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Top 10 reasons why Payroll Outsourcing makes smart business sense!

Payroll Processing has always been a very challenging task especially when the workforce is fairly large. When we think of Payroll, we are not just thinking of generating the payslips. The entire gamut of Payroll Processing includes Attendance and Leave Management, Statutory Compliance, and Recruitment. All these aspects have to be perfectly integrated and work seamlessly if you are to run your payroll error-free.

The best option is to outsource this activity to a reputed service provider that could relieve HR from the pressures involved in maintaining the payroll in-house. In this article, we endeavor to familiarize you with the 10 compelling reasons on why you should outsource Payroll Processing.

1. Allow the HR to focus on core business activities

The HR teams are hard-pressed to handle payroll processing and there is no denying the fact that this activity is taking up too much of their valuable time. HR teams are supposed to focus more on talent management, improving the work culture, evaluating and enhancing performance, training and development, hiring and retaining top talent, etc. On the contrary, they are forced to focus on the mundane activity of payroll processing. By relieving the HR team from this activity, you free them to focus on core business activity. This will help the business to grow.

2. Saving on costs

Outsourcing Payroll saves money. When you manage payroll in-house your expenses will soar as you not only need to hire a workforce to specifically handle this task, but you also have to provide the infrastructure, both hardware, and software. When you outsource you can cut costs and reduce errors.

3. Save time

Payroll processing requires a great deal of time and attention to detail when performed in-house. The process involves generating the payslips and at the same time calculating leaves and benefits and updating the entitlements and deductions. When you outsource this activity you can save time in a process that is routine and very repetitive.

4. Enhance Productivity

Payroll processing is a mundane activity that is cumbersome and requires a lot of adjustments to frequent changes. Time is of the essence in any organization and payroll processing consumes a lot of time and effort. However, when you outsource this task to a Service Provider, you are improving the working of the employees and thereby enhancing productivity.

5. Improve Accuracy

Payroll processing is prone to errors and these errors negatively impact the working of the company. Inaccuracies in Payroll will attract penalties from the government departments and create friction with the employees. Error-free payroll processing is a must and the best option to achieve this is by outsourcing to a qualified service provider. When you outsource your payroll you can generate error-free and highly accurate reports as they use high-end technology supported by a team of highly qualified professionals.

6. High Level of Data Confidentiality & Security

Payroll involves the vital data of employees. Any leakage of such data would give rise to lawsuits, discontent, and damage to the reputation of the company. The privacy of this data is paramount and a reputed service provider will guarantee high security, strong internal controls, and restricted access to the data. Moreover, the service provider will guarantee confidentiality and security with contractual rights to damages in case of breach of contract.

7. High level of Integration

The package offered by service providers comes with a high degree of integration. All the modules namely, Payroll, Attendance & Leave management, and Statutory Compliance are seamlessly integrated so that you can get all your reports in real-time with a great degree of accuracy. This is a great advantage to the company as all information is available to the various departments as and when needed.

8. Keeping the Company Compliant

This is a very vital factor for any business. Following the Statutory Compliance rules and regulations is a must for all businesses.

Whether it is handling EPF, ESI, Income tax, Professional Tax, or other Labour laws, any errors would have serious ramifications for the company. The statutory rules and regulations are prone to change frequently, but service providers can handle these changes without any delay. This will enable the business to be compliant always and avoid legal issues or paying penalties to the concerned government departments.

9. Quickens Turnaround time

Outsourcing the Payroll process enables a quicker turnaround time. The outcome of outsourcing is on-time data processing, fewer errors, accurate reporting, and the support of a professional & dedicated team.

Outsourcing makes employee management easier and smoother and thus provides a quick turnaround time.

10. Work without Pressures

Apart from the cost & time-saving advantages, outsourcing your payroll allows you to work without any pressure. ‘Lesser the headache, better the working’. When you outsource payroll, you can take your mind off paying employees on time, calculating & paying the taxes, or distributing the payslips. When your mind is off these pressures, all other activities of the business work smoothly, thus paving the way for greater growth.

Conclusion

Outsourcing your payroll processing to a qualified service provider can reap a lot of benefits for the business. One important reason is that payroll processing is their core area of expertise. They are manned by professional staff that brings in a wealth of experience that enables accurate processing and full compliance with statutory rules and regulations.

GetifyHR with its high-end cloud-based technology offers the best solution for all your payroll needs. If you are on the lookout for an outsourcer, you don’t have to look any further. Click here for further information or call us to help you make a decision.

Tax obligations of Businesses – Corporate Tax and Payroll Tax – A brief tour

Introduction

Income tax is the tax levied by the government on the income earned by an individual or corporate in a particular year. The Act is called Incometax Act, 1961 and this came into force on the 1st of April 1962. Companies are liable to pay their corporate tax dues and also deduct the tax dues from the salaries of those employees who are liable to pay tax in the form of Tax Deducted at Source (TDS) and remit to the government.

What is Income as per the Act?

The word Income is defined under section 2(24) of the IT Act. For a businessman, the profits and gains he makes will constitute income. This is corporate tax. Corporate tax is a direct tax levied on the net income or profit of a corporate entity from their business, whether domestic or foreign.

For an employee who is liable to pay tax as per the Act, the income constitutes Basic salary and also includes salary advance, Leave Encashment, Commissions Earned, Annuity and Gratuity. The employer deducts the tax liability from the salary of the employee who is liable to pay tax and remits to the government account. This is Tax Deducted at Source (TDS)

For Professionals & Freelancers, the earnings from different sources like professional fees, other incomes, etc form part of the income.

For a landlord, the rental received from part of the income. Similarly, capital gains from the sale of property or shares and buying of assets are also considered income.

However, certain incomes like the interest earned on Public Provident Fund (PPF) are exempt from tax.

The Assessee

The corporate entity or the person who is liable to pay Income tax and who is required to file the Income tax Return (ITR) is known as an Assessee. Accordingly, any business that has reached the threshold for paying tax is an assessee and any employee who is liable to pay tax is also an assessee.

