India

Introduction

Workday provides payroll management services for employers in India. Part of this service will be delivered through Workday’s partner Remote. This document describes the standard product and service offering, the responsibilities of all parties and the country-specific elements required to run payroll for Indian employees.

Product Scope

This section outlines the standard Payroll features available under Workday GO Global Payroll provided by Remote.

Features

• Payroll processing for salaried and hourly employees (Full time and Part time)
  • Calculation of gross compensation items
  • Calculation of net pay, deduction, and employer contributions
  • Generating and storage of payslips
• Customer employee management (Starters and Leavers)
• Tax and other statutory filings (detailed filings can be found in the services section)
• Ability to add custom payroll calendars and schedules
• Reporting:
  • Gross to Net Report
  • Payroll cost reporting
  • Variance reporting
  • General Ledger summary and detailed reports
• Bank file generation for employee and statutory payments
• Ability to parallel test run payroll outputs Vs historical data to confirm accuracy during deployment

Responsibilities

This section outlines the standard responsibilities for Workday and the customer. These responsibilities apply across all payroll cycles.

Workday responsibilities.

Workday will:

• Provide the platform through which you maintain your employee, compensation, time-related and payroll processing data,
• Facilitate the collection and submission of your employee data and payroll inputs, onboard/offboard your employees for payroll processing,
• onboard/offboard your employees for payroll processing,
• Facilitate payroll and payroll tax transactions following your approval of payroll information for each payroll cycle,
• Calculate your employee payroll and its associated liabilities (including, but not limited to, taxes withheld, expenses, and other payroll related costs),
• Generate, and store payslips to your employees,
• Generate a bank file for payments (as applicable), and
• Provide additional adhoc services requested by you at Workday’s discretion, where such services fall within Workday’s suite of offerings.

Customer responsibilities

As the legal employer, you retain full responsibility for the employment relationship and for ensuring the accuracy of all information used to process payroll. Specifically, you are responsible for:

1. Employment Agreements & Compliance:
   • Owning the employment agreements with your employees and ensuring these agreements comply with applicable law,
   • Ensuring that the data held in the system accurately reflects all employment agreement terms (e.g., compensation, working hours, benefits, job classification).
2. Payroll Data Accuracy & Completeness:
   • Providing accurate, complete, and timely payroll data for each payroll cycle, including your employee details, compensation, time & attendance, benefits, pension information, bank details, and any stationary documents,
   • Validating all payroll-relevant data before each payroll run,
     supplying any information not captured in the system (such as taxable expenses, certain benefits, equity-related items),
   • Supplying any information not captured in the system (such as taxable expenses, certain benefits, equity-related items),
   • Review, approve and finalise payroll information generated,
   • Ensure you complete any payroll returns to tax agencies that were due for payroll tax liabilities incurred prior to using Workday GO Global Payroll provided by Remote,
   • Cancel any other payroll services of professional employee organizations or companies providing payroll-related services for your employees to be paid through Workday GO Global Payroll provided by Remote (cancellation must be prior to any official payroll run by Workday).
3. Workday Deployment & Configuration:
   • Providing complete and correct requirements during implementation,
   • Validating your Workday deployment and ensuring payroll outputs generated by Workday are correct,
     • Updating your Workday configuration as needed to maintain accurate payroll-related data flows.
4. Benefits & Pensions Responsibilities:
   • Managing all your employee benefits (including health insurance and pension schemes) in accordance with local legislative and regulatory requirements,
   • Ensuring all benefit-related earnings, deductions, and taxable/non-taxable benefit valuations are accurately recorded in the system.
5. Payments & Disbursements:
   
   • Using local bank files provided by the service to pay your employees their net pay,
   • Using local bank files provided by the service to pay local authorities payroll taxes and benefit contributions,
   • Coordinating directly with your bank to resolve any issues during the disbursement process.
6. Documentation & Authorisations:
   • Supplying all data and documents necessary to process payroll and statutory filings,
   • Executing agent authorisation for regulatory authorities for Remote to act on your behalf.
7. Employee Communication:
   • Communicating payroll outcomes and related information to your employees (accessible through Workday employee self-service if configured in your account),
   • Understanding that neither Workday nor Remote provides employee-facing support or communicates directly with your employees.

Workday Services Scope

Workday shall provide the following services as part of Workday GO Global Payroll provided by Remote:

Payroll management

Standard Payroll Processing:

• Review and validate payroll input data,
• Calculate payroll, in support of statutory requirements and applicable collective bargaining agreements, and notify affected customers, where applicable,
• Generate payroll reports and provide them to the customer.
• Workday shall administer payroll in accordance with applicable statutory requirements, including the calculation of statutory social security contributions, statutory benefits, and mandatory withholding obligations. Workday shall apply statutory wage definitions, process taxable and exempt components per legal requirements, and perform statutory recalculations for adjustments, retro payments, or changes to employee data.

Specific for India:

• leave management
• exit formalities for outgoing customer employee(s)

New Starter Processing:

• administer employee-level statutory enrolment activities, including verification or linkage of employee statutory social security identifiers,
• set up customer employees in the payroll system and ensure accurate pro-rated salary calculations based on start date,
• submit mandatory employment declarations/forms to government portals or agencies,
• complete employee-level statutory onboarding activities, including verification of statutory eligibility and establishment or linkage of employee social security identifiers,
• register customer employees for statutory benefits like pension, insurance, and other country-specific schemes,
• complete all actions on or before start date.

