The Employees’ Provident Fund Organisation has issued a circular regarding the payment of past dues by employers when electronic payment via Electronic Challan-cum-Return is not feasible.
Many field offices had raised concerns regarding cases where employers are Willingly want to pay past dues (i.e., previously deducted employee contributions and employer shares), but are unable to do so through ECR approach.
To avoid blocking such payments, especially when they benefit employees, the EPFO is allowing a one-time exception to accept past dues via Demand Draft, provided certain conditions are met.
Key Points:
- While internet banking and ECR filing remain the preferred methods for remittance, exceptions are allowed in certain cases.
- Employers may remit past dues through a Demand Draft (DD) if:
- It is a one-time payment.
- Future contributions will continue via internet banking.
- Procedure:
- The Demand Draft must be in the name of the RPFC-in-Charge of the Region and payable at the bank where the regional office has its account.
- An undertaking must be obtained from the employer to verify beneficiaries in case of claims.
- Employers are encouraged to submit the corresponding returns.
- Additional Dues: Damages and interest, as applicable, must be calculated and recovered as per the Compliance Manual.