EPFO asks companies to file return in time, deposit PF deductions late

Stock Market

NEW DELHI :
The staff provident fund group (EPFO) Thursday allowed companies to file the digital returns on time however deposit PF deductions late, a transfer that may ease compliance burden on employers.

The transfer implies separation of submitting of return and the cost of the statutory contributions concurrently inside a sure timeframe. “The ECR can now onwards be filed by an employer with out the necessity of simultaneous cost of contributions and contributions could also be paid later by the employer after submitting the ECR,” retirement fund physique EPFO mentioned.

“In the present situation of lockdown …the companies and enterprises aren’t in a position to operate usually and are dealing with liquidity/money crunch to pay their statutory dues regardless that they’re retaining the staff on their rolls. Keeping in view the above state of affairs and to additional ease the compliance process beneath EPF Act, the submitting of month-to-month Electronic-Challan cum Return (ECR) is separated from Payment of the statutory contributions reported in the ECR,” mentioned retirement fund physique mentioned.

The above change will entail comfort to the employers in addition to the staff lined beneath theAct. EPFO mentioned that submitting of ECR by the employer in time is “indicative of employer’s intent to comply” thus will not “attract penal consequences if the dues are paid within the extended time as announced by the government”.

The group mentioned submitting the ECR in time shall additionally assist in credit score of employer’s and worker’s share of contributions (24% of wages) by the central govt. in EPF accounts of low wage earners in institutions eligible beneath Pradhan Mantri Garib Kalyan Yojana package deal.

As per the rule, authorities has mentioned that it’ll pay the EPF dues of all staff incomes upto Rs. 15,000 per 30 days in all these institutions the place the headcount is upto 100 and 90% of them are incomes a wage of Rs. 15,000 or much less every.

“The present ECR knowledge shall additionally assist in coverage planning and selections making for additional reduction to the companies and EPF members adversely impacted by the Pandemic,” EPFO mentioned indicating that the lengthy talked wage stimulus could also be on it means.

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