Payroll and its Compliance Outsourcing Services

Proposal

Submitted on: 21-01-2015

Our Technology Partner

Contact:
CH. Vijaykumar
Contact: +91 9962191333
E-mail: vijaykumar.ch@yesteem.in

Registered Office:

YES People Tech Solutions Pvt. Ltd.,

No. 7, 8th Main Road, 1st Floor, Cee Dee Yes Gokulam,
Vijaya Nagar, Velachery, Chennai - 600 042

www.yesteem.in

Contents
General Profile .............................................................................................................................................. 2
Service Offerings ........................................................................................................................................... 3
Process & Infrastructure ................................................................................................................................ 4
Execution Methodology ................................................................................................................................. 6
Scope of Work ............................................................................................................................................... 8
Commercial Fee Structure .......................................................................................................................... 10

Page 1 of 12

General Profile
A fully integrated Human Capital Management Solutions Company, specializing in Consulting,
Technology and Smart sourcing solutions to Organizations to achieve Performance Excellence.
YES helps Organization to create, nurture, manage
and excel in their Human Capital Management areas
through our unique client focused solutions.
With the CORE Team possessing rich global
experience and expertise in the field Human
Resources
Management,
Organizational
Development,
Business
Development
and
Operational Excellence; YES is a professional
organization working towards designing and
implementing customized strategic programs that
propel Organizations and Individuals towards
success.
YES continue to work towards being a pioneer and thought leader in the niche areas of Human
Resources Management like HR Analytics, Technology in HR, OD & Change Management, Executive
Search, Turnkey Consulting and Behavioural Interventions.
Our vision
To be a Global Thought Leader Organization providing best in class solutions for the Consulting, Technology,
Smart sourcing needs in the field of HR.

Values that drives us

Trust, Respect and Passion

Page 2 of 12

Service Offerings
Our service offerings include:

Managed Payroll Processing

o

Monthly Salary Processing

Quarterly & Year-end Tax Processing

Pay Slip generation that is subsequently made available either through the Employee
Self Service portal or as hardcopies

Payroll related Expense management

Full and Final Settlement processing

Standard Reports (e.g. Bank Advice Report, Statutory reports, TDS report)

Customized MIS reporting

Statutory Compliance Management:

Statutory Compliance Audit

Trust Management Services (PF/Gratuity/Pension/Superannuation)

Shops & Establishment Compliance Management

Factory Compliance Management

CLRA Compliance Management

Payroll Compliance Management - Filing of all periodical returns for the employer
related to payroll
o

IT/PT/EPF/LWF/ESI

Form 24Q / Form 16

Online Employee Self Service Portal a dedicated portal for client employees that provides
access anytime, anywhere. Browser based application which can be accessed by employees
and HR Managers. It does not require any component to be installed on users machine.
Features includes
o
o
o
o
o
o
o

View / Download of Payslip, Tax Computation Sheet, Reimbursement Slip, Form 16 and
other documents
View / Edit / Download of Investment Declarations
Post Queries
Upload company related documents that requires to be shared with employees
Reimbursement module and leave management module that could be customized as per
client requirements
Provision to transfer files between Client SPOC & YES SPOC
Broadcast common information to all employees

Page 3 of 12

Dedicated contact centre team that handles query management to ensure quick turnaround of
queries raised.

Money Movement / Fund Transfer Services

Onsite Implant whose responsibility will include general coordination between the client and YES
PeopleTech Solutions, collation of inputs, addressing employee queries, preliminary validation of
reimbursement bills & investment proofs.

Cloud Services Payroll-on-Cloud, Leave and Time & Attendance Management Services

Service Level Agreements (SLAs)

Prime importance provided to Service Level Agreements (SLA).

A Service Level Agreement (SLA) will be set up to agree acceptable standards of accuracy,
response and working practices.

Signed before the commencement of the outsourcing assignment.

The SLA adherence is completely transparent and shared with the client as a monthly feedback
mail.

Account Management and Contact Center

A dedicated client representative will be assigned to every client to ensure the adherence to the
service standard prescribed for the respective client

A Contact center has been established to ensure resolution of all queries raised by the client
employees. All queries raised will be tracked for timely resolution and reports on the same will be
shared on a monthly basis.

