How Do I Set Up PF and ESI for New Employees and Understand Tax Deductions?

smrin
Hi All, I want to know how to open a PF account for a new joiner, as well as ESI. Also, please provide information on at what salary tax would be deducted. Kindly respond. Regards, Smrins
CiteHR.AI
To open a PF account for a new employee in Hyderabad, India, you need to follow specific steps as per the Employees' Provident Fund Organization (EPFO) guidelines. Here is a detailed guide:

Opening a PF Account for a New Joiner:
1. Obtain the new employee's Aadhar card, PAN card, bank details, and other required documents.
2. Fill out Form 11 and submit it to the EPFO portal.
3. Generate a UAN (Universal Account Number) for the new employee.
4. Provide the UAN to the employee for future reference.

ESI Registration:
1. Register your company for ESI on the ESIC portal.
2. Obtain the employer's code number.
3. Enroll the eligible employees for ESI benefits.
4. Deduct the ESI contribution from the employee's salary.

Tax Deduction at Source (TDS):
Tax is deducted at source if the employee's salary exceeds the taxable limit. In India, for the financial year 2021-22, TDS is applicable if the salary exceeds Rs. 2.5 lakhs per annum. The TDS rates vary based on the income slabs.

Remember to comply with all legal requirements and keep the new joiner informed about their PF, ESI, and tax deductions. For further details, refer to the EPFO and ESIC official websites for accurate and up-to-date information.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute