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EPF Registration For Employers

Updated on

Budget 2021 update: In case the employee’s PF contribution was deducted but not deposited by the employer, it will not be allowed as a deduction for the employer

Latest Update!

Interest rate on PF deposits decreased to 8.50% from 8.65% for the FY 2019-20.
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 Provident Fund (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 of License
    If the establishment is an MSME then MSME registration details to be provided.

  • eContacts: 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 employer needs to follow the below-mentioned steps:

Step 1- Register Organization 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 “Download Manual”. A new user must download and read the instruction manual completely before the registration.

Step 3: Register On USSP

After reading the manual, the employer needs to sign up on the USSP (Unified Shram Suvidha Portal) of EPFO. The “ESTABLISHMENT REGISTRATION” button on the homepage of the EPFO website will open the USSP sign up page. You will need to click the “SIGN UP” button and provide Name, Email, Mobile Number, and Verification Code and create your account.

Step 4: Fill Registration Form

The employer needs to login to the USSP and select the “Registration For EPFO-ESIC” button present on the left-hand side of the screen. Next, select the “Apply for New Registration” button on the right side of the screen. Two options will appear, i.e. “Employees’ State Insurance Act, 1948” and “Employees’ Provident Fund and Miscellaneous Provision Act, 1952”. The employer will need to select the “Employees’ Provident Fund and Miscellaneous Provision Act, 1952” and click on the “Submit” button. Upon clicking the “Submit” button the “Registration Form for EPFO” page will open and the employer needs to fill in the Establishment Details, eContacts, Contact Persons, Identifiers, Employment Details, Branch/Division and Activities.

Step 5: Attach DSC

After filling all the “Registration Form for EPFO” and attaching the relevant documents, the employer’s Digital Signature Certificate (DSC) is to be uploaded and attached to the form. Once, the DSC of the employer is uploaded, the employer will receive an email from Unified Shram Suvidha Platform with a confirmation that the EPFO registration has been completed.

Documents Required For EPF Registration

The following documents need to be attached to the “Registration Form for EPFO” by the employer – 
  • PAN Card of the Proprietor/Partner/Director
  • Proof of address such as the Electricity Bill or Water Bill or Telephone Bill of the Registered Office (not older than 2 months)
  • Aadhar Card of Proprietor/Partner/Director
  • Shop and establishment Certificate/GST Certificate/ any License issued by the government for the establishment
  • Digital Signature of the Proprietor/Partner/Director
  • Cancelled Cheque or Bank Statement of Entity
  • Hired/Rented/Leased Agreement, if any

Conclusion

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.    

FAQs

  • Why should an employer register the establishment at the EPFO portal?
    Post 01.042012, the employers are required to make remittances only after generating challans from the employer portal of EPFO. Hence it is mandated for the employer to register online. All new registrations must be made online as the offline registration process has been done away with.
  • What are the error messages that can be expected, and how can they be resolved?
    When the employer is attempting to register the following error messages can show up:
    • “No Record Found” upon entering the establishment id – The employer must verify the code and extension number and the EPFO office. If all details are accurate, then the employer must contact the concerned EPFO regional/Sub Regional office.
    • “Your Establishment is already registered” upon entering the establishment id – The employer must verify the code number and extension number if any, and the correct EPFO Office. If the details are accurate, the employer must send a mail to the EPFO Helpdesk on ecrhelpdesk@epfindia.gov.in and mention “RESET REGISTRATION”. The employer will receive a form which has to be submitted under the signature of employer/Authorised signatory to the concerned local EPFO Office After getting SMS on successful resetting of registration; the employer can register again.
  • How can the employer modify the details post registration?
    The employer can modify the details on the portal when the need arises. The procedure is as detailed below:
    • Mobile Number – The employer must log in to the Employer Portal. Then click on the link “Edit primary mobile number” under “PROFILE”. The employer must enter the new mobile number, an SMS with a PIN on the new mobile number will be received by the employer. Enter the PIN and click “Change Primary Mobile”. Confirmation SMS will be received on the new mobile number, which is now the primary number.
    • Email id – The employer must log in to the Employer Portal. Under the “PROFILE” Menu, click on the link “Confirm primary email”. The employer needs to enter a new email id replacing the id that appears. Then click on the “Send Verification link”. An email message will go to the registered email id. The employer must go to the email account and click the link in the message received. The verified email id will be recorded in the system, and in the future, all emails will be received on the new id.
  • If an employer or authorized signatory has multiple establishments, should he obtain registrations for all the establishments?
    Yes, the registration procedure has to be completed for every establishment.
  • What if the employer forgets the User ID/ Password for login into the portal?
    If the employer forgets the user ID or password, then the employer must click on the “Forgot Password” link in the login screen. The password can be reset using the establishment id, primary email id, and mobile number.