{"id":378,"date":"2023-07-21T12:10:09","date_gmt":"2023-07-21T06:40:09","guid":{"rendered":"https:\/\/total-sols.com\/blog\/?p=378"},"modified":"2023-07-21T12:10:10","modified_gmt":"2023-07-21T06:40:10","slug":"important-information-on-provident-fund-for-employers-2","status":"publish","type":"post","link":"https:\/\/total-sols.com\/blog\/important-information-on-provident-fund-for-employers-2\/","title":{"rendered":"Important Information on Provident Fund for Employers"},"content":{"rendered":"\n<p>We would like to bring your attention to the Provident\nFund Act, a Central Government legislation that binds entrepreneurs who employ\na specified number of employees. From an employee&#8217;s perspective, it serves as a\nSocial Security Act, providing a lump sum amount upon retirement and continued\npension funds for the unorganized and private sectors.<\/p>\n\n\n\n<p><strong>Applicability:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Mandatory for\n     organizations with 19 or more employees.<\/li><li>Mandatory for\n     organizations with at least one foreign employee.<\/li><li>Directors\n     receiving a salary and contract manpower are included in the employee\n     headcount.<\/li><li>Voluntary\n     registration is possible even with one or more employees.<\/li><\/ul>\n\n\n\n<p><strong>Registration:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Online\n     registration with accurate details and submission of required documents.<\/li><li>Enroll\n     employees on the day of registration with their basic salary.<\/li><li>Submission of\n     Aadhar, PAN Card, and nominee details.<\/li><\/ul>\n\n\n\n<p><strong>Computation\nof Liability:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Basic salary\n     is typically calculated as 40-50% of the employee&#8217;s gross salary<\/li><li>To provide a\n     sample calculation, assuming a basic salary of Rs. 50,000:<\/li><\/ul>\n\n\n\n<p><strong>Option 1<\/strong>: Employee\ncontribution of 12% on basic &#8211; Rs. 2,400 (deductible from salary), and employer\ncontribution of 13% on basic &#8211; Rs. 2,600 (payable by employer).<\/p>\n\n\n\n<p><strong>Option 2<\/strong>: Employee\ncontribution of 12% on restricted basic (Rs. 15,000) &#8211; Rs. 1,800 (deductible\nfrom salary), and employer contribution of 13% on restricted basic (Rs. 15,000)\n&#8211; Rs. 1,950 (payable by employer).<\/p>\n\n\n\n<p><strong>Option 3: <\/strong>When the basic\nsalary exceeds Rs. 15,000, the employee can request non-coverage of PF by\nsubmitting Form 11, resulting in no contributions.<\/p>\n\n\n\n<p><strong>Compliance:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Monthly\n     payment due on the 15th of each month; delayed payments attract interest\n     and penalties.<\/li><li>Online\n     submission of returns with additions and deletions of employees.<\/li><li>Enrollment of\n     new employees every month.<\/li><li>Submission of\n     settlement forms for departed employees.<\/li><\/ul>\n\n\n\n<p><strong>Troubleshooting:<\/strong><\/p>\n\n\n\n<p>We understand that certain issues may arise, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Backdated      coverage: It is crucial to be mindful of backdated coverage. In some      cases, a company may have a perceived employee count of 18 and may not      provide PF coverage. However, if there are additional contract employees,      housekeeping staff, or salaried directors, the total employee count may      exceed 19, necessitating mandatory coverage. The coverage will be      effective from the date the required employee count is surpassed,      resulting in backdated coverage.<\/li><li>Foreign      employees: Even if there is only one foreign employee, PF coverage      applies.<\/li><li>Notices of      basic salary being less than 40%.<\/li><li>Damages for      late payment.<\/li><li>Notices,      inspections, and assessments.<\/li><li>Coverage of      part-time employees.<\/li><li>Liability of      principal employers for contract manpower compliance.<\/li><\/ul>\n\n\n\n<p> If you find these requirements overwhelming, we are here to assist you with comprehensive solutions. Please feel free to contact us on 9845068263 for further information and support. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>We would like to bring your attention to the Provident Fund Act, a Central Government legislation that binds entrepreneurs who employ a specified number of employees. From an employee&#8217;s perspective, it serves as a Social Security Act, providing a lump sum amount upon retirement and continued pension funds for the unorganized and private sectors. Applicability: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[135,136],"class_list":["post-378","post","type-post","status-publish","format-standard","hentry","category-accounts","tag-pf","tag-provident-fund-for-employers"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=378"}],"version-history":[{"count":1,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/378\/revisions"}],"predecessor-version":[{"id":379,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/378\/revisions\/379"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}