How the payroll is effected for remote working employees hired from different states?

Hi,

I need guidance to understand how the payroll is affected for remote working employees hired from different states.

My organization is in Mumbai, and we have hired people from different locations - remote working professionals. However, to give maximum benefit of paid holidays, we are trying to divide employees into 3 base regions for now - Western region in Mumbai, South in Bangalore, and North in Delhi.

An additional PT is coming when we are marking employees under the Bangalore region; however, that is not showing if marked in the Delhi region. We are using Zoho payroll.

How to solve this - please help.

Is it that your query is related to holidays only? The number of holidays that an employee should be given depends upon the state where the employee is located. The employee in Karnataka cannot get holidays equal to the one who is posted in Kerala. These are regulated by means of separate state enactment. Therefore, you may follow the respective state's Holidays Act, such as the Karnataka Industrial Establishments (National and Festival Holidays) Act, etc.

Profession Tax (PT) is also a state subject and will vary from state to state. Therefore, you have to make manual adjustments in payroll software depending upon the tax slabs of each location. It is not the fault of the software, but when it comes to fields that require adjustments according to state rules, you should do it manually once so that it can capture the amounts in the future.