Payroll and Compliance - The Monthly Chronicle
Due to EPFO going online and the use of online facilities to claim withdrawal of accumulated Provident Fund value (PF), there have been many instances of pre-matured closure of PF account by the subscriber. To discourage such instances of pre-matured closure of PF account, EPFO launched the Employees’ Retention and AADHAAR campaign from 1 January 2017 to 30 September 2017. After a successful campaign, EPFO has now launched the Social Security Awareness campaign. This new campaign is effective from 1 November 2017 to 31 December 2017.
The Social Security Awareness campaign is aimed at creating awareness among EPFO members about the disadvantages of closing their PF account pre-maturely, and informing them about various beneficial schemes like PMPRY, housing and Aadhaar, etc., under EPFO. It is planned and proposed to use many interactive sessions and documents to impart such information among users.
To read more about the campaign, please click here (PDF).
Under the Employees’ State Insurance Corporation’s (ESIC) Scheme, every employee whose fixed wages is equal to or less than Rs. 21,000 needs to be registered under the scheme to receive insurance. For registering an employee for the first time under the scheme, the respective employer needs to fill in the details under ‘Form 1’ along with nomination and family particulars.
A new joiner to an organisation who is eligible under ESIC scheme would be registered by their respective employer/factory as an Insured Person (IP) and as per details provided, and a Temporary Identity Card (TIC) is generated for the employee. Following this, the ESIC payment challan for the respective month is generated based on IP numbers.
The employee then takes this TIC and submits this to a dispensary under the ESIC at a location convenient to the employee. There is a large list of dispensaries in every district around the country. The Insured Person would thereby link themselves as well as their dependents to receive from this dispensary.
The ESIC has revised the process of employee registration from October 2017. As per the currently available online Form 1, it is mandatory for every registrant to provide the details of the preferred Dispensary for themselves and their dependents at the time of registration. Without these details, the Insured Person’s number and TIC card will not be generated. This also affects the generation of a payment challan and thereby remittance.
The ESIC had noticed some instances where the family particulars of IP/IW vary from those available in the IP portal, which leads to undue benefit. To avoid any such cases, it has been decided to obtain a self-declaration from the Insured Woman for the number of her surviving children as on date of presenting the maternity benefit claim. The Insured woman shall now submit the Self-Declaration Form along with claim form No. 19 for the settlement of Maternity Benefit Claim.
Note: If there is an inconsistency between the declaration and the particulars on the portal, then 12 week of maternity benefit would be paid immediately from the ESIC Branch. The remaining payment, if any, will be made to the Insured Woman within 14 days subject to verification.
There was a new provision introduced for the discontinuance of physical Form 9, and e-Form 9 was released for registration of employee. This change was applicable from October 2017. In November 2017, this provision has been extended to members who joined on or after 1 April 2012.
All regional offices are advised to approve and generate e-Form 9 within two months.
Read more details here (PDF).
The Standing Committee in its 26th report has raised grave concerns about the unclaimed amount lying with the PF Trusts of exempted establishments. The committee in its report has emphasised that:
All exempted establishments and their Trusts should make all-round efforts to trace the workers/employees/nominees of the members so that the unclaimed amount lying with the Trusts can be disbursed.
The Committee has provided a set of instruction to be followed by all the exempted establishments:
Note: Members claiming to be entitled to the unclaimed amount transferred to the Fund may apply to the respective institution within 25 years from the date of credit of the unclaimed amount into the Senior Citizens' Welfare Fund. (Where no request or claim is made within a period of 25 years from the date of credit of the unclaimed amount to the Fund it shall escheat to the Central Government unless a court otherwise orders.)
Read more details here (PDF).
Keeping in mind the difficulties faced by every employer in generation of UAN details for employees joining the organisation, an open functionality is being provided at the unified portal. This new function will allow individuals to generate their own UAN by providing requisite details into the unified portal.
To read more about the details please click here (PDF).
Every such person who is liable to pay PT is to register themselves at http://pt.kar.nic.in and use the online facilities thereof.
Earlier, the CLRA in Haryana was applicable to every employer or contractor who employs 20 or more workmen any day of the preceding 12 months. Now, the limit has been increased to fifty numbers. This change is applicable and effective from October 2017.
Currently, if an employee wants to correct his or her details (name, date of birth, gender, etc), then the employee as well as employer must submit a joint request for making such changes under PF and UAN details. In order to reduce paper-work and avoid this time consuming process, EPFO has launched a new functionality under EPFO scheme. Under this new provision, a member can submit an online request for correction through the member’s unified portal. Once the request is submitted, the change request is compared with Aadhaar details and then processed accordingly.
To read more, please click here (PDF).
Note: The above changes are subject to actual implementation on portal.
|Due date||Nature of transaction||Existing rules||Mode|
|10th December 17||Andhra Pradesh & Madhya Pradesh||State-wise regulations||By Challan|
|15thDecember 17||Gujarat||Gujarat PT regulations||By Challan|
|20thDecember 17||Karnataka||Karnataka PT regulations||By Challan & Online|
|21st December 17||West Bengal||West Bengal PT regulations||By Challan|
|30thDecember 17||Assam & Orissa||State-wise regulations||By Challan|
|30th December 17||Maharashtra||Maharashtra PT regulations||Online|
|15thDecember 17||Remittance of Contribution||EPF & MP Act, 1952||Online|
|15thDecember 17||Remittance of Contribution (Main code and Sub codes)||ESIC Act, 1948||Online|
|7th December 17||TDS Payment||Income Tax Act, 1961||Online|
|Labour Welfare Fund Remittances|
|5thDecember 17||Kerala (Labour Welfare Fund Act)||Kerala State Labour Welfare Fund||Offline|
Sources: Government Notifications, Circulars, Press releases.
The information provided herein is general and not intended as legal, regulatory, tax or accounting advice and you should obtain your own independent advice regarding the matters dealt with herein. ADP assumes no liability or responsibility for any errors or omissions in the content of this document or publication and for your use of any information provided. The information contained in this document is provided “as is” without warranty of any kind, either express or implied, including without warranties of merchantability or fitness for a particular purpose, and non-infringement. All materials contained in this are protected by copyright laws, and may not be reproduced, republished, distributed, transmitted, displayed, broadcast or otherwise exploited in any manner without the express prior written permission of ADP. ADP’s names and logos and all related trademarks and other intellectual property are the property of ADP and cannot be used without its express prior written permission.
Copyright ©2019 ADP, LLC ALL RIGHTS RESERVED
This Newsletter is not for commercial or solicitation purposes