In This Article, How to Pay Salary to Employee in Proprietorship Firm At Myonlineca, we will provide you with the answer to the most frequently asked question that is asked by the employee that is working in Sole proprietorship firm where there is a single owner and he takes care of all the business operations. We will tell you about How an Employee in a Sole Proprietorship firm Gets paid and will a TDS be applicable on his salary.
How to Pay Salary to Employee in Proprietorship Firm?
Ans. You can Pay a salary to your employees in cash or cheque as convenient for you. But the More Preferred way is that employers should be paid via bank transfer that way an employee can have proof of experience. The salary can be fixed on basis of the Minimum wage act that is a law that regulates wages and salary or you can set up your own hr policy in regards to the salary of employees that are working in your Proprietorship firm In India.
But if we talk about Pf, Esic, and Tds then you need to check eligibility criteria with the respective authority. As Far as Tan Number is concerned you do not need Tan Number for Paying a salary to employees. You will Require Tan As Per Number of employees and Salary structure of employees. In case of Sole Proprietorship Tds Filing is done on Voluntarily basis, not mandatory basis. If You are paying more than 3 lakh as salary to any employee then you need to deduct Tds on salary and you should also apply for a Tan Number.
I Hope you like this Article about How to Pay Salary to Employee in Proprietorship Firm. If you are still confused you can check out our website to know more about compliances that are required in sole Proprietorship.