Jyothis (Article) (1127 Points)
18 November 20151)What is coverage limit of EPF,on which amount EPF contribution is to be made.
2)Do company need to contribute EPF,even if salary subsequently exceeds the Coverage limit.
3)If employee's salary raised to Rs.20,000 subsequently,Do company need to contribute on 20,000 or can it be limited to Rs.15,000.
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 18 November 2015
Hiiiii,
1)What is coverage limit of EPF,on which amount EPF contribution is to be made.
For the purpose of EPF the ceiling limit is Rs.15000/-, Please note that it is basic wages. and EPF contribution is to be made on Rs.15000/-.
2)Do company need to contribute EPF,even if salary subsequently exceeds the Coverage limit.
See if the salary exceeds the coverage limit afterwards than Company has to deduct and contribute the EPF on last salary drawn before exceeding the coverage limit.
3)If employee's salary raised to Rs.20,000 subsequently,Do company need to contribute on 20,000 or can it be limited to Rs.15,000.
See if the salary exceeds the coverage limit afterwards than Company has to deduct and contribute the EPF on last salary drawn before exceeding the coverage limit. for e.g if the last salary of the employee is Rs.14000/- basic than it is increase to Rs.20,000/- than company has to deduct and contribute the EPF on Rs.14000/- till the empoyee left the job.
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Jyothis
(Article)
(1127 Points)
Replied 18 November 2015
1) Incase of a company,all employees salary exceeding Rs.15,000 say Rs.40,000 then employee contribution is computed on Rs.15,000.However PF is computed at Rs.1,20,000 as per request by director.(Is Basic or Basic+DA is used to Determine EPF Coverage limit & If a new employees Basic+DA Rs.15,000,is he is out of EPF Coverage.
2)In the above is company liable to contribute,at 13.36% company contribution on Rs.120,000 in case of directors salary.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 25 November 2015
for EPF pupose the employee can not be out of coverage unless he reach the retirement age. The contribution may be limited on 15000 or 15000+ it depends on the employer and employee understanding but strike off is unwanted.
but in ESIC it makes auto exit when the employee exceeds 15000
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 25 November 2015
See if the director wants to deduct Pf than he/she can allow to deduct pf but than the Pf deducted on amount after Rs.15000/- will be directly credited in VPF account and company also has to contribute EPF @ 13.36% but the government contribution on pension @ 1.16% is not available for deduction amount more than Rs.15000/-.
Jyothis
(Article)
(1127 Points)
Replied 29 November 2015
i.e for a payroll processor,
If directors salary is Rs120,000.
PF @ 12% is deducted from his basic+DA of Rs.120,000.
Is company liable/can company contribute @ 13.36% of Rs.120,000.
What is the meaning of "total difference epf & eps contribution (ER share account no.1)-which was stated which was shown while challan generation
Jyothis
(Article)
(1127 Points)
Replied 29 November 2015
What is the meaning of Auto exit in esi, as per an esi inspection we have contribute on actual gross pay if it is Rs.16,000 1.75%&4.75% on 16,000.
My doubt,
We can remove them only in the beging of a contribution period . i.e April/October.
What if didnt remove them esi coverage after such rise in salary exceeding Rs.15k.
Does removal from esi coverage means - employee can't enjoy benefits of esi after such wage hike
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 December 2015
as soon as the employee gross payout exceeds 15001/- the employer has to file code 4 (out of coverage) in monthly Return, stating the salary drawn ( return will deduct zero as no contribution can be accepted above 15000/ per month payable) , it will appear for remaining months of the "SIX monthly RC period"but no contribution is payable, use zero and code 4 every time ,
after completion of the RC period it will go off in employees list
Jyothis
(Article)
(1127 Points)
Replied 10 December 2015
What is the meaning of AutoExit-
1)Can we remove an employee during a contribution period.(April-Sep & Oct-Mar)./by beging of a contribution period -April/October.
2)What are the procedure to remove an employee from ESI.
Say Gross pay of an employee exceeds Rs.15,000 during the month October ,i.e begining of a new contribution period.
I.e during Nov while paying Esi ,can we show salary exceeding Rs.15,000 in esi template & code as 4.Does it means no employee & company contribution is required during the month Nov.
3)what if we show salary as 15k during oct instead of such excess salary,so that employee can enjoy esi benefits, is it an non compliance of Act
4)What are consequences/effects when an employee is removed from esi/is there any special procedure to be followed by company to remove esi membership other than this esi template upload for challan generation.
5)If gross pay of an employee is Rs.14,000 & company paid Rs.4000 as festival bonus,is company liable to contribute/deduct on Rs.14k+4K=18K.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 15 December 2015
when removed once from ESIC, its usually not re entered becuase as per payment of wages rules, the wages can not be reduced,
however the employer can "re appoint"him after a break of one full calander month atleast, with reduced payout ( below 15000)
CAclubindia
