EPF Registration for Employers

The Government of India will pay the employer and employee contribution to EPF account of employees for another three months from June to August 2020. The benefit is for establishments with up to 100 employees and where 90% of those employees draw a salary of less than Rs 15,000 per month. The contribution to EPF is reduced to 10% from 12% for non-government organisations.

Employees Provident Fund [EPF] is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of Employees’ Provident Fund Organisation (EPFO) which is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization.

Applicability of EPF Registration for Employers

EPF registration is mandatory for all establishments-

which is a factory engaged in any industry having 20 or more persons, and

to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.

The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable. A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration.

Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.

Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.

The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of basic salary. If the establishment has employed less than 20 employees, PF deduction rate will be 10%.

EPF Registration Procedure

The employer must register the establishment online. With the convenience of online registration, the employer can register the establishment by providing the following details:

Establishment details:

– Name of the establishment
– Address
– Incorporation Date
– PAN
– Type of establishment

If the establishment is a factory then the following details must be provided:

– Factory License Number
– Date of License
– Place of issue

If the establishment is an MSME then MSME registration details to be provided.

E-Contacts: The employer must provide email id and mobile number of the authorised person.
Contact Person: Employers must provide details of the contact person like a manager. The details required are:

– Name
– Date of Birth
– Gender
– Contact details

Identifiers: The identifiers are the license information that the employer needs to provide.
Employment details:

– Employee strength
– Gender
– Type of activities
– Wages above limit
– Total wages

Branch/Division: Branch details such as name/premise number and address.
Activities: The employer needs to select the type of business and the activities included from the drop down lists available.

Steps for EPF Registration for Employers

The employee needs to follow the below-mentioned steps:

Step 1- Register the organisation with EPFO

Visit the website and register the organization with EPFO. In the home page of the Unified portal, there is an option called “ESTABLISHMENT REGISTRATION”.

Step 2: Read the User Manual

Click on the “ESTABLISHMENT REGISTRATION” and you will be taken to the next page where you will get an “INSTRUCTION MANUAL”. A new user must download and read the instruction manual completely before the registration.

Step 3: Register DSC

The employers who are already registered can login with their credentials i.e. with the Universal Account Number [UAN] and password. This instruction manual will explain the process of Employer Registration which is to be followed by registration of DSC [Digital Signature Certificate] of the Employer. Getting DSC registered is a prerequisite to submitting a fresh application for ERF registration.

Step 4: Fill the Employer’s details

Tick on “ I have read the instruction manual” completely. Click on “REGISTER BUTTON” given below. This will take you to the new page where all the employer’s details need to be filled in. The fields marked with the red star (asterisk) are mandatory to be filled in.

Step 5: Fill the details correctly

First Name: The first name, middle name and last name should be entered exactly as furnished to the Income Tax Department. Any variance in the name of the Income Tax Department will lead to rejection as and when data is verified online.

Employer PAN: After entering the employer’s PAN, a message will appear that shows the employer is not registered previously. PAN will also be verified like name and an online application will be permitted.

User Name: One can select the username of its choice. The system will automatically show whether the same username is available or not.

Hint Question/ Answer: One can select the hint question and hint answer of its choice which will be helpful to the person in case one forgets the password. After filling up this, the registration process gets complete and you need to fill the CAPTCHA Code (Characters are shown in the image) then click on the GET PIN button.

Mobile PIN: The person will get the Pin number on the same mobile number with which you registered and then click on “I agree to the above declaration “

Activate Email link: An email link will be sent to the given e-mail id which is to be activated to enable the submission of an application for online registration of Establishment.

Documents required for EPF Registration

The list of documents required for PF registration would vary as per the type of entity who wishes to register themselves which are as follows

*Proprietorship Firms*	*Society/Trust*	*Partnership Firms*	*LLP / Company*	*Employees*
Applicant’s Name.	Certificate of incorporation	Certificate of Registration Firms	Incorporation Certificate	Name Father’s Name Date of joining
PAN Card.	MOA and Bye-Laws	Partnership deed	ID proof of Directors	Date of birth Mobile number Postal address
Id proof – Driving license/Passport/Voter Card.	Pan card number	Id proof of partners – Driving license/Passport/Voter Card	DSC of Director	Name of nominee Grade Salary
Address proof for the premises.	president & members Address ID Proof	List of all partners with Address ID Proof	List of all directors with Address ID Proof	Designation ID proof (Aadhaar Card/ PAN Card) Bank A/c number with IFSC code
residential address proof Telephone number			MOA, AOA	Voluntary application employee details Signature date of agreement

For All other Entities

First sale bill.
First purchase bill of raw material and machinery.
GST Registration Certificate, if registered
Bankers details- name, address, branch, IFSC code
Record of a monthly strength of the number of employees.
Register of salary and wages, all vouchers, all balance sheets from day one to current date of provisional coverage.
Salary and PF Statement.
Cross cancelled cheque.

Conclusion

Till F.Y.2017-18, the EPF interest rate stands at 8.55 percent. In terms of returns from a debt instrument, EPF certainly stands tall. The money is sovereign-backed and the interest earned is tax-free. In fact, it enjoys the Exempt, Exempt, Exempt (EEE) status as contributions are deductible from income.

There is hardly any debt product that gives such high return with safety and assurance. Therefore, it’s better to transfer the PF account at the time of switching jobs and avoid the temptation to withdraw the amount.