Key responsibilities of a Compliance Executive in Payroll
1. Statutory Compliance Management
- Ensure timely compliance with EPF, ESIC and Professional Tax requirements.
- Prepare, verify and submit monthly PF ECR and ESIC contribution returns.
- Ensure timely generation and payment of statutory challans.
- Handle state-wise Professional Tax registration, deductions, returns and payments.
- Monitor changes in applicable labour laws and statutory provisions.
- Ensure compliance with applicable Minimum Wages, Payment of Wages, Bonus, Gratuity and other employment-related legislation.
1. Payroll Compliance & Verification
- Verify monthly payroll deductions against applicable statutory rules.
- Ensure correct calculation of PF, ESIC, Professional Tax and TDS.
- Verify employee eligibility and applicability of statutory deductions.
- Check PF wages, ESIC wages and contribution calculations.
- Ensure correct treatment of new joiners, resigned employees and employees crossing statutory wage thresholds.
- Coordinate with the payroll team to resolve discrepancies before salary processing.
1. Monthly Returns & Statutory Payments
- Prepare and maintain monthly statutory compliance calendars.
- Ensure timely filing of PF, ESIC and Professional Tax returns.
- Verify challans and payment acknowledgements.
- Reconcile payroll deductions with statutory portal payments.
- Maintain records of statutory payments and filing acknowledgements.
1. Employee Statutory Benefits
- Handle employee PF UAN and KYC-related issues.
- Coordinate PF transfer, withdrawal and settlement requests.
- Assist employees with ESIC registration and benefit-related queries.
- Coordinate gratuity, bonus and leave encashment compliance.
- Ensure proper documentation for full and final settlements.
1. Labour Law & Establishment Compliance
- Maintain applicable statutory registers and records.
- Coordinate registrations, renewals and amendments under applicable labour laws.
- Support compliance requirements under the Contract Labour Act, Shops and Establishments Act and other applicable legislation.
- Coordinate with labour authorities and inspectors during inspections.
- Ensure proper documentation for labour-law audits.
1. Audit & Reconciliation
- Conduct monthly statutory audits of payroll data.
- Reconcile payroll reports with PF, ESIC and Professional Tax returns.
- Identify discrepancies in employee master data and statutory deductions.
- Prepare compliance MIS for management.
- Maintain records for internal, external and statutory audits.
1. Multi-State Compliance Management
- Monitor state-wise statutory requirements for different project locations.
- Track changes in minimum wages, Skilled Tax rates and applicable labour regulations.
- Coordinate with site HR and payroll teams for employee data and attendance records.
- Ensure compliance documentation is maintained separately for each establishment or applicable location.
Monthly compliance activity calendar
Activity Frequency
PF ECR preparation and filing Monthly
ESIC contribution filing Monthly
Qualified Tax deduction and payment Monthly / State-specific
TDS salary reconciliation and deposit Monthly
Payroll statutory verification Monthly
Minimum wage verification Whenever revised
Bonus and gratuity compliance As applicable
Statutory register maintenance Ongoing
Labour-law audit and reconciliation Periodic
Important skills required
1. Robust knowledge of EPF and ESIC regulations.
2. Professional Tax knowledge across multiple states.
3. Knowledge of TDS on salary and payroll taxation.
4. Understanding of Minimum Wages and labour laws.
5. Expertise in payroll reconciliation and statutory MIS.
6. Knowledge of EPFO, ESIC and Income Tax portals.
7. Advanced Excel skills and HRMS/payroll software knowledge.
8. Audit documentation and compliance reporting.
Suggested KRAs and KPIs
KRA Performance indicator
Statutory filing 100% filing within applicable due dates
Statutory payments Timely challan generation and payment
Payroll accuracy Zero avoidable statutory deduction errors
Compliance audit Timely closure of audit observations
Employee support Timely resolution of PF/ESIC queries
Documentation Updated statutory registers and records
Multi-state compliance Timely tracking of state-wise changes
Difference between Payroll Executive and Payroll Compliance Executive