Can Employer Make Expenditure For Social Work Out Of ESI Contribution Amount ? - CiteHR
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Dear All,
In FY 2011-12 balance sheet one of the construction company shows liability in ESI (Rs. 800000/-). The liability amount is due to non creation of ESI challan amount, what exactly in pay process.
The company do not want to create supplementary challans for the corresponding wage months.
Therefore can any one clarify me the below questions
  1. What the company have to do ?
  1. Can employer make expenditure for Social Work out of ESI contribution amount ?
Regards,
Santosh

First of all once a company is been liable to pay for esi then to safeguard on your company interest.
All you need is to take the list of employee details per month and pay online esi challans as the earliest.
The more your delay for one month the more interest you pay on preceding months
so better to pay month by month esi challans at the earliest and reconil with your finance department.
During the financial period if any of your employee has meet with an accident or injury then the overall burden has to be paid the company at all terms.
On earned wage of 1.75% of employee contributions and 4.75% of employer contribution is to be calculated and update individual month data through online.
All concern is that we start one month and remaining months can be prepared a metter of one day process.
Please do not delay in submitting the esi challans for the financial period

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