dec-2016-1

Payroll and Compliance The Monthly Chronicle - December, 2016 Share us on           var switchTo5x=true;stLight.options({publisher: "a774d07d-a09d-4a2f-a103-57088fe922e2", doNotHash: false, doNotCopy: false, hashAddressBar: false, tracking: false}); The next version of Universal Account Number (UAN 2.0)

The process of filing Electronic Challan cum Return (ECR) has been revised under the new version of UAN 2.0. Under this new version, the UAN would be allotted upfront and consequently, the ECR can only be filed for employees with UAN numbers.

Thus all employers were informed to complete the pending tasks of declaring about the first time employment of any member within their organization and ‘obtain the UAN’ or ‘link the UAN’ or ‘previous member ID’ for new employees that have a previous EPF membership – ON or BEFORE the 15th of November, 2016

Note: In case the UAN has not been generated by then, the employer would not be able to transfer the PF amount to the respective employee from the 15th of November, 2016.

To read more details about the above mentioned changes please refer our last newsletter and notification link: Click here

In line with the above changes, the Employees’ Provident Fund Organization has issued a communication to all Provident Fund members stating:

The Employees’ Provident Fund Organization portal for Universal Account Number (UAN) generation would be inaccessible from 17th of November (afternoon). However, it is expected to be released after the 30th of November 2016.

Employers will be unable to generate or link the UANs for all their respective employees who were employed with them till October 31st, 2016 and had submitted their respective returns (ECR) before the 15th of November, 2016. In such scenarios, the EPFO will themselves generate UAN for all the ‘first-time’ employed as well as generate a new UAN for those who have not linked their UANs to their current employers.

Prominent features of the EPFO’s unified portal to support UAN (2.0)

  1. Employer eSewa and Online Transfer Claim portal (OTCP) are to be combined into one unified portal and consequently there would no longer be separate portals for challan and UAN generation.
  2. The PF number is replaced with UAN for challan generation.
  3. Upfront generation of UAN and seeding of KYC by individuals and as a bulk option.
  4. A previous UAN can be linked under one’s present establishment even if the same was not verified by the previous employer. Hence there would not be any issues in UAN linkage with existing company's PF code.
  5. An option has been provided for international workers to update their status with their respective nationalities.
  6. The date of leaving can be updated for employees who exit on the previous month.
  7. The ECR generation template has been modified to 11 fields from the previous 25 fields
  8. Gross wages have been included as one of ECR 'challan fields'
  9. The ECR will be made available for all payments; hence there is no validity/expiry of an ECR challan for payment and consequently there wouldn’t be any regeneration request from members.
  10. Incentive towards pension would be automatically accounted for by the EPFO based on returns filed through the Shram Suvidha Portal under PMPRY Scheme.
  11. An edit option is provided in the ECR challan in case any final correction of details is necessary before submission. Once submitted, members would be unable to alter any information or make any corrections.
  12. Another 5 banks have been added to the core bank list to facilitate PF payments.
  13. The salary payment date is mandatory while generating a PF challan for payment.
Employees' State Insurance Corporation raises wage threshold to Rs. 21,000 (Draft Notification released)

The wage limit for coverage of an employee under the Employees State Insurance Act (1948) has been enhanced from Rs. 15,000 to Rs. 21,000 per month.

Note:

The government had issued a press release confirming the draft notification on 23rd November 2016.

The aforementioned changes are said to be implemented once the government’s final notification has been released.

To read more details please refer to to the November month’s edition of ‘The Monthly Chronicle’.

One Unit One Identifier: LIN

The government of India is planning to delete all employer codes and identification numbers issued by separate labour organizations and departments like ESIC, EPFO, etc., and plan to replace it with a new and unique code: “Labour Identification Number (LIN)”.

