PF Compliance Worries: How to Handle Missing Form 11 and Limited Deductions?

PF Compliance and Audit Concerns

If a company has a license for PF but is only deducting PF from 20% of employees, and they have not filled out Form 11 for any other employees at the time of joining or ever, what steps should be taken to protect the company from a PF audit? Please assist me in resolving this issue.

Thank you.

Please, seniors, I think next week we have an audit, so it is required for me to know what I should do. I only have 15 days to solve this issue.

One way out for this is that you can get Form 2 filled in now from all employees and submit the same. In my experience, one of my past employers had also not filled in Form 2 at the time of joining employees, which was highlighted in an internal audit. Then we got the same filled in and submitted it to the PF office.

So now you can go ahead, fill up the PF forms (Form 2 - Nomination for PF) and submit the same to the PF office. You won't land up in a problem.

Hi Vishal, now I would like to ask you for Form 11 as I mentioned in my previous question. What should I do for that? Should Form 2 be maintained by me, or do I have to submit it to the PF office? Is it compulsory to submit it there?

Thank you.

Regarding Form 11, you can now have the same filled out by employees who do not wish to have their PF deducted from their salary. Obtain their signatures on the form and keep it in your company records. Form 11 does not need to be submitted to the PF office. Therefore, ensure that Form 11 is filled out, signed, and retained in your office records.

Form 2 Submission

As for Form 2, you should have two copies of the form filled out by the employee upon joining. One copy is to be submitted to the PF office, and the other will serve as the acknowledgment from the PF office confirming the receipt of Form 2. It is mandatory to submit Form 2 to the PF office and keep the acknowledgment for your company records.

Please ensure compliance with the above procedures.

Thank you.

Thank you so much, Vishal. So, it is clear that a copy of Form 11 will stay with me, so it is not required to submit it to the PF Department. Only Form 2 needs to be submitted in two copies, right? But they will not ask why you are late or why you have not submitted it at the time of joining. Will there be any issue with that?