Statutory Master Standard Details-Compliance

Verifying Statutory Masters in Compliance Module

To ensure statutory compliance with government-mandated rules such as Professional Tax (PT), Labour Welfare Fund (LWF), Employee State Insurance (ESI), and Income Tax (IT), follow the steps below to review and configure statutory masters in the application.

Navigation Path:

Compliance Module → Statutory Master

1. Professional Tax (PT)

• PT Applicability and Slab Details:
  Select the Professional Tax option to view the applicable states and their respective PT slabs.

• Custom PT Slab Configuration:
  If your organization has any specific slab requirements, you can customize PT slab configurations within the same section.

• PT Computation Logic:
  The application computes PT based on the slab rules defined for the employee’s work location.

2. Labour Welfare Fund (LWF)

• LWF Applicability and Slab Details:
  Select the Labour Welfare Fund option to view applicable states and their corresponding LWF contribution slabs.

• LWF Computation Logic:
  During payroll processing, LWF is calculated automatically based on the slab configuration defined in the system.

3. Income Tax (IT)

• Income Tax Slab and Regime Details:
  Under the Income Tax option, review applicable tax regimes (Old/New) and income tax slab details.

• Exemption Details:
  The system also includes a list of exemptions available under various IT sections as per the selected regime.

• IT Computation Logic:
  The payroll engine uses the slab and exemption configuration to compute TDS for each employee.

4. Employee State Insurance (ESI) – Non-Applicable Locations

• ESI Non-Applicability Configuration:
  Navigate to the ESI Not Applicable Location section to review locations where ESI is not applicable.

• Customization Option:
  You can configure specific non-applicable locations based on your organizational structure and statutory applicability.

• ESI Computation Logic:
  The system excludes ESI computation automatically for employees tagged under non-applicable locations.

Summary:

Ensure the correct configuration of each statutory component to maintain accurate payroll computations and statutory deductions. Always cross-check with government-authorized references for updated rules.

For any configuration support or updates, please reach out to your compliance administrator or payroll support team.