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
Saturday, August 27, 2011
PF Related questions and answers Webpay
1. What is the PF and why it is necessary?
Povident Fund (PF) is a benefit for the employees. Employee contributes 12% of his monthly basic earned salary to the PF account (A/c 1). The employer contributes 3.67% to the same account (A/c1) and 8.33% to A/c 10. It is a type of saving to the employee. The employee can avail loan from the PF account also. At the end the employee can close the PF account and withdraw the amount along with interest.
2. How PF is assigned to the Employee in Webpay?
Assigning PF in Webpay includes few steps. First of all we enable PF for the whole company, assign PF Limits and declare store PF accounts percentage in PF/ESI/PF configuration form at a company level. After this we enable the PF and Pension deduction in Employee master on Employee level. After this we have to make the paycode(Basic) as a part of PF Gross on which PF has to be deducted and then we assign the Basic paycode to the employee.
3. On which paycode PF is deducted?
On Basic and DA, PF is deducted
4. What are the necessary steps of checking if PF is not being deducted in Webpay?
If PF is not deducted of any employee then first of all we have to check the company level PF settings like PF enabled or not, PF Limit and PF accounts, after checking these, we will move to employee level setting like PF enabled or not, similarly PF limits and then we will check the paycode, which is part of PF gross; and whether that paycode is assigned to the employee or not.
5. What are the limits of PF?
At present there are two kinds of PF limits. One is 6500 which is statutory limit and other is Basic which is 999999999 (Max).
6. What are the accounts PF viz.,AC1, AC10 , AC2 ,AC21 , AC22? What are the percentages of these accounts?
AC1: 12% of earned basic wage of employee, 3.67% of Employer contribution are deposited and amount greater than pension limit of Rs.541 (over and above after calculating at 8.33%). AC10: 8.33% of earned basic wage or max 541 are deposited. AC2 (Admin Charge): 1.1 % of basic wage of employee. AC21 (Admin Charge): 0.5% of either Basic wage or Pension wage or EDLI wage. AC22 (Admin Charge): .01 % of either earned basic wage or pension wage or EDLI wage. Whether the admin charge (AC21 and AC22) would be deducted on basic or pension wage is opted from PF/ESI/PT configuration form. AC1 is EPF account, AC10 is Pension account and AC2 ,AC21 and AC22 are the admin accounts.
7. How PF is calculated and distributed among different accounts?
If employee's Basic is 20,000, employee's limit is 999999999 (Max) and payable days for the month of april is 15 days then payable Basic would be 20,000/30*15 that is 10,000. Since PF is deducted on earned wages, therefore, PF would be 10,000*12% that is 1200. Now AC10 is 8.33% of 10000 (Basic) that is 833. Since in AC10 we can not deposit more than 541 ,hence the remaining amount (833-541) that is 292 would be deposited to account AC1 along with Employees 12 % of Basic. This means in AC1 there would employer 3.67% and employees 12% of PF are deposited that is 1492 (292+1200) and in AC10 there would be 541 deposited. AC2 would be 1.1 % * 10,000 that is 110. AC21 and AC22 wages selected on BASIC and PENSION wages respectively in config form, then AC21 would be 10,000* .5/100 that is 50 and AC22 would be 6500*.01% that is .65 Rs (65 paise).
8. What is the Employee PF and Employer PF?
Employee contributes 12% of his monthly earned basic salary to the PF account and the employer also contribute 12% to the same account. Employee's PF is totally deposited to AC1(EPF) account and employeer PF is divided into two account viz. AC1 and AC10. Employer is also to bear the admin charges vi.z AC2, AC21, AC22.
9. What is the concept of CTC?
CTC means Cost To the Company, therefore employer's contribution is part of CTC. Employer's contribution is 12% and 1.61% toward admin charges.
10. Why is 13.61% (employer PF share) deducted from CTC to calculate supplementary allowance?
In CTC salary structure, employer PF contribution is part of CTC. Total contribution includes 12% of PF, 1.1 % of AC2 , 0.5% of AC21 and 0.01% of AC22. It becomes 13.61% in total.
Important Note: Earlier when the CTC concept was not prevalent, the limit was 6500 and employer PF contribution was not part of CTC.
