What compliant India payroll actually looks like for US staffing firms

Breaking this down because I have seen too much confusion around it.

For a US staffing firm to run a compliant India payroll, these have to be in place:

• Legal employer in India, either your own entity or a third party like Wisemonk
• Monthly salary processed through the Indian banking system
• Statutory deductions, PF, ESI, professional tax, income tax, TDS
• Statutory contributions, employer share of PF, gratuity accrual
• Written employment contract compliant with Indian labour law
• Form 16 is issued annually for the employee's tax filings
• Proper documentation for client compliance audits

If you are paying the dev directly through Wise or PayPal as a contractor, none of this is happening. Which is fine until the IRS, the Indian tax department, or your biggest client asks questions.

We moved to Wisemonk last year to solve this. They handle everything on the employment side. We keep the candidate and client relationship.

Any staffing firms doing this a different way that actually works?