Running payroll is one thing, filing the right forms and reports each month is another. For SMEs in Sri Lanka, handling T10, C-Forms, and R4 reports often becomes a monthly source of frustration. These documents are essential for regulatory compliance but frequently overlooked until the last minute.
Thankfully, payroll systems can now generate these reports automatically, reducing stress and saving time.
What Are These Reports?
Let’s break it down:
- T10: A summary of employee salaries and statutory deductions (EPF, ETF, APIT) submitted to the Department of Labour.
- C-Forms: Forms listing EPF and ETF contributions for each employee.
- R4: A standard report used for ETF contribution submissions.
These reports are mandatory for every registered employer in Sri Lanka. Filing them late, or with mistakes, can lead to penalties, increased scrutiny during audits, or unnecessary follow-ups from regulatory bodies.
Why These Are Challenging for SMEs
In most SMEs, one person handles multiple rolese: finance, admin, HR, or sometimes all three. That means preparing these forms manually using spreadsheets, calculators, and older templates.
Common issues include:
- Forgetting to include all employees
- Incorrect formatting that gets rejected
- Last-minute data collection causing delays
- Misalignments between payslips and what’s reported
For small businesses, these mistakes don’t just create extra work, they can damage credibility.
How Payroll Software Simplifies the Process
Modern payroll systems solve these problems by generating all required compliance reports based on existing payroll data. Once payroll is processed:
- T10s are ready with salary breakdowns
- C-Forms reflect EPF/ETF amounts per employee
- R4 reports are downloadable and formatted for submission
There’s no manual copy-pasting, no need to look up contribution percentages, and no scrambling to find the latest form version.
Practical Benefits for SMEs
SMEs in industries like auto services, food processing, private education, and small-scale construction often deal with seasonal hiring, contract workers, or varying salaries. In these cases, generating accurate reports manually can be even more difficult.
By automating reports:
- Filing is faster and can be done on time every month
- Records are consistent and easier to retrieve later
- Confidence during audits improves, with cleaner paperwork
- Employee contributions are accurately recorded, avoiding internal disputes
Even if you’re handling payroll in-house, this level of automation lightens the load significantly.
A Compliant Small Business Without the Guesswork
You shouldn’t have to be an expert in statutory forms to run a compliant business. Payroll software takes the guesswork out of reporting, ensuring that what you file is always aligned with what you’ve paid.
Instead of dreading the end of the month, you’ll be able to click, download, and submit, so you can move on with the rest of your work.