The Assesse has to file the Income tax Return for each Assessment Year. Here we have to familiarize ourselves with two terms Financial Year and Assessment Year. The Financial Year is the period during which you earned the income and the Assessment Year is the succeeding year when you file your return for the previous year.

PAN & TAN

PAN is a ten-digit unique alphanumeric number issued by the Income tax Department. PAN which is the abbreviation for Permanent Account Number is a prerequisite for filing IT Returns. The IT Department can trace all transactions, returns, refunds, and other activities relating to Income tax through PAN.

TAN refers to Tax Deduction Number. This is a 10-digit alphanumeric number allotted to those who are liable to deduct TDS by the IT Department.

The obligation of the Business

Corporate Tax obligations

As a business entity, the employer has to pay corporate tax once they become liable to pay tax as per the IT Act, 1961. One of the basic conditions for paying IT is if your income exceeds Rs:2,50,000/- in a Financial Year. The tax on income for a financial year has to be paid to the IT Department during the succeeding year, which is known as the assessment year.

However, there are provisions to pay tax in advance based on estimated income for that particular year. In case the advance tax paid is more than the actual tax to be paid, then the excess tax paid is refunded to the assessee.

Payroll Tax obligations

Payroll tax is the tax an employee has to pay to the IT department after deducting the amount from the salaries of his employees who are liable to pay tax. Any employee whose income, in this case, the salary, exceeds Rs:2,50,000/- in a Financial Year is liable to pay Income tax. As per sec.192 of the Income tax Act, the employer is required to deduct tax at source from the salaries payable to an employee during the financial year. The tax liability of the employee is determined by the rate as applicable during the particular year. Every month, 1/12 of the net tax liability should be deducted from the employee’s salary along with a 3% Education Cess on Income tax. This has to be remitted to the IT department within the prescribed time as per sec.200 of the IT Act.

Further, the employer or deductor is required to furnish a certificate to the employee giving particulars of the tax deducted. The certificate has to be issued in Form No.16. Similarly, it is mandatory to file a return that certifies the deduction of tax and payment along with the required details. The authorized person has to sign and submit this to the Department. The employer has to quote the TAN and PAN numbers of all employees in all the certificates and returns.

When an employer fails to deduct tax, he is liable to pay interest. In the event of the employer deducting tax but not paying the tax to the department, he is in default and is, therefore, liable for penal action.

Conclusion

The employer has multiple obligations when it comes to paying Income tax. From the business point of view, the employer has to pay corporate tax under the prevailing rates. From the employee’s point of view, he has to efficiently manage the tax liabilities of each employee and calculate the TDS, deduct the amount from the salaries and remit the same to the department.

This is an ongoing process and the employer has to show great efficiency in managing these issues.

The TDS part can be efficiently managed by outsourcing to a third party who can efficiently manage all requirements of payroll that includes generating payslips, managing attendance and leave, and all statutory requirements like EPF, ESI, Incometax, and Professional Tax.

GtifyHR, one of the leading Payroll and HR outsourcing companies in the region offers a technology-driven cloud-based package that handles Payroll and Statutory requirement issues in an efficient and simplistic manner. Outsourcing Payroll operations is the best solution to overcome the problems associated with handling TDS and other tax-related issues.

Navigating and Managing your employees’ leave is a tricky challenge, where even small mistakes may lead to disaster? Don’t worry, here’s a guide to overcoming this challenge

Introduction

HR’s across industries have to be on their toes to effectively navigate and manage employee leave. Many a HR’s have been frustrated by the complexity of this task and this has adversely affected the performance of the company. However, you can overcome every challenge by using the right services. In this article, we shall address the ways by which you can overcome this frustrating problem for the better functioning of the company and its employees.

Before we go into the ways by which you can overcome the problems, let’s take a look at a few challenges in navigating and maintaining your leave management.

Challenge I – Tracking Employee Leave

Keeping track of your employees leave is one of the biggest challenges faced by an employer. In most cases, this is handled by using Spreadsheets or full-fledged Leave management software. Both these methods have their inherent disadvantages. Errors do creep in and this gives out inaccurate results.

When this happens it has a negative impact on the relationship between the employee and employer and this would adversely affect the business in the long run.

Challenge II – Employee Scheduling

HR’s has to have the full picture of employee scheduling to be in a position to allot leave. This may not be possible when using spreadsheets or even custom-built leave management software. This is true, especially in businesses that have a large volume of employees on their payroll. When there is confusion in scheduling it gets reflected in the allotment of leave and this would negatively affect the workplace. Effective leave scheduling will reduce the problem and this can be achieved only when you have an efficient leave management program in place.

Challenge III – Lack of clear Leave Policy

Having a clear leave policy is a must in handling leave more accurately and effectively. The Leave Policy of the company has to be properly framed as per the work culture of the company.

Once you establish a proper leave policy, you will be able to handle the leave of employees in an efficient and non-discriminatory manner. Once this system is in place, all the issues relating to employee leave will get simplified and effort-free.

Challenge IV – Inaccuracies in the Payroll

When you have a payroll system that is prone to errors, this is reflected in the leave records of employees.

When this happens, the HR team and the employees are affected. The HR team is hard-pressed to identify the actual leave status of the employees and the employees are troubled by the inaccurate marking of leave. This leaves them both frustrated and overall it affects the functioning of the company.

These challenges can be overcome by following the tips briefed hereunder.

1. Formulate a clear Leave Policy

This is one of the first tasks you have to do when you plan your leave management. You have to outline the leave policies for your employees. This will be based on the work culture followed by the company.

The leave policy should have guidelines that clearly set out the entitlement of leave to its employees.

The leave policy should include:

– The list of official holidays

– The types of leave available to the employees

– The leave that can be accrued and carried forward

– The leave that lapses at the end of the year

– The leave that is paid time off or not

– All other leave benefits.

