Subscribe for EPF Filing
EPF FILING
faqs
Since TDS is deducted from employees’ salaries, EPF registration is a critical process for employers. Furthermore, they would be required to process remittances only after employers generated challans through the EPFO employer portal. As a result, they must go through this procedure.
Risk coverage: The Provident Fund’s most fundamental benefit is to cover the risks that employees and their dependents may face as a result of retirement, illness, or death.
Uniform account: One of the most important aspects of the Provident Fund account is that it is consistent and transferable. It is transferable to any other place of employment.
Employee Pension Scheme (EPS): EPS is available to all PF account holders. According to it, a pension amount is deducted at the rate of 8.33% of up to Rs.15,000 from the employer's contribution, which is paid as a monthly pension to an employee after 58 years of age.
Long-term goals: Many long-term goals, such as marriage or higher education, necessitate the immediate availability of funds. During such times, the accumulated PF amount is frequently useful.
Emergency needs: Certain unanticipated events, such as marriage or other family gatherings, as well as any mishap or illness, necessitate immediate financial assistance. The PF amount can be extremely beneficial
EPF registration is mandatory for all establishments-
- Which is a factory engaged in any industry having 20 or more persons.
- To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.
The employer must obtain the EPF registration within one month of attaining the strength, failing which penalties will be applicable. A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.
Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration. Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central Provident Fund (PF) Commissioner.
The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.
All the employees will be eligible for a PF from the commencement of their employment, and the responsibility of deduction and payment of PF lies with the employer. The EPF contribution of 12% is paid equally by the employer and employee.
The employee's PF contribution is 12%, which is deducted from the employee's basic salary. The employer also contributes an amount equal to 12% of the basic salary of an employee. If the establishment has employed less than 20 employees, the PF deduction rate will be 10%.
Employee Provident Fund or EPF Return must be filed every month by all the establishments having EPF Registration. Having an EPF Registration makes it mandatory to file the EPF Returns.
Under the EPF scheme, both employer and employee contribute 12% of basic pay, throughout the tenure of the employment. 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). This amount can be withdrawn by the employee
– At the time of retirement (On or after 58 years of age)
– If unemployed for two months of time
– Death before the specified retirement age