Every company requires effective management of a payroll system because it ensures employees receive proper pay checks, meets legal requirements, and provides employee satisfaction. The payroll management system used at Motherson, Pondur and the statutory compliance procedures related to that payroll are major areas of focus for this report. The study evaluates how efficient payroll is, how accurate wage calculations are, how well the organization meets required deductions such as Professional Tax (PT), Employee State Insurance (ESI), and Provident Fund, and how well they comply with Basic Income Tax regulations. To obtain the data that was collected for this study, a structured questionnaire was designed for use with 20 HR staff members. This descriptive research method used convenience sampling to select the respondents. Data from the structured questionnaire were analysed using statistical analysis techniques, such as Kruskal-Wallis analysis, One Sample Wilcoxon Signed-Rank analysis and percentage analysis. The findings of the research indicate that payroll management systems that use automation are more accurate and efficient. Employees are satisfied with the payroll system and report being very pleased with the overall administration of the payroll process. The biggest problem related to payroll management is compliance. Additionally, the results reveal significant differences in payroll accuracy and regulatory compliance awareness between the respective salary and age groups. The author's conclusion is that Motherson, Pondur’s payroll system performs well in providing accurate payroll and compliance; however, continued improvements can be made by providing employee training, developing awareness programs, and conducting regular audits for increased compliance and performance of the payroll system.