Hi All,
I need some clear explaination regarding arrears.My questions are given below:
1.If there is arrear calculation involved in the company, how would PF & ESI deductions on arrears be calculated?
2.How to specify about ESI/PF deducted on arrears in monthly, half yearly & yearly returns?
3.Should we submit PF forms separetly for the Arrears amount or should we give reports for the amount obtained by summing current Basic+DA+arrears on Basic+ Arrears on DA?
Kindly explain with examples.
Thanks in Advance.
From India, Madras
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1I need some clear explaination regarding arrears.My questions are given below:
1.If there is arrear calculation involved in the company, how would PF & ESI deductions on arrears be calculated?
2.How to specify about ESI/PF deducted on arrears in monthly, half yearly & yearly returns?
3.Should we submit PF forms separetly for the Arrears amount or should we give reports for the amount obtained by summing current Basic+DA+arrears on Basic+ Arrears on DA?
Kindly explain with examples.
Thanks in Advance.
From India, Madras
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If you give arrears of salary this month, deduct PF/ ESI at the prescribed rates (12%/1.75%) from the arrears and pay it. The additional PF/ESI so deducted shall be deposited along with regular contributions. In the returns, show the total salary (salary for the month + arrears) as salary for the month and also show the total contribution (usual contribution + additional contribution for the arrears of salary) as contribution for the month. There is nothing wrong if the salary and the contribution for the next month is less than current month. You can put a remark to this effect in the returns.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu, If we pay the arrears separately and also mentioned separately in the returns form3a. if there is any penalty raise by the govt. Please clarify me. Thanking you
From India, Coimbatore
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From India, Coimbatore
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There will be no interest or penalty provided the PF for the arrears is paid within 15 days of its payment. You can show the salary arrears and PF contributions thereon separately also. But the form 3 A has only 12 rows to show monthly salary and contributions for 12 months only. Therefore, it is advisable to club the arrears with salary of the month in which it was paid.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Madhu
Thank you for your reply.
We had received one access file which is sent by the pf office which for preparing form 3a and 6a. In this database it have 13 rows. We asked them what is the purpose for 13th row. They replied that is for arrears or any other payment given to the employee.
So we taken that database format and we derived the same format in our payroll program.
Please Give Me the reply.
Thank you once again
From India, Coimbatore
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Thank you for your reply.
We had received one access file which is sent by the pf office which for preparing form 3a and 6a. In this database it have 13 rows. We asked them what is the purpose for 13th row. They replied that is for arrears or any other payment given to the employee.
So we taken that database format and we derived the same format in our payroll program.
Please Give Me the reply.
Thank you once again
From India, Coimbatore
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In soft copies either in excel or access forms it is possible to add any number of rows to show arrears separately and, therefore, you can prepare it in the same format. Go ahead. Regards, Madhu.T.K
From India, Kannur
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From India, Kannur
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Dear Madhu Sir,
Today, when PF is submitted online, how do we calculate PF on arrears? For example, if an employee's basic salary is 6500 and they receive a Rs 1000 increment, what would be the total PF deduction in this scenario? Would it be 6500 * 12% + 1000 * 12%, or is there another calculation method?
Regards,
Dinesh Kumar
From India, New Delhi
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Today, when PF is submitted online, how do we calculate PF on arrears? For example, if an employee's basic salary is 6500 and they receive a Rs 1000 increment, what would be the total PF deduction in this scenario? Would it be 6500 * 12% + 1000 * 12%, or is there another calculation method?
Regards,
Dinesh Kumar
From India, New Delhi
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If your practice is to give a contribution on a salary above Rs 6500 as well, then it will be 12% on 7500; otherwise, it will be restricted to 12% on 6500 only. You need not pay PF on arrears as the PF qualifying salary has exceeded Rs 6500.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Madhu Sir,
Please reply as soon as possible to the following query:
Suppose the PF limit is only Rs. 6500, and we are deducting on 6500. Now, if any employee's previous basic salary is 6000, and now his basic salary is increased by 1000 in the month of May 14, which is applicable from the month of April 14. His basic salary is now Rs. 7000. How much PF will be deducted from the salary, including arrears from the previous month? Will it be 12% of 6500 + (12% of 500 or 12% of 1000)?
Sir, please reply as soon as possible.
Regards,
Dinesh Kumar
From India, New Delhi
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Please reply as soon as possible to the following query:
Suppose the PF limit is only Rs. 6500, and we are deducting on 6500. Now, if any employee's previous basic salary is 6000, and now his basic salary is increased by 1000 in the month of May 14, which is applicable from the month of April 14. His basic salary is now Rs. 7000. How much PF will be deducted from the salary, including arrears from the previous month? Will it be 12% of 6500 + (12% of 500 or 12% of 1000)?
Sir, please reply as soon as possible.
Regards,
Dinesh Kumar
From India, New Delhi
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls