Online PF Return Filing: Procedure, Timeline & Compliance

Running a business is not solely about having a great idea or making bold moves; it also requires diligent attention to essential routine tasks. Amidst numerous responsibilities, it is possible to occasionally overlook certain activities. However, when it comes to statutory filings, delays can result in significant financial penalties and damage to your credibility. To help you stay compliant and avoid missed deadlines, here are some important obligations that every employer should prioritize.

Filing Provident Fund (PF) returns is a key responsibility for every employer registered under the EPFO. Timely and accurate filing not only ensures legal compliance but also secures employees’ retirement benefits. In this article, you will find all the information you need as an employer.

What is the EPF Scheme?

The Employees’ Provident Fund (EPF) is a savings scheme started by the Government of India to help employees build financial security for their future. It is managed by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

How It Works?

Every month, a part of the employee’s salary is set aside as savings. The employer also contributes an equal amount. These regular contributions help employees create a fund they can use after retirement.

• Employee’s Contribution: 12% of basic salary
• Employer’s Contribution: 12% of basic salary

1. Out of this, 3.67% goes to the EPF account
2. 8.33% is added to the Employees’ Pension Scheme (EPS)

When Can You Withdraw?

Employees are allowed to withdraw their EPF amount under the following circumstances:

• Retirement, or after the age of 58
• Unemployment for two months or more
• If the employee passes away, the nominee or family members are eligible to claim the EPF amount.

The EPF scheme encourages long-term savings and provides financial support during retirement, unemployment, or emergencies.

What is PF Return Filing?

Provident Fund (PF) return filing is a monthly task that every employer registered under the EPF scheme must take care of. It is a simple but important step to ensure that employee contributions are properly reported to the Employees’ Provident Fund Organisation (EPFO). The return must be filed by the 25^th of each month to stay compliant and avoid penalties.

What is Included in PF Return Filing?

When employers file their PF returns, they need to share:

• The combined contributions made by the employee and the employer.
• A list of employees covered under the scheme.
• Employees’ PF account numbers.
• Any other necessary information related to the scheme.

Who Needs to File PF Returns?

Under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, the following entities are required to file PF returns:

1. Employers Registered with EPFO

Any business or establishment that has 20 or more employees must register with the Employees' Provident Fund Organisation (EPFO) and file PF returns regularly.

2. Voluntarily Registered Establishments

Even if a business has less than 20 employees, it can voluntarily register under EPFO. Once registered, filing PF returns becomes mandatory, regardless of the number of employees.

3. Employers with Specific Employment Types

Companies hiring contract workers, consultants, or outsource personnel where EPF is applicable must file returns for them too.

4. Entities Covered by Notification

Some industries are mandatorily covered under government notification, even if they have fewer employees (e.g., jute, beedi, brick industries, etc.). If you miss the deadline or fail to file properly, this could lead to penalties, so it is best to keep on top of the important task list.

Advantages of Filing PF Returns

Regular filing of Provident Fund (PF) returns offers several important benefits for both employers and employees. Here is why it is important:

• Compliance with Legal Requirements: Provident Fund (PF) filing returns on time is a legal responsibility for employers. You avoid penalties and fines for non-compliance by meeting the EPF filing deadline. Every employer must ensure to keep their business in good legal standing.
• Employee Security: The contributions made to the Provident Fund (PF) scheme form a vital part of an employee’s social security. Timely filing helps keep employees' PF accounts accurate and consistently updated. This provides them with a reliable financial cushion for retirement or emergencies.
• Tax Benefits: Both employer and employee contributions to the Provident Fund (PF) are eligible for tax deductions under Section 80C of the Income Tax Act. Regular filing helps employers claim these benefits efficiently. This also contributes to better overall financial management for the business.
• Organized Record-Keeping: Employers can maintain clear and organized records of all employee contributions by filing Provident Fund (PF) returns every month. This makes it easier to track and manage employee benefits and ensures smooth administration of the EPF scheme.

Provident Fund (PF) returns filing isn’t just about compliance; it is about securing your business’s financial health and your employees' future.

PF Return Due Date

Filing Provident Fund (PF) returns on time is a mandatory legal obligation under the EPF scheme. The due dates may differ depending on whether the establishment is private or a government body.

For Private Establishments

The return for any given month must be filed by the 15th day of the next month. In this perspective, if the return is for January, it must be filed by 15^th February.

For Government Establishments

Government establishments follow a quarterly filing schedule. The return should be filed by the end of the month following each quarter.

Example: For the quarter ending on 31^st March, the return must be filed by 30^th April.

Provident Fund (PF) Deadlines

If you fail to meet these deadlines, this can lead to penalties and legal issues, so it is important for employers to stay updated and file returns on time.

Documents Required for PF Return Filing

To file a Provident Fund (PF) return, employers need to keep certain documents and details ready. These documents help to ensure that the filing process is smooth and accurate. The key documents you will require to file the PF return:

• Employer’s Contribution Details:

The amount contributed by the employer to each employee’s PF account.

• Employee’s Contribution Details:

The portion deducted from an employee’s salary serves as their PF contribution.

