Transitioning to Own Payroll: What Happens if We Delay Using PF and ESI Codes?

Dear Team, Greetings of the Day! This is Jyoti. I am working in a small manufacturing company where the total number of employees is 40. Currently, we are all working under third-party payroll. Now, I am in the process of registering our company on the Shram Suvidha Portal for our own payroll. However, I have a query regarding the generation of PF and ESI codes. If we do not use or update the employee data with these codes for the next 2-3 months, what charges or penalties will apply? Are there any specific circumstances that may arise? Please advise on this matter.

Thanks & Regards,

Jyoti

Hi, After generating, why do you want to delay for 2-3 months without uploading employee data and holding the payment? Do you have any justification? If so, you may write to the respective offices. But mostly, you will be expected to pay with backlog and penalty from the effective date of registration.

Dear Ma'am, Thank you so much for your valuable reply! We are not going to withhold payment; it will be submitted as we are currently doing by a third party. However, I am doing this process for the first time, so I have a query if there might be a delay in understanding the total process and working it out. If I face a penalty, I will take time to understand the whole process and then approach it.