EPF

Introduction

EPF Scheme is implemented under Employees' Provident Fund Act, 1952, to help the government, public or private sector employees financially by providing a lump sum amount on their retirement or separation from their job by managing provident fund of them. It helps in providing social security to the members of the scheme.
It is mandatory for employees to contribute to the provident fund. The contribution is typically 12% of the employee's basic salary and dearness allowance.
The employer must contribute an amount equal to 12% of the employee's basic pay plus dearness allowance to the provident fund.

Benefits

• The EPF scheme enables individuals to save money for the long term
• It doesn't require a lump sum one-time investment
• Convenient deductions

Eligibility

• Any establishment with 20 or more employees must register with EPFO.
• Establishments that employ less than 20 employees can also register voluntarily.
• It is mandatory for salaried employees earning up to ?15,000 to have an EPF account.
• Employees earning more than ?15,000 can also register for an EPF account, but it requires approval from the Assistant PF Commissioner.

Documents Required

• PAN Card
• Aadhaar Card
• Bank Account Details
• Address Proof
• Registration Certificate of the establishment
• Details of Directors or Partners
• Digital Signature of Authorized Signatory

Our Services

• EPF Registration
• UAN and Passbook generation
• Monthly and Annual return filings
• PF Withdrawals & Transfers

FAQS

Q1. Can a company pay salary without PF?
Ans: Unless you are not a member of EPFO (even when you are in your last employment) and presently is drawing salary of more than Rs. 15,000/- pm. It is mandatory for every company to pay salary along with PF.

Q2. Is EPF mandatory for start-ups?
Ans: Typically, any business entity with 20 or more employees must mandatorily initiate PF registration. This means that if your startup, company, or organization reaches or exceeds this threshold, it is legally required to register under the EPF scheme.

Q3. Can an establishment with less than 20 employees register under EPF?
Ans: Yes, Establishments that employ less than 20 employees can also register voluntarily.

Q4. When can an establishment register under EPF?
Ans: The employer must obtain the EPF registration within one month of attaining the strength (20 members)

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ESI

Introduction

Employees' State Insurance is a social security scheme that benefits employees working in India for health-related problems. Managed by Employee State Insurance Corporation under the Employee State Insurance Act 1948, it is a self-financed insurance deposit that the workforce contributes to every month from their gross salary.
As per the ESI Act, the employer contributes 3.25% of the wages, and the employee contributes 0.75% of the wages to the contributory fund, which is then used to provide insurance cover to the employees in difficult times.

Benefits

• Sickness Benefit: i.e., ESIC provides 70% of average daily wages in cash during medical leave, up to 91 days in two consecutive benefit periods.
• Disablement Benefit: ESIC provides continuous monthly payment till injury lasts for temporary disablement and for whole life for permanent disablement.
• Dependants Benefit: ESIC provides monthly payment apportioned among dependants in case of death due to employment injury.
• Maternity Benefit: ESIC provides 100% of average daily wages in cash up to 26 weeks in confinement and 6 weeks in case of miscarriage, during maternity leave and 12 weeks for commissioning mother and adopting mother.
• Medical Benefit: ESIC provides reasonable Medical Care for self and family from day one of entering into insurable employment.
• Unemployment Allowance: ESIC Provides monthly cash allowance for a duration of maximum 24 months in case of involuntary loss of employment or permanent invalidity due to non-employment injury

Eligibility

• All non-seasonal factories employing 10 or more persons.
• The State Governments have extended the coverage to Establishments - Shops, Hotel, Restaurants, Cinema including preview theatres, Road-motor transport undertakings, Newspaper establishments, Private Medical Institutions, Educational Institutions and to contract and casual employees of Municipal Corporation/Municipal Bodies employing 10 or more Persons.
• The Central Govt. has extended the coverage to Establishments - Shops, Hotels, Restaurants, Cinema including preview theatres, Road Motor Transport establishments, Newspaper establishments, establishment engaged in Insurance Business, Non-Banking Financial Companies, Port Trust, Airport Authorities, Warehousing employing 20 or more Persons.
• All the establishments covered under the ESI Act and all factories that employ more than 10 employees and pay wages below or up to Rs.21,000 per month (Rs.25,000 for employees with disability) must register with the ESIC and contribute towards the ESI scheme

Documents Required

• PAN Card
• Registration Certificate of the Establishment
• Bank passbook
• Address Proof
• Document related to use of power in case of factory

Our Services

• ESI Registration (Establishment & Employees)
• Handling Accidental Claims
• Challan Processing
• ESI Cards
• Permanent Identity Card
• Liaison/Correspondence with ESI Department
• Other Advisory services

FAQS

Q1. Is it mandatory to pay ESIC?
Ans: Yes, it is the statutory responsibility of the employer under ESI Act, 1948 within 15 days from the date of its applicability and pay accordingly.

Q2. How do I check my ESI balance?
Ans: Visit the ESIC e-pehchan Portal. Click on the 'e-Pehchan card' under the 'Employee' tab. Fill the 'Employee Insurance number' and click on 'View' button.

Q3. Who is exempted from ESIC?
Ans: Employees in receipt of a daily average wage up to Rs.176/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

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Professional Tax

Introduction

Professional tax is a direct tax that applies to individuals earning an income by way of employment, practising their profession, or trading. Professional Tax (PT) is one of the statutory compliance requirements for businesses. Unlike TDS, EPF and ESI, PT is levied by the respective state governments.
Professional tax is collected by the employers of Rs. 200 every month from their employees' monthly salaries. It is then paid to the applicable state government.

Eligibility

• There is no requirement of minimum no of employees.
• If any employer is paying Salary to the employee in excess of Rs. 3000/-, the employer has to take Professional Tax registration.
• Professional tax is a tax levied by state governments on all individuals earning above a specified level, irrespective of whether they are salaried or self-employed

Documents Required

• PAN Card
• Address Proof of establishment
• Aadhaar Card
• Cancelled Cheque
• Incorporation Documents
• Bank Passbook
• Passport size photos of proprietors

Our Services

• Professional Tax Registration Certificate
• Professional Tax Enrolment Certificate

FAQS

Q1. Why is professional tax paid?
Ans: Since it is a source of revenue to the government

Q2. Can we get back professional tax?
Ans: Only those taxpayers who have income above the basic exemption limit and paid income tax, can claim professional tax paid as a deduction and get a refund.