2. Be aware of the laws about leave

Companies have to be aware of the laws about leave. This may differ from state to state. All the policies that you frame must fully comply with these laws. We live in a country with a diversity of religion, language, caste, community. We should take care to see that our policies are applied consistently without showing any discrimination against any of the employees. The HR team should be fully aware of these policies so that they can handle leave consistently without discrimination.

3. Communicate these policies to your employees

Formulating a leave policy is the first step but if the employees are not aware of it, it becomes meaningless. You have to communicate these policies to all the employees within the company. This will give the employees a clear picture of their leave entitlement and their rights. To achieve this, the HR team should be fully aware of these policies and be in a position to communicate them to all the employees

4. Get a fully automated Leave Management System

A fully automated Leave management System is one of the solutions to overcome all these challenges. Your choice of a system that can handle the inherent complexities of leave management should be perfect as otherwise, you will land yourself in more trouble.

Select a system that can fully update leave entitlement and balances on a real-time basis. This system should have the following features.

– Fully automated system

– User friendly

– Provide relevant employee-related reports and analysis

– Track the entire performance of each employee

– Be capable of handling employees across multiple locations

– Track leave and accrual details of each employee

– Address all compliance issues.

– Take care of data security and integrity

Conclusion

A Leave Management System that can handle the requirement of the company is not the only choice available. Companies can look forward to outsourcing the entire Payroll Process to an external agency. This by far is the most ideal choice as you have to look to only one agency to get all your processing done under the expert guidance of a single source. This would in effect enable the handling of Payroll Processing, Attendance and Leave Management, Statutory Compliance issues, and Recruitment. These systems are fully integrated and automated so that every entry gets reflected in all the relevant modules. In this way, you can avoid multiple entries.

GetifyHR, one of the leading outsources of Payroll Processing provides a cloud-based system that makes use of the most advanced technology. Their system is fully automated and integrated and offers a seamless operation that can handle Payroll Processing, Attendance and Leave management, Statutory Compliance issues, and Recruitment. They specialize in meeting the most stringent requirements in Payroll Processing and offer their clients high-end services at all times.

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8 ways to keep your Employees Happy and Productive at the workplace

Employee happiness is of paramount importance for the growth of a company. Happy employees contribute to higher productivity and this positively affects the growth of the company. When employees are unhappy they become unmotivated and this has an adverse effect on the growth of the company.

The COVID-19 pandemic has pushed the world into a deep crisis and slowly economies are recovering and stabilizing. The workplace has taken a serious hit forcing companies to seek alternative work arrangements. Thus work from home has become the new norm. Whatever may be the situation, keeping the employees happy and productive is vital for the growth of the company.

Why is employee happiness important?

“Happiness is when what you think, what you say, and what you do are in harmony.” Mahatma Gandhi. This is so very true of every workplace.

When the employees are happy, the workplace enlivens and becomes a place of harmony. Studies have shown that employees tend to perform better and make the right decisions when they are in a harmonious environment. A happy environment creates greater morale and this reflects on the performance of the employees. On the other hand, in a stressed and anxiety filled workplace you can see the employees getting distracted and erring in the decision-making. Happy employees take decisions after careful thought.

When employees are happy, there are lesser chances of them quitting the job than when they are unhappy. In other words, employer retention is affected when employees are unhappy. This will create a faster turnover of employees, forcing you to keep hiring new employees instead of focusing on the existing workplace.

Happiness is an infectious emotion and is, therefore, likely to spread throughout the team. This will have a positive effect on the entire team and will boost the relationship among the employees. Happiness will increase the energy levels of the team and lead to better performance.

In general, happy employees are more loyal and committed to the company and help to motivate their colleagues to perform better. This would lead to greater productivity.

How to Keep Employees Happy and increase Productivity?

There are different ways to keep your employees happy and productive. In this article, we will look at 8 effective ways to keep your employees happy and productive.

1. Create a flexible work environment

A flexible work schedule creates a vibrant workplace. When employees enjoy great flexibility at work, they are able to properly balance between their professional and personal lives.

The freedom to work in such an environment will lead to greater happiness and this, in turn, enhances productivity. The advantage of flexible work schedules is that employees are less stressed and more refreshed to perform their duties. This creates a happy work atmosphere.

2. Provide for greater Career Mobility

Most employees look for career growth and lack of career mobility will discourage them from putting their best efforts at the workplace. The workplace should be a place that encourages career growth. If employees feel that their efforts will not enable them to move up the ladder, they may become demotivated. This will force them to look for better opportunities elsewhere. No employee would be happy at a job that does not provide career growth.

Therefore, providing better opportunities for career growth is very important for most employees. When you provide this opportunity they will work with greater freedom, take risks, come up with new ideas, seek the support of their mentors, and sharpen their skills to move up the ladder.

3. Appreciate Employees and Reward them for their hard work

The hard work put in by an employee or their achievements have to be recognized and appreciated with a reward. Whether big or small, the skills of an employee have to be appreciated and rewarded. This creates a sense of being wanted and motivates the employees to strive harder.

The appreciation can be handled in different ways:

– Have regular meetings to recognize and appreciate performers

– Hold reward functions to recognize this achievement

– Instruct Managers to recognize achievers irrespective of their ranks

– Team meetings should be a forum to recognize such achievers

4. Enhance the Benefits to employees

This is a very effective way to keep the employees happy. When you instill the feeling that the company cares for its employees, they are more likely to feel comfortable and become productive. Serious thought has to be given to decide on the benefits that accrue to an employee. A strong communication has to be built with the employees to arrive at a benefit package that is comprehensive and beneficial to all employees. You can communicate with employees, hold surveys, get regular feedback and finally arrive at a benefit package that is wholesome and accepted by the employees.

5. Don’t overwork the employees

This is very important. When you overwork your employees, you are inviting a stressful environment. Managers may find it easy to instruct their workers to stay late or skip lunch/dinner or eat at the desk to save time to complete a project. This is a counter-productive practice that would push the worker towards burnout.

