The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 established the Employees’ Provident Fund (EPF). In addition to this, It is governed by the Employees’ Provident Fund Organization (EPFO), which is one of the world’s largest social security organizations in terms of clientele and financial transactions processed. Moreover, EPF is essentially a perk granted by the company to an employee at his or her retirement. Tax HelpDesk is your one-stop solution to all tax-related registration and GST registrations. Let’s dive into the detail by reading this blog.
Applicability of EPF Registration for Employers
EPF registration is required for all businesses.
- which is a factory employing 20 or more people in any industry, and
- to any other establishment or type of establishments employing 20 or more people as the Central Government may define by notification.
The employer must seek the registration within one month of achieving the required strength, or face fines. Even if the staff strength falls below the statutory minimum, a registered establishment remains subject to the Act.
After giving at least two months’ notice for compulsory registration, the Central Government may apply the regulations to any establishment with fewer than 20 employees. In addition to this, When the employer and the majority of employees agree that the requirements of this act should be applied to the business, they may apply to the Commissioner of the Central Provident Fund (PF).
After publishing a notice in the Official Gazette, the Central PF Commissioner may apply the provisions of this Act to such establishments as of the date of the agreement or any later date stated in the agreement.
From the start of their work, all employees will be eligible for a PF, and the employer will be responsible for deducting and paying the PF. Moreover, the 12% PF contribution should be split evenly between the company and the employee. The employer contributes 12% of the employee’s base pay. If the business employs fewer than 20 people, the PF deduction rate is 10%.
EPF Registration Procedure Online
The business must be registered online by the employer. Employers can use the ease of online registration to register their business by supplying the following information:
Establishment details
- The Name of the Establishment, Address, Incorporation Date, PAN, and Type of Establishment are the details that must be submitted.
- The Factory License Number, Date of License, and Place of Issue of License must be included if the establishment is a factory.
- If the business is a small or medium-sized business, MSME registration information must be submitted.
- If the business is registered with Startup India, the company’s registration information must be submitted.
eContacts
The authorized person’s email address and phone number must be provided by the employer.
Person to Contact
Employers must include contact information for a contact person, such as a manager. Furthermore, Name, date of birth, gender, PAN, designation date of joining, and address details are all necessary.
Identifiers
The license information that the employer must supply is known as the identifiers.
Information about your job
Employee strength, gender, type of activity, earnings over the limit, and total wages are all essential employment details.
Branch/Division
Name/premise number, LIN (Labor Identification Number), and address of the branch.
Activities
The employer must enter the NIC Code (National Industrial Classification) and then choose the type of business and activities from the drop-down menus.
Documents Required For EPF Registration
The employer must attach the following documents to the “Registration Form for EPFO”:
- The Proprietor’s/Partner’s/PAN Director’s Card.
- Proof of address, such as the Registered Office’s Electricity, Water, or Telephone Bill (not older than 2 months).
- Proprietor/Partner/Aadhar Director’s Card
- Any government-issued license for the establishment, such as a shop and establishment certificate, a GST certificate, or any other government-issued license.
- The Proprietor/Partner/digital Director’s signature.
- Entity’s Canceled Cheque or Bank Statement
- If applicable, there is a Hired/Rented/Leased Agreement.
- The Identifier/Licensing Authority issues a License Proof.
