EPF Registration: What Employers Must Know
The Employees' Provident Funds and Miscellaneous Provisions Act of 1952 established the Employees Provident Fund (EPF) program. The Employees' Provident Fund Organisation (EPFO), one of the biggest social security organisations in the world in terms of clientele and amount of financial transactions, oversees and regulates it. EPF is essentially an organization-provided benefit to an employee during retirement (EPFO). In this article, we will explain everything an employer must know about EPF registration.
Table of Contents
Basics of Employer EPF Registration
Registration with the EPF is required for all establishments. These include a factory employing 20 people or more that is involved in any industry, any other establishment that employs 20 or more people, or a class of establishments that fall within that category that the Central Government may designate in this regard through notification. Within a month of reaching the strength, the employer must get the EPF registration; otherwise, fines will be imposed. Even if the staff strength is less than the statutory minimum, the Act nevertheless applies to a registered establishment.
Any establishment with fewer than 20 employees may be subject to the regulations by the Central Government after providing at least two months' notice of mandatory registration. They may apply directly to the Central Provident Fund (PF) Commissioner if the employer and the majority of employees have decided that the establishment should be subject to the terms of this legislation. After notifying the establishment in the Official Gazette, either on the date of the agreement or on any later date mentioned in the agreement, the Central PF Commissioner may enforce the provisions of this Act to that establishment.
PF Eligibility for Employees
Workers who make less than ₹15,000 a month are required to enrol in the EPF and contribute on a regular basis.
Employees are exempt from making PF contributions if their monthly income at the time of hire was greater than ₹15,000. However, with the consent of the employer and the Assistant PF Commissioner, they are still free to choose to join the EPF and contribute.
Benefits of EPF Registration for Employees
Every employee will be eligible for PF from the moment they start working, and it is the employer's duty to deduct and pay PF in full. Employer and employee share equally in the 12% EPF contribution. The employee's base pay has 12% of their PF contribution withheld from it. An additional 12% of an employee's base pay is contributed by the business. The percentage of PF deduction that applies to an establishment with fewer than twenty employees is 10%.
The primary advantage of the Provident Fund is that it insures against potential risks associated with retirement, illness, and death for both employees and their dependents.
The Provident Fund account's transferability and consistency are among its most crucial features. Any other place of employment can accept it.
A lot of long-term objectives, like getting married or going to college, call for the quick availability of money. The cumulative PF amount is often helpful in these situations.
All holders of PF accounts are eligible for the EPS. It states that an employee's pension, which is provided as a monthly benefit to them once they turn 58, is deducted from the employer's contribution at a rate of 8.33% of up to Rs. 15,000.
Essentials for Online EPF Registration
The employer is required to register the business online. Employers can register their establishment conveniently online by giving the following information:
Details of the establishment
The name of the establishment, address, date of incorporation, PAN, and kind of establishment are the details of the establishment that must be submitted.
If the establishment is a factory, the following information must be given: the factory licence number, the licence issuance date, and the licence issue location.
Details regarding the MSME registration must be submitted if the establishment qualifies as one.
The Startup India registration details must be supplied if the establishment is registered with Startup India.
Contact Person
Employers are required to supply contact information, such as a manager's details. Name, birthdate, gender, PAN, joining date of designation, and address details are needed.
eContacts
The authorised person's mobile number and email address must be provided by the employer.
Identifiers
The licence details that the employer must supply are the identifiers.
Details of employment
Employee strength, gender, earnings beyond the cap, and total wages are the employment details that must be disclosed.
Branch/Division
Specifics of the establishment, including name, premise number, address, and LIN (Labour Identification Number).
Activities
The employer must input the NIC Code (National Industrial Classification) and choose from the available drop-down menus the type of business and the activities involved.
Documents Required for EPF Registration
The employer must affix the following documents to the "Registration Form for EPFO":
The proprietor, partner, or director's PAN card.
Evidence of address such as the registered office's phone, water, or electricity bills (not more than two months old).
The proprietor, partner, or director's Aadhaar card.
Shop and Establishment Certificate, Goods and Services Tax Certificate, or any other government-issued licence for the business.
The director, partner, or proprietor's digital signature.
A cancelled cheque or an entity's bank statement.
Lease, Rent, or Hired Agreement, where applicable.
How Employers Can Register for EPF
The employer must do the actions listed below:
Step 1: First, go to the EPFO website. Go to the webpage and select "Establishment Registration" from the menu.
