Question 1

1. What does statutory compliance in payroll include?

Accepted Answer

Statutory compliance in payroll includes things like income tax deduction and insurance allocation in payroll, along with the deduction of professional tax and the award of gratuity to eligible employees. It involves also ensuring that everyone is paid a fair wage, irrespective of gender.

Question 2

2. How to do a payroll compliance audit?

Accepted Answer

To do a payroll compliance audit, you need to have a payroll compliance consultant and trusted members from your payroll team to share the data with them. A payroll compliance audit can take a few days as a detailed analysis of the company’s payroll will be done. It must follow an established process and there must be well-established KPIs too.

Question 3

3. Who does a payroll compliance audit?

Accepted Answer

A payroll compliance audit is done by a payroll compliance professional, and the data is shared by members from the payroll team. This is then shared with the government. A payroll compliance audit could be conducted by the government too to ensure that everything is in order

Question 4

4. Are payroll compliance laws the same everywhere?

Accepted Answer

Payroll compliance laws are different in different parts of the world, with each country having its own tax laws and even terms for gratuity or maternity leaves. This is why a payroll compliance consultant who is familiar with the nation’s laws must handle the payroll compliance process.

Statutory Compliance in Payroll

What Is Statutory Compliance in Payroll?