Hi,
I am wondering if there is a way a company can create a PF account for an employee who has left the company for his/her settlement. In a nutshell, a company, operating as a startup without PF account details, was working parallelly to establish an account when the employee departed. Now, the company states that they will create an account and settle the amount in the PF account. I am unsure if this can be done or if there is a way to resolve this issue.
I appreciate your help in advance.
Thanks,
Kumar
From India
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1I am wondering if there is a way a company can create a PF account for an employee who has left the company for his/her settlement. In a nutshell, a company, operating as a startup without PF account details, was working parallelly to establish an account when the employee departed. Now, the company states that they will create an account and settle the amount in the PF account. I am unsure if this can be done or if there is a way to resolve this issue.
I appreciate your help in advance.
Thanks,
Kumar
From India
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Dear Senthil Kumar,
If a person worked for only one day, it should still have PF deducted. If you deduct the PF, then you must remit the same to EPFO. Here, according to your perspective, the employee has left the organization. However, since the PF has been deducted, it must be remitted. In the latest ECR format, you will mention the joining date as well as the leaving date within the same month.
From India, Kumbakonam
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If a person worked for only one day, it should still have PF deducted. If you deduct the PF, then you must remit the same to EPFO. Here, according to your perspective, the employee has left the organization. However, since the PF has been deducted, it must be remitted. In the latest ECR format, you will mention the joining date as well as the leaving date within the same month.
From India, Kumbakonam
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Thanks Bhaskar for the reply.
The company doesn't have any formalities of PF deduction or in the payslips. It shows the amount deducted, but there are no details of the PF account for at least 6 months. Now the employee has left the company, and the company still says they will create an account and settle the amount through PF. My question is if the employee left the company, can the company still create an account and settle the amount through PF.
Thanks,
Kumar
From India
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The company doesn't have any formalities of PF deduction or in the payslips. It shows the amount deducted, but there are no details of the PF account for at least 6 months. Now the employee has left the company, and the company still says they will create an account and settle the amount through PF. My question is if the employee left the company, can the company still create an account and settle the amount through PF.
Thanks,
Kumar
From India
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Hi,
In yesteryears, companies used to send the PF returns only once, i.e., only after March. Monthly remittances are made on an ad-hoc basis, and they will reconcile the remittances with their payroll only at the end of every year and submit their returns. However, the same thing cannot be practiced now. You have to send the returns on a monthly basis.
S. Koteeswaran
From India, Madras
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In yesteryears, companies used to send the PF returns only once, i.e., only after March. Monthly remittances are made on an ad-hoc basis, and they will reconcile the remittances with their payroll only at the end of every year and submit their returns. However, the same thing cannot be practiced now. You have to send the returns on a monthly basis.
S. Koteeswaran
From India, Madras
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Mr. Senthil,
You can settle the remaining amount in Part "D" of the ECR file, provided you have all the necessary PF details (like the PF number) of the employee. However, as you have mentioned that there are no available PF details of that employee, it shows that you are not maintaining compliance with the statutory laws.
Siddhesh Lakhan,
CEO & Founder at Personal Thoughts
From India, Mumbai
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You can settle the remaining amount in Part "D" of the ECR file, provided you have all the necessary PF details (like the PF number) of the employee. However, as you have mentioned that there are no available PF details of that employee, it shows that you are not maintaining compliance with the statutory laws.
Siddhesh Lakhan,
CEO & Founder at Personal Thoughts
From India, Mumbai
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Hi,
Once the PF was not deducted by the employer in previous months, it means he was not allotted a PF number. Obviously, if now the remittances are required to be made for the previous months while the company is yet to get registered, this is not possible unless authorized by the PF authorities, as this whole thing will be accounted for with penalties.
Thanks,
Bijay
From India, Vadodara
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Once the PF was not deducted by the employer in previous months, it means he was not allotted a PF number. Obviously, if now the remittances are required to be made for the previous months while the company is yet to get registered, this is not possible unless authorized by the PF authorities, as this whole thing will be accounted for with penalties.
Thanks,
Bijay
From India, Vadodara
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Hi,
I too agree with Bijay's quote. Currently, all the transactions are conducted on a monthly basis, eliminating the possibility of working on a retrospective basis. Therefore, please ensure to update from the current month onwards and remember to include any applicable penalties with your remittance.
Regards,
Ashok
From India, Madras
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I too agree with Bijay's quote. Currently, all the transactions are conducted on a monthly basis, eliminating the possibility of working on a retrospective basis. Therefore, please ensure to update from the current month onwards and remember to include any applicable penalties with your remittance.
Regards,
Ashok
From India, Madras
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PF - JT BK ACCOUNT ACCEPTABLE.pdf