Managing payroll each month can feel like an endless loop of calculations, deductions, and compliance updates. For businesses in metro cities like Pune and Mumbai, where the work pace is quick and expectations are high, making sure payroll is processed accurately and on time is necessary.
Whether you’re managing this in-house or associate with payroll service providers or payroll outsourcing companies in Pune, having a monthly payroll checklist can be a real time-saver, help minimize errors, and clear of compliance related problems.
Here’s a checklist that businesses—especially small and mid-sized ones—can follow each month:
1. Compile Attendance and Work Hours
The process initiates from gathering the monthly attendance, work hours, and leave records. This includes:
- Days worked
- Leaves (Paid and unpaid)
- Overtime hours (if applicable)
- Holiday and weekend shifts
Having correct attendance data is important for ensuring salaries are calculated properly,
2. Confirm the Employee Details and Salary Structure
Before running the payroll, check the employee database once more:
- Any new hires or resignations
- Salary adjustments, if any
- Deductions like PF, ESIC, and professional tax
- Bonuses or performance incentives
This step is important when working with payroll outsourcing services in Pune, as having proper employee information helps to prevent payment delays.
3. Gross and Net Pay Calculation
Once you have clarity on attendance and salary components, calculate the gross and net pay:
- Gross salary = Basic + HRA + Bonus + Allowances
- Deductions = TDS + PF + ESIC + Loan EMI (if applicable)
- Net Pay = Gross – Deductions
Many payroll services for small businesses in Pune now provide automated systems to speed up the process of calculations and reduce human error.
4. Ensure compliance with statutory deductions
Compliance is a very integral part of payroll regulations. Each month, businesses need to:
- Deduct PF and ESIC from employee salaries
- Add employer’s share to it
- Make sure to deposit everything before the official due dates
- Complete and file all necessary challans on time
Missing these deadlines can lead to penalties. Associating with trustworthy payroll compliance services in Pune can help to make sure that all government dues are paid on time.
5. Generate Payslips and Salary Reports
After processing the salaries, it’s important to:
- Share payslips to all employees
- Keep reports for audits and future reference
- Record salary disbursement entries in your accounting software
Make sure that payslips clearly mention all the components of the salary, including any deductions.
6. Salary Disbursement
When it comes to salary payments, ensure that bank transfers are made through salary accounts or via IMPS/NEFT. It’s wise to process these payments at least 1-2 days before the end of the month to avoid any last-minute banking issues.
7. File TDS and Submit Returns
Monthly payroll processing also includes:
- Deducting TDS for eligible employees
- Depositing it with the Income Tax Department
- Filing quarterly TDS returns (Form 24Q)
These steps are mandatory for businesses of all sizes, and neglecting to file can lead to notices or penalties.
8. Keep Track of Compliance Deadlines
In addition to PF and ESIC, make sure you’re also keeping an eye on:
- Labour Welfare Fund contributions
- Professional Tax filings
- Gratuity and bonus-related compliance (if applicable)
Many payroll outsourcing companies in Pune provide automated compliance tracking as part of their services.
9. Update Employee Records for the Next Month
Before wrapping up the month, update your HRMS or payroll system with:
- New joiners for the upcoming month
- Exits and full-and-final settlements
- Any reimbursement claims
This ensures a smooth start to the next cycle without needing to backtrack.
10. Review and Audit Payroll Process
At the end of each payroll cycle, it’s a good idea to do a quick internal audit. Ask yourself:
- Did any errors or complaints pop up?
- Were all payments and filings submitted on time?
- Are there any areas that could use some improvement?
If you’re outsourcing payroll, it’s smart to ask your service partner for a monthly summary to keep tabs on everything.
Final Thoughts
Having a payroll checklist is key to ensuring you don’t overlook any important steps when it comes to paying your employees. For businesses that are growing, especially in Pune and Mumbai, associating with reliable payroll service providers can really lighten your load each month. With expert help, timely compliance, and clear communication, you can concentrate on running your business while your payroll is handled professionally.
If you’re in need of dependable payroll outsourcing services in Pune, look no further than Biztree Accounting. Our team is ready to take care of everything—from calculations to compliance—with precision and responsibility.
Need assistance with your monthly payroll?
Reach out to Biztree Accounting—your trusted partner for payroll services for small businesses in Pune and throughout Maharashtra.