• Electronic Challan cum Return (ECR) Copy:

This is the challan used to submit monthly PF contributions through the EPFO portal.

• Universal Account Number (UAN) Details of Employees:

These are the documents required, along with KYC-compliant information such as Aadhaar, PAN, and bank account details linked to each employee’s UAN.

If you have all these documents in order, it helps you complete the return filing correctly and on time.

Required Forms for PF Return Filing

To file Provident Fund (PF) returns correctly, employers must use specific forms provided by the Employees’ Provident Fund Organisation (EPFO). Each form serves a different purpose and helps ensure that the correct information is submitted.

List of Important Forms

Each of these forms plays a role to keep employee records up-to-date and ensure smooth PF return filing.

Form 2

Form 2 is used by employees to nominate their family members who will receive benefits under the Employees' Provident Fund (EPF) and Employees' Pension Scheme (EPS) in case of their death. It is an important form that must be submitted when a new employee joins an establishment. This form is generally submitted along with Form 5.

Form 2 is divided into two parts:

Part A: Nomination for EPF

This section captures the details of the person(s) nominated to receive the EPF balance in the event of the employee’s death. The following information is required:

• Name and address of the nominee
• Relationship with the employee
• Age of the nominee
• Amount to be paid to each nominee
• Guardian details (if the nominee is a minor)

The employee must sign or provide a thumb impression at the end of this section.

Part B: Nomination for Pension Scheme

Part B collects information about the family members eligible to receive the pension benefits under the Employees’ Pension Scheme. The nominee(s) listed in Part A should also be included here. This part mainly covers: Spouse and children who are eligible for the widow/children's pension

Just like Part A, this section must also be signed or include a thumb impression from the employee.

Form 5

It is a monthly report that employers need to submit to the EPFO. This form lists all the new employees who have joined the company and are being enrolled in the EPF scheme for the first time.

Who needs to file it?

Every employer registered under the EPF Act is responsible for filing Form 5 each month.

Why is it important?

It helps the EPFO keep track of new employees joining the scheme, which makes sure their Provident Fund accounts are created and contributions begin without delay.

What details are required in Form 5?

Here’s what the employer needs to mention:

• Company’s name and address
• Company’s EPF code number
• Employee’s PF account number
• Full name of the employee
• Father’s or husband’s name
• Date of birth
• Date of joining the company
• Previous work history (if applicable)

How is the form-5 submitted?

Once filled, the employer has to sign and stamp the form, which includes the date it is being submitted. It can be submitted online through the EPFO portal.

Form 10

Form 10 is a monthly return that employers must submit under the Employees' Provident Fund (EPF) scheme. This form is used to report the details of employees who have either left the organization or stopped participating in the EPF scheme during a specific month.

Who needs to file Form 10?

Employers registered under the EPF Act are required to file this form every month. In this form, they have to mention the employees who have exited the organisation.

Why is Form 10 important?

It helps the EPFO update its records by removing the names of employees who are no longer eligible for EPF contributions, which ensures accurate account maintenance.

What details are included in Form 10?

The employer needs to mention the following details in the form:

• Employee’s PF account number
• Full name of the employee
• Father’s or husband’s name
• The date when the employee left the job
• The reason for leaving the service (such as resignation, retirement, termination, etc.)

How is Form 10 submitted?

The form must be properly filled, stamped, and signed by the employer. The submission date must be specified. It can be submitted either online via the EPFO portal or offline at the appropriate EPF office

Form 12A

Form 12A is a monthly report that employers must submit to the Employees' Provident Fund Organization (EPFO). It gives a summary of the total contributions made to the EPF, Employees' Pension Scheme (EPS), and Employees' Deposit Linked Insurance (EDLI) for all employees during a specific month.

• Who files Form 12A?

Every employer who is registered under the EPF scheme must file Form 12A every month.

• What is the purpose of Form 12A?

This form helps the EPFO keep a record of the total payments made by the employer towards each employee’s Provident Fund, Pension, and Insurance accounts for the month.

• What information does Form 12A include?

Form 12A contains the following key details:

• Name and address of the organisation
• Establishment (PF) code number
• Total amount of PF contributions (both employees’ and employers’ share)
• Amount contributed towards Pension and EDLI
• Payment date and mode of payment
• Total number of employees for whom contributions are made

• How is Form 12A submitted?

The form must be signed and stamped by the employer and submitted to the regional EPFO office. In recent times, most employers file it online through the EPFO portal for ease and efficiency.

Annual PF Return Filing

All employers registered under the Employees' Provident Fund (EPF) scheme are required to file annual returns with the Employees’ Provident Fund Organization (EPFO). These returns must be filed by 30th April every year, and they give a complete record of the contributions made to each employee’s PF account during the financial year.

Form 3A

Form 3A shows the monthly contributions made to the Employees’ Provident Fund (EPF) and the Employees’ Pension Scheme (EPS) for each employee during the year.

Details included in Form 3A:

• PF Account number of the employee.
• Full name of the employee.
• Name of the employee's father or husband.
• Name and address of the company.
• Statutory rate of contribution.
• Voluntary contribution amount, if any.

