In this time of the terrible outbreak of Coronavirus, the government announced a lockdown in the interest of the citizens, due to which the economy of the country has come down and people are facing the crises of cash to pay their dues, even via. they are retaining the employees on their rolls.
The EPFO made the announcement for the businesses that now the ECR filing is simple for employers and payment can also be made without employer contribution, and the contribution can be paid by the employer after filing the ECR.
The above changes will facilitate employers as well as employees covered under the Act and schemes.
What is ECR?
ECR is an Electronic challan cum-Return that an establishment that comes under the EPF & MP Act, 1952, and has PF registration has required to enter the details of the employees electronically after the close of each salary concerning the number of employees employed.
Required details for ECR Filing
The details of their employees UANs, EPF account numbers, the details of EPF / EPS wages, the detail of contributions due under the three schemes on such salaries and administrative fees payable, detail of wages due, details of special and serving employees details of new employees and excluded employees.
The ECR facility on the integrated portal allows employers to perform the above mentioned statutory duties.
After creating the above details in ECR, the employer can use the challan process to pay the contribution and administrative fee declared by him.
What is the relief announced by the EPFO on April 30, 2020, concerning the ECR process?
The ECR can now be created by any employer without the needs of payment of contribution which can be paid later by the employer after creating the ECR.
How can the payment be made after filing ECR?
The ECR created by the employer presenting the statutory/legal information will not be missed and will always be available at a future date for reference to complete payment.
Will the employer get time till 15.5.2020 for payment? If he files ECR for March, 2020?
Yes, after making ECR for March 2020, the employer can pay on or before 15.05.2020. And if the employer now files the ECR, then he can properly fill out the declaration for PMGKY, edit any errors, if any, in the announcement and then he will avoid last-minute traffic.
If the ECR for March 2020 is now filed in May, will the PMGKY benefit be available to the eligible establishment after payment?
Yes, now electronic challan cum Return filing and paying later, will help in securing the relief of payment employer’s and employee’s share of contributions, a total of 24% of salary, by Central Government in Regional office of employees of employer establishment earning monthly less than Rs15000 under PMGKY package Scheme. Now the ECR filing is simple/easier for business/employers.
What is the last date for filing ECR and payment for salary month April 2020 to get benefits under PMGKY? Will any extension of date lockdown be extended to 17.05.2020?
As ECR filing has been separated from the payment process, ECR filing time for April 2020 is on or before 15.05.2020 and within the due date or extended time, if any, has been declared as announced by the central government
For establishments eligible for PMGKY benefits, ECR for April 2020 should be filed as soon as possible
Whether a penalty will be levied for a delayed deposit for the extended time?
No damages will be leviable if deposits are made within the extended time declared by the central government.