How Can We Settle Pre-Registration PF Deductions for Our Single Employee?

Our company is new with only one employee. As per management's decision, we have opted for voluntary PF registration. We have set up the necessary provisions and made deductions from December '17 to May '18. Although we applied in January '18, we only received our PF code in May '18 due to delays caused by portal issues and other reasons. Our consultant indicated the effective date as 1st May 2018 during the application process.

I would appreciate guidance on how we can settle the arrears for PF contributions from December '17 to April '18, which we deducted from both employee and company contributions. We have already accounted for these deductions in our books.

Dear Prasadponnala,

PF code number has been allotted to you from 01.05.2018. You need to ensure compliance with PF laws from this date onwards and not from a retrospective date. You are required to refund the amount deducted from the employee immediately for the past. This is considered an unauthorized deduction from the salary, which is a serious offense.

Please ensure prompt action in this matter.

Thank you.