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Simplifying Statutory Compliance Management

An overview of PF, PT, ESI and Statutory reports

Overview of Statutory Compliance


Statutory refers to "of or related to statutes," or usually known as laws or regulations set down by a legislature.
Statutes may originate with national, state legislatures or local municipalities.

Statutory Compliance for HR


Employee Provident Fund (EPF&MP ACT, 1952)
Provide old-age and post service financial support to the workers in general employed in Industrial & Commercial Sector establishments.
Applicability Every industry employing 10 or more persons which the Central Govt. may notify Any other establishment notified by the Central Government even if employing less than 10 persons Minimum 10% of the basic pay for establishments employed less than 10 persons; sick industries declared by necessary authority Other industries maximum 12% of the basic pay
13 (revis ed) 14

Forms For Claiming Benefits Under PF Scheme


Form Purpose For transferring the PF A/c of a member from one establishment to another establishment covered under the Act / Scheme Application for financing a life insurance policy out of PF A/c

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To be submitted by a member to withdraw his PF dues on leaving service / retirement / termination In the event of death of member, this form is to be used by a

20

nominee / family member to claim the member's PF

accumulation
For the use of PF members to avail advances / withdrawals as provided in the scheme

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Statutory Compliance for HR


Employees State Insurance
A self-financing social security and health insurance scheme for Indian workers.

Applicability
Non seasonal Factories using power in and Employing ten (10) or More persons. Non seasonal and non- power using factories and establishments employing twenty(20) or more persons Employees of the Factories and Establishments in receipt of wages not exceeding Rs.7500 /- Per month are covered under this Act. Contribution raised from Insured Employees and their employers
Employees Contribution 1.75% of the Wages Employers Contribution 4.75% of the Wages Employees in receipt of an average daily wage of Rs.40/- or Less, are exempted from Payment of their share of contribution (w.e.f 8.4.00) but are entitled to all social security benefits under the Scheme.

Statutory Compliance for HR


Professional Tax
In India, the professional tax is imposed at the state level. However, not all the states impose this tax, the following states impose this levy in India Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamilnadu, Gujarat, and Madhya Pradesh.

Applicability

The maximum amount payable per year is Rs.2,400/- and in line with your salary, there are predetermined slabs. It is paid by every member of staff employed in private companies. It is subtracted by the employer each month and sent to the Municipal Corporation. It is compulsory just like income tax. You will be eligible for income tax deduction for this payment.

Profession tax are exempted in the following cases, Senior Citizen above 65 years age is tax exempt. Person suffering from permanent physical disability. Parent of a child suffering from physically disability. Parent of a mentally retarded child.

Statutory Compliance for HR


Labour Welfare fund
Labour Welfare Fund (LWF) is a deduction mandated by the state government. LWF is a statutory contribution. The state authorities determine the rate of contribution and frequency of contribution towards LWF. Along with the employee's contribution, the employer also contributes to the labour department.

A few queries that every payroll manager have


Need to create Form 16, 16A, 24Q, Income Tax Liability Report, IT Savings Chapter 6 Report?

How do I generate PF Form R1, 12A, 5, 10, 3A, 6A, Monthly Statement, Challan Reports?

PF, ESI and Profession Tax

All PF calculations

Define if PF or ESI deduction is needed

Complete ESI including limit checking and changeover period PT slabs of all states pre-built and updated whenever changes occur

PF Configuration
PF Options can be configured as per requirements

Select System > preferences> payroll> PF options

Details given here will be linked to the employee PF calculation policy, which will be recorded in the Employee information page.

Including Employee in ESI


An employee can be included in ESI Under Employee information option

ESI Details can be filled under the PF tab

Professional Tax
PT or Prof Tax refers to a tax levied by the state government on working professionals. This is a nominal tax based on the income of the employee.

Under List of Values > Employee Categories, Location can be mapped with the State

List of Payroll Statutory Reports


Monthly Reports
PF Monthly Statement PF Form 5 , 10, 12 A, R1 PF Combined Challan ESI Monthly Statement ESI Monthly Challan Report Combined Challan of A/C.No.1, 2, 10, 21 & 22 PT Tax Monthly Statement Income Tax Monthly Statement Statement of employees leaving PF in current month Consolidated Monthly Statement PF Monthly returns for employers Statement based on which Income Tax is to be remit Pay-in slip for contribution Statement of employees joining PF in current month

Periodic reports
PF Form 3A, 6A ESI Form 6, 7 Income Tax Form 16 Income Tax Form 24Q , 24 PT Form 5A Labor Welfare Fund - Form D Register of Adult Workers PF contribution card for each employee Annual statement of contribution Half Yearly returns of contribution Half yearly returns - Register of employees Income Tax statement for employees Quarterly Returns of Income Tax Annual Returns of Income Tax Annual Statement Yearly Returns

Statutory Reports

Greytip Online has a comprehensive reports module that enable you to generate all Payroll Statutory Reports.

Both monthly and other reports are available

Generating Statutory Reports


All reports are available in reports gallery

Select the report and enter the particulars Report can then be downloaded

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