Guidance on Provident Fund Processing, Statutory Compliance, and Payroll Queries

Dear All,

I am working in an MNC company. My salary processing is from the 26th of the previous month to the 25th of the present month. My main query is, if an employee joined between the 26th to the 30th, i.e., after the processing of the salaries, then how can we show his wages in the P.F. Challan? And if we pay his P.F. amount in the next month, is it correct to pay his previous amount in the next P.F. Challan?

For example, I am processing salary from the 26th of September 2010 to the 25th of October 2010. If an employee joined on the 28th of October 2010, how can I show his P.F. amount in the Oct-2010 P.F. Challan?

Regards,
Siddharth

Please ensure that the employee features in the PF challan pertaining to his month of joining. Since you have time until the 15th of next month for PF remittance, please run a "dummy" payroll for new joiners who join between the 26th and 30th/31st of a month. You may make the salary payment for joiners between the 26th and 30th/31st along with next month's salary. However, please do not postpone the PF payment to the next month. If you move the employee to the next month's PF challan, you will not be able to indicate his date of joining in the challan. As of now, the PF challan for a month only accepts dates (of joining and leaving) related to that specific month.

I really did not understand what you want to say. Can you please convey it in simple words?

#2 Report Violation

Today, 12:57 PM

Tegautham has correctly explained the procedure to deposit the provident fund amount of newly joined employees.

Hello desaisiddharth09,

My contact number is (91) 9840055040. I can explain this if you call me.

Regards,
Gautham

Dear Siddharth,

For this, you can visit the PF department website where you will find relevant links and acquire thorough knowledge concerning this. It would be beneficial to visit as there is an option presented in a visual form (download rar/zipped folder for this), which will certainly aid in your learning process.

Happy learning.

Hello Siddharth,

1. Do you have the login information for your company's PF account online (http://epfoservices.in)? If not, please obtain the login information first. The process of registration is quite straightforward.

2. Once you obtain the login information, please log in to the PF site to upload the text file containing PF information each month in order to download the PF ECR file. I think some members have posted documents detailing how to upload for creating PF ECR file in this forum. If you are unable to find one, please let me know.

3. You need to prepare the PF upload data in a specific text format. Again, if you are not familiar with the text file preparation, just let me know.

Regards,
Gautham

Hi Gautham,

Thanks for the info. I really appreciate your help. I did some R&D and I came to know how to make the return of PF. I have a few more queries:

1. How to do liaising with government authorities, especially for statutory compliance (PF, ESIC, PT, LWF, Minimum wages, Shop and establishment, maternity benefits) and how to do that? What are all the charges that need to be paid? Is it a critical job?

2. One more query: what are all the forms we need to submit on a monthly or yearly basis for PT, LWF, Minimum wages, Shop and establishment, and where do we need to submit those and with whom should we coordinate to submit them?

3. What are the code and sub-code in PF, ESIC? Suppose we have different branches in various states of the company, do we need to have different codes or sub-codes for PF and ESIC for each state?

Looking forward to your reply.

Regards,
Siddharth

I am not sure what you mean by liaising. As long as an organization makes timely statutory remittances/filings, there should be no problem.

With regard to your questions on PT, LWF, etc., I suggest you get in touch with a consultant/expert in payroll compliance where you are located and seek their assistance.

Hi Gautham,

Normally, we need to submit investment declaration proofs in January. If someone fails to submit investment declaration proof or cannot provide it in January, then how is tax calculated or deducted from his/her salary? What is the calculation for tax after January till March?

Regards,
Siddharth

If proof is not submitted in January, then reverse the tax rebate given until then and compute tax accordingly in January, February, and March salaries.

Hi, Gautham,

I have a few queries regarding statutory.

1. What are the code and subcode in PF and ESIC? If a company has branches in different states, do we need to have separate PF/ESIC codes for each branch or will one PF/ESIC code work for administrative purposes?

2. PT varies for each state, so how do we file PT returns? Can we do it only from the home branch for all states?

Awaiting your response.

Regards,
Siddharth Desai

Hi Gautham
I have shown medical bills for receiving medical reimbursement amount but it is not showing in Form 16.
I asked employer they said any reimbursement made cannot be a part of form 16.
My question is.. is it true?
If reimbursements are part of salary and if we show bills then It will not be mentioned in form 16.
If it is true then what is the reason behind that? And what if we don’t show bills then will it be a part of form 16?
Regards,
Siddharth