So, what should you do? The best solution is to encourage your employee to take a break from the work schedule. Managers may not accept this as they value time spent in the office as a measure of a job well done. But then if you need to create a happy workplace, you need to make such changes.

These breaks could include:

– Having a chat with a colleague

– Going out for a small walk

– Going out to the canteen for a bite.

Allowing frequent breaks may not be a good idea to follow. However, these breaks provide greater breathing space to the employees and this will refresh them and help them to work smarter and harder. Productivity may increase due to such a change.

6. Don’t micro-manage your employees

Micro-managing your employees will have a negative effect on their performance. No one likes to have someone keeping constant tabs on the progress of the work. Employees should be allowed to work at their own pace without constant prompting from the higher-ups. By doing so you indicate that you have no confidence in the ability of the employee to complete the task.

This will greatly demoralize the employee and ultimately productivity will suffer. When you show that you have full confidence in the ability of the employee to complete the task, you will get better results.

7. Have a balanced work-home life

A balanced work-home life situation is primary for employee happiness. This is a very important factor in maintaining a healthy work environment. Work-home life balance is the time one spends in the workplace and outside of work, at home with family. This balance is crucial if you are to build a healthy environment and keep your employees happy.

Employees may experience continuous stress at the workplace and this may lead to health issues that affect the digestive system, induce psychosomatic pains, or even heart problems. This may affect the mental health of the employee in the form of depression, insomnia, or anxiety. The final verdict is burnout and when this happens employees may exhibit symptoms of fatigue, irritability, and mood swings. Burnouts do not affect the employee alone; it affects the entire team and consequently the working of the company. This may prove costly for the employee and employer by way of healthcare spending. So one area that you have to give top priority is the work-home life balance.

The imbalance in work-home life balance is contributed by:

Longer working days
Additional overtime hours.

You can off-set this can by instilling a comfortable work-home life balance within your company. You can try these options to better the situation:

– Create working hours that are highly flexible

– Measure the progress of projects not by the hours spent by employees but by actual completion of the project schedules

– Conduct a regular review to understand the workload of employees and how they are managing it

– Plan time-off policies to allow employees to de-stress

These activities will enable the employer to release the pressure of the job and contribute positively towards production.

8. Pay salaries to employees promptly and accurately

This is a vital factor that contributes to the happiness of employees. The most important driving force for an employee is the salary that he or she takes home and they expect this to paid to them as per schedule and without any mistakes.

Mistakes can happen not only in calculating the take home salary but also in calculating the contribution towards funds like EPF & ESI and deductions towards IT and Professional Tax. Any inaccuracies here will have its effect on both the employees and the employer. This would create ill-will and also put the company at loggerheads with the government bodies. This is a sure way to create unhappiness and unpleasantness in the relationship between the employee and employer.

You can overcome this problem in two ways. One, you can get access to a highly efficient software that can handle Payroll and Statutory Compliance in-house or two, outsource the entire payroll processing operations to an external agency. Outsourcing the payroll to an external agency is by far the most ideal solution as it not only enables the company to disburse salaries promptly and accurately but will also handle all statutory compliance issues most efficiently and keep the company compliant, always.

By outsourcing you can:

Save time and money
Free your HR team from the mundane task of payroll processing and allow them to focus more on core business activities
Generate payslips and other statutory reports with a great degree of accuracy
Keep the company compliant of all the statutory requirements, always.

Conclusion

Companies can create happiness in the workplace by following these tips. The positivity that it creates will contribute greatly to the growth of the company. When the employees are happy they become more motivated and loyal and this, in turn, enhances their creativity and skills. The happiness of the employees is definitely the key to the growth of the company.

These 8 tips or ways to keep your employees happy and productive are all very important in varying degrees. However, you can implement the 8^th tip only when you associate with an efficient and highly experienced outsourcer. GetifyHR is one of the leading outsourcers of payroll processing in this region. Their cloud-based, technology driven high-end modules offer a single point solution for all your Payroll, Statutory requirements and Employee related activities. All their modules are seamlessly integrated and are capable of handling these operations in a simplified manner.

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Feel difficult to pay your employees salary with 100% accuracy? Here is a step by step guide to overcome this problem

Payroll processing is a complex task that has to function with greater accuracy. Discrepancies in the payroll affect the business in multiple ways. Firstly it creates friction with the employees leading to a lack of understanding and cooperation and promotes ill will. Secondly, it affects the relationship with the Government authorities as the returns submitted are inaccurate. This would entail paying fines as penalties. When this happens, the company loses the confidence of its employees and the goodwill of the authorities. This will have adverse effect on the growth of the company.

Steps to process payroll with 100% accuracy:

Step 1: Deciding on the process to handle payroll processing

Payroll processing can be handled in three different ways and they are …

Manual Processing: Here you can use worksheets like Excel to manage payroll. For companies with a handful of employees, this may be suitable. However, for companies with a larger workforce, this not only becomes cumbersome but is also prone to inaccuracies as the chances of clerical or mathematical errors are high.
Using Payroll Software: When you decide to move from manual processing to using readymade or customized software, you are paving the way for an automating system that can save a lot of time and generate highly accurate reports. This will help you to avoid a lot of problems and create a better understanding with your employees and also keep the company compliant. But they do have their disadvantages.
Outsourcing Payroll Process: This is by far the best method to process payroll with great accuracy. Here the entire operations are entrusted to an external agency that is highly experienced in handling Statutory Compliance issues and recruitment. You achieve full automation when you associate with an outsourcer as you get a wholesome package that integrates all the modules seamlessly.

Make your choice!

Step 2: Preparing the Employee inputs:

This is a very vital step and has needs great care and accuracy. Good to remember the acronym GIGO – Garbage In Garbage Out. Check for correctness of all the data that is input. Any mistakes here would be reflected in all the information till such time it is identified and corrected.