Specific for India:

• Tax Deducted at Source (TDS) Registration

• Registration with Provident Fund (PF)

• Employees' State Insurance (ESI) Registration

• Professional Tax (PT) Registration

• Registration of new hire in EPFO portal(Basis Form 11)

• system will not perform employer-level statutory registrations, which remain the customer’s responsibility. System will use statutory registration details supplied by the customer.

Terminations:

• process all statutory elements of full and final settlement including leave encashment as per Section 10(10AA), gratuity calculations based on statutory eligibility rules, payment of statutory bonus where applicable, recovery of notice pay, and any clawbacks or adjustments required under the customer’s HR and compensation policies,
• issue  India-specific exit documentation including PF forms, ESI deactivation, and year-end tax statements, and will compute TDS is in support of applicable rules for terminated employees,
• record the employee’s last working day, mark them inactive in the records, and update local authorities,
• process terminations, including final payroll, payslip, leaver documents, and calculations for termination and vacation pay.

Specific for India:

• Form 13 - transfer to another Employer.

• Form 10C (pension scheme withdrawal).

• Form 19 (PF withdrawal form).

• update last working day for leavers in EPFO portal.

Benefits Processing in Payroll:

• All benefits and allowances processed through payroll based on customer instructions and in support ofIndian tax laws.
  • includes statutory valuation of perquisites such as employer-provided accommodation, motor car benefits, ESOPs, meal vouchers, gifts, medical reimbursements, telephone reimbursements, employer contributions to retirement schemes, and any other taxable or exempt benefits.
  • applies tax treatment in support of Section 17 and related provisions, including HRA exemption computation, LTA exemption rules, education allowance limits, and reimbursement categorisation in support of Indian Income Tax regulations.
• Note: health benefits enrollment is not included.

Specific for India:

• Employee Stock Option Plans (ESOPs) - only perquisites
• Retirement benefits (superannuation)
• National Pension Scheme (NPS) if applicable
• Health insurance/medical benefits
• Leave encashment
• Bonus/benefit processing
• Gratuity
• Employees’ State Insurance (ESI)
• Provident Fund (PF)
• House Rent Allowance (HRA) and rent reimbursement
• Medical reimbursement
• Conveyance/Transportation Allowance
• Meal/meal coupons reimbursement
• Leave Travel Allowance (LTA)
• Special allowances (e.g., education, relocation, etc.)

Payment Files:

• prepare employee salary payments by generating standard bank files

Year-End Activities:

In addition to generating Form 16:

• prepare all required tax computation details, support quarterly TDS returns (Form 24Q) including Annexure II, and process investment proofs, rent proofs, and declarations received from employees,
• support PF and ESI annual reporting requirements where applicable, validate LWF contributions, and incorporate statutory year-end adjustments into the final payroll of the financial year,
• submit employer annual wage/tax declarations in support of local authority format and deadlines,
• distribute employee annual wage/tax declarations (annually).

Specifics for India:

• Form 16 (TDS certificate)
• Form 12BA (Statement of perquisites)
• Form 12BB (Declaration of investments)
• Provident Fund (PF) and Pension Fund statement
• Gratuity statement (if applicable)
• Tax computation worksheet
• Final pay statement for the year
• EPF annual returns
• ESI annual returns
• Professional Tax annual return (if applicable)
• Bonus Act (if applicable)
• ESIC filing
• Form 27A (Income tax revision filing)
• WHT certificate issuance and revision

Payslips:

• Create and deliver Payslips in the local and English language.

Reporting and analytics

Monthly Payroll Output / Reports

• Standard monthly reports:
  • Gross to net
  • Payslips
  • Salary list
  • Payment list
  • Authorities payments list
• Supplementary payroll run, where available

Recurring statutory filings & submissions:

• provide data files, contribution summaries, and return inputs required for statutory filings. The customer remains responsible for reviewing and depositing contributions with authorities unless otherwise specified, using the bank files and statutory outputs generated by Remote,
• also support biannual ESIC filings, LWF annual returns, and any state-specific statutory reporting requirements applicable to the customer’s registered establishments,
• prepare and submit required filings, including tax withholdings, social security, and other statutory contributions monthly, quarterly or annually, in support of local regulations.

Specifics for India:

• Employee Provident Fund (EPF)

• Employee State Insurance (ESI)

• Professional Tax Data Provision (State specific)

• Labor Welfare Fund Data Provision (State specific)

• Income Tax Liability and Monthly Withholding Taxes (WHT) Report

• Annual Bonus(Statutory) Return

Quarterly:

• Tax Deducted at Source(TDS)

• WHT Returns (Form 24Q) for Salaried Employees

Service and support

Ongoing support:

• Support customers via chat and email with payroll-related questions, including input validation, and timelines.

Assigned contact:

• Dedicated Payroll Customer Success Manager (CSM), for customers with 100 payroll employees or more

Additional payroll services, (subject to additional charge)

Off-cycle payruns:

• Off-cycle simulations & payments, amendments or re-runs,
• First off-cycle payrun per month is included; additional payruns are chargeable.

Customized Reports:

• Tailor standard reports to meet specific business needs - adjusting data type, level of detail, frequency, and format based on system capabilities and limitations.

General Ledger (GL) Customized Report:

• Create a customized General Ledger Report based on the customer's chart of accounts and GL format.

Customized banking files:

• Setup and customisation of monthly bank files based on customer specific requirements and specifications,
• Monthly transmission and delivery of the configured bank files to designated recipients or systems