Infrastructure

25 seat capacity integrated outsourcing facility at Chennai.

Facilities and infrastructure designed to manage seasonality and the ability to support secure and
complex operations.

Page 4 of 12

We use specially developed payroll software and Store the Data in our exclusive payroll server

We take backup every day in a magnetic tape and store the tapes in the HDFC locker

Deployment of world class applications customized to suite our needs to serve clients better.
Application Infrastructure is entirely deployed on Microsoft as base system thereby ensuring our
environment in stable and well supported.

Focus on End to End automation of process thereby ensuring efficiency and integrity in data
processing.

Page 5 of 12

Execution Methodology

Contract

Implementation

Finalise SLA
(Service Level Agreement)

Live Processing

Contract
On finalization of terms, a contract will be executed.

Implementation
A team of experienced payroll professionals with expertise in systems and payroll domain perform the
implementation activities.
The implementation phase is carried out to understand the clients payroll system, the complexities
involved, customizations required in order to set up the clients payroll enabling smooth transition of the
account.
An introduction call is
organized with the client
following which a study is
performed on the existing
payroll system of Client.
Past payroll data are
uploaded in the payroll
engine based on the
understanding obtained
during the study.
A parallel processing of the
payroll will be performed,
where gaps in the output
are identified at both ends
and actions taken.
Once complete clarity is
obtained on the payroll
system of the client, the
processing is done live.

System
Study

Past
Run

Parallel
Run

Live
Run

Services Scope & Contract Signup

Data Migration
Data Clean Up & Validation

Upload of prior month(s) paysheets

Identification of Gaps
Draw-up of Client Operating Procedures (COP)

Comparison of Output Data (YES India & client)

Identification of Gaps
Complete Customisation of Systems & Processes
Finalization of Client Operating Procedures

Payroll Processing through the Payroll engine

Verification / Review of output
Upload of Payroll Reports to web-based system by YES

On completion of the Implementation, a signoff is obtained from the client and the monthly payroll processing
is performed by a separate team.

Page 6 of 12

Month on Month Activities

A SPOC*, designated
by the client provides
inputs required for
processing every
month

Client Inputs

Joinees / Resignees
Attendance
Reimbursement
Tax & Loan details

Based on the inputs

received, payroll is
processed using a
payroll engine

Monthly
Processing

Payroll &
Reimbursement Processing
Update Tax Declarations
Master Data

Outputs from the

processing are
forwarded to the
SPOC via e-mail as
well as through ESS

Pay Slip, Pay Sheet

Bank Advice Statement,
Salary JV, Statutory &
other customized reports
Uploaded payslips on
ESS

Outputs

*SPOC Single point of contact

Deliverables are based on a defined SLA. The adherence to SLA is computed on a monthly basis &
results are shared with the client.
Query management is exclusively handled by the Contact Center Team, which resolves employee
queries also within defined SLAs.
Statutory activities will be initiated along with the payroll implementation and continued thereon month
of month as applicable

Inputs

Duration
From
To
#

Apr

May

Funds
Transfer
(Pass
Through)

Salary
Credit

Payslip

Statutory
Reports

YES

Client

Client

YES

YES

YES

YES

Client

YES

YES

Client

Client

Client

19-Apr-12

24-Apr-12

25-Apr-12

26-Apr-12

27-Apr-12

30-Apr-12

2-May-12

17-May-12
Thursday

Jun

Confirmation
of Paysheet

Client

Thursday

May

Paysheet

20-Jun-12
Wednesday

Tuesday

Wednesday

Thursday

Friday

Monday

Wednesday

22-May-12

23-May-12

24-May-12

25-May-12

28-May-12

29-May-12

Tuesday

Wednesday

Thursday

Friday

Monday

Tuesday

25-Jun-12

26-Jun-12

27-Jun-12

28-Jun-12

29-Jun-12

2-Jul-12

Monday

Tuesday

Wednesday

Thursday

Friday

Monday

Sample SLA

Year End Activities

Year-end activities include:
Investment proof validation based on declarations made & Form 16 generation
Page 7 of 12

Scope of Work
Based on our discussions, please find below our understanding of your requirements:
Total strength is approximately 900 employees,

1. Payroll Processing Services

YES will undertake off-site processing of Employees payroll and benefits for the client from its central
processing centre in Chennai, India. It endeavors at every stage to map the existing processes at the
client end.

