ESI is known as for Employee State Insurance controlled by the ESI Corporation which is an autonomous body created by the law underneath the Ministry of Labour and Employment, Government of India.
This theme was started for Indian staff. The staff is given a large type of medical, financial and different advantages from the employer. A Tax Consultant in Chennai comments any non-seasonal manufactory and company having more than ten staff (in some states it’s twenty employees) who have a maximum pay of Rs. 21,000/- needs to obligatorily register with the ESIC.
Under this theme, the employer has to contribute an amount of 3.25% of the full monthly payments payable to the worker whereas the employer has to contribute solely 0.75% of his monthly payment every month. The sole exemption to the worker in paying his contribution is whose pay is a smaller amount than Rs. 176/- per day. In this article, we will see a detailed process about ESI/EPF registration in Tambaram, Chennai.
Entities covered underneath ESIC
As per the govt notification dated Sec 1(5) of the ESI Act the subsequent entities are covered:
- Restaurants or hotels engaged solely in sales.
- Road motor transport institutions.
- Newspaper institutions (which isn’t coated underneath the manufactory Act).
- Private academic establishments.
ESIC Registration method
Earlier, there was manual registration. Now, the ESIC registration is totally online. Following are the steps concerned in ESIC Registration in Chennai:
Step 1: Log in to ESIC Portal
An employer has to get himself registered on the ESIC portal. An employer can register on the ESIC portal by clicking on the ‘Sign Up’ button underneath the ‘Employer Login’ option on the home screen. After clicking on the ‘Sign up’ button, the employers have to fill in the required details and submit the form.
Step 2: Confirmation Mail
After submitting the form for signing on to the portal, the employer will receive a confirmation mail sent to the mail id and mobile number entered at the time of sign-in. The email contains the username and password details for registering as an employer and worker underneath the ESIC theme.
Step 3: Employer Registration Form-1
Next, log in to the ESIC portal with the username and password received in the mail. This may direct to the page having the choice of ‘New employer Registration’. Click on the ‘New employer Registration’ option. Next, choose the ‘Type of Unit’ from the drop-down list and click on the ‘Submit button. The ‘Employer Registration – form 1’ can be seen and also the employer has to fill in the details. The employer Registration Form-1 contains details bearing the unit of the employer, details of the employer and staff. Once the entire type is filled by the employer, he has to click on the ‘Submit button.
Step 4: Payment for Registration
After submission of the employer Registration Form-1, the ‘Payment of Advance Contribution’ page can open wherever the employer has to fill the amount to be paid and choose the payment mode. A Tax Consultant in Chennai says the employer can have to pay the advance contribution for six months.
Step 5: Registration Letter
On the successful payment of six months advance contribution, the system-generated Registration Letter (C-11) is distributed to the employer which will contain a seventeen digit number by the ESIC department. The Registration Letter (C-11) may be a valid proof of registration of the employer.
Documents needed for ESI Registration in Chennai
Since the procedure for registration is online, no physical documents are needed to be submitted. The documents needed whereas filling the web registration form are:
- A registration certificate obtained either underneath the:
- Factories Act, or
- Shops and institution Act
- Certificate of Registration just in case of Company, and Partnership deed just in case of a Partnership
- MoA and AoA of the corporate
- A list of all the staff operating within the institution
- PAN Card of the Business Entity also as all the staff operating underneath the entity
- The compensation details of all the staff
- An off cheque of the checking account of the corporate
- List of administrators of the corporate
- List of the Shareholders of the corporate
- A register containing the attending of the staff
Benefits of ESIC Registration
The benefits of registering underneath this theme are varied. A number of them are:
- Sickness advantages at the speed of seventieth (in the form of salary), just in case of any certified health problem and that lasts for most of ninety-one days in any year.
- Medical advantages to AN worker and his members of the family.
- Maternity profit to the ladies United Nations agency are pregnant (paid leaves).
- If the death of the worker happens whereas on work – ninetieth of the pay is given to his dependents within the style of a monthly payment once the death of the worker.
- Same as higher than just in case of incapacity of the worker.
- Funeral expenses.
- Old age treatment expenses.
Returns Filed each year once the Registration is Finalised
After the registration ESI Returns got to be filed twice a year. The subsequent documents are needed for the filing of the returns:
- Register of attending of the staff.
- Form vi – Register.
- Register of wages.
- Register any accidents that have happened on the premises of the business.
- Monthly returns and challans.
Employees Provident Fund
Employees Provident Fund (EPF) is a theme below the Employees Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated below the reach of the Employees’ Provident Fund Organisation (EPFO) which is one every of the World’s largest social insurance Organizations in terms of patronage and therefore the volume of monetary transactions undertaken. Basically, EPF is generally sort of a profit to workers throughout the retirement provided by the organization.
Applicability of EPF Registration for Employers
EPF registration is obligatory for all establishments- which is a manufacturing plant engaged in any business having twenty or additional persons, and
to the other institution using twenty or additional persons or categories of such institutions that the Central Government might, by notification specify on this behalf. The employer should get the registration at intervals of one month after achieving the strength, failing that penalties are applicable. A registered institution continues to be below the reach of the Act even though the worker strength falls below the desired minimum.
