Payroll Processing Services
Payroll processing covers: monthly salary computation (CTC structuring, reimbursements, deductions), TDS computation and deposit (Section 192), ESI contribution filing, PF contribution filing, payslip generation, and annual Form 16 issuance. Virtual Auditor handles end-to-end payroll for startups and SMEs, ensuring statutory compliance and employee satisfaction. Quick Answer: Payroll Processing Services — Payroll processing by CA firm. Salary computation, TDS, ESI/PF compliance, payslip generation. For startups and SMEs. Virtual Auditor.
Payroll Processing Services is a service offered by Virtual Auditor, an AI-powered CA and IBBI Registered Valuer firm (IBBI/RV/03/2019/12333) led by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV), specialising in accounting, bookkeeping, and tax compliance, from offices in Chennai, Bangalore, and Mumbai since 2012.
Source: Indian Accounting Standards (Ind AS), Companies (Accounts) Rules 2014 Official References: EPFO Portal ↗ · ESIC Portal ↗
Regulatory Framework
Regulatory basis: Indian Accounting Standards (Ind AS). Companies (Accounts) Rules, 2014. Income Tax Act Section 44AB (Tax Audit).
Indicative Fee Structure
Payroll (up to 10 employees)
From ₹3,000/month
Payroll (11-50 employees)
From ₹8,000/month
*Prices are indicative. Actual fees depend on complexity, capital structure, and regulatory requirements. Contact us for a detailed quote.
Payroll Processing — In-house vs Outsourced
| Parameter | In-House | Outsourced to VA |
|---|---|---|
| Setup cost | Software licence + training | ₹0 (included) |
| Monthly cost | Salary of HR/accounts staff | ₹100-200 per employee |
| Compliance | Your responsibility | We handle PF, ESI, PT, TDS |
| Risk of errors | Higher (manual process) | Lower (automated + review) |
People Also Ask
What does bookkeeping service include?
Transaction recording, bank reconciliation, monthly P&L and balance sheet, cash flow statement, GST return preparation, and TDS compliance. We work with Tally Prime, Zoho Books, QuickBooks, and Xero.
How much does accounting service cost?
From ₹5,000/month for up to 100 transactions. Includes bookkeeping, bank reconciliation, P&L, balance sheet, and GST return preparation. TDS filing and payroll are add-on services.
How Virtual Auditor Delivers This Differently
Integrated with Tally Prime, Zoho Books, QuickBooks, and Xero. Automated bank feed reconciliation, GST return auto-population from purchase/sales registers, TDS computation and challan generation, and monthly MIS dashboard with variance analysis — reducing manual bookkeeping effort by 70%.
Need Help With This?
Free 30-minute consultation with CA V. Viswanathan, FCA, ACS, CFE, IBBI RV. No obligation.
Step-by-Step Process
Step 1
Collect employee details and salary structure
Step 2
Set up payroll in software
Step 3
Monthly salary computation with PF/ESI/TDS
Step 4
Generate payslips and bank transfer file
Step 5
Deposit statutory challans by 15th
Step 6
Quarterly TDS return filing (24Q)
Recent Engagement — How We Helped
Context: a growing e-commerce startup that needed to transition from a sole proprietorship to a private limited company to raise angel funding.
Challenge: The business had existing GST registration, bank accounts, vendor contracts, and marketplace seller accounts all under the proprietorship. A smooth transition was needed without disrupting operations or losing marketplace seller ratings.
Our approach: We structured the transition as a business transfer under a slump sale arrangement, incorporated the new Pvt Ltd company, obtained fresh GST registration, and coordinated the transfer of all marketplace accounts. We handled FSSAI license transfer, updated all vendor agreements, and ensured GST continuity through proper input credit transfer under Section 18(1)(d).
Outcome: The entire transition was completed in 18 working days with zero disruption to daily operations. The angel round of Rs 75 lakhs closed within 6 weeks of incorporation. The company is now using our ongoing compliance service for annual filings, GST returns, and statutory audit.