Step 3: Ensure proper classification of employees:

This is an important step and has to be handled with utmost care. Once the employees have been properly classified according to their designations and nature of work, the tax dues, EPF & ESI deductions, overtime wages, minimum wages, and other dues are recorded. Any mistake here would entail payment of back wages and taxes and also penalties to government bodies for submission of inaccurate returns.

Step 4: Accurate tracking of Time and Attendance:

Time and attendance have to be tracked meticulously, especially for those employees who earn on an hourly basis. An efficient time and attendance software will be able to handle this task properly and can also prevent time theft.

Step 5: Achieve full automation:

When you achieve full automation, you are in effect drastically avoiding inaccuracies. Full integration of the entire module is required to achieve this task. This will enable you to achieve full automation and all the relevant information will be at your fingertips. The payslips, the Leave and attendance details, the statutory deductions, and taxes are accurately posted during the process.

Step 6: Check Statutory Compliance and Tax issues:

You must fully understand and implement all the Statutory Compliance rules and regulations. So also the IT and Professional tax dues have to be maintained. These are extremely important issues that need to be followed strictly. You should be aware of changes enforced by the authorities and be able to implement these changes as and when they announce these changes.

Step 7: Maintaining Data integrity and security:

This is critical if you are to manage payroll accurately. Constant checks to maintain data integrity and quality have to be performed. Similarly, Data Security is important as this involves the vital data of all the employees. Careful maintenance of this aspect is important.

Step 8: Maintain regular communication with the employees:

Regular communication with your employees is a must as it will provide you with better inputs to develop the system. They can identify any lacunae in the system and this will help you to make necessary changes in the system.

Step 9: Regularly review the system:

When you regularly review the payroll system you get a better understanding of its performance and overall functionality. This will help you to make appropriate changes for greater accuracy.

Conclusion:

Payroll processing is a time-consuming and mundane task when handled in-house. If the need is to generate accurate reports and keep the company fully compliant, then the obvious choice is to outsource your payroll operations to an external agency. GetifyHR is one of the leading outsourcers of payroll processing in the country. Their cloud-based payroll system is fully integrated and provides highly accurate information to the company and its employees. The system also very meticulously handles all the compliance and tax issues.

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March Compliance Canlendar

Tax Compliance Calendar for March 2022 covers the important dates for Incometax Returns filing, GST(GSTR1, GSTR3B & RET1), TDS payment & filing, ROC from April 1st 2021 to March 31st 2022 primarily for Individuals, Professionals & SMEs.

Tax Head	Particulars of Compliance	Due Date
TAX DEDUCTION AT SOURCE	Payment of TDS to Government	Mar-07
TAX DEDUCTION AT SOURCE	Payment of TCS to Government	Mar-07
INCOME TAX	ITR for AY 2021-22 for assesses whose books are required to be audited us 44AB	Mar-15
	Due date for Linking of PAN with Aadhaar	Mar-30
	Tax Planning & Book Closure Plan for FY 2021-22	Mar-31
	Due date for Revised or Belated Income Tax Filing for AY 2021 -22	Mar-31
ADVANCE TAX	Payment of Advance Tax by Non-Corporates	Mar-15
ADVANCE TAX	Payment of Advance Tax by Corporates	Mar-15
ROC	AOC-4, AOC-4 (CFS), AOC-4 (XBRL), AOC-4 Non XBRL Filing for Companies & OPC	Mar-15
ROC	MGT 7 Filing for Companies & OPC	Mar-31
GST RETURN FOR ANY REGULAR BUSINESS	Filing of GSTR 1 – Turnover>5Cr or wTho opt for monthly filing	Mar-11
	Filing of GSTR 1/IFF – who opt for QRMP	Mar-13
	Filing of GSTR 3B – Turnover>5Cr or wTho opt for monthly filing	Mar-20
	Payment – PMT 06 – who opt for QRMP	Mar-25
	GSTR-4 (FY 2020-21)	Mar-31
PROVIDENT FUND ESI	Payment of PF Contributions	Mar-15
PROVIDENT FUND ESI	Payment of ESI Contributions	Mar-15
PROFESSIONAL TAX	Payment of Professional Tax in Tamilnadu	Mar-31

This calendar would now be available for every month in a year specifying the important dates for that particular month. This information will be very useful for businesses & individuals to regularize the monthly returns filing and payments. Associating with GetifyHR will not only provide high end technology to process the payroll and manage Statutory Compliance issues, but also prioritizes the important dates to be fully compliant.

7 reasons for Outsourcing Statutory Compliance in 2022

Introduction

The COVID-19 pandemic sweeping the world has affected all walks of life. Businesses have also felt the impact of the pandemic and have been forced to make drastic changes in their workforce. Work-from-home has become the new norm during the past two years. This has also forced governments to amend the statutory compliance rules and regulations in line with the changed conditions.

Payroll processing and keeping the business compliant with all the statutory rules and regulations has been an onerous task and businesses have looked at different options to maintain these. Outsourcing these operations to a genuine service provider is the ideal solution under these circumstances.

The current scenario has forced companies to find new ways to overcome issues pertaining to the workforce and this has put tremendous pressure on the HR team. Staff attrition rates are on the rise and it is becoming even more difficult to handle employee issues especially when your workforce is spread over different locations and in different states. In this article, we shall discuss 7 reasons for outsourcing your Statutory Compliance in 2022.

Reason-1: Keeping the company compliant, always!

This is one of the most important reasons to outsource statutory compliance tasks to an efficient and qualified service provider. Statutory rules and regulations are prone to frequent changes and companies must keep themselves abreast of these changes as and when they are made.

This is especially true during the pandemic and its aftermath. These changes have created a lot of headaches for companies that have maintained their Payroll and Statutory Compliance in-house. When you associate with an outsourcer you can rest assured of being fully compliant as they bring in their vast experience and knowledge of the field.