Monthly Salary Processing

Reimbursement Processing

Control & Variance Reports

Variance analysis Gross to Gross statement

Category wise, Location wise, Cost center wise reports on request

Joinees / Resignees reports

CTC & Head count report

Consolidated report of earnings and deductions

Other reports
o

Loan / Recovery statement

Journal Vouchers

Tax Computation

Salary disbursement report

o

Bank Advice Statement separately for each bank

Cheque Advice Statement

Statutory Statements
o

PF deduction statement

PT report Location wise

LWF Location wise report

Income tax deduction statement *

* (Monthly TDS Remittance would have to be remitted directly by the client through their corporate bank account)

Page 8 of 12

Any other reports as required by the client may be offered subject to feasibility.
Quarterly & Year-end Tax Processing

Verification and validation of Investment documents

Generating Form 24Q

eTDS Filing

Generating Form 16 (Form 16 would be generated on annual basis)

Full & Final Settlement Processing

Query Management EMAIL and Help Desk @ client site every month

Online Employee Self service

Separate Login and password Provided to all employees

View/Download Payslip, Tax Worksheet
Investment Declaration and Tax Proof Submission
Download Form 16
Leave Management
Online Attendance punch In and Punch Out
Reimbursements

2. Payroll Compliance Services

Professional Tax

PT report generation

PT challan preparation

PT challan remittance

Return preparation and submission

Provident Fund:

Monthly reports and challans

Monthly Remittances

Monthly Return Preparation and Filing

Annual Return Preparation and Filing

Filing of PF Nomination

Submission of Transfer in/out, Withdrawal, Death Claim and Loan application forms with
RPFC and obtaining acknowledgements

Providing information and reports in case of inspection

Assisting during PF inspection

Prepare & submit Form 9 as & when requested by PF dept.

Page 9 of 12

Providing monthly MIS report

Employee State Insurance (ESI)

Monthly reports and challans

Monthly Remittances

Generating Online Temporary card as per the new joinee details provided

Providing information and reports during audits/inspection

Professional Tax

PT report generation

PT challan preparation

PT challan remittance

Return preparation and submission

Labour Welfare Fund

LWF report generation

LWF challan preparation

LWF challan remittance

Return preparation and submission

Inspection assistance

Obtaining Code registration (on request)

Note: Tasks on Request will be charged separately with mutual consent

Page 10 of 12

Commercial Fee Structure

Costs will be broken down into the following categories for Payroll and its Compliance Outsourcing
Services, assuming the headcount is 200 (approx) currently.

Component

Charges in INR

1 & 2. Payroll & its Compliance Outsourcing Services

One-time fee for system study, Data migration, Past

INR 25000

Run,

Monthly Fee for processing Payroll, Online Leave

Management and Payroll related Compliance

INR 60000

Management Services (as mentioned in the scope

of work above) for up to 1000 employees.

Monthly Fee for processing Payroll, online Leave

Management and Payroll related Compliance
Management Services for beyond 1000 employees

INR 60000 + INR 50 per employee beyond 1000

employees.

Full & Final Settlements Will be considered as a record in the month it is processed

Form 16 - Included in above.

Form 24 Included in above.

Commercial Terms:

Page 11 of 12

Service Tax will be charged @ 12.36% on the entire fee specified above fee (Subject to revisions as
per Government of India rules).

One-time fee for System study, Data migration and Past run will be invoiced after completion of
migration.

Client will pay the Monthly charges within 14 days of the invoice date.

Once Payroll is completed, if the Client requests for changes in payroll, YES PeopleTech Solutions
will reverse the payroll and re-run it, re-generate reports and re-check. YES PeopleTech Solutions
India will charge the Client 50% of the monthly fee for this process.

Double Taxation for Expat will not be handled by YES PeopleTech Solutions.

This Proposal will be valid for a period of 30 days from the date of Proposal.

Terms of Business are subject to the contract.

Page 12 of 12