Complete Guide to Zoho Payroll Setup in India

Overview

The setting up of Zoho payroll India stands as a very comprehensive payroll management system that is designed towards the building of business in India. This makes the process very much easier using automatic calculations, compliance with statutes and the payslips of the employees. Thus setting up of Zoho payroll India stands out to be very crucial and also involves crucial steps to make sure that the process is followed accurately and in compliance with the local laws and regulations.

Eligibility Criteria to Set Zoho Payroll in India

• Business entities should be registered in India including private, public, sole proprietorship, partnership and LLPs.
• The employee count can differ based on the business standards and size of the business.
• The laws and regulations with Indian statutes must be adhered by the business.
• The office of business should be registered in India.
• To create a separate bank account in India for payroll management.
• Proper PAN and TAN registration
• Registration with GST.

Key Zoho Payroll Software Features

Some of the key Zoho Payroll Software features in order to do Zoho integration are mentioned below:

• Automates payroll processing for accurate salary calculations.
• Ensures compliance with local labor laws and tax regulations.
• Provides an employee self-service portal for accessing payslips.
• Manages leave tracking for various types of employee leave.
• Integrates attendance management for accurate work hour tracking.
• Allows customizable salary structures for different roles.
• Automatically calculates income tax and TDS based on updated slabs.
• Generates detailed payroll reports for insights on earnings and liabilities.
• Seamlessly integrates with other Zoho applications.
• Supports direct bank transfers for salary disbursement.
• Handles multi-currency payroll for global operations.
• Ensures data security with robust protection measures.
• Sends customizable notifications for payroll deadlines and updates.
• Offers mobile access for payroll information on-the-go.
• Facilitates exit management and final settlements for departing employees.

Benefits of Our Zoho Payroll Set Up in India

• Compliance with Statutes

  The Zoho payroll is designed to comply with all the Indian Payroll and other forms of regulations, including provident funds, employee state insurance, professional tax, and income tax. This system assists in the process of updating in compliance with any changes in laws and regulations.

• Self-Service Towards Employees

  The employees can now further access their payslips, documentation of taxes and another form of payroll which is about the information made through a service portal. This also reduces the burden of administrative work on the HR and this process also improves transparency.

• Payroll Calculation

  The payroll through Zoho is further automated through the calculation made on salaries, taxes and other forms of deductions that also further reduces the errors and also makes sure that the payment is done promptly reducing the delays which are made upon timely payment.

• Bank Transfers

  One can directly transfer salary through this platform under a business to the bank accounts of the employee as this has a very efficient process by which one can transfer salary to bank account ensuring a very streamlined process. This process stands out to be very efficient in the management of business.

• Pay Runs

  The associated business can now further customize their pay runs which are made upon analysis and the payroll can be further scheduled towards their formation, the assessment can be made monthly, bi-weekly or in a weekly manner. Which stands out to be very much helpful for business growth.

• Attendance and Leaves

  The payroll which is made under Zoho further integrates with people and also allows for further to keep on their track of leaves and attendance which has a direct impact on their payroll and any other associated calculations which is made upon the assessment of records.

Step by Step Process for Zoho Payroll Set Up in India

Step 1: Creation of an Account

To get started with Zoho Payroll, you need to create an account by signing up on the platform. This involves providing your email address and setting a password, allowing you to access payroll features and tools.

Step 2: Configuration of Business Profile

Once your account is set up, the next step is to configure your business profile. This includes entering essential details such as your company name, address, contact information, and any other relevant data to ensure compliance and accuracy.

Step 3: Configure Payroll Settings

In this step, you’ll set up your payroll settings to align with your business needs. This includes defining your pay periods, salary structures, and any specific deductions or allowances, ensuring that your payroll process runs smoothly.

Step 4: Registration by Statutes

Registering by statutes involves complying with local labor laws and regulations. You’ll need to input information such as tax identification numbers and other legal requirements to ensure that your payroll adheres to statutory guidelines.

Step 5: Deduct TDS from sale proceeds

After having all the required credentials, which are mentioned in earlier steps, the next step is deduction of Tax at source (TDS) from the total sale proceeds. In the case of long-term capital assets, the TDS rate is 20% (which is 12.5% w.e.f 23rd July, 2024) of the total sale consideration if the property is held for more than 2 years. While on Transfer of short-term capital assets (property is sold before completion of 2 years) buyer is required to deduct TDS @ 30%.

Step 6: Deposit TDS to government

Upon successfully deducting the TDS from the sale proceeds made to the NRI seller, the buyer should proceed to deposit the TDS to the Income Tax Department within 7 days of the subsequent month in which the deduction is made/payment made to the seller.

Step 7: File TDS return

For TDS filing, the buyer will file the TDS return using Form 27Q in the next quarter after successfully depositing the TDS amount.

Step 8: Issue TDS Certificate

After successfully filing the TDS return, the buyer can obtain Form 16A and provide it to the NRI seller. This is done to meet the tax regulation established by the Income Tax Act.

Step 9: Lower TDS Deduction

Where the Non-resident Indian seller believes that no amount or only a partial amount (other than salary) is taxable in India and he believes that TDS is to be done at a Lower/Nil rate he may make an appeal to Assessing officer (AO) under Form 13 for obtaining a Lower deduction/ Nil deduction certificate. Now, AO will enable the deductor or payer to deduct the TDS at a much lower rate.

Why to Choose Bizfoc?

Choosing Bizfoc for your Zoho Payroll setup in India provides numerous advantages, particularly in navigating local compliance and regulations. Their expertise ensures your payroll adheres to statutory requirements, minimizing the risk of penalties. Bizfoc also offers tailored solutions that align with your business needs, along with seamless integration with existing systems. With ongoing support and comprehensive training for your HR team, they empower you to manage payroll confidently. Additionally, their services are cost-effective and scalable, allowing you to focus on core business activities while efficiently managing payroll as your organization grows.

Conclusion

Zoho Payroll is an excellent choice for businesses in India looking for an efficient, compliant, and user-friendly payroll management solution. Its automation capabilities, customization options, and integration with other Zoho products make it a comprehensive tool for managing payroll. Additionally, its focus on compliance and data security ensures that businesses can operate confidently, knowing that their payroll processes are in good hands.

Frequently Asked Questions