This engagement illustrates Virtual Auditor's approach to payroll processing services — combining regulatory expertise with practical execution to deliver results within the client's timeline.
When Is Payroll Processing Services Not Required?
Outsourced payroll services may not be required when: (a) the company has fewer than 5 employees and payroll is straightforward, (b) an in-house HR/accounts team already handles payroll with proper compliance expertise, (c) the company uses automated payroll software with built-in PF/ESI/TDS computation, or (d) all employees are contractors paid through invoice processing.
If you are unsure whether your situation requires payroll processing services, contact us for a free preliminary assessment. We will advise you honestly — including telling you if you do not need our services.
Documents Required
The following documents are needed to initiate the payroll processing services process:
PAN card of the entity/individual, Aadhaar of the authorised person, proof of business address (rent agreement + utility bill), bank account details or cancelled cheque, Certificate of Incorporation or Business Registration proof, and any specific licences or approvals relevant to the engagement.
We provide a personalised document checklist after the initial consultation, tailored to your specific entity type and situation. Documents can be shared securely via email or our client portal.
What You Receive
Upon completion of the payroll processing services engagement, you will receive: Engagement completion report, all filed forms/returns with acknowledgment receipts, compliance status summary, advisory note on observations and recommendations, and a forward-looking compliance calendar with upcoming due dates.
All deliverables are reviewed by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV) before release to ensure accuracy and regulatory compliance.
Updated for FY 2025-26
This service page reflects the latest regulatory requirements as of March 2026, incorporating changes from the Union Budget 2025, recent MCA notifications, CBDT/CBIC circulars, and RBI master directions applicable to payroll processing services. Virtual Auditor continuously monitors regulatory updates to ensure all advice and filings are current.
Who Needs Payroll Processing Services?
This service is relevant for: (a) businesses at the stage of formation, expansion, or restructuring, (b) entities required to comply with specific regulatory or statutory obligations, (c) individuals or companies needing professional representation before authorities, (d) businesses seeking to optimise their tax or compliance structure, and (e) entities that have received notices or demands from regulatory authorities requiring expert response.
Penalties for Non-Compliance
Non-compliance can result in: (a) statutory penalties as prescribed under the applicable Act, (b) additional interest on delayed payments, (c) legal proceedings by the regulatory authority, (d) disqualification of directors/partners for repeated non-compliance, and (e) reputational damage and inability to obtain loans, contracts, or approvals from government agencies.
Proactive compliance is always cheaper than penalty. Contact Virtual Auditor for a compliance health check to identify and address any gaps before they become liabilities.
Frequently Asked Questions
What is included in payroll service?
Salary computation, TDS calculation and deposit, ESI/PF filing, payslip generation, reimbursement processing, and annual Form 16. CTC structuring advisory included at onboarding.
Do you handle ESI and PF?
Yes. We compute employer and employee contributions, file monthly returns, and handle annual reconciliation for both ESI and PF.
What is included in payroll processing?
Monthly salary computation, PF/ESI calculations, professional tax deduction, TDS on salary (Section 192), payslip generation, bank transfer file preparation, statutory challan payments, and quarterly TDS returns.
How much does payroll service cost?
From ₹100 per employee per month (minimum ₹3,000/month). Includes: salary processing, PF/ESI compliance, TDS computation, payslips, and quarterly returns. Year-end Form 16: included. Full and final settlement: ₹500 per exit.
Do you handle PF and ESI compliance?
Yes. Monthly PF challan (by 15th), ESI challan (by 15th), UAN generation for new employees, PF transfer (Form 13), PF withdrawal assistance, and annual PF/ESI returns.
Can you process payroll for contract workers?
Yes. Section 194C TDS for contractors, Section 194J for professionals. Separate TDS treatment from regular employees. Quarterly return filing (26Q for non-salary, 24Q for salary). Form 16A for contractors.
What is the deadline for PF and ESI deposit?
PF: 15th of following month. ESI: 15th of following month. Delay: interest at 12% p.a. (PF) and damages (ESI). We ensure timely deposit with automated calendar reminders.