How to make EPF Payment Online?

The government of India has made it mandatory for all the companies and organisations to make the payment of provident fund online. The online payment can be made through the EPFO website or through any of the bank’s website which is authorised and the employer should also have an account or net banking service of the same bank.The list of banks which have a tie-up with EPFO are mentioned below:

• State Bank of India
• Punjab National Bank
• Indian Bank
• Allahabad Bank
• Union Bank of India
• Bank of Baroda
• HDFC Bank
• ICICI Bank
• Axis Bank
• Kotak Mahindra Bank

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What steps should be followed to make EPF Payment Online and generate online receipt?

• Login to the EPFO portal, using the Electronic Challan cum Return (ECR) credentials. [https://unifiedportal-emp.epfindia.gov.in/epfo/]
• Review the details like the Establishment ID, Exemption status, Name, Address, Status etc are correct.
• Click on the ‘Payment’ option from the dropdown menu and choose the ‘ECR Upload’ option.
• Upload the ECR text file post selecting the ‘Wage Month’, ‘Salary Disbursal Rate’ and ‘Rate of Contribution’.
• If all the predefined conditions are met, then the uploaded ECR will get validated.
• If there is a validation error, then the individual will be asked to correct their ECR text file and they will have to upload it again.
• The TRRN will be displayed on the screen, the individual needs to click on the ‘Verify option’.
• Click on the ‘Prepare Challan’ option and generate the ECR summary sheet.
• Click on ‘Generate Challan’, post entering the admin charges.
• Click on the ‘Finalize’ tab post verifying the challan amount.
• Against the relevant TRRN, click on ‘Pay’ option.
• Choose the ‘Online’ mode of payment and choose the bank from the dropdown menu from which you wish to pay.
• On the successful payment you will receive your transaction ID and electronic payment slip.
• The final transaction status will be updated on the EPFO page and the individual will receive a confirmation against the payment made.

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Which rules have been amended in EPF amidst Covid-19 crises?

Following are some of the amendments made by the finance ministry to ease the adverse effect of covid-19 lockdown in the country.

EPF rules have been changed for getting non refundable advances, as a result the employee will be able to withdraw 75% of their PF balance or three months of their salary, whichever is lower, to resolve his liquidity issues which was allowed earlier only in case when a person ceased to be employed in a factory or establishment for a continuous period of at least one month. The FM also announced that the government of India will pay the EPF contribution on behalf of both the employer and employee i.e 24% of the employees salary (Basic wages + DA + Retaining allowance), for the next 3 months. However, this will be applicable only for those organizations who have less than 100 employees and 90% of them earn less than 15,000 a month.

Late Payment Penalty in EPF

In case of delay of PF challan payment, the following penalties are applicable:

• Interest for late payment: Under Section 7Q an interest of 12% per annum, is levied on the employer every day in case of failure to deposit the EPF contribution before the deadline.
• Penalty for late payment: Under Section 14B, the following penalties need to be incurred in case of failure of EPF Challan payment.
  • 5% interest p.a for a delay of upto 2 months
  • 10% interest p.a for a delay of 2-4 months
  • 15% interest p.a for a delay of 4-6 months
  • 25% interest p.a for a delay of more than 6 months

Deadlines for EPF Payment and EPF Return

Employers need to deduct PF from the employee’s salary on or before 15th of every next month. While the due date of PF return and the due date of PF payment are both the same, however, to provide relief to the employers in the COVID times, EPFO has allowed companies to file Electronic Challan Cum Return without the simultaneous requirement to make PF payment. The EPF payment can be made later by the employer at his convenience after filing the ECR.