Late Salary Payment and PF Deductions: How to Handle Interest and Form Amendments?

Hi friends,

Suppose salary has not yet been paid to a new joiner for the last 2 months due to some reasons. Now, the employer wants to pay the salary and deduct PF accordingly. The employer has already deposited the PF of other employees for the last 2 months on time and filed Form 12A along with Form 5 and 10 with the EPF Organization.

Is any interest payable by the employer on the late depositing of PF? Also, what do we need to do to amend Form 5 and 12A? Do we have to deposit a separate challan for the last 2 months' arrears? Please clarify.

There are two alternatives. You can either make payment now and prepare a supplementary return, both Form 12A and Form 5 with these payments, or you can pay salary as arrears along with the current month's salary and deduct PF on both, i.e., the current month and arrears. You can remit the amount in a single challan. EPFO will not make it a big issue because such kinds of things often occur. Besides, ensuring timely payment of SALARY is not their headache, but for a Labour Officer who is the authority under the Payment of Wages Act, it could be an offence on the part of the employer not to pay salary within seven days of the wage period.

Regards,
Madhu.T.K