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EPF payment - Payment procedure online, Penalty on EPF, Deadlines for EPF payment & return

EPF Payment Online Process
EPF Payment Online Process

Although both the employer and the employee are obliged to contribute to the PF account, the employer registered with the PF Act must pay. Since September 2015, it has been made mandatory for all registered employers to pay online. Payment can be made through the official EPF website or through the bank's website, provided the bank facilitates direct payments through its website. EPFO currently binds the following banks to the collection of EPF funds.

  • SBI

  • PNB

  • Indian Bank

  • Allahabad Bank

  • Union Bank of India

  • Bank of Baroda

  • HDFC Bank

  • ICICI Bank

  • Axis Bank

  • Kotak Mahindra Bank

Online Procedure

 
 

Follow the steps provided to make EPF payments online- 
  • Login to EPFO ​​website using your Electronic Challan cum Return (ECR) information

  • See details like inventory ID, name, address, release status, etc.

  • Go to the 'Payment' option from the drop-down list and select 'ECR Upload'

  • Select 'Salary Month', 'Remuneration Rate', 'Donation Rate' and upload an ECR text file

  • The uploaded ECR file will then be verified in accordance with the pre-defined conditions

  • When all conditions are met, a screen will appear showing the message 'File Verification Successful'

  • If the file is not authorized, an error will occur, asking you to edit the ECR text file in the prescribed format and upload it again after making the necessary corrections

  • The TRRN that will be built will appear; click the 'Confirm' option on the page

  • Generate an ECR summary sheet by clicking on the 'Configure Challan' option

  • Enter Admin / Inspection Cost and click on ‘Generate Challan’

  • After confirming Challan value, click on 'Finish'

  • Click on ‘Pay’ against the appropriate TRRN

  • Select payment mode as 'online', and from the drop-down list, select the bank you wish to pay with

  • You will now be asked to make a payment on the bank's online access page through the entire bank

  • You will receive your transaction id and e-payment slip in successful payment

  • The transaction status will then be updated on the EPFO ​​page and you will receive a payment confirmation made with the TRRN number provided by EPFO

However, there are some banks that have their own payment system. You can visit the bank's website to view the same and make a payment accordingly

Deadlines for EPF payment and EPF Return

EPF payment duedates
EPF payment date is the date on which PF should be deducted from workers' salaries. This should be done on or before the 15th of every month. However, the due date for PF return and the due date for PF payment is the same, i.e. before or before the 15th of each month.

Penalty on EPF

After the late payment of EPF Challan, the following two fines apply-

Interest on late payment under Section 7Q - Interest of 12% per annum, per day is charged to the employer if he fails to make an EPF contribution before the deadline

Payment of late payment under Section 14B- In the event of Challan's default, the following penalties must be paid-

  • 5% interest per annum for a delay of up to two months

  • 10% interest per year for a delay of 2-4 months

  • 15% interest per year for a 4-6 month delay

  • 25% interest per year for a delay of more than 6 months

Objectives of the fund

The Human Resources Fund, launched by the Department of Labor, has the following objectives-

  • The main purpose of the fund is to manage the public sector, public and private sector, financially assisted by retirement.

  • Contributions to the fund are made compulsory by the part of employers and employees resulting in a savings account

  • With its members in mind, the Employee Provident Fund aims to make the most of the investment

  • The fund enables its members to carry out research activities and to evaluate specific social programs

  • The EPF focuses on performing activities that ultimately provide social security to fund members

Eligibility

The following eligibility criteria must be met in order to achieve EPF benefits-

  • The employee must be an active member of the program

  • If an employee works with a registered organization, he or she can directly benefit from insurance and pension benefits from the day he or she joins the organization.

  • The organization must have at least 20 employees

It should be noted that this program does not provide for the workers of Jammu and Kashmir (formerly). 

Documents Required

The following documents are required to register a PF employee account-

For organizations-

  • Company Name

  • Registration certificate or Incorporation certificate of the company

  • Co-operative title deed, in the case of a co-operative or LLP

  • Proof of company directors' ID

  • List of all directors and their contact details

In addition to the above-mentioned documents, all organizations (Proprietor / Company / Society / Trust) must have the following documents when applying for registration of PF-

  • The first sale bill

  • The first purchase bill for raw materials and equipment

  • GST certificate, if the organization is registered under GST

  • Name and address of the  bankers and bank

  • Monthly employee record strength

  • Salary and wages register, all vouchers, balance sheets from the first day to the current date of temporary availability

  • Join staff date, as well as their father's name and date of birth

  • Salary statement and PF

  • Cross cancelled cheque

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