21 December 2023
Dear Experts , As per rule , ESIC new joining should register within 10 days if exceeds immediately show cause notice comes from the department. one employee who was not registered but ESIC was deducted but due to non registration within time amount did not paid and stands in ledger. Can we pay along with current month amount is for 6 days only,kindly advise. regards shailesh
07 July 2024
If an employee was not registered for ESIC (Employee State Insurance Corporation) within the required timeframe, but ESIC deductions were made and the amount stands unpaid in the ledger, you have a few considerations and steps to take:
1. **Registration Deadline:** ESIC mandates that new employees should be registered within 10 days of joining if they are eligible for coverage.
2. **Non-Payment Situation:** Since the registration did not happen within the stipulated time, the ESIC deductions made for that employee remain unpaid and are reflecting in your ledger.
3. **Payment of Outstanding Amount:** - You can pay the outstanding ESIC amount along with the current month's ESIC contribution. - Calculate the total amount due, including the deductions that were made but not remitted due to non-registration. - Ensure to include this amount in your current ESIC payment to rectify the unpaid deductions.
4. **Documentation and Compliance:** - Maintain documentation showing the calculations and reasons for the delayed payment of ESIC. - Ensure compliance by making the payment promptly along with the current month's dues.
**Communication:** - Communicate with your ESIC local office or helpdesk if needed to clarify any specific procedures or requirements for rectifying the unpaid deductions. - Seek guidance on the correct procedure to follow to ensure compliance and rectify the situation.
**Future Compliance:** - Going forward, ensure timely registration of new employees for ESIC to avoid such issues. - Implement procedures to register employees within the prescribed timeframe to comply with ESIC regulations.
By paying the outstanding ESIC amount along with the current month's contribution and maintaining proper documentation, you can rectify the unpaid deductions and ensure compliance with ESIC regulations. If you have any doubts or need further assistance, it's advisable to consult with a payroll or compliance expert who can guide you through the specific steps based on your situation.
CAclubindia
