In the current scenario of lockdown announced by the Govt. to control the spread of COVID-19 pandemic and other disruptions, the businesses and enterprises are not able to function normally and are facing liquidity / cash crunch to pay their statutory dues even though they are retaining the employees on their rolls.
Keeping in view the above situation and to further ease the compliance procedure under EPF & MP Act, 1952, the filing of monthly Electronic-Challan cum Return (ECR) is separated from Payment of the statutory contributions reported in the ECR.
The ECR can now onwards be filed by an employer without the need of simultaneous payment of contributions and contributions may be paid later by the employer after filing the ECR.
Here is the FAQ on ECR filing and payment of EPF contribution as issued by the EPFO
Q1: What is an
Electronic Return cum- challan (ECR)?
Ans: Every
establishment covered under the EPF & MP Act, 1952 has to electronically
file information after close of every wage regarding the number of employees
employed, their UAN, EPF a/c number, their EPF/EPS wages, contributions due
under the three Schemes on such wages and the administrative charges due, wage
disbursal date, particulars of new employees joining and existing members
leaving service and excluded employees. The ECR facility on unified portal
allows the employer to perform the above important statutory duty. After
creating the above information in the ECR, the employer can use the challan
process for payment of the contributions & administrative charges declared
by him.
Q2: What is the
relief announced by the EPFO on the 30th of April, 2020 in regards to ECR
process?
Ans: ECR can now
onwards be created by any employer without the need of simultaneous payment of
contributions which may be paid later by the employer after creating the ECR.
Q3: How the
payment can be paid later on after filing ECR?
Ans: The ECR
created by employer furnishing the statutory information will not lapse and shall
always be available at future date for reference to complete the payment.
Q4: My
establishment qualifies for PMGKY benefits but the date for filing ECR for March,
2020 is extended till 15.05.2020. If I file ECR now for March, 2020 then will I
get time up to 15.05.2020 for payment?
Ans: Yes, after
creating ECR for March, 2020 you may make payment on or before 15.05.2020. If
you file ECR now, you can fill up declaration for PMGKY properly, edit any errors,
if any, in declaration and you will avoid last minute rush.
Q5: If ECR for
March, 2020 is filed now, whether PMGKY benefits would remain available to
eligible establishment when payment is made later on?
Ans: Yes, filing
of ECR now and paying later will help in securing the relief of payment employer’s
and employee’s share of contributions, totaling 24% of wages, by Central Govt.
in r/o of employees of your establishment earning monthly less than Rs.15000/-
under PMGKY package Scheme.
Q6: What is the
last date for filing ECR and making payment for wage month April, 2020 to avail
benefits under PMGKY? Will there be any extension of date since lockdown is extended
up to 17.05.2020?
Ans: Since
filing of ECR for is now separated from payment process, the time for filing
ECR for April, 2020 is on or before 15.05.2020 and dues may be remitted within
the due date or within extended time, if any, as announced by the Central Govt.
For establishments eligible for PMGKY benefits, the ECR for April, 2020 must be
filed as soon as possible
Q7: Whether
damages will be leviable for delayed deposits?
Ans: No damages
will be leviable if deposits are made within the extended time declared by the
Central Government.