I started a new company with fewer than 20 employees. However, last month (July), we hired 2 more individuals, bringing the total employee count to 21.
All of my employees have a basic salary of over $6500, and none of them have previously been enrolled in EPF.
Do I still need to register for an EPF account?
Thanks
From India, Ahmadabad
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All of my employees have a basic salary of over $6500, and none of them have previously been enrolled in EPF.
Do I still need to register for an EPF account?
Thanks
From India, Ahmadabad
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Dear Member,
The EPF office doesn't state anywhere on its site that those drawing a basic salary above Rs. 6500/- are exempted. If that is the case, the necessity for EPF law doesn't arise at all. We all can get exemption or avoid enrolling for a PF code. Upon crossing 20 employees, it is the duty of every employer to apply for a code. Even if the employee count falls below 20 after a few months, you must continue to remit PF for the existing employees. This is where many employers make a mistake and end up paying a substantial penalty after a few years, which is 5-8 times more than the actual EPF remittance.
Also, keep in mind that the PF office sends a copy of the PF code allotment letter to ESI. Based on this, your regional ESI office will send an inspector to review ESI coverage.
In the initial stages of a company, Company Advisors often give incorrect advice in order to save money, leading to complications that become a headache to rectify after several years.
Regards,
Chandru
From India, Madras
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41The EPF office doesn't state anywhere on its site that those drawing a basic salary above Rs. 6500/- are exempted. If that is the case, the necessity for EPF law doesn't arise at all. We all can get exemption or avoid enrolling for a PF code. Upon crossing 20 employees, it is the duty of every employer to apply for a code. Even if the employee count falls below 20 after a few months, you must continue to remit PF for the existing employees. This is where many employers make a mistake and end up paying a substantial penalty after a few years, which is 5-8 times more than the actual EPF remittance.
Also, keep in mind that the PF office sends a copy of the PF code allotment letter to ESI. Based on this, your regional ESI office will send an inspector to review ESI coverage.
In the initial stages of a company, Company Advisors often give incorrect advice in order to save money, leading to complications that become a headache to rectify after several years.
Regards,
Chandru
From India, Madras
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Since the number of employees exceed 20, you need to register withP.F irrespective whether they are eligible for P.F contribution or not. B.Saikumar Mumbai
From India, Mumbai
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From India, Mumbai
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Ok, I will open the new account, no problem. I am willing to hire a consultant and have spoken to a few. All of them are saying that you need to bribe to get this done quickly. I do not want to bribe anyone. Please let me know how I can go about opening the account without any hassles and without bribery. Thanks
From India, Ahmadabad
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From India, Ahmadabad
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Dear Sir,
Please visit the PF office to fill out the proforma for PF. Kindly ensure you attach the list of required documents, the salary register, and a canceled check of your establishment. An inspector will come to visit and check all the documents.
Thank you.
From India, Thana
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Please visit the PF office to fill out the proforma for PF. Kindly ensure you attach the list of required documents, the salary register, and a canceled check of your establishment. An inspector will come to visit and check all the documents.
Thank you.
From India, Thana
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Thank you for your message.
I did that two weeks ago. I went there to inquire about the procedure. The guy noted my number and address and told me the inspector would first call me in seven days and then visit. Two weeks have passed, and I haven't heard from them.
From India, Ahmadabad
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I did that two weeks ago. I went there to inquire about the procedure. The guy noted my number and address and told me the inspector would first call me in seven days and then visit. Two weeks have passed, and I haven't heard from them.
From India, Ahmadabad
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Hi,
As an employer, payment of contributions is not exempted if employing 20 or more employees, regardless of whether the basic salary is more or less than Rs. 6500, or if the number of employees falls below 20 at a later time. In this scenario, the payment of employer contributions for basic salaries exceeding Rs. 6500 per month is at the discretion of the employer, while contributions up to Rs. 6500 are mandatory and cover all employees under the scheme.
Currently, digitization is in the final stages at EPFO. The payment of contributions and submission of returns are now happening online, making the process more convenient. EPFO is expected to increase awareness in the administrative process with stringent vigilance. Registration is not overly complex; if any difficulties arise, one must meet with the commissioner. Once you apply for registration, your establishment's coverage will be activated automatically.
Regarding the payment of contributions, you must maintain a record of employees, including details of contributions for all employees. These records should be organized in a sequential order of employment numbers and dates of joining. It is essential to complete and submit forms such as Form 11, Form 2, Form 5, and Form 10 diligently.
Thank you.
From India, Hyderabad
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As an employer, payment of contributions is not exempted if employing 20 or more employees, regardless of whether the basic salary is more or less than Rs. 6500, or if the number of employees falls below 20 at a later time. In this scenario, the payment of employer contributions for basic salaries exceeding Rs. 6500 per month is at the discretion of the employer, while contributions up to Rs. 6500 are mandatory and cover all employees under the scheme.
Currently, digitization is in the final stages at EPFO. The payment of contributions and submission of returns are now happening online, making the process more convenient. EPFO is expected to increase awareness in the administrative process with stringent vigilance. Registration is not overly complex; if any difficulties arise, one must meet with the commissioner. Once you apply for registration, your establishment's coverage will be activated automatically.
Regarding the payment of contributions, you must maintain a record of employees, including details of contributions for all employees. These records should be organized in a sequential order of employment numbers and dates of joining. It is essential to complete and submit forms such as Form 11, Form 2, Form 5, and Form 10 diligently.
Thank you.
From India, Hyderabad
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