ISO 9001: 2008, ISO 27001: 2013 & SSAE 16 CERTIFIED

A Service Level Agreement (SLA) is a contract between an organization — defined as the service provider and its customers — both external or internal. It details the services that will be offered and defines major aspects and performance standards that the provider is supposed to meet. In this article, we will describe in detail on how the process gets shaped and communicated between the two parties.

Steps that goes into an SLA documentation

Let us consider that DKM Online is an organization and they are drafting an SLA with their client.

1. Team DKM and the client will arrive at a mutual cut-off date for receiving the document from the employees. Then, DKM Online will share a draft mail, along with an Investment Proof Form, guidelines and instructions with the client. This in turn can be shared with employees for submitting Investment Proof Form along with required and applicable documents.

2. Team DKM will then receive Investment Proof Forms from all the employees. DKM will share the consolidated Investment File along with further requirements or queries with the client.

3. Now as the above procedure is completed, DKM will receive a revert on demands and queries.

4. DKM Online will start working on the basis of all documents received and then compute tax liability accordingly.

5. Now DKM will share the output of the concerned month (February) with the client — based on the documents submitted by employees — which it will put as a remark on the employee pay slip — that will be made available to employees on their ESS (Employee Self Service).

6. The client will communicate to employees that they need to refer their pay slip for requirements and act accordingly. Also, there is a need to communicate where the employee is not submitting required documentation. The benefits will be withdrawn while calculating tax and thus it will lead to increase in tax deduction.

7. Regarding the process above, employees can also raise their concern/ queries if any, with regards to tax calculation.

8. DKM Online will compile the documents and prepare the final file. Our payroll consultants will also resolve the queries raised by employees.

9. Team DKM will then share the March output with the client based on the documents submitted by employees and then proceed with submission all E-TDS Return (Quarterly/Annual). Employees can also raise their concern/ queries if any, with regards to tax calculation.

10. Finally, when the submission is complete, DKM Online will issue Form 16 to employees.

This is how the whole agreement procedure goes through in an SLA. Hopefully, these steps helped you understand the complex procedure in a better-simplified way.

Who requires Service Level Agreements?

SLA is required for network level agreements and is generally used by IT companies all across the globe. SLAs aid any company in meeting customer expectations and define the scenarios under which these organizations are not liable for issues related to performance. Customers can also look forward and benefit from SLAs, since firms describe the performance characteristics of the service, which can be compared with other party’s SLAs. It also puts forth the means for redressing service related problems and issues using service credits. Let us look at it in the form of the real world scenario.

For a service provider or firm, the SLA documentation is just one of the two foundational agreements it has with customers. Many service providers use a master services agreement to determine the general terms and conditions in which it will communicate and work upon with customers. The SLA is often incorporated into the service provider’s master services agreement. Between the two service contracts, the SLA adds greater specification regarding the services provided and the standard that will be used to measure their performance.

The above said is a process of DKM Online, one of the most trusted Payroll Management Company in India with regional payroll offices and global payroll clients. For more details or detailed briefing you can speak to our representatives or write to the payroll consultants to,