Payroll Outsourcing India | Thakur & Associates

Payroll in India is not a single calculation. It is a different calculation in each state an employee sits in, layered with PF, ESI, professional tax and gratuity rules that change as headcount crosses thresholds most businesses only learn about after they have crossed them.

We run the monthly cycle accurately and manage the statutory obligations around it, so that hiring your fifth employee in a new state does not turn into a compliance project.

Payroll processing

Monthly payroll run
Multi-state payroll
Reimbursement and variable pay processing
Full and final settlement

Statutory compliance

PF registration and monthly compliance
ESI registration and compliance
Professional tax registration and payment
Labour welfare fund contributions
Gratuity computation

Expatriate payroll

Residential status and tax position
DTAA relief and social security treatment
Split-payroll arrangements
Withholding and reporting obligations

Reporting and employee documentation

Payslip and Form 16 issuance
Payroll MIS
TDS on salary reconciliation
Statutory registers and records

Who this is for03 scenarios

A business hiring its first employees outside its home state, needing professional tax and welfare fund compliance correct from the first run.
A foreign subsidiary building its first India team, needing payroll and PF/ESI in place before the first salary is due.
A growing company that has crossed the PF or ESI threshold without registering, and needs the position regularised.

How we engage04 steps

Step 01 of 04
Payroll and compliance assessment
Current headcount, states of employment and existing compliance status reviewed to identify gaps before the first cycle.

What you receive

monthly payroll with payslips, statutory filings for PF, ESI and professional tax, payroll MIS, and Form 16 at year end.

Why work with us03 reasons

State-by-state accuracy
Multi-state rules are applied individually rather than as a single generic template, which is where most in-house payroll errors originate.
Thresholds monitored, not assumed
PF and ESI applicability is tracked against actual headcount, so a threshold crossed mid-year is caught rather than discovered in an inspection.
Payroll read alongside tax
Because the same firm handles your direct tax compliance, salary TDS reconciles to the returns rather than diverging from them.

Frequently asked questions05 questions

Common questions, answered directly.

The queries that come up most often on payroll services engagements — answered plainly, without the hedging.

Still have a question? Contact us

At what point do PF and ESI registration become mandatory?

PF registration becomes mandatory once an establishment employs 20 or more people, and is available voluntarily before that. ESI is generally triggered at 10 employees, though applicability varies by state and by whether the establishment falls within a notified area. We monitor headcount against these thresholds so a crossing is caught before it becomes a lapse.

Can you run payroll for employees across multiple states?

Yes. Professional tax rates, labour welfare fund contributions and Shops & Establishment obligations all differ by state, and each employee's payroll has to reflect their actual state of employment. Multi-state payroll is one of the most common reasons businesses move payroll to us after running into a compliance gap managing it internally.

Do you handle expatriate payroll?

Yes — including the residential status determination, DTAA relief position, social security treatment, and split-payroll arrangements where an expatriate is paid partly in India and partly in their home country.

What about full and final settlement when someone leaves?

Full and final settlement is processed as part of the ongoing service, including leave encashment, gratuity computation where applicable, and the corresponding PF and tax treatment, along with the compliance filings the exit triggers.

How does this differ from your Finance Outsourcing service?

This service processes payroll for people employed by your own entity. Finance Outsourcing places our professionals into your finance function, where the employment relationship and its payroll sit with us rather than with you.

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Other Services.

Every practice the firm runs, less the one you are reading. Each is scoped to stand on its own, and coordinated so nothing falls between compliance and strategy.