Navigating PF Challan: Can You Pay Only the Worker’s Share Using E-Return Tools?

I have a question related to PF challan.

Questions About PF Challan

1. Is it possible to pay only the worker's share for PF in the monthly challan through "e-return tools"?

2. If the PF deduction for staff is 20% and for workers is 12%, how can I prepare a text file through "e-return tools" for ECR upload? If you have any guidelines, please suggest them to me.

Thank you.

It is easy if you generate a text file using the e-returns tool. When you input basic wages, you can directly go to the voluntary share column, which is located near the NCP days.

In our establishment, the employee staff deduction is 20%, and the employer adds 20%. For workers, the deduction is 12%, and the employer adds 12%. You suggest adding a voluntary share, but it's only for employees, not for employer deduction.

Voluntary Provident Fund (VPF) Contributions

Employees can contribute up to 12% as VPF, but the employer is not obligated to match the same VPF percentage. The employer only contributes 12%.

In our establishment:
- Employee staff deduction is 20%, and the employer adds 20%.
- Worker deduction is 12%, and the employer adds 12%.

You suggest adding to the voluntary share, but this option is only available for employees and not for employer deductions.

Is it possible to pay only the worker's share for PF in the monthly challan through the "e-return tools"?

Definition of Contribution

The definition of contribution is that the contribution of an employee is equal to the contribution payable by an employer. The employer can restrict the contributions for the wages to Rs. 6500/-, i.e., Rs. 780/- (12% of Rs. 6500/-), and the deduction from the employee is Rs. 780/-. Another option is that the employee can contribute over and above 12% as a voluntary contribution, and the employer will pay 12% for Rs. 6500/-. The next option is that both the employee and employer can pay over and above 12%, and the employer cannot discriminate against the contributions from member to member, such as staff and worker, since all are employees and the rule is the same for both.

Dear Chirag, you need to download the EPFO software from the EPFO site. The installation manual is also available there. Just input the data and generate the ECR file.
Regards.

I think you have to pay both employee and employer shares. You need to download EPFO software from the EPFO site. The installation manual is also available there. Install it and just feed 12% & 20% contributions and generate the ECR file.

No, it's not necessary to use the e-return tools for monthly challans. You can use your own format (Excel, other software, etc.), but the main thing is that your text file generates as per the ECR format given by EPFO.

It is possible to pay only the employee's share. Along with the employee's share, you have to pay some portion of administrative charges and EDLI charges. In the ECR file, make other columns like EPS, employer's share, etc., to zero and upload the file. As suggested by Mr. Anil Kumar, you can prepare two challans, one for the employee and another one for the staff.

Regards,
S. Ganapathy

It is mandatory under the EPF scheme to deposit employees' contributions along with employers' contributions; otherwise, non-deposit of employers' contributions will attract a penalty.

Regarding e-returns, I am not conversant, so I am unable to comment.

I also have a doubt, and I hope that you can help me with this matter. At the time of initial registration, the employer made a mistake in entering the employee code number and entered the wages. The ECR file was uploaded in March 2012. From April 2012 onwards, the wages were inserted using the actual/original code number. It has now come to light that although the employer is depositing the contributions under the employee's original number, the amount is being deposited under a different number due to the mistake made in March 2012.

Correction of Employee Code Number

Is it possible to correct the employee's code number now? If so, how can this be done? Your advice on this matter would be greatly appreciated.

Regards