UAN to be made mandatory for PF remittance

UAN to be made mandatory for PF remittance

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UAN to be made mandatory for PF remittance

The Worker’s Provident fund Group (generally known as the PF Division) has introduced that Common Account Quantity (UAN) would be the distinctive identifier for PF remittance for every worker within the Digital Challan cum Return (ECR) file in future. Please check out the PF Division circular dated 26-Oct-2016 on this regard. Whereas the PF Division launched the system of UAN for every member in 2014, employers have been utilizing the PF quantity because the distinctive identifier for PF remittance since PF-ECR has not required UAN for remittance till now. Additionally, regardless of the PF Division’s repeated insistence, many employers haven't been finishing the formalities associated to UAN – not assigning UAN to staff and never finishing the KYC formalities for workers. Provided that UAN is presently required just for withdrawal and switch of PF, many employers haven't been displaying any urgency with regard to finishing UAN formalities on the time of an worker becoming a member of the group.

That is about to vary.

The PF Division, in its round dated 26-Oct-2016, states:

> UAN can be the important thing subject in Digital Challan cum Return (ECR).

> For a member becoming a member of EPF for the primary time, the UAN can be obtained by the employer or member previous to submitting of ECR by the employer for that member.

> The employer would furnish the member’s particulars on the idea of KYC paperwork i.e. Aadhaar, PAN, Financial institution Account and so on. to keep away from future points about member’s identify, identify of father/partner, date of start and so forth.

> The UAN can be allotted upfront on the portal and can be validated within the ECR file of the employer on the time of its submission.

> Additionally for a member who was earlier a member of EPF previous to becoming a member of the current institution, the linking of the prevailing UAN of the member ought to essentially be achieved by the employer earlier than submitting of UAN based mostly ECR.

> The member’s particulars as out there within the offered UAN i.e. identify of member, date of start, father’s/ Husband’s identify can be used within the ECR of the current employment.

> The era/linking of UAN might be achieved by means of a web-based performance on UAN portal.

> This may be obligatory for the employer to incorporate the brand new members within the ECR.

> The employer might begin remitting dues by means of ECR for the linked UAN thereafter.

It's clear from the round that the PF Division is redesigning the UAN allotment course of and as per the brand new course of, employers can't full the remittance course of until the UAN formalities are accomplished. Provided that in most organizations delay in PF remittance is seen critically by auditors, organizations should full UAN formalities on time any longer.

When is that this getting carried out?

Whereas the PF Division has requested employers to finish all UAN formalities by 15-Nov-2016 in its round, the division has not given any date for the implementation of UAN because the distinctive identifier for PF remittance. The modifications would come with a redesign of PF-ECR file format with UAN because the obligatory member identifier and modifications to processes to be accomplished on the OTCP portal. For PF remittance pertaining to Oct 2016 payroll (15-Nov-2016 deadline), employers have used the prevailing format. Will the brand new PF-ECR come into drive for PF remittance pertaining to Nov 2016 payroll? One doesn't know. Nevertheless, we will say that the modifications are more likely to be carried out prior to later by the PF Division.

A communication from the PF Division

In a communication dated 15-Nov-2016, the PF Division, whereas exhorting employers to finish UAN formalities, states, “In all instances the place member has already been allotted UAN or possess earlier member ID most efforts shall be taken to get it linked with the current member ID. In excessive instances the place it isn't potential the worker shall be handled as new member and UAN generated.” This primarily signifies that employers can create a brand new UAN for workers if they're unable to map the sooner UAN with the worker account on time (for the proposed PF remittance on the idea of UAN). That is to make sure that all staff (together with these for whom UAN formalities weren't accomplished earlier) undoubtedly have a UAN for the aim of PF remittance.

This clearly might result in a state of affairs the place an worker might find yourself with a number of UANs.

In its FAQ document for members, the PF Division outlines the method for resolving a number of UANs.

Q.30 Two UAN allotted to me by EPFO?

In case two UAN are allotted to you, this might be due to not submitting of Date of Exit by your earlier employer in ECR submitting and/or you've utilized for switch of service in your present institution. In such a case, you're advised to right away report the matter both to your employer and thru e-mail to by mentioning, each – your present UAN and your earlier UAN(s). After due verification, the earlier UAN(s) allotted to you'll be blocked and the present UAN might be stored lively. Later you'll be required to submit a Declare to get switch of service and fund to the present UAN.

In case an worker has a number of UANs, they should increase it with the PF Division and get the sooner UANs cancelled.

Issues to do for employers

In case you are answerable for PF compliance in your group, please make sure that you full all UAN formalities (no lacking UAN and KYC accomplished for all staff) with a purpose to be in readiness for the brand new system of remitting PF on the idea of UAN as an alternative of member ID. Additionally, please put in place a course of so as to make sure that PF compliance is carried out in full on the time of worker onboarding.

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