Employee Provident Fund Registration Online

Employee Provident Fund - Overview

Employee Provident Fund is a social security scheme that helps employees save a small portion of their salary for future benefits.

Every company has to offer its employees an EPF online or Employees Provident Fund which is akin to a retirement fund. PF registration online comes under the purview of the Employees Provident Funds and Miscellaneous Provisions Act, 1952. EPF registration process is mandatory for organizations with total employee strength more than 20. Such employers can opt for online PF registration from Vakilsearch.

Companies can get employee pf registration, in 3 easy steps:

• Free consultation and form filling
• Connect with a dedicated affiliate for data validation
• Receipt of PF online number

What Is the Meaning of Employee Under Employee Provident Fund?

According to section 2(f) of the Employees Provident Funds & Miscellaneous Provisions Act, 1952, a person who performs any task with the intention of obtaining compensation is considered an employee. This would also apply to everyone who is regarded as a worker and receives compensation, either directly or indirectly.

Below is a list of those who are regarded as employees:

Any person with a history of consistent employment with the organisation qualifies as a full-time employee. Depending on the relationship that already exists between the employer and the employee, this will be decided. The appointment letter may be taken into account while confirming the employment guarantee.

Any worker who does part-time labour for any establishment is categorised as a part-time worker and must register with the EPFO. Compared to a full-time employee, a part-time worker works less hours per week.

The company may also consider registering any employee who works remotely for a set amount of time for the epf registration online

Contractors are specific personnel hired to carry out certain projects in accordance with the needs of the organisation.For organisations that hire independent contractors, pf online apply is required.

Consultants are people who are classified based on their level of experience. They are neither a contractor nor a part-time employee; instead, they are providing consulting services to an establishment for a set period of time.

The Government of India has added those who are freelancers to be regarded under the definition of an employee in the latest revision to the Social Security Code introduced in September 2020. The services offered under the pf registration online are also available to independent contractors.

Benefits of EPF Registration online

Pension Coverage

Besides the contribution of the employee to EPF, the employer adds an equal amount which is inclusive of Employee Pension Scheme (EPS). Therefore, EPF Registration saves you a robust pension.

Cover of Risk

In case of instances like illness, demise or retirement, EPF registration online helps the dependents of the employee by covering the financial risks they face in such situations.

Single Account/one EPF Account

The PF online account can be transferred while switching jobs. Universal Account Number(UAN) linked to the Aadhar will start to facilitate the linking of the previous accounts. It can be carried forward to the new employer instead of being closed down. This uniformity ensures that the rate of return is compounded over the years.

Emergency Fund

Emergencies are bound to happen at any point of time in life. EPF amount can be of great help during mishaps, illnesses, weddings and educational expenses. Employees can make claims online.

Employee Deposit Linked Insurance Scheme

Any person who has PF online account is eligible for this insurance scheme that requires only 0.5 % of the salary deduction as premium.

Extended Goals

The PF account can be extremely helpful for long-term goals like buying a property or setting up a fund for children.

Eligibility for Provident Fund Registration for Indian Employers

In India, the Employees' Provident Fund (EPF) is the main way for employees to save for retirement. It's run by the Employees' Provident Fund Organisation (EPFO). The Employees' Provident Fund and Miscellaneous Provisions Act, 1952, sets out who can join:

• Provident Fund (PF) registration is mandatory for all businesses or organisations that employ 20 or more people.
• If a business or organisation employs at most 20 people, it may still need to register for PF if specified by a central government notification.

• Employees who earn less than ₹15,000 per month must join the EPF and make regular contributions.
• Employees who earn more than ₹15,000 per month at the time of joining are not required to make PF contributions. Yet, they can still opt to join the EPF and make contributions with the agreement of the employer and the Assistant PF Commissioner.

