Payroll Calculations and Compliance

Course Content

Statutory Deductions under the Payment of Wages

Provident Fund (PF) and Employees’ State Insuranc e (ESI)

• Deep dive into PF eligibility, contribution rat es, employer vs. employee share.
• Calculating PF for various components (basic, DA, special allowances, etc.)
• Understanding ESI coverage, contribution thresholds, and calculation methods.
• PF and ESI compliance timelines, reporting, and remittance processes.

Professional Tax: State-Specific Regulations

• Breakdown of Professional Tax (PT) slabs
• Registration requirements, calculation methods, and payment timelines.
• Strategies for handling multi-state PT compliance for employees.
• Best practices for PT record-keeping and audits.

Incom e Tax Considerations and TDS

• Incom e Tax slabs and their applicability to payroll.
• Tax benefits and exemptions impacting net taxable incom e (HRA, LTA, Section 80 deductions)
• Accurate TDS calculations, deduction processes, and reporting standards.
• Year-end adjustments, For m-16 preparation, and tax-saving strategies.

Special Allowances, Bonuses, Incentives, and Stock Options

• Taxability of various categories of allowances (e.g., transport allowanc e, meal allowanc e, uniform allowanc e)
• Calculating payroll impact of performanc e bonuses, festival bonuses, sal es incentives, and other incentive programs (considering achievement thresholds and payout structures).
• Tax implications of employee stock ownership plans (ESOPs) and valuations, including stock options granted, exercised, and vested.
• Compliance requirements for reporting and taxation of complex compensation components, including fringe benefits and reimbursements.

Payroll Data Analytics and Reporting

• Identifying trends and anomalies through data visualization tools
• Custom reports for payroll performanc e and compliance audits