TMS 20 years of Experience

What is Payroll Outsourcing? Definition & Guide | TMS

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

1

Data Collection

We integrate with your HRMS or collect attendance, leave, and variable pay data through a structured monthly input template.

2

Payroll Computation

Gross-to-net salary calculation with TDS, EPF, ESIC, PT, and LWF applied at the correct state and employee-category level.

3

Client Review & Approval

Payroll register shared for your approval before any disbursement — full transparency at every step.

4

Bank Disbursement

Salaries transferred to employee accounts via NEFT/IMPS on your chosen pay date, with confirmation reports provided.

5

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.

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All Company Sizes

Structured service models for companies from 50 to 10,000+ employees — no minimum headcount requirement to get started.

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100+ Locations Covered

Multi-state payroll with location-specific compliance handled centrally. One point of contact regardless of how many states you operate in.

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Full Compliance Coverage

TDS, EPF, ESIC, PT, LWF, and Gratuity — every statutory obligation covered, every month, without exception.

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Real-Time Dashboards

Live visibility into payroll status, statutory payment confirmations, and compliance health through our cloud-based platform.

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Dedicated Account Manager

A named payroll specialist who knows your account — not a helpdesk ticket queue.

Ready to Outsource Your Payroll?

Talk to our payroll specialists and get a custom quote based on your headcount, locations, and compliance requirements.

Get a Free Quote
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