Trading & wholesale

Payroll for sales-driven trading houses

30% sales commission as a built-in component, daily / travel allowance, sales target bonus quarterly, multi-state Shops & Establishments coverage. For B2B distributors, FMCG channel sales, wholesale traders.

Real problems · real fixes

What trading & wholesale actually need from payroll

Each row is a pain point we've heard from operators in this vertical — and the specific FastLegal Payroll feature that addresses it.

ProblemSales commission calculated manually from monthly sheet — sales reps fight every month about the math.

FastLegal solvesSales Commission is a built-in salary component (30% of basic default). Admin enters per-rep commission amount monthly from the sales system; engine adds it to the payslip as a taxable earning.

ProblemField reps spend on travel + lodging; reimbursement is taxable by default but shouldn't be.

FastLegal solvesDaily / Travel Allowance is a built-in non-taxable reimbursement (₹4,000/mo default). Per Section 10(14)(i) of ITA, conveyance for duties is exempt up to actuals.

ProblemQuarterly sales target bonus is announced at the AGM, paid in cash, never reaches the payslip.

FastLegal solvesSales Target Bonus is a built-in bonus type (₹15,000 default), payable quarterly. Recorded on the payslip, taxable, audit-logged with the approving manager.

ProblemMulti-state operations need multi-state Shops & Establishments registration but generic HRMS treats it as one location.

FastLegal solvesBranch is first-class — each branch has its own state, Shops Act registration number, PT slab. Payroll computes state-wise PT correctly per employee branch.

ProblemRegional Sales Head / Area Sales Manager / Sales Executive hierarchy doesn't fit generic designation lists.

FastLegal solvesIndustry profile pre-loads 7 designations: Regional Sales Head, Area Sales Manager, Sales Executive, Telecaller, Warehouse Manager, Storekeeper, Logistics Coordinator.

ProblemMulti-tier commission (rep gets 30%, team lead gets 5% override) handled in spreadsheet.

FastLegal solvesEach employee can have an individual override on the Sales Commission component. Engine pays per-employee rate. Override history audit-logged.

Built for the workflow

Three things that change when you pick trading & wholesale at signup

Sales commission

Commission + target bonus, both built in

Two revenue-linked components every trading house pays. FastLegal models them as standard payroll items so they appear on payslips with the right tax treatment and feed into Form 16.

  • Sales Commission · 30% of basic default · monthly
  • Sales Target Bonus · ₹15,000 default · quarterly
  • Daily / Travel Allowance · ₹4,000/mo · non-taxable
  • Statutory Diwali bonus per Payment of Bonus Act 1965
Multi-state

State-wise PT, Shops Act and bank file per branch

FastLegal models Branch as first-class. Each branch has its own state, Shops & Establishments registration, PT slab. Payroll computes state-wise statutory levers correctly.

  • State-wise PT · KA, MH, TN, TG, WB, GJ, KL, AP, OD, BR
  • Per-branch Shops Act registration tracking
  • Per-branch bank file export
  • Per-branch headcount + cost reports
Org structure

Sales-centric departments + 7 designations

6 departments: Sales, Procurement, Warehouse, Logistics, Customer Service, Accounts. 7 designations covering the sales hierarchy plus warehouse + logistics roles. All workspace-wide referenceable.

  • 6 departments pre-loaded
  • 7 designations pre-loaded
  • Branch-scoped attendance + roster
  • Workspace-wide list, no free-text drift
Compliance baked in

The statutes that govern trading & wholesale

FastLegal Payroll references each of these frameworks correctly in its payslips, PDFs and statutory exports.

Shops & Establishments Acts (state-wise)

Each branch needs separate state registration. Working hours, leave, weekly off rules per state.

Income-tax Act, 2025

Section 392 salary TDS, Section 393 contractor / vendor TDS.

Payment of Bonus Act, 1965

Statutory bonus 8.33% minimum, payable annually. Cap on ₹21k Basic + DA.

Code on Wages, 2019

Basic + DA ≥ 50% of CTC. Auto-enforced.

Maternity Benefit Act, 1961

26 weeks paid maternity for women employees with ≥ 80 days service.

FAQ

Common questions from trading & wholesale

How do I pay 30% sales commission to reps?

Sales Commission is a built-in salary component set to 30% of basic default. Each month, your sales system tells you each rep's commission amount. You enter the per-rep amount; FastLegal adds it to the payslip as a taxable earning. For multi-tier overrides (rep 30%, team lead 5%), each employee can have an individual commission rate.

What about quarterly sales target bonuses?

Sales Target Bonus is a built-in Bonus Type (₹15,000 default, quarterly). Create a Bonus Grant on the rep when targets are hit. Engine adds it as a taxable line item on that month's payslip; annualised for TDS. Reason field captures the quarter / target name. Audit-logged with the approving manager.

Can FastLegal handle multi-state operations with separate state PT slabs?

Yes. Branch is first-class in the data model — each branch has its own state, Shops & Establishments registration, and (via the engine's PT module) the right state-wise PT slab. Pre-supported states: Karnataka, Maharashtra, Tamil Nadu, Telangana, West Bengal, Gujarat, Kerala, Andhra Pradesh, Odisha, Bihar.

Is daily travel allowance for field reps taxable?

No — Daily / Travel Allowance is pre-loaded as a non-taxable reimbursement (₹4,000/mo default). Per Section 10(14)(i) of the Income-tax Act, conveyance allowance for performance of duties is exempt up to actuals incurred. Keep expense documentation for audit.

Do warehouse + logistics staff get statutory bonus?

Yes. Statutory Bonus under the Payment of Bonus Act, 1965 (minimum 8.33%, paid annually) is a built-in Bonus Type. It applies to employees earning ≤ ₹21,000 Basic + DA — which usually includes warehouse, dispatch, and logistics coordinator roles. FastLegal flags eligible employees and prompts annual disbursement.

Free workspace · sign up in 60 seconds

Run your next payroll on FastLegal Payroll.

Create a workspace, bootstrap the standard Indian defaults (leave types, salary structure, holidays for two years), add your first employee, and run May payroll — all before your evening chai.

  • Workspace auto-bootstrapped on signup (leave types, salary structure, holidays)
  • PF / ESI / PT / TDS computed every run — every cycle
  • Employee + contractor portals included, no extra tier
  • No credit card needed