Payroll and Compliance - The Monthly Chronicle
January 2018
January 2018
Employee Provident Fund Organization (EPFO) has launched new facility under which an employee can merge all their earlier PF accounts with their current UAN number without employer intervention.
Once you activate the UAN member portal with your UAN ID and mobile number, you can link all PF account to one UAN by going through the link: MIS portal Login>UAN>Previous EPF account linking option.
This facility is to ensure that multiple accounts are merged and consolidated into one UAN as soon as possible.
To read more, click here (pdf).
Note: The above functionality would be available in the EPF portal once the details are implemented.
In the meeting on fraud analysis and management in EPFO held on 8 December 2017, it was decided to follow the process below in order to correct the date of birth of members of the Employees’ Pension Scheme 1995:
The concerned member should be intimated for submission of additional valid proof of birth, if required, while applying online/mobile/offline.
To read more, click here (pdf).
Currently, there are many accounts that have not been linked to Aadhaar and these account holders cannot claim the benefit of online services. With the objective of improving service delivery relating to settlement of claims, the below guidelines has been provided.
In this context, a Standard Operating Procedure (SOP) has been released which contains checkpoints. The SOP states that the claimant should submit cancelled cheque in original (containing claimant’s name, bank account number & IFS code of the bank branch printed on it) with all type of claims. In case the bank account of the claimant is ‘without cheque facility’, then the claimant has to submit copy of bank passbook duly attested by the bank authorities where the bank account is maintained or by the employer.
These changes are to come into force with immediate effect.
To read more, click here (pdf).
Note: The below article is provided to explain the concept of enhanced pension.
Over the period of time there have been many amendments in pension calculation. For example, the ceiling limit for EPS calculation was increased to 15,000 in 2014. Due to this, the pension was supposed to be increased and paid, but no proper demands for enhanced amount was made.
In October 2016, the apex court ruled in favor of employees, saying the EPFO can't restrict the higher-pension option to those who exercised the withdrawal option before a "cut-off date". The court also allowed those who hadn't made higher contributions to the EPS on a monthly basis to exercise the option by making lump-sum deposits of the differential amount due. It took another year for the EPFO to implement the court order.
That’s why nowadays every pensioner is eligible to receive higher EPS value based on the amended calculations. This has nothing to do with company contribution policy towards PF or approval of PF & pension withdrawal. The individuals have to claim these enhanced pension through PF and Pension department from the government.
The company can help create awareness among the employees by:
The due date for monthly return for exempted establishments was stipulated for the wage month of March 2017 and was required to be filed by 15th of May 2017. In the supersession of the above circular, all the exempted establishments/employers were directed to file the statutory online returns in time i.e. on or before the 25th of the month following that to which it relates.
Refer the below example for further explanation:
To read more, click here (pdf).
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Due date | Nature of transaction | Existing rules | Mode |
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10th January 18 | Andhra Pradesh & Madhya Pradesh | State-wise regulations | By Challan |
15th January 18 | Gujarat | Gujarat PT regulations | By Challan |
20th January 18 | Karnataka | Karnataka PT regulations | By Challan & Online |
21st January 18 | West Bengal | West Bengal PT regulations | By Challan |
31st January 18 | Assam & Orissa | State-wise regulations | By Challan |
31st January 18 | Maharashtra | Maharashtra PT regulations | Online |
PF Central | |||
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15th January 18 | Remittance of Contribution | EPF & MP Act, 1952 | Online |
ESI Central | |||
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15th January 18 | Remittance of Contribution (Main code and Sub codes) | ESIC Act, 1948 | Online |
TDS | |||
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7th January 18 | TDS Payment | Income Tax Act, 1961 | Online |
31st January 18 | TDS Return | Income Tax Act, 1961 | Online |
Labour Welfare Fund Remittances | |||
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5th January 18 | Kerala (Labour Welfare Fund Act) | Kerala State Labour Welfare Fund | Offline |
Sources: Government Notifications, Circulars, Press releases.
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