When it comes to statutory compliance, all businesses have ton follow the rules with no exception for the payroll. Statutory compliance refers to the structure of legal framework implemented by the central and/or state governments for regulation of the business activities in the state. While working on the payroll for your organization, HivePayroll takes care of the payroll related statutory compliances.
Statutory compliances are legal responsibilities for any organization and an individual. Following rules is important in building trust and positive relationship between the organization and governments. Staying up to date with the rules and regulations and following the rules can add to the good credit and reputation of your organization. Historically, the documentation related to payroll statutory compliances were done by HR manually.
HivePayroll, makes the process automatic and provide to various documents required for the statutory compliance in the form of reports. You can use these documents to submit to the tax office or various departments of both state and central government. All statutory compliance documents and reports are saved in encrypted and secured format in AWS cloud environment. Your authorized managers can access the same at anytime from anywhere to meet statutory requirements.
In India, payroll compliance or statutory compliance pertains to the legal requirements that companies must follow when dealing with their workers or employees. Organizations usually allocate a substantial amount of funds towards statutory compliance activities, including company audits.
Statutory compliance in Indian payroll is not one obligation. It is six or seven of them, each with its own rate, its own due date, its own return format, and — for Professional Tax and Labour Welfare Fund — its own rules in every state you employ people in. Miss one and the penalty usually costs more than the contribution did.
HivePayroll calculates each of these inside the monthly payroll run, so the liability and the return come from the same numbers that produced the payslip. There is no second system to reconcile against.
| Obligation | What HivePayroll produces |
|---|---|
| Provident Fund (EPF) | Employee and employer contributions, plus the ECR file ready to upload to the EPFO portal |
| Employees’ State Insurance (ESI) | Employee and employer contributions, an eligibility check as salaries change, and the ESIC return |
| Professional Tax (PT) | State-wise deduction, a PT return and a PT detail return |
| Labour Welfare Fund (LWF) | State-wise deduction and the LWF return |
| TDS on salary | Monthly deduction, quarterly position, challans and the Form 24Q filing steps |
| National Pension System (NPS) | Contribution handling and the NPS subscriber file |
| Gratuity | Tracked as a liability head alongside PF, ESI and PT |
The compliance dashboard shows your total liability for the period broken down by head — PF employee, PF employer, ESI employee, ESI employer, Professional Tax and Gratuity — with the split between what the employee bears and what the company does, and the current period beside the last one.
It answers the question most finance teams actually ask at month end: what do we owe, to whom, and is it more than last month. If it is, the drill-down tells you which head moved.
Most statutory filings fail for a boring reason. A PAN is missing, a UAN was never captured, a bank account has the wrong number of digits. You discover it when the upload is rejected, usually on the due date.
HivePayroll runs a statutory KYC check across your employee master and flags missing PAN, UAN and bank details before they cost you — while there is still time to chase the employee rather than the deadline.
An employee crossing the ESI wage ceiling mid-contribution-period does not simply stop being covered. Getting this wrong in either direction is expensive: deduct when you should not and you owe the employee, fail to deduct when you should and you owe ESIC with interest.
HivePayroll tracks eligibility as salaries change and shows you who has moved, so the decision is deliberate rather than discovered.
Compliance software that calculates correctly but hands you a screen to retype from is only half a system. Every statutory return in HivePayroll is produced as a file:
Each one can be filtered by department, location, cost centre or business unit before you download it, which matters when a single company files separately for separate registrations.
Employees submit their investment declarations themselves, and payroll reviews them in one queue rather than in an inbox. The declaration form filters what it offers by the employee’s tax regime, so people are not entering deductions that will not apply to them. See TDS and income tax management for how those declarations flow into the monthly deduction and the year-end filing.
Professional Tax is deducted at the applicable state rate and produced as both a PT return and a PT detail return. Because PT registration is state-specific, returns can be filtered by location so a company operating in several states files each one separately.
Directly. The ECR is generated from the same payroll run that produced the payslips, formatted for upload to the EPFO portal.
HivePayroll tracks ESI eligibility as salaries change and shows you who has moved past the ceiling, so you can apply the contribution-period rules deliberately rather than finding out at filing time.
The statutory KYC check scans for missing PAN, UAN and bank details across your employee master and lists who is incomplete, before the filing rather than after the rejection.
Gratuity is tracked as a liability head on the compliance dashboard alongside PF, ESI and Professional Tax, so your provision is visible in the same place as the rest of your statutory position.
The fastest way to test any payroll vendor on compliance is to make them run your hardest case before you sign — a multi-state PT setup, an employee crossing the ESI ceiling, a mid-year joiner. Book a free demo and bring it with you, or see HivePayroll pricing. Every plan includes a 15-day free trial.
Related: TDS management · payroll reports and analytics · the payroll management process
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