What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- 100% compliance with the strict 15th-of-the-month statutory deadline for PF and ESIC.
- Protection against punitive damages (up to 25% p.a.) and interest under Sections 14B and 7Q of the EPF Act.
- Full tax deduction safeguard under Section 36(1)(va) of the Income Tax Act for employee contributions.
- Hassle-free management of non-contributory periods (NCP days), attendance adjustments, and wage variations.
- Swift onboarding of new employees: UAN verification, Aadhaar seeding, and exit date marking upon attrition.
- Consolidated monthly compliance reports for internal management, statutory auditors, and client audits.
How the engagement works
Paragraph 38 of the Employees’ Provident Funds Scheme, 1952 mandates that monthly contributions along with administrative charges must be deposited within 15 days of the close of the month. Similarly, Regulation 31 of the ESI (General) Regulations, 1950 requires payment within 15 days of the following month. The Finance Act specifically prohibits claiming income tax deductions for employee contributions remitted after statutory deadlines.
Scenario 1: A company managing monthly payroll requiring specialized support for ECR text generation, NCP tracking, and challan payments.
Scenario 2: An employer with frequent employee turnover needing immediate exit date updates and new joiner UAN generations.
Scenario 3: An establishment facing notices under Section 7A (EPF inquiry) or Form C-18 (ESIC demand) for alleged under-contribution.
Scenario 4: A firm preparing for a statutory financial audit or ISO/vendor due diligence requiring certified PF/ESIC compliance certificates.
Scenario 5: An enterprise rectifying past unfiled returns and computing exact arrears, interest, and damages.
Payroll Data Validation & NCP Auditing
We review gross wages, basic pay, HRA, overtime, days worked, and calculate accurate Non-Contributory Period (NCP) days for every employee.
EPFO ECR Text File Preparation & Upload
We generate the standardized hash-delimited ECR text file, upload it to the EPFO Unified Portal, and generate the Temporary Return Reference Number (TRRN).
ESIC Monthly Return Generation
We compile monthly gross wage details for covered employees, upload the ESIC monthly return statement, and generate the payment challan.
General questions
01What is the monthly due date for PF and ESIC return filing and payment?
The statutory deadline for depositing both PF and ESIC monthly contributions and submitting returns is on or before the 15th of the following month.
02What are the consequences of late payment of employee PF contributions?
Late payment attracts interest at 12% per annum under Section 7Q and penal damages up to 25% per annum under Section 14B of the EPF Act. Additionally, the employer permanently loses the income tax deduction for employee contributions under Section 36(1)(va).
03What are NCP days in the PF ECR return?
NCP stands for Non-Contributory Period days (such as unpaid leave or days absent). Specifying exact NCP days ensures the employee’s pensionable service period is accurately calculated.
04Do we have to file returns if no salaries were paid in a particular month?
Yes. A Nil return must be submitted on the portals to maintain continuous statutory compliance and prevent system-generated default notices.