Statutory compliance refers to the legal framework that organizations must adhere to regarding the treatment of their employees. It involves complying with various central and state labor laws, such as minimum wages, tax deductions, and social security contributions.
Payroll compliance is a subset of statutory compliance that specifically deals with the legal aspects of payroll processing. This includes the accurate calculation, deduction, and timely filing of taxes (TDS) and contributions to social security schemes like PF, ESIC, and Professional Tax (PT).
HR plays a critical role in ensuring statutory compliance by maintaining up-to-date knowledge of labor laws, managing employee documentation, ensuring accurate calculations for deductions, and filing necessary returns on time to avoid legal penalties.
Key statutory compliances in Indian payroll include Tax Deducted at Source (TDS), Employees' Provident Fund (PF), Employees' State Insurance (ESI), Professional Tax (PT), Gratuity, and Labour Welfare Fund (LWF).
Benefits include avoiding legal penalties and fines, building a positive brand reputation, ensuring fair treatment and social security for employees, and fostering a trustworthy work environment that improves employee retention.
Statutory compliance is important to protect the business from legal actions and heavy fines, ensure the financial security and rights of employees, and maintain the company's integrity and reputation in the market.
The term "statutory" means "of or related to statutes," which are written laws. Therefore, statutory compliance means the act of adhering to the laws and regulations enacted by the government.
Statutory compliance refers to the legal framework that organizations must adhere to regarding the treatment of their employees. It involves complying with various central and state labor laws, such as minimum wages, tax deductions, and social security contributions.
Payroll compliance is a subset of statutory compliance that specifically deals with the legal aspects of payroll processing. This includes the accurate calculation, deduction, and timely filing of taxes (TDS) and contributions to social security schemes like PF, ESIC, and Professional Tax (PT).
HR plays a critical role in ensuring statutory compliance by maintaining up-to-date knowledge of labor laws, managing employee documentation, ensuring accurate calculations for deductions, and filing necessary returns on time to avoid legal penalties.
Key statutory compliances in Indian payroll include Tax Deducted at Source (TDS), Employees' Provident Fund (PF), Employees' State Insurance (ESI), Professional Tax (PT), Gratuity, and Labour Welfare Fund (LWF).
Benefits include avoiding legal penalties and fines, building a positive brand reputation, ensuring fair treatment and social security for employees, and fostering a trustworthy work environment that improves employee retention.
Statutory compliance is important to protect the business from legal actions and heavy fines, ensure the financial security and rights of employees, and maintain the company's integrity and reputation in the market.
The term "statutory" means "of or related to statutes," which are written laws. Therefore, statutory compliance means the act of adhering to the laws and regulations enacted by the government.