Reason-2: Save Time and Money

Outsourcing Statutory Compliance can save a lot of time and money. The service provider will maintain all the records and keep the company compliant, and this is irrespective of any changes that may have taken place in these rules and regulations. Handling these operations in-house would require an expert team and would, therefore, takes up more working hours and also pushes up the cost.

Outsourcing is, therefore, cost-effective and time-saving.

Reason-3: Creates better work atmosphere

Outsourcing your Statutory Compliance tasks to a service provider, assures you of getting the task completed without any errors. This is what the management and the employees need. The employees, therefore, do not have any issues with the management with regard to their contributions and deductions. This paves the way for greater cooperation between the management and employees. The workplace becomes more harmonious and this, in turn, would create greater growth.

Reason-4: Frees the HR team

Freeing the HR team from mundane work and allowing them to concentrate on core business activities is the ideal situation that any management would look for. By outsourcing Statutory Compliance to a service provider, you are doing just that. Statutory compliance is a very critical aspect that requires expert handling. The HR team would be hard-pressed to maintain these requirements and it would naturally take their time and effort to fulfill these tasks.

When you relieve them from these tasks, you are in effect freeing them to concentrate more on core business activities that would help to grow the business. This would surely help the company to reach its target much more smoothly.

Reason-5: Assists the Accounting Department

When you outsource to a service provider, your payroll and statutory compliance requirement function very efficiently. The data generation is accurate and effort-free. This accurate information is directly available to the accounting department so that accounts reconciliation can be performed without much complication and the need for additional data entry. All accounting entries get directly posted in the accounting modules as they are fully integrated with the payroll and statutory compliance modules. This will save a lot of time and effort.

Reason-6: Ensures regular filing of statutory reports and Tax filing

Outsourcing your statutory requirements assures you of regular filing of all the statutory forms within the stipulated period. This assures regular remittance of the contributions from the employees and employer within the scheduled period. Similarly, the handling of Tax filings and payment of tax dues will be regularized. This would enable the company to avoid fines and penalties due to late or wrong filings

Reason-7: Provide a high level of Data Security and confidentiality

Outsourcing to a service provider will ensure greater security of vital data. There is a reduced risk of mismanagement of funds and identity theft. With in-house maintenance of these tasks, there is a greater chance of tampering of employee data. Outsourcing prevents this possibility.

Conclusion:

Outsourcing your Statutory Compliance requirements has tremendous benefits for the company. Simply put, you can avoid a lot of headaches by keeping the company compliant with all the rules and regulations. When experts handle these issues, you are assured of greater cooperation with the employees and lesser issues with the Government authorities.

GetifyHR has earned a reputation for excellent service and its efficient handling of all Statutory Compliance requirements. During the pandemic, she has stood steadfast with her clients spread across the country and enabled proper handling of all regulatory issues excellently.

The changes brought on due to the pandemic and the new Labour Reforms that are being implemented by the Government of India are creating problems for business. However, we have been able to provide our clients with the best support to overcome these difficulties. Today, GetifyHR ranks among the very best Payroll and Statutory Outsourcing companies in India.

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EPF & ESI – Companies that are eligible? How to Register? What documents are required?

Introduction:

The constitution of India ensures social-economic justice to the people and establishing of a Welfare State. The inequalities in the society were slowly being dismantled by regulations brought in by the government. One such regulation was to introduce a long-term savings scheme for employees, especially in the Private sector, that would support them in retirement or superannuation. This regulation is the Employees Provident Fund & Miscellaneous Provisions Act, 1952.

With the view to provide further security to the employees in times of adversity like ill-health or accidents, the government introduced the Employees State Insurance (ESI) scheme in the year 1948. Both these acts have gone a very long way in supporting the employees in the organized sector when they are out of job and in times of adversity.

The EPF Act

EPF Act: the EPF act ensures that all employees have to contribute a percentage of their basic salary to the EPF every month. An equal is contributed by the employer towards the fund. The amount so contributed would earn interest and can be withdrawn under certain conditions. The scheme is managed by the Employees Provident Fund Organization (EPFO).

Eligibility – for Employer

Any organization that has 20 or more employees is required to register with the EPFO and contribute towards EPF. However, subject to certain conditions even organizations employing less than 20 employees are permitted to register and contribute to the fund.

Eligibility – for Employee

Any employee drawing a monthly salary of less than ₹15,000/- has to compulsorily become a member of the EPF. If any employee drawing a monthly salary more than ₹15,000/- desires to become a member he may do so subject to getting the approval from the Asst. PF Commissioner and the Employer.

How to Register?

EPF Registration is mandatory for all organizations that meet the eligibility criteria of 20 or more employees. The registration must be obtained within one month of the attaining the minimum strength. Failure to register will attract penalties.

The registrations can be made offline or online through the official website of the Employees Provident Fund Organization. Online registration is an early process when you have all the required documents/information readily available, the registration form can be downloaded from www.epfindia.gov.in.

The following information has to be furnished:

Name and address of the Organization

Details of Head Office and Branches if any

Date of Incorporation/Registration of Firm

Details of ownership: Designation and address of Directors or Partners

PAN details

GST details

Contact details: email ID and mobile number of authorised person

Name of contact person, Address, Date of Birth, Gender, PAN, Designation and date of joining

In addition to these, details regarding the type of company have to be furnished.

