We are a Pvt. Ltd. company, and the number of employees is less than 20. Therefore, we deduct PF at 10% as per rules. In the month of April 2018, we had to engage 3 laborers for one of the contract works from a PSU. We deducted PF at 10%, but PSU officials are saying that since they are the principal employer for these 3 laborers and their employee strength is more than 2000, PF should be deducted at 12%. As we have already paid the PF at 10%, now we need to pay the balance 2% of the employee and employer contribution each.
Query on ECR Type for PF Adjustment
My query is whether we need to upload the text file for ECR type as ECR or Arrear. If the ECR type will be Arrear, then we have to put zero in Arrear EPF wages/Arrear EPS wages/Arrear EDLI wages and just put the 2% amount in column EE share & ER share, or we have to write the amount of EPF wages/EPS/EDLI wages as these are not arrears, just 10% PF deducted in place of 12%.
From India, Nagar
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Query on ECR Type for PF Adjustment
My query is whether we need to upload the text file for ECR type as ECR or Arrear. If the ECR type will be Arrear, then we have to put zero in Arrear EPF wages/Arrear EPS wages/Arrear EDLI wages and just put the 2% amount in column EE share & ER share, or we have to write the amount of EPF wages/EPS/EDLI wages as these are not arrears, just 10% PF deducted in place of 12%.
From India, Nagar
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In this scenario, you need to follow specific steps to generate the PF challan for the payment of the balance of 2% EE & ER contribution to PF. Here's a practical guide to help you navigate through this process:
1. Upload ECR Type as Arrear:
- When uploading the text file for ECR type, select "Arrear" to indicate that this is a payment adjustment for past contributions.
2. Fill in the Arrear CHALLAN:
- In the Arrear CHALLAN, enter the details as follows:
- UAN Member Name: Enter the name of the member for whom the arrear contribution is being made.
- Arrear EPF Wages, Arrear EPS Wages, Arrear EDLI Wages: Since these are not arrears but a correction in contribution rate, enter Zero in these fields.
- EE Share EPF, ER Share EPF, Pension Contribution: Input the 2% amount in the EE Share & ER Share columns to reflect the balance of the Employee & Employer contribution.
3. Clarify the Contribution Discrepancy:
- Clearly communicate with the PSU officials about the situation and the correction in the contribution rate from 10% to 12% for the laborers they provided.
4. Payment Submission:
- Ensure that the corrected PF challan reflecting the balance 2% contribution is submitted accurately to avoid any discrepancies.
By following these steps, you can effectively address the issue of the balance 2% EE & ER contribution to PF for the laborers provided by the PSU, ensuring compliance with the revised contribution rate.
From India, Gurugram
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541. Upload ECR Type as Arrear:
- When uploading the text file for ECR type, select "Arrear" to indicate that this is a payment adjustment for past contributions.
2. Fill in the Arrear CHALLAN:
- In the Arrear CHALLAN, enter the details as follows:
- UAN Member Name: Enter the name of the member for whom the arrear contribution is being made.
- Arrear EPF Wages, Arrear EPS Wages, Arrear EDLI Wages: Since these are not arrears but a correction in contribution rate, enter Zero in these fields.
- EE Share EPF, ER Share EPF, Pension Contribution: Input the 2% amount in the EE Share & ER Share columns to reflect the balance of the Employee & Employer contribution.
3. Clarify the Contribution Discrepancy:
- Clearly communicate with the PSU officials about the situation and the correction in the contribution rate from 10% to 12% for the laborers they provided.
4. Payment Submission:
- Ensure that the corrected PF challan reflecting the balance 2% contribution is submitted accurately to avoid any discrepancies.
By following these steps, you can effectively address the issue of the balance 2% EE & ER contribution to PF for the laborers provided by the PSU, ensuring compliance with the revised contribution rate.
From India, Gurugram
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf