PF & ESI Filing
What is Employees Provident Fund (EPF)?
Provident fund is a social security system that was introduced for the purpose of encouraging savings among employees, so as to benefit them during the course of their retirement. Contributions are made by the employer and the employee on a monthly basis. PF contributions can only be withdrawn by the employee at the time of his/her retirement, barring a few exceptions. All employers having PF registration are responsible to file returns on a monthly basis. The filing of returns must be completed by the 15th of each month through unified portal.
During the working tenure, employee and employer both contribute 12 percent of the basic salary of employee into EPF account. Employee's entire 12 percent goes into EPF account and Employer's 3.67 percent is transferred into EPF account of employee. Rest 8.33 percent from employer's side is diverted in Employees Pension Fund (EPF).
Compliance under EPF Act:
| Particulars | Compliance |
|---|---|
| Registration | Within 15 days from the date of applicability |
| Amendments | Within 15 days from the date of changes |
| Within 15 days from the date of changes | 15th of following month | Annual Return | 25th April every year |
Employer & Employee Contribution
| CONTRIBUTION ACCOUNTS | ADMINISTRATION ACCOUNTS | TOTAL | ||||
|---|---|---|---|---|---|---|
| EPF | EPS | EDLI | EPF | EDLI | ||
| EMPLOYEE | 12 | 0 | 0 | 0 | 0 | 0 |
| EMPLOYER | 3.67 | 8.33 | 0.5 | 1.1 | 0.01 | 13.61 |
| Total | 15.67 | 8.33 | 0.5 | 1.1 | 0.01 | 25.61 |
Offered Services at HVJ & Associates:
-
1. EPF monthly & annual returns
-
2. EPF notices & default clearance
What is Volountary PF?
Voluntary Provident Fund (VPF) aka Voluntary Retirement Fund is the voluntary fund contribution from the employee towards his provident fund account. This contribution is beyond the 12% of contribution by an employee towards his EPF. The maximum contribution is up to 100% of his Basic Salary and Dearness Allowance. Interest is earned at the same rate as the EPF.
Employers are under no obligation to contribute to their employees’ VPF portfolio. Likewise, an employee is also under no obligation to contribute to the Plan. Once the contribution is chosen in VPF, the same cannot be terminated or discontinued before the base tenure of 5 years completed. The interest rate of Voluntary Retirement Plan is decided by the Government of India at the start of each financial year.
A VPF is an extension of the EPF. The VPF option is available only to salaried individuals who receive their monthly payments through a specific salary account.
The VPF falls under the EEE category ( EEE – exempt on contribution; exempt from the principal; exempt on interest) making it an excellent tax saving option. It also helps the employee amass a sizeable savings portfolio and help him during big life milestones.
Following documents are required to furnish for successful registration of EPF
-
Copy of partnership deed (In case of partnership firm)
-
Certificate of Incorporation (In case of Private or Public Company)
-
Registration Certificate (In case of society)
-
PAN details of the company
-
Proof of Incorporation
-
Salary details of employees
-
Balance Sheet details
What is ESI Return?
Employee's State Insurance(ESI) is a self-financing social security and health insurance scheme for Indian workers. ESI Registration is mandatory for employers having 10 or more employee. For all employees earning Rs.15,000 or less per month as wages, the employer must contribute 4.75% and employee must contribute 1.75% towards ESI. The ESI fund is managed by the ESI Corporation (ESI) according to rules and regulations stipulated therein the ESI Act 1948, which oversees the provision of medical and cash benefits to the employees and their family through its large network of branch offices, dispensaries and hospitals throughout India. ESI is an autonomous corporation under Ministry of Labour and Employment, Government of India. HVJ can help you obtain ESI registration for your business.
ESI filings are done half yearly. However, before starting the procedure for filing the ESI returns, an organization (corporate entity) with 10 employees and more, irrespective of the salary mark, need to register under the ESI scheme.
How to file ESIC return?
-
Log in Employer Portal using 17 digit Employer digit code.
-
Go to monthly contribution section.
-
All the details of the employer contribution will be displayed.)
-
Verify the details.
-
If there are any short payments in respect of employees then complete the dues.
-
Do Self Certification under monthly contribution section, then check mark the declaration and submit the return.