Statutory compliance refers to adhering to labor laws and regulations mandated by central and state governments. PAYOF provides comprehensive services to ensure businesses meet these legal obligations seamlessly.
Key Areas of Compliance:
EPFO (Employee Provident Fund Organization):
- Ensures compliance with provident fund regulations, including employee and employer contributions, filings, and audits.
ESIC (Employee State Insurance Corporation):
- Manages compliance for employee health insurance contributions, registrations, and claims.
WWF (Welfare Fund):
- Compliance with welfare fund regulations applicable to specific industries and regions.
Registers & Records Management:
- Maintenance of mandatory statutory registers and records as per labor laws, ensuring they are inspection-ready.
Notice Board Compliance:
- Display of mandatory labor law abstracts and notifications in the workplace.
Shops & Commercial Establishments Compliance:
- Adherence to regulations related to working hours, wages, leave, and other requirements under the respective state act.
Statutory Registrations & Licensing Management:
- Assistance with obtaining, renewing, and maintaining various licenses required by labor and industrial laws.
Additional Support:
Inspection Handling:
- Preparation for labor department inspections, including liaising with authorities and ensuring compliance records are in order.
Compliance Audits:
- Periodic reviews of compliance levels to identify gaps and implement corrective measures.
Training:
- Educating employees and employers about statutory obligations, entitlements, and best practices.
Benefits of Statutory Compliance Services:
- Legal Protection: Avoid penalties and legal actions due to non-compliance.
- Operational Efficiency: Streamlined processes ensure timely adherence to statutory requirements.
- Risk Mitigation: Proactive updates and adherence to changing labor laws.
Frequently Asked Questions
PF is basically a retirement savings account. In India, businesses with 20 or more employees are legally required to register and contribute to the Employee Provident Fund (EPF). It builds trust because employees know they are saving for their future, and staying compliant protects your business from heavy penalties, interest charges, and legal prosecution.
ESIC (Employee State Insurance Corporation) is a government-managed health insurance scheme. It is mandatory for businesses with 10 or more employees where workers earn up to ₹21,000 per month. It provides employees and their families with free medical care at ESIC hospitals, cash benefits during sick leave, maternity leave benefits, and disablement benefits.
LWF is a state-level fund created to improve the working conditions, health, and living standards of laborers. Contributions are small (made by both employer and employee) and are collected monthly, half-yearly, or annually depending on the state. It is mandatory for all establishments operating in states that have implemented the LWF Act.
Professional Tax (PT) is a state-level tax on salaries. If you have employees, you are responsible for deducting PT from their monthly salary based on the state’s slab rates and depositing it with the state government. Registration is required in states where PT is applicable.
TDS (Tax Deducted at Source) is income tax deducted directly from an employee’s salary if their estimated income exceeds the basic exemption limit. As an employer, you must deduct this tax monthly, file quarterly TDS returns (Form 24Q), and issue Form 16 to employees at the end of the financial year so they can file their tax returns.