Payroll point of view:-
If an employee works even for one day, the employer is liable to pay the salary/earnings and the PF has to be deducted from the earnings. Deductions including notice period recovery should be calculated separately.
The best way is Calculate the January Salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as deduction (whatever decided by your management) and add the previously hold salary. You will receive a minus figure as settlement (recovery). Recover it and close the account.
This is the proper way of accounting a Payroll and also statutory compliance.
If an employee works even for one day, the employer is liable to pay the salary/earnings and the PF has to be deducted from the earnings. Deductions including notice period recovery should be calculated separately.
The best way is Calculate the January Salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as deduction (whatever decided by your management) and add the previously hold salary. You will receive a minus figure as settlement (recovery). Recover it and close the account.
This is the proper way of accounting a Payroll and also statutory compliance.