Dear Rekha,
It is evident from your statement that presently you are operating from an office and it is not a manufacturing unit. Hence, for commercial offices/establishments, the following statutory provisions are applicable.
1. Shop and Commercial Establishment Act enacted by your state.
You need to first get your establishment registered with the concerned authorities. Under the provisions of the above act, you are required to maintain the following registers:
a) Register of employees.
b) Register of wages of employees.
c) Register of deductions.
d) Register of leave with wages.
e) Register of National Festival holidays and casual & Sick Leave.
2. Registration under professional tax if the same is applicable in the state. (This is state-based statutory provision).
3. When employment strength goes beyond 20, the EPF and MP Act, 1952 come into force. Under this act, you are required to first obtain the employer's code from the Regional Provident Fund Commissioner of your area. For obtaining the employer's code, you are required to submit the following information with the respective office of RPFC:
a) Coverage Proforma.
b) List of employees along with their salaries.
c) Registration under Shop & Commercial Establishment Act.
d) Memorandum & articles of Association.
e) Certificate of Incorporation under Companies Act.
f) List of Directors.
g) Bank account details of your company (CC account Number).
h) Pan Number issued to your company by Income Tax Authorities.
Employees covered under the scheme are those persons whose salary (Basic + DA) is less than Rs. 6,500.00 per month.
Under the EPF & MP Act, you have to deduct 12% of the salary (Basic + DA) from employees' salary and add 12% as the employer's share of contribution. The above is to be deposited along with the administrative expenses with SBI or SBOP in Challan form prescribed under the act under these heads:
A/C No. 1 (EPF) - 12% of employee deduction + 3.67% of employers' contribution out of 12% of the employer's share.
A/C No. 2 (Administrative charges) - 1.1% of the salary on which EPF has been deducted.
A/C No. 10 (Family Pension Fund) - 8.33% of the employer's contribution of the total 12% (8.33% + 3.67% = 12%).
A/C No. 21 (Employees' Deposit Linked Insurance [EDLI]) - 0.5% of the salary on which EPF is deducted.
A/C No. 22 (Admin. Charges on EDLI) - 0.01% on the salary on which EPF is deducted.
Monthly returns are to be submitted on Form 12A and 5/10. Annual returns are on Form 3A and 6A.
4. ESI Act is also applicable when employment strength goes beyond 20. Again, registration with the Regional Director ESI is required to be done for obtaining the Employer's code. The information required is:
a) Form No. 01.
b) List of employees along with their salaries.
c) Registration under Shop & Commercial Establishment Act.
d) Memorandum & articles of Association.
e) Certificate of Incorporation under Companies Act.
f) List of Directors.
g) Bank account details of your company (CC account Number).
h) Pan Number issued to your company by Income Tax Authorities.
Employees covered under the scheme are persons whose monthly gross salary is less than Rs. 7,500.00. Deductions are to be made as 1.75% of gross salary from employees and 4.75% of gross salary as the employer's contribution. The above amount is to be deposited in the challan form prescribed under the act.
Half-yearly return on Form 6 is to be submitted with the local ESI office. Declaration forms are to be submitted with the local office of ESI within 10 days of new joining.
Before doing all this for ESI applicability, please check with the local ESI office whether the ESI scheme is applicable in your area or not because this is a scheme which is applicable in areas notified by ESI authorities.
The above are your immediate requirements.
5. Payment of Bonus Act is applicable once employment strength is more than 20 employees, but you are required to pay Statutory Bonus under the act once you have earned profit from the year in the first five years. This act is applicable even after these five years even if the establishment has not earned a profit from the date of inception.
6. Payment of Gratuity Act is applicable once the employment strength is more than 10 employees. Gratuity is payable after an employee puts in a minimum of five years of service. The amount is to be calculated at the rate of 15 days' salary for every completed year of service. Salary is the last drawn salary at the time of resignation, superannuation, retirement, or death, etc.
I hope this will help you.
Regards,
Anil Anand