Manage
Payroll Processing
Payroll converts approved employee, attendance and compensation data into accurate gross-to-net pay, statutory deductions, payslips, accounting entries and reconciled payment instructions.
Last Reviewed: 29 July 2026
Next scheduled review: 29 October 2026
Reviewed by: IndiaBusiness.ai Editorial
Who it’s for
When you may not need it — A founder-only entity with no payroll may only need reimbursement/director-remuneration advice. Payroll does not decide employee-versus-contractor status or cure a defective compensation structure.
Verified at-a-glance facts
Key facts table
Process
Step 1
Establish employee master, employment classification, state, wage structure and statutory coverage.
Step 2
Freeze monthly inputs under an approval calendar.
Step 3
Validate joins/exits, attendance, leave, overtime, variable pay and reimbursements.
Step 4
Calculate gross-to-net, TDS and applicable deductions.
Step 5
Run variance, negative-pay, bank and statutory exception checks.
Step 6
Obtain authorised approval; generate payslips and payment instruction.
Step 7
Reconcile bank, payroll register, statutory challans and ledger.
Step 8
Archive output under role-based access.
Documents needed
- Employment/compensation records
- PAN/bank and employee declarations
- Attendance/leave
- State/work location
- Tax evidence
- PF/ESI/UAN/IP details
- Prior payroll and opening balances
- Approved variable-pay and exit inputs
What IndiaBusiness takes care of
- Payroll calendar
- Computation
- Variance report
- Payslips
- Bank upload file
- Accounting journal
- Deduction schedules
- Statutory handoff
Questions founders ask
Must basic salary always be exactly 50% of CTC?
No. The labour-code rule is an add-back within the statutory definition of wages, not a universal instruction that every basic-pay line equal 50% of CTC.
Does payroll service include PF/ESI returns?
Only if separately scoped.
Can payroll be run after informal WhatsApp changes?
Use named approvals and a controlled change record.
You may also need
Primary sources
Information is general and reflects sources reviewed on the date shown. Eligibility, documents, fees, timelines and outcomes depend on the applicant’s facts and the current law, authority portal or platform policy. IndiaBusiness provides advisory and execution support; approval and enforcement decisions remain with the relevant authority, certification body, platform, bank or other decision-maker.