Payroll Outsourcing

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Seamless Payroll Management. Accurate Compliance. Consistent Delivery.

Payroll Outsourcing

Payroll today goes well beyond salary disbursement — it involves statutory compliance, data confidentiality and dependable workforce support. LEAPRO delivers end-to-end payroll outsourcing services in Chennai, combining experienced payroll professionals with structured, technology-assisted systems that improve accuracy, timeliness and compliance reliability. From salary structuring to Form 16 issuance, our team manages the complete payroll lifecycle, so your business can focus on people management while we handle processes, filings and statutory obligations.

10–10,000+
Employee headcounts supported
Chennai
Headquartered payroll team
Multi-State
PF, ESI and PT compliance coverage
Monthly
Cycle, delivered on time every time

Common Payroll Mistakes That Cost Companies

Many payroll errors and penalties are avoidable with the right outsourcing support. Here's what companies most often get wrong.

Common Mistake What Happens How LEAPRO Prevents It
TDS computed on gross instead of taxable income TDS is calculated on CTC without deducting standard deduction or HRA exemption — over-deducted TDS leads to employee complaints and ITR reconciliation issues TDS computed on taxable income after all applicable exemptions, with investment declarations tracked and applied correctly
PF ceiling not applied correctly An employee earning ₹30,000/month has PF deducted on the full basic instead of the ₹15,000 ceiling, creating an EPFO mismatch PF ceiling of ₹15,000 applied correctly — wages above the ceiling don't contribute beyond it
ESI threshold crossed without registration The 21st employee joins, crossing the 20-employee ESI threshold, and the company operates for months without registration — real penalty exposure Headcount tracking with ESI threshold alerts, triggering registration before the 20-employee limit is crossed
Professional Tax applied for the wrong state An employee working remotely from Karnataka has PT deducted at Tamil Nadu rates — a compliance issue at reconciliation Work location tracked per employee, with PT applied per the actual work state, not the office location
Form 16 issued with incorrect details Form 16 shows CTC in the Part B section instead of actual gross, leaving the employee unable to file their ITR correctly Form 16 generated from validated payroll and TDS data, with Part A and Part B reconciled before issuance

Who This Is For

Our Payroll Outsourcing Services

Salary Structuring & CTC Design

  • Tax-efficient salary structure design covering HRA, special allowances, perquisites and reimbursements
  • CTC breakup aligned with company policy and statutory compliance

Monthly Payroll Processing

  • Net salary computation across basic, allowances, reimbursements and deductions
  • Attendance and leave integration, arrears, bonuses and variable pay processing
  • Digital payslip generation with full statutory disclosures

Provident Fund (PF) Compliance

  • EPFO registration once the 20-employee threshold is crossed
  • Monthly ECR filing, challan generation and PF member data updates

Employee State Insurance (ESI) Compliance

  • ESI registration once the 10-employee threshold is crossed
  • Monthly challan and return filing, plus member additions and deletions

TDS on Salary

  • Investment declaration collection and monthly TDS computation across old and new regimes
  • Quarterly TDS challan payment, Form 24Q filing and annual Form 16 issuance

Professional Tax & State Compliance

  • PT enrolment and monthly deduction per state-specific rates
  • PT challan payment, annual return filing and Labour Welfare Fund compliance where applicable

Full and Final Settlement

  • Exit payroll processing covering notice pay, leave encashment and gratuity
  • PF withdrawal support and Form 16 issuance for partial-year employment

Payroll Reporting & MIS

  • Monthly payroll summary covering headcount, salary cost and statutory liabilities
  • Department-wise and location-wise cost allocation with audit trail for statutory audits

PF and ESI Threshold Triggers

Understanding when PF and ESI registration becomes mandatory helps avoid last-minute compliance scrambles.

Provident Fund (PF)

  • Mandatory once 20 employees are crossed, with registration required within one month of the 20th employee joining
  • Wage ceiling of ₹15,000/month — employees earning above this contribute PF only on ₹15,000, not the full basic

Employee State Insurance (ESI)

  • Mandatory once 10 employees are crossed, and applicable only where employees earn below ₹21,000/month
  • Employees earning above the ₹21,000 wage ceiling are not covered under ESI

We track headcount and wage thresholds continuously, with registration applications triggered automatically before limits are crossed — avoiding penalty exposure altogether.

Why Choose LEAPRO for Payroll Outsourcing

What Sets Us Apart What It Means for You
Error-free payroll processing Structured validation checks prevent TDS errors, PF ceiling mistakes and PT miscalculations before they happen
Chennai-based with multi-state reach Headquartered in Chennai, supporting multi-state PT/PF/ESI compliance for offices across India
Threshold monitoring Headcount tracked monthly, with PF/ESI registration triggered before the 20/10 employee limits are crossed
Audit-ready records Payroll registers, statutory filings and Form 16 maintained for investor due diligence and statutory audits
Confidentiality and security Payroll data handled with strict access controls, with employee self-service portals available
Integrated with accounting Salary cost, TDS liability and PF/ESI contributions flow automatically into your accounting books
Scalable from 10 to 10,000+ We serve startups with 10 employees and enterprises with thousands — our systems scale seamlessly either way

Frequently Asked Questions

Once 20 employees are crossed, registration is mandatory within one month. Voluntary registration is available for smaller companies. We track headcount continuously and trigger registration before the threshold is crossed.
₹15,000 per month. An employee earning ₹30,000 basic still has PF contributions calculated only on the ₹15,000 ceiling, not the full amount — both employee and employer contribute 12% on the capped figure.
ESI applies once 10 employees are crossed and those employees earn below ₹21,000/month. Companies with 50 employees all earning above that threshold wouldn't need ESI at all. Contribution is 4.75% employer plus 0.75% employee.
TDS is computed on taxable income after standard deduction, HRA exemption, and 80C/80D investments where applicable, with the employee's choice of old or new regime factored in. We collect investment declarations and compute TDS monthly with annual reconciliation.
PT is a state-level tax on salaried employees, with rates varying by state. It applies in states like Karnataka, Tamil Nadu, Maharashtra, West Bengal, Andhra Pradesh, Madhya Pradesh and Gujarat, but not in Delhi, Haryana, UP or Rajasthan. We apply the correct rate per employee's actual work location.
Yes. Multi-state payroll is fully supported — different PT rates per state, PF/ESI registrations per location — with work location tracked per employee so state-specific compliance is applied correctly.
Typical cycle: attendance data received by the 25th, payroll processed by the 28th, salaries credited by the last working day. Statutory payments (PF/ESI/TDS) go out within 15 days of the next month, and Form 16 is issued by June 15 annually.
Late payment attracts interest and damages under the EPFO/ESIC Act — interest runs at 12% per annum for delays, with additional penal interest for extended delays. We process challans by statutory deadlines, typically the 15th of the following month, to avoid this altogether.

Ready to Simplify Your Payroll?

Talk to our team about salary structuring, statutory compliance or Form 16 issuance.

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