OVS India automates payroll processing and strengthens compliance with Zoho Payroll

The Company

OVS India Sourcing Pvt. Ltd. is the Indian sourcing arm of OVS, one of Europe’s leading fashion retail organisations headquartered in Italy. The Indian entity supports sourcing and operational activities for the group, with a workforce of 51 employees across HR, finance, and sourcing functions.

To streamline its payroll operations and establish a more reliable, compliance-ready system, OVS India partnered with Codelattice Digital Solutions Pvt. Ltd., a Zoho Authorised Partner, to implement Zoho Payroll.

The challenge

Before implementing Zoho Payroll, OVS India relied heavily on spreadsheets, manual calculations, and third-party payroll processing. Payroll data was maintained across multiple systems, requiring extensive validation every month.

As payroll complexity increased, the team faced several challenges:

  • Payroll processing depended on spreadsheets and manual validations without a centralised system of record.
  • TDS calculations were manually adjusted each month, increasing the risk of tax errors and inaccurate deductions.
  • Performance based bonuses required manual taxable income recalculations.
  • PF reporting involved manual preparation and verification.
  • HR and finance teams spent a disproportionate amount of time managing payroll.
  • Employee payroll data lacked centralisation and audit visibility.
  • Salary disbursement involved manual intervention and lacked bank-integrated workflows.
  • Growing statutory compliance requirements increased reporting risks and regulatory exposure.

The team needed a payroll solution that could reduce manual effort while improving accuracy, compliance, visibility, and scalability.

Why Zoho Payroll

OVS India selected Zoho Payroll for its ability to handle Indian statutory compliance natively without relying on third-party add-ons or manual workarounds.

The key factors included native support for PF, TDS, Professional Tax, and Form 16; automated TDS and bonus-linked tax recalculations; ICICI Bank salary disbursement compatibility; and a centralised employee self-service experience for payslips and IT declarations.

The scalability of Zoho Payroll and Codelattice’s experience with Indian payroll and compliance implementations also played an important role in the decision.

The solution: Zoho Payroll

Codelattice implemented a comprehensive Zoho Payroll setup tailored to OVS India’s payroll policies and statutory requirements. The implementation brought employee information, salary structures, payroll processing, compliance, and reporting together on a single platform.

Centralised payroll management

OVS India moved from fragmented, spreadsheet-based processes to a unified payroll environment. Employee information, salary structures, payroll calculations, statutory compliance, and reports could now be managed from a single platform.

Seamless employee migration

All 51 employee records were onboarded into Zoho Payroll. The migration included employee profiles, payroll information, compensation structures, and employment details, followed by payroll-readiness validation.

Historical payroll records for April and May were also processed and validated before go-live to maintain year-to-date continuity and ensure accurate statutory calculations.

Automated statutory compliance

Zoho Payroll was configured to automate OVS India’s applicable statutory requirements, including:

  • Provident Fund calculations and reporting
  • Income Tax (TDS) computation and deduction
  • Professional Tax
  • Statutory payroll reporting

This removed manual compliance calculations and improved the accuracy of statutory reporting.

Automated salary structure management

Custom salary templates were configured to standardise payroll calculations across the organisation. These included basic salary, bonus, HRA, special allowances, gross earnings, statutory deductions, and employer contributions.

This approach helped eliminate component-level errors across monthly payroll runs.

Intelligent tax automation

One of the key areas of transformation was tax management. Zoho Payroll automated monthly TDS calculations based on declared income and deductions which dynamically recalculated taxable income when salary components changed.

Performance bonuses also triggered automatic tax adjustments, eliminating the need for manual recalculations. Employees could manage their IT declarations within the platform, while Form 16 remained ready for the financial year-end process.

Simplified salary disbursement

OVS India’s payroll system leveraged Zoho Payroll’s ICICI Bank direct deposit to enable seamless salary disbursement directly from the payroll platform. This simplified the payment process, reduced manual intervention, and helped ensure accurate and timely salary transfers.

Better payroll visibility

A comprehensive set of payroll reports gave HR, finance, and management teams visibility into payroll operations and compliance. These included monthly payroll registers, salary registers, PF reports, payroll summaries, and statutory compliance reports.

The partner perspective

"Zoho Payroll helped OVS India automate their PF, TDS, Professional Tax, bonus recalculations, and bank-integrated disbursements with ease. The smooth historical migration and quick adoption by our team made the transition even better. Today, they run payroll for 50+ employees accurately and compliantly in a fraction of the time."
Codelattice Digital Solutions Pvt Ltd, Zoho Implementation Partner, Codelattice Digital Solutions Pvt. Ltd.

Benefits and ROI

With Zoho Payroll in place, OVS India achieved significant improvements in payroll efficiency, statutory compliance, tax accuracy, salary disbursement, and audit readiness.

100% payroll digitisation: All payroll activities transitioned from manual and third-party processing to a centralised cloud-based payroll platform.

90% reduction in manual payroll effort: Automated salary calculations, tax computations, and compliance workflows eliminated the majority of manual intervention during monthly payroll cycles.

75% faster payroll processing: Automation and standardised workflows substantially reduced payroll preparation, validation, and approval timelines.

Automated tax calculation: Automated TDS calculations eliminated manual tax errors and helped ensure accurate deductions throughout the financial year.

100% automated bonus tax recalculation: Taxable income is now automatically recalculated whenever performance bonuses are processed, eliminating manual adjustments.

80% reduction in statutory reporting effort: Automated PF and compliance reporting reduced preparation time while improving reporting accuracy.

70% faster salary disbursement preparation: Bank-ready ICICI salary transfer files streamlined the payroll-to-bank process and significantly reduced administrative effort.

100% employee payroll visibility: All employees now have access to structured payslips, tax declarations, and payroll information through a centralised self-service system.

Looking forward

With its payroll processes now centralised and automated, OVS India has established a scalable payroll foundation that can support future headcount growth, additional statutory obligations, and evolving compliance requirements without requiring fundamental process changes.

The implementation also enabled the HR and finance teams to manage payroll independently following comprehensive training on payroll administration, tax management, compliance reporting, workflows, and analytics.