If you own a business, managing payroll manually is one of the time-consuming tasks during the financial year. It becomes hectic, especially when you have to reconcile salaries, track & record compliance payments, and analyse your business health accurately.

Here’s a year-end payroll checklist so that you can ensure a seamless closure to the current financial year. 

Collect investment proof and make tax adjustments

Your employees must have submitted tax declarations for FY 2020-21 to you. It is now time to collect the corresponding proof of your employees’ tax-saving declarations made during the year. This will help you calculate and adjust the TDS of your employees in the remaining month of the FY. 

Pass closing entries in your accounting books 

Record the salary payouts and outstanding statutory payments like TDS, PF, PT, & ESI accurately in your accounting books by 31st March 2021. All outstanding expenses like reimbursements or salary arrears for March should be accounted for in your accounting books by the year-end. 

Pay & file payroll compliances

  • Half-yearly ESI contributions (from October to March) must be deposited to the government by 15th April 2021. And, corresponding returns should be filed by 11th May 2021 
  • The outstanding TDS amount for March should be paid to the government by 30th April 2021, and the corresponding TDS returns (Form 24Q) should be filed on or before 31st May 2021 
  • Similarly, PF annual returns for FY 2020-21 should be filed before 25th April 2021
  • Deduct professional tax timely from your employees and file returns according to the state regulations. The maximum amount of professional tax deducted in an FY from an employee is Rs 2,500 

Distribute Form 16 to your employees

As an employer, you are required to generate Form 16 for all your employees on or before 15th June 2021. You can generate Form 16s, after filing the TDS return (Form 24Q) for the last quarter, from the TRACES website.  

Please note that the due dates are subject to change through government notifications.

Completing your year-end payroll checklist is just one step in getting ready for the next financial year. 

In our latest e-book, we have compiled everything you need to do to close this financial year seamlessly. 

Choose an automated payroll process for a smooth financial year-end 

If you are not using automated payroll software, the tasks mentioned above are very tedious. Switch to automated payroll software to execute these tasks accurately within a few minutes.

With an intuitive payroll solution like RazorpayX Payroll, you do not need to keep track of due dates. It handles everything to do with payroll for your business while ensuring your start of the next financial year is smooth. 


Writer-by-chance and overthinker-by-choice, raging a war against the Pineapple-on-pizza brigade

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