As organisations continue to expand, managing payroll processes merit special consideration. To build, manage and implement payroll tax related operations and processes, one requires an organised approach.
Organisations often face tremendous pressures to comply with the tax laws and timely tax filings. A focussed methodology can help achieve dual objectives, i.e.:
- Tax efficiency
- Advisory services in relation to regulatory implications.
Key service offerings:
KPMG in India’s team has acquired considerable experience in identifying opportunities and leveraging them to the advantage of clients in the form of significant tax/cost savings.
Based on our extensive tax and regulatory experience in India, we can conduct a payroll tax diagnostic review.
Our key service offerings include:
- Review existing employee compensation policies:
- Identify components which are not cost effective due to administrative costs or potential litigation costs
- Suggest tax efficient compensation items wherever possible
- Review withholding tax (tax deduction at source) computations, statements and payments for adequacy of compliance
- Verify documents with regard to reimbursement claims to ascertain the adequacy from a tax compliance perspective
- Identify potential tax and penalty exposures due to non-compliance
- Highlight tax positions which may lead to litigation and recommend suitable measures to mitigate the exposure (if any)
- Evaluate cost saving opportunities for viability and consistency with the organisation's corporate philosophy
- Recommend 'leading practices' on payroll policies and procedures, which can be implemented by the organisation across businesses and locations.