Employee Provident Fund Registration
Employee Provident Fund Registration
Provident Fund is the major component of Savings or Retirement planning for Government or Private Employees. It is governed by the Employees Provident Fund Organization (EPFO).
It is created with the intent to provide Financial security & stability to the salaried employees.Every employer who has 20 or more employees at any point of time is required to get PF registration for the organization. The timeline is one month from the date of hiring 20th employee in the organization.
Every employee is assigned a Universal Account Number (UAN) by the EPFO. Employee & employer both contribute to the Provident Fund; the contributed amount goes to the UAN of the employee.An employer is liable for the Penalty of Rs. 5,000/-, If he fails to get EPF registration, or indulges in misleading facts or documentation to avoid PF payment.
Advantages Of Employee Provident Fund Registration
What is EPF
Employees’ Provident Fund (EPF) is a compulsory deduction amount from the salaries of employees working in the eligible organizations.
What is UAN?
UAN stands for Universal Account Number. The idea is to link multiple Member Identification Numbers allotted to a single member under single Universal Account Number.
Who applies to the UAN?
It is mandatory for an employee to have a Universal Account Number (UAN), which is allotted by the EPFO and under UAN acts is multiple Member IDs allotted to an individual by different employers. The intent is to link multiple IDs of an individual under a unique number.
What is EPS?
Earnings per share is the monetary value of earnings per outstanding share of common stock for a company
What is EDLI?
Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by the EPFO (Employees Provident Fund Organization) for private sector salaried employees. The registered nominee receives a lump-sum payment in the event of the death of the person insured, during the period of the service.
When is the PF Registration is required?
Employees drawing basic salary up to Rs 6500/- (Rs. 15000/- from 01.09.2014) have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- (Rs. 15001/- from 01.09.2014) have an option to become member of the Provident Fund.
Do every Business is required to get registration in EPF?
REGISTRATION under EPF is compulsory: For every factory engaged in industry employing 20 or more employees. For every other establishment having 20 or more employees during previous year. For every employee who is getting less than INR 15000/- per month.
What details is required for PF Registration?
PAN Card of entity. Electricity Bill of the Registered Office, Shop and establishment Certificate/GST Certificate/ License issued by the government for factory
What documents required for PF Registration?
Documents required for PF Registration are following: –
- Digital Signature of Proprietor/Partner/Director.
- Aadhar Card of Proprietor/Partner/Director.
- PAN Card of Proprietor/Partner/Director.
- Cancelled Cheque/Bank Statement of Entity.
- PAN Card of entity.
- Electricity Bill of the Registered Office.
How much time is taken In EPF registration?
For registration of EPF amount request will be processed, which will be approved within 10-15 days & amount will be credited to registered and verified bank account.
What is EPF Return?
The amount in the EPF account earns an attractive rate of return, and it is much higher than what a regular savings bank account provides
When the EPF return is filed?
Provident fund return must be filed by all entities having PF registration every month.
What is the due date of EPF Return?
PF return is due on the 25th of each month
What is penalty for Late filing of EPF Return?
he Penalty for Late filing of EPF Return will be between 5% and 25% on the shortfall of payment of dues.
What is the contribution percentage to the Provident fund and Pension Scheme?
Employers contribution of 12% of basic salary is totally deposited in provident fund account Whereas out of Employees contribution of 12%, 3.67% is contributed to Provident fund and 8.33% is deposited in Pension scheme.