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BONUS ACT
Payment of Bonus Act Compliance
Ensure accurate statutory bonus calculation, timely disbursement, and full compliance to foster employee goodwill and avoid disputes.
Introduction and Value Proposition
The Payment of Bonus Act, 1965, mandates eligible establishments to pay an annual bonus to their employees based on profits or productivity. The calculation of allocable surplus, understanding eligibility, and adhering to payment timelines is a complex, annual challenge. Errors can lead to employee disputes, penalties, and damage to morale. PCS provides end-to-end Bonus Act advisory services, ensuring accurate calculation, seamless processing, and 100% compliance, turning a regulatory obligation into an opportunity for employee engagement.
Why Choose PCS?
● Financial & Legal Acumen: Our experts combine knowledge of law and accounting for precise bonus calculations.
● Error-Free Guarantee: We ensure calculations are accurate, protecting you from financial losses and legal challenges.
● Proactive Approach: We initiate the process well in advance, ensuring you never miss the critical payment deadline.
Key Challenges We Solve
● Complex Calculations: Difficulty in accurately calculating allocable surplus, available surplus, and set-on/set-off.
● Eligibility Confusion: Uncertainty regarding which employees are eligible and which establishments are covered.
● Dispute Risk: Potential for employee disputes and legal claims due to incorrect bonus calculation or payment.
● Statutory Deadlines: Risk of missing the strict 8-month deadline for bonus payment after the accounting year closes.
Our Bonus Act Services
Applicability & Eligibility Advisory
Determining if the Act applies to your establishment and identifying which employees are eligible for bonus.
Accurate Bonus Calculation
Expert computation of allocable surplus, available surplus, and the ensuing bonus payable, including complex set-on and set-off adjustments.
Documentation Support
Preparation of bonus calculation sheets and support in maintaining the required statutory registers.
Disbursement Guidance
Advisory on the minimum and maximum bonus limits and the correct process for timely payment
Return Filing
: Assistance in preparing and filing the required annual return (Form D) with the relevant authorities.
Dispute Resolution
Expert support and representation in case of any claims or disputes related to bonus payment
Frequently Asked Questions
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