Step 2: Sign Up With USSP
The USSP (Unified Shram Suvidha Portal) sign-up page can be accessed by clicking the "Establishment Registration" button on the EPFO website homepage. The "Sign Up" button must be clicked by the employer. To create an account, the employer must enter their name, email address, mobile number, and verification code on the following page and click the "Sign Up" button.
Step 3: Enter the USSP and log in
After registering, the employer needs to go into the USSP and select the "Registration For EPFO-ESIC" button on the left side of the screen. Next, click the button "Apply for New Registration. "The Employees' Provident Fund and Miscellaneous Provision Act, 1952, and the Employees' State Insurance Act, 1948, will be the two possibilities that show up. After selecting the "Employees’ Provident Fund and Miscellaneous Provision Act, 1952," press "Submit".
Step 4: Fill out the Registration Form
Fill out every section of the "Registration Form for EPFO" page that opens after entering "Submit" at each stage.
In the "eContacts" area, enter the information and press the "Add" button after filling out the "Establishment Details" section and clicking the "Next" button. Click "Next" once the details have been added.
Use the "Add/Edit Address of Primary Manager" button in the "Contact Person" column to include the address. To add the email, select "Add/Edit Econtact of Primary Manager" next. After selecting the "Add" button and providing the "Other Contact Person"'s information, click "Next."
In the "Identifiers" section, enter the necessary information and press the "Add" button. Click "Next" once the details have been added.
Proceed to the following step of the registration form by entering the "Employee Details" area and clicking the "Add" button to input the details.
After you enter the information in the "Branch/Division" area, press "Add". Click "Next" once the details have been added.
Enter the NIC code, principal business activity, type of work, and subcategory of nature of work in the "Activities" box, then click the Next button.
Click "Upload" and "Save" to upload each of the necessary requisite attachments to the "Attachments" section.
There will be a display of the registration form summary. After verifying the information, press the "Submit" button.
Step 5: Attach the DSC
Attach the Digital Signature Certificate after selecting the "Digital Signature" button on the following page. The employer will receive a notification indicating the successful completion of the registration form after the DSC has been uploaded. The Unified Shram Suvidha Platform will send an email confirming the completion of the EPFO registration.
Conclusion
Employers and employees must jointly register for EPF. It gives employees stability and financial security during their retirement years, acting as a safety net for their future. Employers accomplish their legal responsibilities and improve the welfare of their workforce by registering for EPF. Through this program, employees also get long-term savings and retirement benefits.
FAQ
Q1. What is EPFO?
The Employees Provident Fund Organisation is referred to as EPFO. It is a government-run institution that encourages retirement savings.
Q2. Why should an employer register at the EPFO portal?
After April 1, 2012, employers must generate challans from the EPFO employer site before making any remittances. As a result, the employer must register online. The offline registration process has been eliminated, and all new registrations must be completed online.
Q3. What is excluded from wages under EPF?
The following elements are not eligible for salaries under the terms of the Employee Provident Fund:
Overtime Allowance (OTA)
Food Allowance
Bonus
Q4. What is Form 5?
EPF Form 5 is mentioned in Section 36(2) of The Employees’ Provident Fund Scheme, 1952. Organisations and the EPFO can both register the number of new members of the scheme using this form. Following successful enrolment, an employee will receive a Universal Account Number that they can use to deposit their contributions as well as those made by their employer. The Employee Provident Fund Organisation makes certain that every business falling within its purview engages in the EPF program. It is the employer's duty to offer all of its workers access to the EPF facility. EPF Form 5 can be downloaded easily from EPF India's official website or by contacting your HR department.
Q5. If an employer has multiple establishments, should he obtain registrations for all of them?
Yes, the registration has to be done for every establishment.
Q6. What is the eligibility for employers to register for EPF?
When 20 or more employees of a specific establishment type cross the eligibility criteria, employers are required to register their establishment with EPFO. Other establishments may choose to register; but, they are not legally obligated to do so.
Q7. How can I create an employer login for EPFO?
By utilising your PAN, company establishment ID, etc., you can register as an employer on the EPFO portal. An OTP can also be used to confirm the same.
Q8. How is PF contribution calculated?
The company and employee will each contribute 12% and 12%, respectively. Therefore, it appears that both sides have contributed the same 12% on the surface. There's a catch, though. There is a twelve percent (12%) employee contribution. However, the employer's 12% payment will only go towards the EPF portion. The EPF portion is based on a base pay of Rs. 15,000 plus a small amount of dearness allowance. Today, people often use EPF calculator tools available to determine the accumulated EPF contributions.
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