The whole point of using an EOR is that the Indian compliance layer disappears from your concerns. Verify upfront that every line below is in scope. Pay attention to ownership wording — 'handle' vs. 'support' vs. 'advise' are three different commitment levels.
Monthly compliance
- Payroll computation — gross, statutory deductions, TDS, net pay.
- Salary disbursement to employee bank account by month-end / first week of next month.
- TDS deposit via Challan 281 by the 7th of next month.
- PF ECR upload by the 15th of next month.
- ESI contribution by the 15th (if applicable).
- Professional Tax remittance in every state of operations by the state-specific deadline.
- Payslip generation and delivery via employee portal.
- Month-end reconciliation against bank, TDS challan, PF ECR.
Quarterly compliance
- 24Q (salary TDS) return filing — by end of next month after quarter.
- 26Q (resident non-salary TDS) return if any contractor / vendor TDS deducted.
- 27Q (non-resident TDS) if any payments to non-residents.
- Form 16A issuance to contractors / vendors for non-salary TDS.
- Quarterly compliance summary to client foreign parent.
Annual compliance
- Form 16 (or Form 130 from FY 2026-27) issuance to every employee by 15 June.
- Form 12BA perquisite annexure if any perquisites paid.
- FLA Return to RBI by 15 July (if the EOR has any foreign equity itself, otherwise EOR client handles this).
- GST annual return (GSTR-9) by 31 December.
- PoSH annual report to District Officer by 31 January.
- Statutory audit support — provide records / explanations to the EOR's statutory auditor.
Every checklist item handled, audit-trail captured
FastLegal's EOR engagement covers every item above. Each filing is captured in the audit log with timestamp and operator. Your quarterly compliance summary shows every filing made in the period, in one report. Your CFO has confidence and your auditors have documentation.
Per-employee onboarding compliance
- PAN + Aadhaar collection and verification.
- Form 11 (PF declaration) signed.
- Joining ECR filed on EPFO portal with employee's UAN.
- ESI enrolment if employee earning under ceiling.
- Tax declaration captured (regime + investments).
- Bank account validation (₹1 test credit before first full salary).
- PoSH policy acknowledgement signed.
- Confidentiality / IP agreement signed.
- Employee handbook delivered.
Per-employee exit compliance
- Resignation / termination notice processed.
- Full and final settlement computation (notice recovery, leave encashment, gratuity if eligible).
- PF / pension transfer or withdrawal facilitated.
- Group health insurance discontinuation.
- Final payslip and Form 16 (current FY) issuance.
- Relieving letter and experience certificate.
- UAN transfer to new employer or marked as exited.
- Exit interview (optional, often EOR-provided).
What a good EOR flags proactively
- Wage-ceiling crossings — when an employee's raise pushes them above the ESI ceiling and exclusion takes effect from next contribution period.
- Tax regime declaration deadlines and recommendations based on the employee's profile.
- Investment proof submission deadlines for HRA / 80C / NPS.
- PT slab crossings when an employee gets a raise.
- Compliance changes — when statutory rates or rules change (e.g., the 2026 EPFO ceiling update).
- Code on Wages 2019 implementation — salary structures needing restructure.
Frequently asked questions
What if our EOR misses a statutory filing?+
MSA should make the EOR liable for the late-fee, interest and damages. Verify this clause; some EORs limit liability and pass through penalties.
Do we get audit support for our own foreign-parent audit?+
Yes — credible EOR provides documentation of every salary paid, every statutory deposit, every Form 16 issued. Some charge a separate fee for audit support; others include it.
How often should we review compliance with the EOR?+
Quarterly review meeting recommended. Verify that the prior quarter's filings reconcile against your engagement's headcount and salary records.
What if we disagree with a tax position the EOR takes?+
Escalate via the named consultant. For substantive disagreements, get an independent tax opinion. EOR's position is usually defensible but not always optimal for your specific situation.
Stop reading circulars. Start running clean payroll.
Every FastLegal plan ships with a dedicated payroll consultant — a real human who runs your PF, ESI, PT, TDS and Form 16 issuance, configured to your salary structure, your state, and your hiring plan. You sign off. We do the rest.