Hi All,
I need some clear explanation regarding arrears. My questions are given below:
1. If there is arrear calculation involved in the company, how would PF & ESI deductions on arrears be calculated?
2. How to specify about ESI/PF deducted on arrears in monthly, half-yearly & yearly returns?
3. Should we submit PF forms separately for the Arrears amount, or should we give reports for the amount obtained by summing the current Basic+DA+arrears on Basic+ Arrears on DA?
Kindly explain with examples.
Thanks in Advance.
From India, Madras
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1I need some clear explanation regarding arrears. My questions are given below:
1. If there is arrear calculation involved in the company, how would PF & ESI deductions on arrears be calculated?
2. How to specify about ESI/PF deducted on arrears in monthly, half-yearly & yearly returns?
3. Should we submit PF forms separately for the Arrears amount, or should we give reports for the amount obtained by summing the current Basic+DA+arrears on Basic+ Arrears on DA?
Kindly explain with examples.
Thanks in Advance.
From India, Madras
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If you give arrears of salary this month, deduct PF/ESI at the prescribed rates (12%/1.75%) from the arrears and pay it. The additional PF/ESI so deducted shall be deposited along with regular contributions. In the returns, show the total salary (salary for the month + arrears) as salary for the month and also show the total contribution (usual contribution + additional contribution for the arrears of salary) as contribution for the month. There is nothing wrong if the salary and the contribution for the next month are less than the current month. You can put a remark to this effect in the returns.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu, If we pay the arrears separately and also mentioned separately in the returns form3a. if there is any penalty raise by the govt. Please clarify me. Thanking you
From India, Coimbatore
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From India, Coimbatore
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There will be no interest or penalty provided that the PF for the arrears is paid within 15 days of its due date. You can show the salary arrears and PF contributions separately as well. However, Form 3A has only 12 rows to display monthly salary and contributions for a year. Therefore, it is advisable to combine the arrears with the salary of the month in which it was paid.
Regards, Madhu.T.K
From India, Kannur
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Regards, Madhu.T.K
From India, Kannur
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Dear Madhu,
Thank you for your reply. We have received an access file sent by the PF office for preparing Form 3A and 6A. The database contains 13 rows. When we inquired about the purpose of the 13th row, they explained that it is for recording arrears or any other payments made to employees.
We have adopted the database format and incorporated it into our payroll program.
Could you please provide me with a response?
Thank you once again.
From India, Coimbatore
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Thank you for your reply. We have received an access file sent by the PF office for preparing Form 3A and 6A. The database contains 13 rows. When we inquired about the purpose of the 13th row, they explained that it is for recording arrears or any other payments made to employees.
We have adopted the database format and incorporated it into our payroll program.
Could you please provide me with a response?
Thank you once again.
From India, Coimbatore
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In soft copies either in excel or access forms it is possible to add any number of rows to show arrears separately and, therefore, you can prepare it in the same format. Go ahead. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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Today, when PF is submitted online, how do we calculate PF on arrears? For example, if an employee's basic salary is 6500 and they receive a Rs 1000 increment, what would be the total PF deduction in this scenario? Would it be 6500 * 12% + 1000 * 12%, or is there another calculation method?
Regards,
Dinesh Kumar
From India, New Delhi
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Regards,
Dinesh Kumar
From India, New Delhi
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If your practice is to give a contribution on a salary above Rs 6500 as well, then it will be 12% on 7500; otherwise, it will be restricted to 12% on 6500 only. You need not pay PF on arrears as the PF qualifying salary has exceeded Rs 6500.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Please reply as soon as possible to the following query:
PF Deduction on Salary Increase
Suppose the PF limit is only Rs. 6500, and we are deducting on 6500. Now, if any employee's previous basic salary is 6000, and now his basic salary is increased by 1000 in the month of May 14, which is applicable from the month of April 14. His basic salary is now Rs. 7000. How much PF will be deducted from the salary, including arrears from the previous month? Will it be 12% of 6500 + (12% of 500 or 12% of 1000)?
Please reply as soon as possible.
Regards,
Dinesh Kumar
From India, New Delhi
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PF Deduction on Salary Increase
Suppose the PF limit is only Rs. 6500, and we are deducting on 6500. Now, if any employee's previous basic salary is 6000, and now his basic salary is increased by 1000 in the month of May 14, which is applicable from the month of April 14. His basic salary is now Rs. 7000. How much PF will be deducted from the salary, including arrears from the previous month? Will it be 12% of 6500 + (12% of 500 or 12% of 1000)?
Please reply as soon as possible.
Regards,
Dinesh Kumar
From India, New Delhi
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If your company restricts PF on Rs 6500, then you can pay like 12% of 6500 + 12% of 500 for the arrears Madhu.T.K
From India, Kannur
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From India, Kannur
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Thanks for replying. I have the 'E Return Tool version 5.0', and there is one column for arrears for this month. However, I need to file arrears for the months of March and April. I have already uploaded the ECR for those months. Now, how do I file/deposit the incremental pay arrears for March and April?
From India, Rajpura
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From India, Rajpura
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Employee PF Arrears in ECR Form
In the ECR Form, Column N is designated for Employee PF Arrears from past months. Suppose an employee was given an additional Basic amount in any of the past months, which will retrospectively carry forward an additional PF amount to the current month's payroll. In such a case, can the additional PF be shown in Column N? Will the total amount, i.e., Current Month PF + PF Arrears, be posted against his name? Do we also have to show the additional basic amount on which the additional PF amount has been shown as arrears? If so, in which column is this amount to be shown?
Regards,
Rajesh
From India, Hyderabad
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In the ECR Form, Column N is designated for Employee PF Arrears from past months. Suppose an employee was given an additional Basic amount in any of the past months, which will retrospectively carry forward an additional PF amount to the current month's payroll. In such a case, can the additional PF be shown in Column N? Will the total amount, i.e., Current Month PF + PF Arrears, be posted against his name? Do we also have to show the additional basic amount on which the additional PF amount has been shown as arrears? If so, in which column is this amount to be shown?
Regards,
Rajesh
From India, Hyderabad
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Dear All,
I need assistance regarding the matter of PF. What are the formalities to deposit the arrears amount in any PF account if we have forgotten or failed to credit the contribution for any reason? I need this assistance as soon as possible. Can anyone help?
Regards,
Nikash
From India, Gandhidham
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I need assistance regarding the matter of PF. What are the formalities to deposit the arrears amount in any PF account if we have forgotten or failed to credit the contribution for any reason? I need this assistance as soon as possible. Can anyone help?
Regards,
Nikash
From India, Gandhidham
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I have one more question regarding this query, how can an employee see his arrears payment by employers as its not coming in their PF passbook.
From India, Delhi
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From India, Delhi
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How to deposit arrear PF online submission for staff wef 01.04.2015. please give us the details as how to go about.
From India, Delhi
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From India, Delhi
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Hi Friends, I need clarification on the New Version ECR 2.0. There are some fields shown in the new version like Wage Period, Disbursement Date, and ECR (or) Arrear. Now my question is, if I am paying the 8 days of Arrear Wages of September along with October salary disbursement, then I will have to select the Wage Period as Oct, Disbursement Date as 1st Nov, and ECR type as Arrear (because it will be considered as Arrear of Sept paid in Nov).
In this case, will the Damages and Interest be applicable for these 8 days arrear PF contributions? Please clarify.
Thanks,
A. Krishna Prassad
From India, Chennai
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In this case, will the Damages and Interest be applicable for these 8 days arrear PF contributions? Please clarify.
Thanks,
A. Krishna Prassad
From India, Chennai
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