Employer Responsibility for EPF

EPF is a vast and important chapter in an Organization because many persons joins and resigns every day and their EPF compliance is mandatory. For an employer it is a tough duty to maintain all records of employee and adhere compliance of Government.

It is the truth that Government has lessen the burden of Compliance in the mission of “Ease of Doing Business”. However the challenge still exists in the system. Employer are still facing difficulties related to EPF now a days.

Here we are going to navigate Employer Responsibility for EPF and unlock strategic employer blueprint for easy compliance. This will be complete guide to EPF obligations for employer.

What is EPF code ?

EPF code is mainly when an employer register itself under Employee Provident Fund Organization. The eligibility criteria are to obtain EPF registration letter before employee 20 no. of employees.

Can employee OPT OUT Provident Fund ?

To understand better refer below YouTube video——>>>>

How many employees should required to obtain PF code for employer ?

A minimum 20 number of employees shall be engaged under an employer to apply and obtain PF code in the name of employer.

What is the process of registration under EPFO?

Before registration under EPFO a person must have necessary documents which proofs that he/she is an employer.

The documents like Labour License, Trade License, GST certificates are required for the registration under EPFO.

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9 Essential Compliance points of Employer Responsibility for EPF

1 ->Deduction of employee Contribution

It is the duty and responsibility of every employer to debit employee salary before making salary payment to employee because employer need to deposit contribution to government in addition to employer share.

2 ->Timely deposit of EPF contribution

On time submission of EPF contribution amount to EPF account. The amount paid electronically before 15th of consequent month.

Delay or violation leads to penalty. Though an employer can deposit arrear EPF contribution to EPFO, but it shall be avoided.

3 ->Maintain accurate records

Employer shall be vigilant about the EPF records because correct and accurate documents are required for annual returns.

Now a days it is easy to maintain records because all the transactions and entries are done in the UAN portal. The details of the EPF members are changed and verified by the employee too.

Update Family particulars & Complete e-Nomination of all the employees.

4 ->Provide information to EPF accounts

It is duty of employer side to share correct information to EPFO, specially basic salary of each employee, past records of employee etc.

During end of every year, it is the duty of employer to update annual return to EPFO.

5 ->Comply with EPF rules and regulations

Every employer shall be updated about new rules and regulations of EPF, Pension and EDLI scheme. Employer shall adhere all the rules and documents are generated and maintained accordingly.

6->Notify new employees about EPF rules and contributions

It is the duty of employer to aware and educate its employees about those rules so that all the guideline shall be followed without second thought.

7 ->Facilitate transfer of EPF accounts

An employer shall ensure that the EPF amount available in old EPF accounts of employee shall be get transferred to current EPF accounts.

8 ->Match employee share and employer share to EPF accounts

Employer shall submit EPF contribution to EPF accounts as per law. For that employer need to match basic salary of employee, employee share and employer share accurately.

9 ->Prompt handling of discrepancies

In an establishment there is various types of transactions are made and manpower are also floating on regular. So it is quite obvious that discrepancies may arise. It is the duty of employer tp find out these difference and short it out on time to avoid no compliance.

When UAN number shall be generated ?

At the time of joining, UAN number shall generated for employee by the employer. Create KYC enabled UAN & Enroll all new Employees at the time of Joining.

What is UAN number & What is the concept behind it.

Full form of UAN is Universal Account Number. It is 12-digit number given to each employee at the time of starting employment. This unique number become the key to all EPF transaction of the member.

Basically, all the EPF number created under various employer in the course of employment is linked to UAN number. The member has easily access his entire EPF account through one UAN number in UAN portal.

What is KYC, what are the documents required for KYC verification ?

Full form of KYC is Know Your Customer. Aadhar Card, Pan Card, Bank Account passbook etc. are mainly required for KYC verification.

Ensure declaration of Employee whose Salary more than Rs.15,000/- per month.

What is the wage ceiling of EPF & Why declaration is required ?

The wage ceiling for employee provident fund is Rs.15,000/-. For those who paid more than Rs. 15,000/- per month they need to submit self-declaration.

And after that employer verification and approval, then it is submitted to EPFO, because EPFO wants both member & Employer consent on the declaration & Employer should agree on providing administrative charges to EPFO.

File Monthly Contribution & timely payment of EPF dues (Before 15th of consequent month).

What is the last date for EPF contribution submission?

It is the duty and responsibility of every employee to submit provident fund contribution every month to EPFO on or before 15th of consequent month. If an employer deposit after 15th then penalty is levied to the employer for that particular month.

What is the process of EPF contribution by employer ?

Every month employer deposit EPF contribution by combining employee share and employer share to EPFO. The submission is done electronically before 15th of consequent month. Online challan and payment history is generated.

In this process employer declare correct basic salary and EPF contribution to EPFO. The submitted amount shall match with employer data.

What is e-Nomination and why it is necessary ?

Online nomination or e-Nomination is a process where a PF member is required to provide the details of his or her family member so that in absence of the PF member the chosen person can avail the money available in the Provident Fund or Pension Fund.

It is necessary for both employee as well as employer because to smooth the Fund transaction process in absence of EPF member.

How to complete e-Nomination ?

Employee is supposed open UAN portal and update current family status and details of family members and nominate one family member as nominee. EPF member also declare percentage of PF amount shall be given to family member in his or her absence.

Why Family is important to update ?

Because Family is important at the time of death claim settlement of EPF member. Every member must submit his/her nominee and update it time to time in case of any changes occur.

What is annual Return and why it important ?

Annual return is the combined data to be provided by employer to Government in the end of every year. This data helps government to identify number of EPF member available and number of Employer available .

This data helps Government in many ways like, age groups, employment rate, EPF fund utilization, Establishment number etc.

What is the last date to submit annual return?

Annual return shall be submitted before the end of January.

What are the consequences of of non-compliance?

If contribution is not made by Contractor, then Principal Employer deduct the amount from Contractor bill & pay to EPF