Documents Required for PF Registration Online

Any business that wishes to apply for PF registration online needs to submit the following mandatory documents:

• PAN card of establishment
• Certificate of incorporation
• Cross cancelled cheque of establishment
• Address proof that is in the name of the establishment. It can be:
• Rent agreement
• Water
• Electricity
• Telephone bill
• Specimen signature of directors and authorised signatories
• DSC registration of the authorised applicant
• In case of voluntary registration, consent of the majority of employees

In some entities the underlying may also be needed:

• First sale bill
• First purchase bill of raw material and machinery
• GST registration certificate
• Bankers details
• Record of a monthly employee strength
• Register of salary and wages

You just need to collect the mandatory documents and send a copy of each document to us. The rest will be handled by the efficient team at Vakilsearch. From filing the form to verification processes and legal formalities, we handle it all!

UAN (Universal Account Number) - EPF Registration

The organisation updates the KYC documents of its personnel once it has registered in the EPFO portal by creating a Universal Account Number (UAN). Each employee's UAN number can be used to transfer PF money electronically to a bank account, claim PF benefits, and other things. The following process must be used to activate UAN as the only mandatory step for an employee to take:

How to Apply PF Online?

The PF Registration online can be a great support, safety and assurance for employees as it offers a sense of financial security to the employees. It is regulated by the Employees’ Provident Fund Organization (EPFO), which is also one of the most well known and biggest Social Security Organisation in India. They handle huge amounts of financial transactions on a daily basis. The process of pf online apply is also not a difficult task as long as you have a professional to help you sort things out.

At Vakilsearch, we guarantee that you do not have to go through the legal complexities of EPF Registration online . Once we get the required information and the documents, our experts fill the forms accurately and submit them on time. Our team takes the responsibility of follow-ups and delivers you the PF number at the earliest time as possible.

The Breakup of the PF Contribution

• The 12% contribution is divided into the following categories
• 3.67% of the contribution to the Workers' Pension Fund
• 1.1% of the payment is allocated to administrative costs for the EPF
• 0.5% of the employee's deposit-linked insurance contribution.
• Contribution to the EDLI administration costs of 0.01%
• For the Workers Pension Program, 8.33%.

EPF Registration Online Process for Employers

• Collect relevant employee data and documents
• Establishment Registered with EPFO online Registration
• Register DSC (digital signature certificate) of the employer
• Fill the application with all employer details
• Submit verified form
• Get PF registration certificate & Universal Account Number [UAN]

Our expert will be your advisors and consultants for EPF registration online and help get the PF number in 5 to 10 business days (not factoring processing time). On the very first consultation, which is free of any charge, you will get the gist of our PF registration process. When we work on your behalf, we ensure that the PF registration application is submitted for the organisation in the prescribed format without any errors. We pledge easy working at the most economical prices.

The EPFO members will be able to keep a tab of their UAN status using online methods. All you need to do is to provide the EPF number and select your state. You will automatically get the UAN status.

All the individuals will have to activate their UAN if they need access to all the direct/online facilities given by the Employee Provident Fund.

What Is the PF Number Format?

The first two letters of the PF account number are the region code, the following three letters are the office code, the next seven digits are the establishment registration code, the next three zeroes are the establishment extension, and the final seven digits are the PF member id of the employee. So, PF account number is a 22 digit number.

Mandatory Compliances - PF Registration

• Once the establishment has registered with EPFO, it must follow certain lawful requirements on a monthly or annual basis
• Monthly returns are submitted electronically by uploading the ECR sheet using the establishment login
• Online returns are submitted by the 15th of the following month
• Every employee registered with the establishment during the month for which the return is filed is listed by name and UAN on the ECR sheet, which is available for download through EPFO in an XML format
• A file must be created from an XML sheet before it can be uploaded for return filing
• By adding online payment gateways, finish filling the return.