The Central Government might apply the provisions of this act to any institution using less than twenty staff after giving not less than 2 months’ notice for required registration. Where the employer and majority of staff have in agreement that the provisions of this act ought to be created applicable to the institution, they will themselves apply to the Central Provident Fund (PF) Commissioner.
The Central PF Commissioner might apply the provisions of this Act thereto institution when passing the notification within the Official Gazette from the date of such agreement or from any ulterior date per the agreement. Some institutions having less than twenty staff would even be needed to get PF registration however that’s voluntary registration.
All the staff is eligible for a PF from the commencement of their employment and therefore the responsibility of deduction & payment of PF lies with the leader. The PF contribution of 12% ought to be divided equally between the employer and worker. The employer’s contribution is 12% of the basic wage. If the institution has less than twenty staff, the PF deduction rate is 10%.
EPF Registration Procedure
To do EPFO Registration in Chennai the employer should register the institution online. With the convenience of online registration the employer can register the institution by providing the subsequent details:
- The institution details to be provided are the Name of the institution, Address, Incorporation Date, PAN, and sort of establishment.
- If the institution could be a manufacturing plant then the details to be provided are the factory identification number, Date of License, and Place of issue of License.
- If the institution is an MSME then MSME registration details to be provided.
The employer should offer the email id and mobile number of the authorized person.
Employers should offer details of the contact person, like of a manager. The details needed are Name, Date of Birth, Gender, and contact details.
The identifiers are the license info that the employer must offer, says a Tax Consultant in Chennai.
The employment details needed to be provided are the worker strength, Gender, style of activities, Wages above the limit, and Total wages.
Branch details like name/premise number and address.
The employer must choose the sort of business and therefore the activities enclosed from the drop-down lists available.
Steps For EPF Registration for Employers
The employer must follow the below-mentioned steps:
Step 1: Register Organization with EPFO
Visit the website and register the organization with EPFO. On the home page of the Unified portal, there is a choice known as “ESTABLISHMENT REGISTRATION”.
Step 2: Browse the User Manual
Click on the “ESTABLISHMENT REGISTRATION” and you will be taken to the ensuing page where you will “Download Manual”. A replacement user should download and skim the manual utterly before the registration.
Step 3: Register On USSP
After reading the manual, the employer must sign on to the USSP (Unified Shram Suvidha Portal) of EPFO. The “ESTABLISHMENT REGISTRATION” button on the homepage of the EPFO website can open the USSP sign on the page. You’ll have to click the “SIGN UP” button and enter your Name, Email, Mobile Number, and Verification Code and build your account.
Step 4: Fill Registration kind
The employer must log in to the USSP and choose the “Registration For EPFO-ESIC” button gift on the left-hand facet of the screen. Next, choose the “Apply for brand new Registration” button on the correct facet of the screen.
Two choices can be seen, i.e. “Employees’ State Insurance Act, 1948” and “Employees’ Provident Fund and Miscellaneous Provision Act, 1952”. The leader can choose the “Employees’ Provident Fund and Miscellaneous Provision Act, 1952” and click on the “Submit” button.
Upon clicking the “Submit” button the “Registration form for EPF” page can open and therefore the employer must fill in the institution Details, e-Contacts, Contact Persons, Identifiers, Employment Details, Branch/Division, and Activities.
Step 5: Attach DSC
After filling all the “Registration forms for EPFO” and attaching the relevant documents, the employer’s Digital Signature Certificate (DSC) is to be uploaded and connected to the form. Once the DSC of the employer is uploaded, the employer can receive an email from Unified Shram Suvidha Platform with a confirmation that the EPFO registration has been completed.
Documents needed For EPF Registration
The following documents must be connected to the “Registration form for EPFO” by the employer-
- PAN Card of the Proprietor/Partner/Director.
- Proof of address like the Electricity Bill or Water Bill or invoice of the Registered workplace (not older than two months).
- Aadhar Card of Proprietor/Partner/Director.
- Shop and institution Certificate/GST Certificate/ any License issued by the govt. for the institution.
- Digital Signature of the Proprietor/Partner/Director.
- Canceled Cheque or financial statement of Entity.
- Hired/Rented/Leased Agreement if any
In terms of returns from a certificate of indebtedness, EPF actually stands tall. The cash is sovereign-backed and therefore the interest earned is nontaxable. In fact, it enjoys the Exempt, Exempt, Exempt (EEE) standing as contributions are deductible from financial gain. There’s hardly any debt product that offers such a high return with safety and assurance. Therefore, it’s higher to transfer the PF account at the time of shift jobs and avoid the temptation to withdraw the amount.
If your organization has more than 10 permanent employees it is essential to get ESI/EPF registration in Tambaram, Chennai. This will provide financial security and stability for the employees. To get the registration done at the comfort of your home contact Phoenix Tax- Tax consultant in Chennai today.