Saturday, August 27, 2011

ESI Question and Answers in Webpay

ESI Question Description
1 What is ESI and Why it is necessary ?
Employment State Insurance is a social program that contributes to the insurance fund of all workers by providing assistance to workers and their family who need the medical assistance.

2 How ESI is assigned to the Employee ?
First of all we make the ESI option enable on company level.The ESI account and ESI max amount should be declared on the PF/ESI/PT configuration form.The paycode which is being assigned to the employee,should be part of esi gross and then ESI option should be enabled on Employee level

3 On which paycode , ESI is deducted ?
Deduction ESI on paycode,is company's perogative.Usually it is deducted on Basic,HRA,conveyance,spl allowance ,Food allowance,OT etc.

4 What are the necessary steps of checking if ESI is not being deducted in Webpay?
Check the ESI option at Company level, then move to ESI account percentage in configuration, then check if the employee's ESI option is enabled.

5 What are the max limits of ESI?
At present the ESI Limit is Rs.15000, this can be modified from configuration.

6 What are the accounts ESI viz. Employee part and Employer part?
In ESI fund, Employee deduction and Employer deduction are deposited.

7 What are the percentage of above accounts?
Employee account is 1.75% and employer account is 4.75% of ESI GROSS.

8 How ESI is calculated and distributed amoung Employee and Employer accounts?
If employee's ESI GROSS is less then or equal to 15000 then ESI would be calculated as follows. If ESI GROSS is Rs. 10000 and payable days is 30 and calendar month is 30 then Employee's part is (10000*30/30)*1.75/100 .Similarly Employer part would be (10000*30/30)*4.75/100.

9 What happens with ESI if employee is kept on HOLD for any month?
IF DEPOSIT ESI OF WITHHELD EMPLOYEE option is enabled then ESI would be deposited in payable month .If this option is not enabled then ESI of HOLD month would be deposited when the salary is released.

10 What is the ESI gross salary?
It is sum of the amount of the earnings of the paycodes which are part of ESI GROSS.

11 What happens when DEDUCT ESI ON ARREAR option is not checked on the PF/ESI/PT config form?
If it is not checked then, only salary ESI would be deducted from the salary. Arrear ESI would not be deducted.

12 What happens when round ESI amount separately on ESI gross option is enabled in configuration?
If is enabled then Arrear ESI and Salary ESI is separately rounded and stored; and then added to payable month. But when It is not enabled then Arrear ESI and salary ESI is added and then rounded.

13 What happens when ESI is negative?
It becomes zero.

14 What is ESI subscriber?
It is count of the employees whose ESI is deducted. Deduction may be zero amount as it depends on the salary earned.

15 What are the various ESI forms?
Forms are Monthly ESI statement, ESI Challan, Monthly ESI return, Form 5 and Form 6, ESI Declaration Form.

16 What is the ONLINE ESI CHALLAN ?
When Challan is created online then it is online ESI challan, In that case we have to upload the ESI Gross of each employees only.

17 What happens if the DEDUCT ESI on OT option is enabled in PF/ESI/PT config form?
In that case ESI would also be deducted on OT amount.

18 What happens when Do not deduct ESI on arrear alone, deduct ESI cumulatively in salary process option is enabled?
If this option is enabled then ESI is deducted on Arrear and salary amount cumulatively.

19 What is difference between Part of ESI Rate Gross enabled paycode and Part of ESI Gross enabled paycodes?
Part of ESI Rate Gross enabled paycodes represent the salary which is used to compare the total value of these paycodes to the ESI limit (15000, at present) and Part of ESI gross paycodes represent the salary on which ESI contribution is calculated.

In case you feel there is any information which is misrepresented or wrongly mentioned, plese email us at info@bbspl.com.

Blog by BBSPL

No comments:

Post a Comment