhaar, bank details, CTC), existing PF/ESI establishment codes, TAN number, bank authorization letter for salary disbursement, and your attendance and leave policy document. Onboarding completes in 5 to 7 working days.
Yes, IncorpX provides payroll services for businesses with as few as 5 employees. While PF is mandatory at 20+ employees and ESI at 10+ employees, smaller businesses still need TDS compliance (Section 192), professional tax deductions, and payslip generation. Our ₹2,999/month plan covers all these requirements for small teams.
Yes, IncorpX manages payroll for contract, temporary, and fixed-term employees. We handle separate CTC structures, applicable PF/ESI deductions, CLRA (Contract Labour Regulation and Abolition Act) compliance, contractor salary disbursement, and maintain Form XVI registers. Monthly billing is adjusted based on actual headcount changes.
You receive 8 monthly reports: salary register, bank transfer file (NEFT/RTGS format), PF ECR challan receipt, ESI contribution challan, TDS computation sheet, professional tax payment receipt, attendance summary, and cost variance report. Quarterly: Form 24Q (TDS return). Annually: Form 16 for each employee.
IncorpX provides a 100% accuracy guarantee. If an error occurs, we correct it within 24 hours at no extra charge and file revised returns with EPFO/ESIC if needed. Each payroll run undergoes a 3-level verification process: automated calculation, manual review by a senior accountant, and final approval before salary disbursement.
IncorpX uses 256-bit SSL encryption, role-based access controls, and secure cloud servers hosted in India. Employee data (PAN, Aadhaar, bank details) is encrypted at rest and in transit. We sign NDAs with every client, maintain audit logs of all data access, and conduct quarterly security reviews. Data retention follows Income Tax Act requirements of 8 years.
Yes, IncorpX provides proactive tax planning in Q3 (January to March). We share investment declaration forms (Form 12BB) with employees, verify proof of investments under Section 80C (₹1.5 lakh limit), HRA receipts, home loan certificates, and medical insurance premiums. This optimizes TDS deductions before the March 31 financial year close.
Yes, migration takes 7 to 10 working days. We collect your employee master data, salary history, year-to-date TDS figures, existing PF/ESI establishment codes, and pending compliance filings. Our team reconciles all data, files any overdue returns, and ensures zero disruption to your next payroll cycle. No parallel-run charges apply.
Step 1: Book a free consultation via our website or call. Step 2: Submit company documents (PAN, COI, TAN) and employee list. Step 3: We complete PF/ESI registration if needed (3 to 5 days). Step 4: Salary structure configuration. Step 5: First payroll run within 5 to 7 working days of document submission.
Standard onboarding takes 5 to 7 working days from document submission. This includes document verification (1 day), PF/ESI registration if required (3 to 5 days), salary structure configuration (1 day), and test payroll run. Companies with existing PF/ESI codes can be onboarded in 2 to 3 working days.
IncorpX manages multi-state payroll with state-specific compliance: professional tax rates vary (Maharashtra ₹2,500/year, Karnataka ₹2,400/year), minimum wages differ by state and industry, Labour Welfare Fund rules vary, and Shop and Establishment Act requirements differ. We maintain separate state registers and file returns with each state authority.
Full and final (F&F) settlement includes 7 components: unpaid salary for days worked, earned leave encashment, pro-rata bonus (under Payment of Bonus Act if applicable), gratuity (after 5 years per Payment of Gratuity Act, 1972), reimbursement claims, notice period recovery or payout, and final TDS computation. IncorpX processes F&F within 3 working days of the last working day.
Professional tax is deducted monthly from employee salary and deposited with the state authority. Rates vary: Maharashtra charges ₹200/month (₹300 in February), Karnataka charges ₹200/month, Tamil Nadu charges ₹2,500/year. IncorpX registers your establishment, deducts the correct amount per state rules, and files half-yearly or annual returns before the deadline.
PF contributions must be deposited via ECR on the EPFO Unified Portal by the 15th of each month. ESI contributions are also due by the 15th. Late PF deposits attract 12% interest per annum plus damages up to 100% of arrears. ESI late deposits attract 12% interest and 25% damages. IncorpX ensures all deposits are made by the 10th.
