Overview
Directors are personally liable
for payroll defaults.
Payroll compliance in India spans three major statutes: Employees Provident Fund Act, Employees State Insurance Act, and Professional Tax legislation. Each carries its own filing deadlines, contribution rates, and penalty frameworks. Defaults are not just company liabilities. Directors and designated officers carry personal criminal liability under all three Acts.
Our payroll compliance audit reconciles every ECR filing against your actual payroll, verifies ESI contribution accuracy, maps Professional Tax obligations by state for every employee location, and surfaces every default before the enforcement agencies do.
Why This Matters
EPFO enforcement has intensified significantly since 2022. Establishments with PF defaults face interest at 12% per annum, damages at up to 25% of arrears, and prosecution of directors under Section 14B of the EPF Act. ESI defaults carry similar penalties. We identify and quantify exposure before it becomes a recovery notice.
What We Audit
💼
PF ECR Reconciliation
Every monthly ECR filing reconciled against actual payroll. Missing employees, wrong UAN mapping, contribution shortfalls identified.
🏥
ESI Returns Review
Form 6 and monthly contribution returns verified. Wage ceiling compliance, eligible employee coverage, and timely deposit confirmed.
📋
Professional Tax Compliance
State-wise PT slab mapping for all employee locations. Karnataka, Maharashtra, Tamil Nadu, Gujarat, West Bengal - all covered.
📅
Due Date Compliance
ECR filing, ESI payment, PT payment deadlines audited. Late payment interest and damages calculated per statute.
👤
Director Liability Assessment
Named directors assessed for personal liability exposure. Resignation dates, designated officer records reviewed.
📊
Wage Structure Review
Gross vs basic wage ratios audited. PF on allowances compliance per Supreme Court ruling checked.
What You Receive
PF Reconciliation Report - Month-wise ECR filing reconciled against payroll with discrepancy register.
ESI Compliance Report - Coverage, contributions, and filing status verified for all eligible employees.
PT State Compliance Map - State-wise PT obligation chart with current compliance status and arrears.
Penalty Exposure Calculation - Exact interest and damages quantified for all identified defaults.
Director Liability Register - Named officers and their personal exposure documented.
30-Day Support - Replies to EPFO/ESI/PT notices based on audit findings at no additional charge.