Compliance is the mainstay of any futuristic organisation. Today, companies have to adhere to a variety of compliance requirements in different areas of operation. Payroll statutory compliance is one of these crucial areas that HR Departments must address adequately. Statutory compliance in payroll refers to meeting the rules and regulations about labour and labour laws.
Compliance with labour laws guarantees a culture with fair compensation, right working conditions, and security of employees. Adherence to the statutory compliance norms ensures that the company is protected from any non-compliance linked legal issues and from trade unions or employees that could potentially play trouble-makers.
“There’s also a price to pay with non-compliance with statutory requirements such as penalties, fines, and legal troubles for the company. In extreme cases, non-compliance may lead to loss of credibility, hefty fines, and legal suits and liabilities against the company or its officers and its directors.”
This possibility makes it more pertinent to meet the Payroll statutory compliance required in India.
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In India, the central and state laws about labour and taxation come under statutory compliance. There are several Acts and Laws that a Statutory compliance HR needs to be aware of and follow while working in an organisation. Some of these are enumerated below:
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The companies must meet the Indian Statutory compliance requirements laid down. These requirements are constantly evolving, and hence it becomes necessary to stay updated with these changes. Moreover, the regulations may vary across states. So be sure to understand the nuances of compliance norms. You can also seek help from the experts who make this task easier and seamless, integrating it into the very culture of the company.
“A compliance system helps to incorporate evolving laws and amendments seamlessly into practice. It also ensures impeccable record-keeping, which is a boon for any information requests years later.”
An efficient system documents the various compliance measures that the company takes over time. Using a centralised system helps consolidate the statutory compliance evidence at one place and avoids a scenario where the information is lost, following a fragmented approach by varied departments.
Despite best efforts to comply, companies often make costly errors when it comes to payroll. These usually happen due to human errors. Some of these include improper classification of permanent and contract workers, a payment that is not consistent with the payment guidelines, improper record-keeping of time logs, or payment terms. These then spiral into more errors, failure to incorporate government compliance regulations, or account for changes in the governing laws. These are some common errors. Payroll outsourcing can be a useful tool to deal with these common errors.
Darwinbox offers an automated 4-step payroll software for Payroll statutory compliance. The service empowers top brands across industries to manage complex salary structures on a unified platform. People responsible to maintain Statutory compliance, payroll admins, can easily manage aspects like tax management, CTC proration, and payroll through this module. The module also integrates essential data into the system as well, like, attendance records which makes it easy to gather inputs from HR while processing payroll. It also provides a framework for multiple salary structures. Efficient features, such as delivering payslips on a smartphone, make it easy to operate.
The Statutory compliance services are all packaged into one module and aspects of employees’ financial accounting. This makes it a one-stop solution for Statutory Compliance in Payroll. If you’d like a demo of our solution, feel free to reach out to our Payroll experts who specialize in compliance here.
Over time, a Statutory compliant HR will go a long way in propelling the company into the select group of credible organisations attracting the cream of talent and paving the way for growth and accelerating progress. A robust compliance process ensures a better workplace, increases employee retention and motivation, and ultimately organisational performance. Here is a ultimate guidebook to simplify your payroll buying process.