Managing Statutory Reports

Statutory reports form the backbone of payroll compliance. They provide proof that all payroll deductions—taxes, social security contributions, and benefits—are calculated, deposited, and reported according to the law. Proper management of these reports ensures audit readiness and protects organizations from penalties or legal risks.

“Accurate statutory reports are a reflection of a company’s commitment to compliance and transparency.”

Generating Statutory Reports for Audits and Compliance

Payroll teams are required to generate and submit multiple statutory reports depending on the region and applicable laws. These include:

1. TDS Reports
   • Form 24Q (Quarterly Return): Details of salary-related TDS.
   • Form 16: Annual TDS certificate for employees.
   • Form 16A: TDS certificate for contractors and freelancers.
2. Provident Fund (PF) Reports
   • Electronic Challan-cum-Return (ECR): Monthly submission through EPFO portal.
   • Form 3A & 6A: Annual PF contribution details.
3. Employee State Insurance (ESI) Reports
   • Monthly Contribution Report: Filed through ESIC portal.
   • Half-Yearly Returns: Summarizes contributions for audits.
4. Professional Tax (PT) Reports
   • Monthly/quarterly filings depending on the state.
   • Challans and PT deduction summaries.
5. Other Statutory Registers (as required under labor laws)
   • Muster Roll
   • Wage Register
   • Bonus Register
   • Overtime Register.

Ensuring Accurate Reporting to Authorities

1. Data Accuracy

• Employee details (PAN, Aadhaar, UAN, ESIC number) must be error-free.
• Salary structures should align with statutory definitions (basic, allowances, deductions).

2. Timely Submission

• Each statutory body (Income Tax Dept., EPFO, ESIC, State PT authorities) has strict deadlines.
• Late filings attract penalties and interest.

3. Audit-Ready Records

• Maintain digital and physical copies of filed reports and challans.
• Ensure reports can be retrieved easily during internal or external audits.

4. Payroll Software Advantage

• Modern payroll systems generate statutory reports automatically.
• Built-in compliance calendars send reminders for due dates.

Key Takeaway

Statutory reporting is not just about compliance, it’s about maintaining trust, transparency, and accountability with authorities, employees, and auditors. Accurate, timely, and well-documented reports prevent risks and make payroll teams audit-ready at all times.