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ESIC/EPF Returns
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ESIC/EPF Returns
In India, ESI (Employees' State Insurance) is a social security and health insurance scheme for workers employed in various sectors, providing benefits such as medical care, sickness benefits, maternity benefits, and more. Employers are required to submit ESI contributions for their employees under the Employees' State Insurance Act.
Steps for ESI Contribution Submission
Step 1: Login to the ESIC Portal
i) Go to the official ESIC Portal: https://www.esic.in.
ii) Employers must register and log in to the Employer Portal using their credentials (Employer Code).
Step 2: Prepare the ESI Challan
i.After logging in, the employer needs to generate the ESI Challan that contains the details of the contributions for all employees.
ii.You will need to enter or upload the necessary data, including:
a)Employee details (e.g., name, salary, UAN).
b)Contribution amounts for the employee and employer
Step 3: Verify and Generate the Challan
i) Verify all details (employee contributions, wages, and employer contributions).
ii) Once the data is verified, generate the ESI Challan. The system will show the total amount that needs to be paid.
Step 4: Payment of ESI Contribution
i) The ESI contribution can be paid online via Net Banking or through Authorized Bank Challan.
ii) Payment can be made directly from the ESIC Portal.
a) Online Payment: After generating the Challan, the portal will guide you to the payment gateway where you can make the payment using Net Banking or other methods.
b) Manual Payment: Alternatively, payment can be made through an authorized bank by submitting the ESI Challan in the bank.
Step 5: Payment Confirmation
i) After making the payment, you will receive a payment receipt from the ESIC portal confirming that the ESI contribution has been successfully paid.
Step 6: Submit the ESI Contribution
i) After confirming the payment, you must submit the Challan.
ii) The system will update the ESI account of the company and employees, reflecting the successful contribution for the month.
ESI Contribution Rate
i) Employee Contribution: The employee contributes 0.75% of their wages (up to ₹21,000 per month).
ii) Employer Contribution: The employer contributes 3.25% of the employee’s wages (up to ₹21,000 per month).
iii) The total contribution rate is 4% of wages, of which the employer contributes the majority (3.25%) and the employee contributes the remaining (0.75%).
ESI Registration
i) Before making any contribution, the employer must ensure that the company is registered with the ESI Corporation (ESIC). If the employer has more than 10 employees (in some states, the threshold is 20 employees), registration with the ESIC is mandatory.
ii)UAN (Universal Account Number) for employees is essential for ESI registration and contribution.
Deadline for ESI Contribution Submission
i) The ESI contribution must be submitted and paid by the 15th of every month.
ii) If the employer fails to make the contribution within the due date, a penalty may be imposed, along with the interest charges.
Keep Records
i) Employers should maintain records of all ESI Challans, payment receipts, and employee details to ensure compliance with the law.
ii) These documents are useful for auditing and can be checked by ESIC officers during inspections.
Monthly ESI Returns
i) Employers must file monthly returns with the ESIC, which includes:
a)The list of all employees covered under the ESI scheme.
b) Contributions paid during the month.
ii) Returns can be filed via the ESIC portal.
Important Notes:
i) ESI Coverage: The ESI scheme applies to employees earning up to ₹21,000 per month (₹25,000 for persons with disabilities). Employees earning above this threshold are not covered under the ESI scheme.
ii) Penalties for Non-Compliance: Employers who fail to comply with ESI registration and contribution requirements can face penalties, including fines and imprisonment in some cases.
Employees Provident Fund
In India, EPF (Employees' Provident Fund) contributions are regulated by the Employees' Provident Fund Organisation (EPFO). The process for submitting EPF contributions is carried out every month by employers on behalf of their employees.
Employee and Employer Contribution
i) Employee Contribution: The employee contributes 12% of their basic salary (plus dearness allowance, if any) towards EPF.
ii)Employer Contribution: The employer also contributes 12% of the employee’s basic salary. However, this is split into:
a) 8.33% towards the Employees' Pension Scheme (EPS) (subject to a cap of ₹15,000 on salary).
b) 3.67% towards the EPF.
Generate ECR (Electronic Challan cum Return)
Employers are required to submit the EPF contributions for all employees via the EPF ECR (Electronic Challan cum Return). This document summarizes the contribution amounts for both employees and employers.
Steps for EPF Contribution Submission (Online)
Step 1: Login to the EPFO Employer Portal
i) Go to the official EPFO employer portal: EPFO Employer Portal.
ii) Log in with your establishment code and password.
Step 2: Prepare the ECR File
i) Employers need to generate an ECR file which contains the EPF contribution details for each employee.
ii) You can either manually input the data or upload the file in a required format (usually through payroll software that integrates with the EPFO portal).
Step 3: Verify Contribution Data
i) Ensure that the employee details, contribution percentages, and other information are accurate.
ii) Double-check that the contribution amount is correctly split between EPF and EPS.
Step 4: Generate the ECR
i) Once the data is verified, generate the ECR file and click on Submit.
ii) The portal will display the total amount due for submission.
Step 5: Payment
i) After generating the ECR, you will be directed to the payment page.
ii) Payments can be made via Net Banking or other authorized payment channels.
iii)The EPF contribution payment must be made before the 15th of the following month.
Step 6: Confirm Payment and Submit
i) Once the payment is made, confirm the transaction and submit the ECR.
ii) EPFO will provide a receipt confirming the successful submission.
Deadline for EPF Contribution Submission
i) By the 15th of every month, employers need to submit the EPF contributions for the previous month.
ii) Failure to submit by the deadline can lead to penalties and interest charges on late payments.
Keep Records
Employers should maintain detailed records of each month’s EPF contribution submission, including the ECR file, payment receipts, and confirmation from the EPFO portal.
Generate Monthly EPF Slip for Employees
i) After successful submission, employers can generate EPF slips for each employee to view their individual contributions.
ii) These slips can be accessed by employees through the UAN Member Portal.