This form acts as a contribution card for each employee, this shows how much was deposited by both the employer and the employee every month.
The form must be signed and stamped by the employer.

Form 6A

Form 6A is a summary report that consolidates the contribution details of all employees in the organization for the entire financial year.

Details included in Form 6A:

• PF Account numbers
• Names of all employees
• Wages, dearness allowance (DA), retaining allowance, and cash value of any food concessions (if applicable)
• Contribution amounts are deducted from employees’ wages
• Employer’s share of contribution (towards EPF and Pension)
• Any refunds given as advances
• Voluntary contribution rate (if applicable)
• Any specific remarks

In addition, the "Amount Remitted" section should be included:

• The month for which the contribution was made
• Total amount deposited (including advance refunds)
• Contribution to EDLI (Employees’ Deposit Linked Insurance)
• Contribution to Pension Fund
• Applicable administrative charges
• Total sum of all contributions

Filing both Form 3A and Form 6A accurately and on time ensures compliance with EPF rules and keeps employee records up to date.

Consequences of Non-Compliance with PF Filing

Failure to comply with the Employees’ Provident Fund (EPF) filing requirements can lead to serious consequences for both employers and employees. The Employees’ Provident Fund Organization (EPFO) has the authority to impose penalties on employers who delay their filings or fail to make the required contributions.

• Penalties for Delayed Filing

If you miss the deadline for filing your EPF returns, the EPFO can charge penalties. These penalties increase as the delay continues, based on the period of delay:

1. Up to 2 months: A penalty of 5% per annum
2. 2 to 4 months: A penalty of 10% per annum
3. 4 to 6 months: A penalty of 15% per annum
4. Above 6 months: A penalty of 25% per annum

Apart from penalties, non-compliance can impact employee benefits. Employees may face delays in their Provident Fund and Pension contributions, which leads to reduced or delayed pension payments.

• Legal Consequences

In cases of severe non-compliance, legal actions can be taken against the employer. This can include notices and legal proceedings for failing to follow EPF regulations. Employers need to file their EPF returns on time to avoid penalties, ensure employees' benefits are processed smoothly, and maintain legal compliance.

Important Guidelines for PF Return Filing

To stay compliant with the Employees’ Provident Fund (EPF) rules, employers must follow certain filing guidelines related to timing, method, corrections, and annual reporting. Here is a simple breakdown of each:

1. • Filing Frequency

Employers are required to file Provident Fund (PF) returns monthly, with the deadline falling within 15 days after the month's end.

1. • Mode of Filing

All PF returns must be submitted online through the official EPFO portal. This is the only accepted method and helps ensure faster processing and accurate record-keeping.

1. • Late Filing Consequences

If an employer fails to file the returns on time, they are charged a penalty of 10% per annum, along with interest on the delayed amount.
Timely filing helps avoid these extra costs.

1. • Correction of Errors

If any mistake is found in a return after it has been submitted, it must be corrected within 60 days from the end of the month to which the return relates.

1. • Annual Consolidated Statement

At the end of each financial year, the employer must submit a consolidated annual statement to the EPFO.
This document shows a full record of all PF contributions made for every employee throughout the year.

How to File PF Returns?

Provident Fund (PF) returns filing is an important responsibility for every employer registered with the Employees' Provident Fund Organization (EPFO). Here is a simple and clear step-by-step guide to help you file PF returns accurately and on time:

• PF Registration

Before you file PF, you need to make sure your organisation is registered with the EPFO and has received a valid PF registration number. This number is essential for all filings and future correspondence.

• Collect Required Information

Gather all the required data for the month, which includes:

1. Employee-wise PF contributions
2. Employer’s share of contributions
3. Any advances or deductions, if applicable

Ensure the information is accurate and complete.

• Prepare the Returns

Prepare the monthly return using the EPFO's official format or filing software. This includes filling out the details in forms like Form 5, Form 10, Form 12A, etc. This depends on the nature of the data.

• Verify the Information

Before submission, recheck all entries to make sure the data is correct and follows EPF guidelines. Errors can result in penalties or delays in processing.

• File the Returns Online

Log in to the Employees' Provident Fund Organisation (EPFO) portal and submit your PF return electronically. Submitting on time is crucial to avoid penalties and maintain compliance.

•  Keep Acknowledgment

Once submitted successfully, download and store the acknowledgment receipt. This acts as proof of return filing and should be kept for your records.

• Submit Annual Statement

Employers must file a consolidated annual statement with the EPFO at the close of the financial year. This report shows the total PF contributions made for each employee throughout the year.

If you follow these steps helps ensure smooth PF compliance and protects employee benefits.

Conclusion

PF returns filing accurately and on time is essential to stay compliant with EPFO regulations and to ensure that your employees receive the benefits they are entitled to. However, the process can often be time-consuming and complex, especially for businesses with limited resources or first-time filers.

That is where Online Legal India can help. We offer expert assistance in PF return filing, which ensures that every detail is taken care of. From the data preparation and verification to the timely submission and compliance with all statutory norms, our experts assist you throughout the process. Visit Online Legal India today.