New Registration - PF
What is Employee Provident Fund?
This is a fund created and managed by a Central Government Trust where employers and employees contribute specified amounts every month during the employment tenure of the employee. The contribution attracts an interest payable by the EPFO. Provident Fund accout helps employees to take care of their various needs like:
- Family obligations like marriage etc.
- Children's education
- Financing of insurance policies
Who should take PF registration?
- Voluntarily - Any employer employing less than 20 people can voluntarily opt for PF registration. This is done to implement better employee benefits and retention and also help protect employee's interests.
- Establishments employing 20 or more persons and engaged in any of the 180 industries / Classes of Businesses specified.
- Co-operative Societies, employing 50 or more persons & working without the aid of power.
- Establishments not coverable statutorily can come under the coverage of the Act statutorily.
- An establishment continues to be covered under the Act, irrespective of the fall in the employment strength.
PF in a nutshell
- Applicable if you hire 20 and more employees. Voluntary registration available for lower strengths.
- Allowed as valid expense for employers. For employees the contribution is exempted for calculating taxable salary.
- Monthly returns need to be filed.
- Not applicable in the state of Jammu & Kashmir