Leave encashment at exit is calculated as: (Basic salary + DA) / 30 x number of earned leave days. For non-government employees, tax exemption on leave encashment is limited to ₹25 lakh (effective FY 2023-24). We verify the employee's leave balance from attendance records, compute the gross amount, deduct applicable TDS, and include it in the F&F settlement.
Payroll software (Zoho, greytHR, RazorpayX) costs ₹30 to ₹149 per employee/month and requires your HR team to operate. Payroll outsourcing (like IncorpX at ₹2,999/month flat) provides a dedicated HR manager who handles all processing and compliance. Outsourcing eliminates the need for in-house HR staff (₹25,000 to ₹40,000/month salary) and reduces error and penalty risk.
IncorpX provides a dedicated HR manager, not just software access. We handle PF/ESI registration, monthly filing, TDS computation, Form 24Q filing, professional tax, and F&F settlements. With software alone, your team bears compliance risk; penalties for late PF deposit reach 100% of arrears under Section 14B of the EPF Act. IncorpX assumes that compliance burden.
An in-house HR executive costs ₹25,000 to ₹40,000/month salary plus payroll software (₹3,000 to ₹15,000/month) and compliance advisory (₹5,000 to ₹10,000/month), totalling ₹33,000 to ₹65,000/month. IncorpX starts at ₹2,999/month, saving ₹30,000 to ₹62,000 monthly. You also get a team of specialists instead of one generalist.
Yes, IncorpX handles IT-specific payroll including variable pay (quarterly/annual incentives), stock option perquisite valuation, shift allowances, flexible benefit plans (FBP), and multi-location professional tax for remote employees across states. We process CTC structures with 15+ salary components common in IT companies and manage Form 12BB investment declarations.
IncorpX provides payroll outsourcing services across all Indian cities including Mumbai, Delhi NCR, Bangalore, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad. Our service is 100% remote; we handle state-specific professional tax, minimum wages, and Labour Welfare Fund compliance for your operating locations. A dedicated HR manager is assigned regardless of city.
Yes, IncorpX offers PF registration and ESI registration as standalone services for businesses not needing full payroll outsourcing. PF registration on the EPFO Unified Portal takes 3 to 5 working days. ESI registration on esic.gov.in takes 2 to 3 working days. Both are free of government charges; only professional fees apply.
The team was very responsive and helpful. I received daily updates from the WhatsApp group, and their guidance made everything much simpler to comprehend. If you want a simple and hassle-free way to launch your business, I would highly recommend them!
S
Simon Job
4.9/5
I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!
J
Jay R
4.8/5
The experience was flawless; the team completed each task with care and always responded quickly. Throughout the process, I never felt stuck. We would especially like to thank Saksham and Sriram for making everything run so smoothly! The IncorpX team offers extremely competitive pricing; anyone just starting out should definitely get in touch with them.
M
Mohammed Affan
4.9/5
I'm really grateful to the wonderful team at IncorpX for helping bring my co-founder's and my dream to life. The whole process was super smooth - fast service, great support, and no hassles at all. I'd highly recommend IncorpX to any new entrepreneur or founder looking to register their company. Excited to continue working with them in the long run. Thank you, IncorpX!
R
Riyom Taipodia
4.6/5
One of the best agency I have ever experienced. Team members are very friendly as if we know each other from before and came communicate and share easily. My work has been done in a very short period and I am so happy. Thank you so much.
A
Ayyappa Swamy
5/5
Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..
R
Ramesh Babu
4.9/5
Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.
P
Pravesh Kudesia
5/5
IncorpX is providing best service... And user experience! Thank You IncorpX Team
B
Balaji Gutte
4.9/5
I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.
D
Dia
5/5
I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!
Trusted by 15,000+ Entrepreneurs
Get Expert Guidance for Your Business
Fill out the form and our team will connect with you to understand your requirements and recommend the best way forward.