Contribution Rate - EPF Registration

Rate of contribution is the amount of contribution varies according to how many employees are working in the establishment:

• For establishment employing personnel aged 20 or over:
  A maximum of 12% of the employee's salary (basic wages plus overtime pay) may be contributed by both the employer and the employee of such an establishment.
• For establishments hiring less than 20 workers:
  These establishments shall contribute at the rate of 10% of the employee's basic salary, up to a maximum of 12%
• A business with up to 10 employees that registers voluntarily with EPFO
• Any business that lost money the previous year
• Other businesses, including a brick factory, a jute plant, a beedi factory, etc.

How Much Penalty Is Prescribed for the Employer’s Delay?

EPF Charges

• The employee share, pension contribution, and EDLI contribution are rounded to the nearest rupee for each employee
• The employer share is defined as the sum of the employee share and the pension contribution
• The minimum monthly contribution for the EPF administration costs is ₹500, and the amount is rounded up
• The institution shall be subject to a minimum administrative fee of ₹75 if there are no members throughout the month
• A minimum payment of ₹200 is required under the EDLI administrative charges, and the monthly payment amount is rounded to the next rupee
• If the establishment doesn't have a member during the month, a minimum administrative fee of ₹25 is due
• If the establishment is exempt from the PF system, the admin fees would be replaced by inspection fees of 0.18% (minimum ₹5)
• if the establishment qualifies for the EDLI plan exemption. Administrative fees can be replaced by inspection fees, which must be at least ₹1 @ 0.005%.

Due Date for PF Filing

Before paying the employees' salaries, the employer must deduct the employee's contribution. The EPFO will thereafter receive both the employer share and the employee half within 15 days of the end of each month.

The PF Registration is exceptional in terms of returns from a debt instrument. A sovereign guarantees the currency, and the interest is tax-free. The PF has EEE (exempt, exempt, exempt) status since contributions are tax-deductible from income. Debt securities with such large yields and solid safety and reliability are uncommon. Hence, in order to lessen the temptation to withdraw money, it is best to relocate the PF account while changing jobs.

Why Is It Important for an Employer to get EPF Registration?

Since TDS is deducted from employees' salaries, the EPF registration process is essential for companies. They would also not be expected to handle payments until the employers had produced challans via the EPFO employer website. They must therefore go through this process. Now that this essay is coming to a conclusion, you should be familiar with the EPF registration online process. So if your institution qualifies, go ahead and check your eligibility for EPF registration and complete the process.

What is the Employees Pension Scheme?

An estimated ₹15,000 from the employer's contribution, or 8.33%, goes into the workers pension plan. If the person's basic pay is ₹15,000, ₹1250 would be channeled to the Employee Pension Plan. 8.33% of the basic pay will be routed if it is less than ₹15,000, and the remaining amount will be kept in the EPF plan. The company would reserve its portion for credit in the EPF account and give the employee their entire part at superannuation.

Important Point of Provident Fund (PF) Registration

When it comes to PF registration the following three aspects has to be followed for sure:

If an establishment has 20 or more employees, it must register with the PF department within 30 days of that milestone. This amount is independent of salary.

With the employee's permission, the employer can also look into optional coverage for its business so that its staff members can take advantage of the provident fund.

ESIC registration is also necessary because it must be obtained when the number of employees reaches 10, whereas PF registration is only necessary when the number of employees reaches 20.

Why Vakilsearch for PF Online Apply?

Vakilsearch continues to be the preferred choice for PF registration due to its unmatched expertise and comprehensive services. With its up-to-date knowledge and streamlined processes, Vakilsearch ensures a seamless experience for businesses looking for pf online apply.

• Expert Guidance: Our experienced professionals provide personalised assistance, ensuring compliance with PF regulations and minimising errors.
• End-to-End Support: We handle everything from document preparation to submission, saving you time and effort
• Compliance Assurance: Stay on the right side of the law with our thorough understanding of statutory obligations
• Technology-driven Approach: Our user-friendly online platform simplifies the process, providing transparency and convenience
• Quick Turnaround: We expedite the EPF registration online process, ensuring prompt completion and hassle-free PF contributions
• Affordable Pricing: Get top-notch services at competitive rates, suitable for businesses of all sizes.

PF Registration FAQs