Hi, please suggest me how to remit PF contribution of contractual employees since the contractor is not having PF account.
11th June 2013 From India, Delhi

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Premkumar Nair
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You must ensure that your contractor to apply for PF Registration and deduct for all the employees/workers engaged by the contractors.
Further you can insist all the contractors (existing & newly joining) to submit the copy of PF, ESI & ST Registration copy and monthly remittance details alongwith a copy of Challans.
11th June 2013 From India, Kumbakonam
labours were engaged for civil works and the work will complete by next month. only three months contribution we have to remit.
11th June 2013 From India, Delhi
Even for 1 day also we have to deduct the PF for the workers. It is the contractor's responsibility. If he is not remitting or not submitting the PF Challan alongwith the workers PF Remittance details, you have to deduct the amount of PF (employee + employer share = 25.61%) and keep it with you until unless the contractor submit the PF Challan. If he fails to remit, then you can remit directly in his account.
11th June 2013 From India, Kumbakonam
Dear Sajith,

First of all, when an establishment of contractor not having registration under EPF & MP Act is engaged for providing services on contract, the employees of the contractor will have to be added with the manpower strength of the principal employer and compliance of the provisions of the Act in respect of such employees falls on the PE. The methodology for such remittance is detailed in the Act. It has its own implications.

Instead, I would suggest that you may award contracts for services to the establishment which has establishment Code Numbers under the EPF & MP Act, ESI Act, etc. for the following reasons:-

1. You will get better services because such companies are generally established ones having large manpower support, business with various other companies and better management practices;

2. They will comply with the provisions of these Acts as Employers and hence you don't have to take the pain of compliance on behalf of your contractors.

However, you may insist for production of proof of remittance of contributions under the relevant Acts in respect of their employees deployed in your establishment as a precondition for passing of bills by inserting suitable clauses in the contract agreement. This will ensure that there is no default by such establishments calling for action against your company by the authorities under these Acts.

11th June 2013 From India, Mumbai
If the contractor is not having own code no remit the contribution of his workers under your code and deduct the amount from contractors bill. Varghese Mathew
11th June 2013 From India, Thiruvananthapuram
In the instant case, the options are:
1. The employer can pay both the PF contributions for the employees in his PF code number, including arrears.
2 The 2nd option is that the contractor should immediately approach and get PF code number from the concerned regional PF office. He can pay the both the contributions by DD and obtain code number.
3 IF both the PE and contractor do not have facilities to pay the The 3rd option is to pay the PF contributions through 3rd party service provider who will pay the PF contributions in his code number and do the services on payment of service charges. .
12th June 2013 From India, Selam
Principal employer is accountable and contractor is responsible. If contractor is not registered under EPF and ESI then ask to register in as specific time frame. You should ensure while hiring contractor that it is registered as per the applicable law.
If not then you may remit contract employees contribution from your code and deduct from their invoice. We had done this for some contractors in my previous organization.
Hope this may help you.
12th June 2013 From India, Bhubaneswar
Hi, Simple way, if contractor not haveing PF Account, you can detect the both shares (emp & Empr) and pay your PF Account Number. Regards., P.K.J
12th June 2013 From India, Bangalore
Dear Sajithnair74,

You have mentioned that the contractor is not having the PF account but did not mentioned the reason, which is very important to know.

If contractor is a pretty contractor having less than 20 employees altogether on his roll and working exclusively for you, he is not liable to registered himself with EPFO i.e. in your words, he is not liable to have his PF account.

In such case, you need to ensure that the employees of such contractor working for you, are covered under PF under your code.

Now I am coming to your query. Your query is, how to remit PF contribution of contractor employees?

My answer to you as under:

You have an option either to include the names of contractor employees in your ECR or upload separate ECR.

Though system provides multiple ECR, I would rather suggest not to do it. I suggest to include the name in your ECR.

I will further advise you to avoid such contractors in future.

I will not advise to comply on third parties roll for various reasons.

Same thing applies to other statutory remittances also.
12th June 2013 From India, Mumbai

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