Payroll Outsourcing & Statutory Compliance Services in India
Managing payroll in India means staying compliant with TDS, EPF, ESIC, Professional Tax, LWF, and Gratuity — simultaneously, across every state where your employees work. TMS handles all of it, end-to-end, for companies ranging from 50 to 10,000+ employees across India. For companies that also need a contract staffing solution — where TMS acts as employer of record for your third-party workforce — we handle that too.
What’s Included in TMS Payroll Outsourcing
Our payroll outsourcing service covers the full monthly payroll cycle — not just salary calculations, but every downstream statutory obligation:
- Salary Computation: CTC structuring, gross-to-net calculation, leave and attendance integration
- Tax Deduction (TDS): Section 192 computation based on employee-declared investments, deposited by the 7th of every month
- EPF & EPS Management: 12% employee + employer contributions, ECR filing, and UAN management
- ESIC Administration: Eligibility tracking, contribution computation, and monthly filings
- Professional Tax: State-wise PT slabs applied and deposited per applicable timelines
- Labour Welfare Fund: State-specific LWF deductions and remittances handled automatically
- Payslip Generation & Bank Disbursement: Digital payslips delivered to employees; NEFT/IMPS transfers processed on your chosen pay date
- Full-and-Final Settlement: Exit payroll processed in compliance with prescribed statutory timelines
- Form 16 & Annual Returns: Form 16 issued by June 15th; EPF, ESIC, and IT annual returns filed on time
Statutory Compliance Coverage Across India
India’s payroll compliance landscape varies significantly by state — minimum wages, PT slabs, LWF rates, and filing deadlines all differ. TMS maintains a dedicated compliance calendar for every state where your employees are located, so nothing slips through.
- Multi-State Support: We manage statutory compliance across all 28 states and 8 UTs, applying the correct rules for each location
- Deadline Management: TDS by the 7th, EPF/ESIC by the 15th, Form 16 by June 15th — all tracked and filed proactively
- Penalty Prevention: Our compliance team monitors regulatory changes and updates your payroll parameters before deadlines pass
- Audit-Ready Records: Full payroll records maintained for the statutory minimum of 8 years with a complete audit trail
How Our Payroll Process Works
Data Collection
We integrate with your HRMS or collect attendance, leave, and variable pay data through a structured monthly input template.
Payroll Computation
Gross-to-net salary calculation with TDS, EPF, ESIC, PT, and LWF applied at the correct state and employee-category level.
Client Review & Approval
Payroll register shared for your approval before any disbursement — full transparency at every step.
Bank Disbursement
Salaries transferred to employee accounts via NEFT/IMPS on your chosen pay date, with confirmation reports provided.
Statutory Filings & Payslips
All statutory payments deposited; digital payslips distributed; monthly compliance summary report delivered to your team.
Why Businesses Outsource Payroll to TMS
TMS processes payroll for 400+ companies across India — from 50-person startups to enterprises with 10,000+ employees. Here’s why they stay:
Zero Errors
Multi-layer validation eliminates payroll errors before disbursement, protecting you from employee disputes and regulatory penalties.
All Company Sizes
Structured service models for companies from 50 to 10,000+ employees — no minimum headcount requirement to get started.
100+ Locations Covered
Multi-state payroll with location-specific compliance handled centrally. One point of contact regardless of how many states you operate in.
Full Compliance Coverage
TDS, EPF, ESIC, PT, LWF, and Gratuity — every statutory obligation covered, every month, without exception.
Real-Time Dashboards
Live visibility into payroll status, statutory payment confirmations, and compliance health through our cloud-based platform.
Dedicated Account Manager
A named payroll specialist who knows your account — not a helpdesk ticket queue.
Payroll Resources
tms-faq-section” style=”margin:48px 0;padding:32px;background:#f8f9fb;border-radius:8px”>
Frequently Asked Questions — Payroll Outsourcing in India
- What is payroll outsourcing in India?
- Payroll outsourcing means handing over your company’s payroll processing to a specialist provider like TMS. The provider handles salary computation, payslip generation, PF/ESIC deductions and filings, TDS calculation, Form 16, and compliance — letting your HR team focus on core people work.
- What does a payroll outsourcing company do?
- A payroll outsourcing company manages the full payroll cycle: collecting attendance/leave data, computing gross and net salaries, deducting PF/ESIC/PT/TDS, generating payslips, disbursing salaries, filing statutory returns (PF ECR, ESIC challan, TDS), and providing Form 16 at year-end.
- Is payroll outsourcing cost-effective for small businesses?
- Yes — for businesses with fewer than 100 employees, outsourcing payroll typically costs ₹150–400 per employee per month, far less than hiring a dedicated payroll executive. You also eliminate compliance risks, penalties and software costs. TMS serves startups with as few as 5 employees.
- How secure is outsourcing payroll data to a third party?
- TMS uses encrypted data transfer, access controls and confidentiality agreements to protect employee salary data. All data is processed on secure servers and shared only with authorised personnel. ISO-certified processes ensure your payroll data is never compromised.
- How long does it take to transition payroll to TMS?
- Most payroll migrations to TMS are completed within 2–4 weeks. TMS assigns a dedicated relationship manager who handles data migration, PF/ESIC transfer, opening of salary accounts and parallel run validation — with zero disruption to your employees’ salary dates.
