EPF & ESIC Returns Filing

Filing EPF (Employees' Provident Fund) and ESIC (Employees' State Insurance Corporation) returns is a crucial responsibility for employers in India to ensure compliance with government regulations. Here’s a breakdown of the process and key information

1. EPF (Employees' Provident Fund) Return Filing

What is EPFEPF is a mandatory retirement savings scheme for employees, where both the employee and employer contribute a fixed percentage of the employee's salary to the provident fund.

Key Documents for Filing EPF Returns:

• ECR (Electronic Challan cum Return): A monthly report that includes the contributions to EPF, EPS (Employees’ Pension Scheme), and EDLI (Employees' Deposit Linked Insurance).
• UAN (Universal Account Number): Unique identification number for every employee, which consolidates all PF accounts.
• Form 12A: A return filed monthly by the employer to the EPFO, containing details of employee contributions.

Process for Filing EPF Returns:

• Register with EPFO: Employers must register with the EPFO (Employees' Provident Fund Organization) and obtain the employer identification number (ID).
• Generate ECR: Employers need to generate the ECR file through the EPFO portal.
• Pay Contribution: The employer pays the contribution by using the generated ECR file.
• Submit the Return: After the contribution payment, the ECR must be submitted online via the EPFO portal.
• Periodic Filing: EPF returns must be filed monthly. The due date for filing the return is usually by the 25th of each month.

EPF Contribution Rates:

• Employee: 12% of basic salary (subject to a cap on maximum salary of ₹15,000 per month).
• Employer: 12% of basic salary. The employer’s contribution includes contributions to the Pension Scheme (EPS) and Employee Deposit Linked Insurance (EDLI).

2. ESIC (Employees' State Insurance Corporation) Return Filing

What is ESICESIC provides health insurance benefits to employees in case of illness, maternity, disablement, and death. The ESIC scheme is mandatory for employees earning up to ₹21,000 per month (₹25,000 for employees with disabilities).

Key Documents for Filing ESIC Returns:

• ESIC Challan: A monthly payment report that includes the contribution from both the employer and employee towards ESIC.
• Form 6: The return to be filed by the employer, containing details of the employee's ESIC contributions for the month.

Process for Filing ESIC Returns:

• Register with ESIC: Employers must register with the ESIC and obtain a unique employer code.
• Prepare ESIC Challan: The employer prepares the ESIC challan, which includes the employee's contribution and the employer’s contribution.
• Payment of Contribution: The total contribution (employee + employer share) is paid online via the ESIC portal.
• File Return (Form 6): The return is filed online through the ESIC portal, and it should include the contributions of all the employees.
• Periodic Filing: ESIC returns are filed monthly, with the due date for filing usually being the 15th of the following month.

ESIC Contribution Rates:

• Employee: 0.75% of basic salary.
• Employer: 3.25% of basic salary.

Important Points to Remember:

• Due Dates: EPF and ESIC returns are typically due by the 25th and 15th of the following month, respectively.
• Penalties for Delay: Failing to file returns on time or pay the contributions can lead to penalties and legal action.
• Accuracy: Ensure that the employee details, contribution amounts, and other data are accurate to avoid any discrepancies or issues.