Monday, October 18, 2021
HomeCorporate LawsTracking of Contractors EPF Compliances by Principal Employer

Tracking of Contractors EPF Compliances by Principal Employer

Employees’ Provident Fund Organization (EPFO), India Ministry of Labour & Employment, Government of India has issued and launches electronic facility for PRINCIPAL EMPLOYERS to view EPF compliances of their contractors”.

EPFO has introduced a facility for interlinking of Principal Employers with respective contract employers for effective compliance.

Principal Employer:

 In a factory, the owner or occupier or manager is considered a principal employer; but in an establishment or a company, the person who is in control and supervision of the establishment or company will be the principal employer.

In short, a principal employer is the one whose employees labor through a contractor.

Key Features:

  1. epfoEPFO, Registered Employer engaging employees through a contractor(s) can add the details of the contractor(s) & contract employees at EPFO’s Unified Portal https://unifiedportal-emp.epfindia.gov.in/epfo/
  2. Principal Employer (PE) not registered with EPFO can register on Unified Portal to receive Login / Password to add details of their contractor(s) & Contract Employees.
  3. On Adding Contractor’s details, Principal Employer (PE) can view through their Login the employee wise remittance made by contractors through ECR.
  4. Principal Employer (PE) can now ensure that their contractor(s) enroll all contract workers and remit EPF contributions through ECR.
  5. It will enhance the coverage to extend provident fund benefits to eligible employees.

Facility to tighten the Compliance Norms & Vigilance Mechanism:

This application is an online facility available on the website of EPFO for the Principal Employers to upload work orders/outsourced job contracts/contract workers related information directly with a motive to provide an effective e-governance system in the compliance set up and enhance the coverage to extend provident fund benefits to eligible employees.

Process of Registration of Contractor’s Details:

  • Registration of Principal Employers as
    • Establishments already registered or
    • Government Organizations / Institutions / Departments not registered
  • Enter the details of Contract Employers
  • Completion of data entry related to contract employers by Principal Employers.
  • Once an employer adds the contractor(s) details, employee-wise remittances made by the contractor(s) through the electronic challan-cum-return (ECR), can be viewed.
Kindly note that:
  1. For regular EPFO subscribers, the regulatory body has made checking of balance easier from the comfort of home.
  2. EPFO subscribers can do so using four different ways –check PF balance using SMS, online, missed call, and UMANG App.

Disclaimer:

Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error, or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event, the author shall be liable for any direct, indirect, special, or incidental damage resulting from or arising out of or in connection with the use of this information.

CS Lalit Rajputhttp://enlightengovernance.blogspot.com/
Company Secretary having 5 years of post-qualification experience in the Compliance Management Services industry by serving Corporates including Listed Companies, Corporate Secretarial Firms, and LLP.

Leave a Reply

Follow Us

2,057FansLike
924FollowersFollow
52FollowersFollow
spot_img

Recent Posts

GST audit

GST Audit Checklist – 7 Essential Checkpoints For a Perfect GST Audit Tool

0
GST was introduced in the nation to ease the taxpayers' efforts and bring uniformity in the taxation structure of India. Businesses with multiple registrations still...
CBDT

CBDT clarification regarding carry forward of losses

0
CBDT clarification regarding carry forward of losses in case of change in shareholding due to strategic disinvestment Aims to make disinvestment deals more attractive for...
Credit Guarantee

Emergency Credit Line Guarantee Scheme modified and Extended till 31.03.2022

0
Ministry of Finance vide press release 1759251 dated 29th September 2021 has extended the scope of ECLGS’ and scheme extended till 31.03.2022 or till...
COMPLIANCE CALENDAR

Statutory Compliance Calendar for October, 2021

0
About ARTICLE: This article contains various Compliance requirements for the Month of October, 2021 under various Statutory Laws. Compliance requirement under Income Tax Act, 1961 Sl. Compliance Particulars Due...
e invoicing

e-Invoicing Under GST : 7 Positive Impacts on Small & Medium Businesses

0
e Invoicing in GST is the new face of the GST structure in India. It is a positive step taken by the government to...

Most Popular