For Proprietorship Firm

Registration of Firm with date of registration

Name of the Employer

PAN details

Identify proof

Address of the Proprietor (Official)

Address of the Proprietor (Residential)

Contact Number

For Co-operative Societies (Trusts/Societies)

Certificate of Incorporation

Memorandum of Association

Articles of Association

PAN

Address Proof

For Partnership Firm

Name and address

Identity proof of Partners

Certificate of Registration

Details of Partners

For Limited Liability Partnership firm (LLP)

Certificate of Incorporation

Identify proof of Directors

Details of all Directors

Address Proof and ID Proof of all Directors

Memorandum of Association

Article of Association

Other Businesses

If Factory, then the Factory license and date have to given

First Sale Bill

First Purchase Bill towards machinery

Bank name, account Number, IFSC, address

Salary details

Employee details

Number of employees employed, Gender, Type of work

Salary details

Documents Required for ESI Registration

Company Pan Card (Scan Copy & Hard Copy)
Partners/Directors Pan Card (Scan Copy & Hard Copy)
Current Account Cancelled Cheque Leaf (Scan Copy & Hard Copy)
Company Registration Copy (ROC / Partnership Deed)
Partners Details (Name, DOB, Father Name, Partnership starting date)
Employees Aadhaar Card Copy
Employees Bank Passbook Copy
Digital Signature of Authorized Signatory
Specimen Signature
EPF & ESI Application forms
GST Registrations Copy
Rental/Lease Agreement

Steps for Online Registration

Be prepared with all the required documents

Read the instructions thoroughly

Fill in the required information

A Digital Signature Certificate of the Authorised Signatory – Proprietor/Partner/Director

Verify their correctness and then submit the form online

Type in the CAPTCHA code and click on “GET PIN” option

Enter the PIN that you receive on your registered mobile or email ID

Click on the SUBMIT button

Download the PDF

Save and take a printout of the PDF

This has to be submitted to the EPF Office.

The ESI Act, 1948

The Employees State Insurance (ESI) scheme is a welfare scheme for the benefit of employees in the organized sector. The scheme was introduced by the Government under the ESI Act, 1948 with the objective of providing social-economic protection to employees during adverse situations brought on by ill-health or accidents. The funding for the scheme comes from the contribution from the employee and employer. Under this scheme, the employer contributes 3.25% of the monthly salary + dearness allowance, whereas the employees contribute only 0.75% of the salary. Any establishment employing more than 10 employees (20 in some states) have to register with the Employees State Insurance Corporation (ESIC), an autonomous body under the Ministry of Labour & Employment, Government of India.

Eligibility

Any organization that employs 10 or more (20 or more in some states) is required to register with the ESIC and contribute towards ESI. The Act however applies for both the employer and the employee. In case the wage of the employee is less than Rs:176/- per day then the employee is exempted from contributing to the fund. All employees whose salary does not exceed Rs:21,000/- are eligible to be beneficiaries to the scheme.

The ESI Act covers the following establishments:

Shops, Road Transport organizations, Cinema Houses/Theatres, Newspaper Establishments, Non-seasonal Factories, Hospitals & Medical Institutions, Educational Institutions, Restaurants & Hotels. If any of these establishments employ 10 or more persons, they have to register with ESIC.

How to Register?

Registration can be manual or online. However, now the ESIC registration is fully online. The steps involved in online registration are given below:

Step 1: Here you have to login to the ESIC portal @ www.esic.in. Click on the “Employer Login” option on the home screen. On the next page click on “Signup” button and fill in the details called for and then submit the form.

Step 2: The employer will receive a confirmation mail to the email address and mobile number provided earlier at the time of sign-up. This email will contain the username and password details for registering as an employer under the scheme.

Step 3 : In this step you have to fill-up the Registration Form-1. For this you have to login to the ESIC portal and click on the “Employer Login” option and enter the User name and password received in your email or mobile. You will get redirected to the “New Employer Registration” option. Click on the option and you will be asked to select the “Type of Unit” from the dropdown list and click on the “Submit” button.

The Employer Registration Form_1 will appear on the screen and all the details required have to be filled in. The details include Employer details, establishment details, and employee details. Once this is completed, click on the “Submit” button.

Step 4 : In this step you have to make the Payment for Registration. Once the Registration Form is submitted, the “Payment of Advance Contribution” page will be open. Fill in the amount to be paid and select the payment mode. Payment of advance contribution for 6 months is required to be remitted.

Step 5 : This is where you will be sent a system generated “Registration Letter”. This will contain a 17 digit Registration Number and is a valid proof of registration of the employer under the ESI Scheme.

Documents Required for ESI Registration

The following documents have to be scanned and uploaded

Company Pan Card (Scan Copy & Hard Copy)
Partners/Directors Pan Card (Scan Copy & Hard Copy)
Current Account Cancelled Cheque Leaf (Scan Copy & Hard Copy)
Company Registration Copy (ROC / Partnership Deed)
Partners Details (Name, DOB, Father Name, Partnership starting date)
Employees Aadhaar Card Copy
Employees Bank Passbook Copy (If Gross is below 21 thousand)
Digital Signature of Authorized Signatory
Specimen Signature
EPF & ESI Application forms
GST Registrations Copy
Rental/Lease Agreement

These two Acts have provided the employees and their dependents in the organized sector solace during times of adversity like ill-health and accidents and when they are in retirement. They have been a great boon for such employees.

What are e-nomination in EPF and its importance?

What are e-nomination and its importance?

Nomination is a process to select one or more nominees as beneficiaries to receive the proceeds from EPF, EPS & EDLI on the demise of the member. The nominees could be the spouse, parents, children, and in some cases distant relatives and friends as given below.

A male EPF member can nominate his spouse, children, step children, dependent parents and his deceased son’s widow and children. In the case of a female member, the nominee can be her husband, children, (whether married or unmarried) her dependent parents, her husband’s dependent parents and her deceased son’s widow and children. The member can nominate only one or more persons belonging to the family.

Nomination made in favour of a person outside of the family is treated as invalid. In case the member does not have a family at the time of joining EPF, he can nominate any other person or persons as nominee. However, if subsequently the member acquires a family after some time, then the earlier nomination will become invalid and he has to make a fresh nomination in favour of one or more persons within the family.

If a member who is married nominates his or her spouse as nominee and subsequently if they get divorced, then he or she has to change the nomination as the earlier nomination becomes invalid.

For the EPS scheme a married member can nominate only his or her spouse and children. In case the member has no family and has not made any nomination then the claims will go to the legal heirs.

