19 Oct 2019Posted By: Mudit Handa


All you need to know about PF registration

Today, the Employee Provident Fund has become a very significant part of retirement planning. One of the evident benefits of the EPF is that compound interest on PF is totally tax-exempt. Moreover, there is an assurance of the steady growth of your money upon the maturity period. If the PF account is continued for a very long period, it can significantly assist in meeting the retirement plans. Nonetheless, the organization eligible for a mandatory PF registration is supposed to provide the above benefits to its employees.

Here we will discuss all the key guidelines regarding EPF registration.

 

1. What is EPF?

The Employee Provident Fund or EPF is basically a financial saving scheme for fulfilling retirement goals. The EPF given is a basic perk provided by the Indian government to each and every single salaried employee in India, on which fixed interest is routinely paid to him.

The Employee Provident Fund serves as a perquisite given by the organization having Employer PF registration to its employees well in addition to their basic remuneration (salary).


2. What is the role of EPF?

While planning for various objectives or arranging for a crisis, employees often tend to forget to concern regarding funds. Hence, the government has provided a prerequisite to all the salaried employees in India in the form of Employee Provident Fund or EPF. Herein, a certain amount is deducted from employees’ salaries and is deposited in their EPF account by the employer having the EPF registration. The employees can claim there accumulated PF upon its maturity or their retirement.


3. Who shall apply for Employer PF registration?

The employer shall compulsorily apply for PF Registration is if his organization is having 20 or above employees. Such entities are supposed to contribute a regular amount towards Employee Provident Fund from the employee salary or wages.


4. What if an employer fails to get EPF employer registration?

In case an employer does to obtain EPF employer registration when required to do so, or tends to falsely represent the facts with an intent to evade PF payment, he shall be liable for heavy penalty, which is INR 5,000/-.


5. When is Employer PF registration mandatory?

PF registration for Employer is a mandatory requirement if:-

  • The employer owns a factory that employs 20 or above workers, or
  • Any other business/establishment that employs 20 or above workers or
  • A class of such entities, which the Central Government may, by notification, would state that EPF employer registration is compulsory.

6. Which details are needed for EPF Registration?

The following details of the Employers are needed for EPF registration.

  1. Name & address of the company
  2. Head office & branch details
  3. Date of company incorporation
  4. Total employee strength
  5. Type of business activity
  6. Nature of business.
  7. Director/partners’ details
  8. Employee’s Basic info
  9. Employees’ salary details
  10. Bank account details of the company
  11. Company PAN card

7. What if an employer does not get EPF Registration?

If an employer doesn’t get EPF employer registration or tends to falsely represent the facts to evade PF payment, he shall have to pay a penalty of INR 5,000/-.


8. What is the penalty in case of delay in payment of PF by the employer?

In case of delay in the payment of PF by the employer having EPF registration, the penalty shall be as below:

S.No

Period of Delay

Rate of Penalty

(p.a.)

1.

Till 2 months

5%

2.

2 - 4 months

10%

3.

4 - 6 months

15%

4.

After 6 months

25%

 

So, these are the important guidelines regarding EPF employer registration.

 

In case you require any sort of assistance regarding the EPF registration feel free to contact us at 8881-069-069.

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