Payroll Processing Services

Quick answer: Virtual Auditor's professional fee for payroll processing for up to 10 employees starts from ₹3,000 + 18% GST per month; government fees and other charges are extra.

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.

What is Payroll Processing Services?

Regulatory Framework

Payroll compliance in India involves multiple statutes: Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF — applicable to establishments with 20+ employees), Employees' State Insurance Act, 1948 (ESI — applicable where wages up to Rs 21,000/month), Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, Payment of Gratuity Act, 1972, and Professional Tax acts (state-specific). TDS under Section 192 of the Income Tax Act for salary payments.

Indicative Fee Structure

*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

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)

When This Service Is 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 2026-27

This service page reflects the regulatory requirements as of November 2026, incorporating the Income-tax Act, 2025 (in force from 1 April 2026), the Finance Act, 2026, the GST notifications and circulars of October–November 2026, 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.

What has changed in the law — reviewed October 2026

• Income-tax Act, 2025: assented to on 21 August 2025 and in force from 1 April 2026, it replaces the Income-tax Act, 1961 for tax year 2026-27 onward, and the Income-tax Rules, 2026 (notified 20 March 2026) replace the 1962 Rules. Section and rule numbers on this page are those of the 1961 Act and 1962 Rules, which continue to govern assessments, appeals and pending proceedings for assessment years up to 2026-27; for tax year 2026-27 onward the corresponding provisions of the 2025 Act apply, and our engagement letters quote both.