The EPFO has been providing guidelines on e-nomination and its importance in the light of the Covid-19 pandemic sweeping the country. The Covid-19 pandemic has pushed dependents of EPF members into deep trouble as they could not claim settlement due to the non-filing of nominees in the concerned accounts.

Nominating a person to receive the proceeds from EPF, EPS, and EDLI is of utmost importance. Earlier members had to file Form-2 with the respective PF Office, but the Digital India programme has changed all that. A member can now sit in his home and update the nominee details in just a few minutes without any complications. With e-nomination, the members who have not submitted their nominee details can easily execute this important step. Under the present situation, this is a great boon to members and their dependents. This will surely go a long way in ensuring speedier settlement of claims in the event of the demise of a member.

How to file e-nomination?

Visit the EPFO website at www.epfindia.gov.in and select Services >> For Employees – then click on “Member UAN/Online Services”.

Login with your Aadhar linked UAN and password
Select ‘e-nomination’ on opening the “Manage” tab
Enter all the details in the ‘Provide details’ tab and click on ‘Save’ button
To update family declaration click ‘Yes’
Click on ‘Add Family Details’ and furnish the required details
Click on ‘Nominee Details’ and provide the details and click on ‘Save EPF Nomination’
Next click on ‘E-sign’ to generate OTP on your registered mobile phone
Submit OTP sent to your mobile number (has to be linked with Aadhaar)
On successful verification, your e-nomination will be registered with the EPFO.
Documents required to be uploaded – Member Aadhaar with updated photograph and Nominee Photograph, Aadhaar and Bank details with IFSC code and address for both member and nominee.

Last date for filing nominee details

December 31, 2021 was reported to be the last date to update nominee details through the e-nomination portal. However, EPFO has clarified that one can update the nominee details even beyond December 31, 2021, and that no deadline has been set for the same as of now.

GetifyHR is fully geared to assist employers and through them the employees to update nominee details. Our Payroll Module has been fully updated to handle this issue in an easy and simplified manner. You can trust us to be with you always!

Is managing Employee attendance a tedious and frustrating operation

Ask any HR Manager and he will tell you that the most valuable resource in the organization is the employees. Managing them resourcefully will bring success, whereas poor management of this resource will bring failure. How do you manage this resource? Well, the answer is simple. If your attendance management is poor and leads to frustration, you can be sure that the productivity of the company suffers and this will lead to reduced profits.

What you need is an efficiently performing attendance management system that can improve the overall efficiency.

This concise Q & A session will give you a clear picture of how to improve productivity by efficiently managing your employee attendance.

What is the ideal way to manage employee attendance efficiently?

A poorly managed attendance Management will negatively affect the payroll. Any errors in your attendance will result in either over-paying or underpaying your employees. When you are manually managing the attendance you not only consume more time but are also prone to serious errors. If your workforce is large and spread over different locations, then you can imagine the problems this would cause to your payroll and the ramifications thereon.

Using custom-made software or other applications will not improve the situation much. The most effective solution is to take the services of an outsourcer offering Payroll Software that is fully integrated with HR Management. The attendance module in this package will process the data and provide error-free calculation of working hours, overtime, and loss of pay details. This will make payroll processing easier and simpler and provide highly accurate output.

Why is it important to have a clear Attendance Policy?

Formulating a clear Attendance Policy is the first step in managing your attendance effectively, and this is one of the biggest problems faced by companies. When you don’t have a clear Attendance Policy, you will not be able to regulate attendance effectively. By using a software or application, you will not be able to manage attendance properly as they are time-consuming and prone to errors.

The ideal solution is outsourcing. When you outsource these operations to an efficient service provider, you can rest assured of a high-performing system that will give error-free results. When you outsource, you will be able to formulate a clear Attendance Policy. By doing so you will be able to arrange the shifts, shift timings, week-off policies and create attendance regulations for each employee based on the nature of duty. This paves the way for systematic and error-free attendance management and relieves the management from a lot of stress.

Do you feel that lack of efficient connectivity is creating confusion for both the employees and the management?

Lack of proper connectivity affects both the employees and employers. For employees, the need is to have their attendance details easily accessible and at the required time. This will not be possible when you are using software or application that has their limitations. With an outsourced, cloud-based package you can be assured of an application that is accessible from any device. Mobile connectivity is the need of the hour and this is what you get when you outsource to an efficient Service Provider.

Easy access to attendance reports using a Smartphone will enable the employee and employer to access valuable information on the move. These applications are provided with an efficient ESS portal that allows access to data from anywhere. Location-wise, shift-wise information is now at your fingertips.

Are you in a situation where you are not able to keep track of your employees?

This is a situation that many employers find themselves in especially when there is a distribution of workforce across different locations. Custom-built software or applications will not be able to handle this aspect effectively.

If you are looking to keep track of all your employees and gauge their performance, then the ideal solution is to outsource to a Service Provider.

When you associate with a Service Provider like GetifyHR, you are associating with a high-performance cloud-based tool that keeps perfect track of all your employees on a day-to-day basis. This system is supported by Geo-tracking and Geo-fencing facilities, and this helps to locate each employee concerning the location he or she is posted. The log-in and log-out times are properly recorded and with the integrated Biometric that is in-built, the performance of each employee comes under minute scrutiny. The HR team will have access to records that allows them to make the right decisions on the allotment of work to the right employees in different locations.

Conclusion

An efficient Attendance Management system is the best solution to avoid employee-related issues. Present-day businesses are in dire need of a perfectly working application that integrates Payroll, HR management, Attendance & Leave Management, and Statutory Compliance rules and regulations. Only then can the management and employees work cohesively for the growth of the organization.

GetifyHR with its proven experience and professional approach in handling these tasks is the ideal choice to associate with. Our cloud-based application can seamlessly handle Payroll, HR management, Attendance & Leave management, and Statutory Compliance requirements with perfect integration.