With increased complexity and frequently changing tax and social security laws, issuance of notifications, press releases, annual circulars and judicial pronouncements, payroll administration, finance and HR teams are under tremendous pressure to ensure proper payroll compliances.

It has been observed that these evolving laws and amendments, at times are applied inappropriately, thus creating a non-compliance exposure for the company and amidst the pressure of regular monthly, quarterly, and annual payroll activities, it practically becomes difficult to trace inconsistencies and gaps.

Even in cases where the payroll processing has been outsourced, it is often noted that the payroll vendors are either not updated with such technical and regulatory changes or may inappropriately apply the same.

A payroll diagnostic exercise therefore proves helpful in detecting the potential gaps/irregularities in payroll processes, investigating the reasons, weeding out non-compliances and thereby help in ensuring efficacy in the payroll function of an organisation. Payroll diagnostic also helps assess vendor competency in case of payroll outsourcing.

Key service offerings

  • Advise on compensation policy and structures from tax and social security perspective
  • Review of payroll registers/master files
  • Review of various tax and social security positions
  • Review of investment declarations and reimbursements
  • Review of monthly compliances –calculations, returns and compliance with statutory due dates
  • Identify potential tax and penalty exposures and recommend on mitigation 
  • Highlight tax positions which may lead to litigation and recommend suitable measures to mitigate the exposure (if any)
  • Recommend 'leading practices' on payroll policies and procedures, which can be implemented by the organisation across businesses and locations