Every unit must obtain the LIN number by applying online using this URL - http://tinyurl.com/whatismylin. To maintain quality and accuracy, the companies that have already been allotted LIN are requested to verify all the information associated with their respective LINs before the government renders the current employer codes, useless.
The procedure to verify the LIN information can be found here: http://tinyurl.com/shramsuvidhahowto For any further support one can contact the labour department through: websupport-mol@nic.in

Information: International worker under Employees’ Provident Fund Act amended:

“International worker” as defined by the Employees' Provident Fund Organization and Employee Pension Scheme has been amended. A provision has been introduced in the EPF Act where-in, the workers who are Nepalese national on account of ‘Treaty of Peace and Friendship of 1950’ and the workers who are Bhutanese national on account of ‘India-Bhutan Friendship Treaty of 2007’, shall now be deemed to be an Indian worker.

The investment patterns of Employee Provident Fund (EPFO) towards Government Securities and Related Instruments have been amended:

As of now, the EPFO contributes a minimum of 45 per cent and a maximum of up to 50 per cent towards Government Securities and Related Instruments. However, recently the contribution rates has been changed to ’minimum 45 per cent and a maximum of up to 65 per cent’.

The provision relating to payment or settlement of Provident Fund has been amended in the Act as below:

The below provision has been amended in the Act:

Existing rule Amended rule Accumulation in respect of any member who has either ceased to be employed or died Accumulation in respect of any member who has either retired from service after attaining the age of fifty five years or migrated abroad permanently or died Gujarat Labour Welfare Fund contribution amended:

The Gujarat state government increased its contribution to the Gujarat Labour Welfare on 10th November 2016. The changed rates are as follows:

LWF Old contribution (per half year) New contribution ( per half year) Employee 3 6 Employer 6 12 Single challan payment for Employee State Insurance Corporation:

Previously, an employer having multiple sub-codes was required to file monthly contributions through a separate login to generate separate challans for the main code and individual sub-codes. The ESIC department has now embedded an additional mode of challan generation in the system which enables employers to file monthly contribution of main code and multiple sub-codes through a single excel sheet and make payments through a single challan.

New versions of e-TDS/TCS Return Preparation Utility and validation Utilities released:

New versions of e-TDS/TCS Return Preparation Utility (RPU) and File Validation Utilities (FVUs) will be made available at the Tax Information Network website and applicable from November 26th, 2016 at the following URL https://www.tin-nsdl.com/etds-etcs/eTDS-download-regular.php
No major changes have been made in Form 24Q.

Pondicherry Apprentice stipend rate Act provision amended:

The government of Pondicherry has increased the stipend rates for Apprentices engaged under Apprentices Act, 1961. To find the current rate details please refer the link: View PDF

The correction procedure for changing names have been amended by EPFO:

As per the existing instructions, correction of name of member or his/her father‘s/spouse’s name in the EPF database is made on the receipt of joint request form by the employee as well as the employer along with the supporting documents.

However, this has been amended and henceforth, powers for correction of spelling mistakes in names up to two letters and change of surname in case of female employees on account of marriage shall be delegated to the Assistant Provident Fund Commissioner. This is in light to accelerate the process as the employee can initiate the process without involvement from the employers.

In any other case apart from what is mentioned above, the existing procedure of providing joint application by employee as well as employer would continue to apply.

Compliance Calendar for the month of December, 2016 Due date Nature of transaction Existing rules Mode Professional Tax - States - Remittances 10th December 16 Andhra Pradesh & Madhya Pradesh State-wise regulations By Challan 15th December 16 Gujarat Gujarat PT regulations By Challan 20th December 16 Karnataka Karnataka PT regulations By Challan & Online 21st December 16 West Bengal West Bengal PT regulations By Challan 30th December 16 Assam & Orissa State-wise regulations By Challan 30th December 16 Maharashtra Maharashtra PT regulations Online PF Central 15th December 16 Remittance of Contribution EPF & MP Act, 1952 Online ESI Central 21st December 16 Remittance of Contribution (Main code and Sub codes) ESIC Act, 1948 Online TDS 7th December 16 TDS Payment Income Tax Act, 1961 Online Labour Welfare Fund Remittances 5th of every month Kerala (Kerala Shops & Establishment Workers Welfare Fund) Kerala State Labour Welfare Fund Offline Check out our latest blog posts Are You Ready for Unlimited Time-off?

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