11. What happens with PF if employee is kept on HOLD for any month?
There is an option in the PF/ESI/PT configuration form i.e. whether PF of employee whose salary is being withheld needs to be deposited or not. If the option is checked then PF would be deposited when the salary is withheld else it would be deposited in the month salary is released.
12. What are Basic Wages, Pension Wages and EDLI wages?
If the Limit is maximum (Actual earning) (999999999): In this case earned basic is Basic wage. If the Limit is 6500 and if basic is greater than 6500 then 6500 else Basic would be the Basic wage. Pension Wage: if Basic is greater than 6500 then 6500 else Basic would be pension wage but pension wage should be enabled. EDLI Wage: If Basic is greater than 6500 then 6500 else Basic would be EDLI wage.
13. What is prorate PF contribution (Calculate PF Proportionately)?
If Calculate PF Proportionately is enabled in PF/ESI/PT config form then PF would be deposited proportionately. Example if Basic is 10000, Limit is 6500 and payable days is 25 days and calender days of the month is 30 then PF would be = 6500*25/30=5417, Similary if flag is not checked then PF would be 6500 because earned basic(10000*25/30) is greater than 6500.
14. What is prorate Pension contribution?
If deduct pension wage prorate option is enabled in PF/ESI/PF config form then in AC10, pension would be deposited on the basis of payable days, remaining amount would be deposited in AC1.
15. What are Exempted and Non Exempted establishments?
If company is Non-Exempted then AC21 amount is deposited in Admin account and if company is Exempted then AC21 amount is deposited in Inspection account which is shown on PF challan form.
16. What happens when DEDUCT AC10 ON ARREAR on following case in Webpay?
a). ALL b). None c). New joinees
AC10 is Pension account. "All" here denotes that for all the employees the appropriate contribution would be deposited under AC10. "None" here denotes that for no employee contribution would be deposited under AC10. "New Joinees" denotes only for new joiners.
17. What is voluntary PF and under which account it is deposited?
If Employee wishes to contributes extra towards their PF fund then the amount contributed over and above PF contribution is known as Voluntary PF. It is deposited in AC1 of Employee EPF fund.
18. What happens when PF is negative?
If PF comes out to be negative then PF becomes zero,
19. How PF is deducted on arrear and is deposited with subsequent account to payable month?
For Example:- If Arrear PF is 240. In which AC1 is 73 and AC10 is 167 and payable month PF is 780 then AC1 would be (239+73) and AC10 would be (541+167) to the payable month PF accounts.
20. What happens with If Round PF Amount separately on Arrear PF Gross ?
If Round Arrear PF amount separately opton is enabled then arrear PF account and payable month PF account is rounded and stored in database and then added but if it is not enabled then Arrear PF is added to the Payable month PF amount and then rounded off. With this in some of the cases there might be a difference of One Rupee.
21. Why PF is deducted on Leave Encashment? (Now it is NOT, earlier it was)
Since Leave encashment is calculated on Basic, hence, PF was deducted on Leave encashment but now it is not deducted.
22. Whar do you mean by EPF subscriber, EPS subscriber and EDLI subscriber?
EPF subscriber: It is the count of employee's whose PF is payable in the given month. Payable amount might be zero. EPS subscriber: It is the count of employee's whose pension is calculated. ELDI Wages: It is same as EPF subscriber.
23. What are the Statutory forms of PF?
Statutory Forms of PF in Webpay are: PF form 5: New joinees details. Form 10: Left employee details. PF challan: PF challan deposited monthly. PF form 9: First time Establishment details. PF Eligibility Report: To count the month wise subscriber. PF 12 A: It is PF return. PF 3A: Whole year PF details. Form 6A: Yearly PF return, deposited at the end of March. DBF: It is deposited along with FORM 6A. PF FORM 2: EPF and EPS nominees details.
24. How subscriber is calculated on PF FORM 12A?
On PF 12 A total subscriber is not calculated as no. of count of given month. It is calculated as previous month total subscriber adds with given month new joiners and substracts with previous month left employee. For Example: If I have to calculate the May month subscriber than i will have to take April month total subscriber and it would be added with May month joiners and substract with April month left employee.
25. How can you check PF challan amount and subscriber if client raises a question on it?
Total Subscriber can be checked from Monthly PF statement details. Basic wage is the total basic amount of the subscriber. This amount should be equal to column 6 of the Monthly PF Statement. Employer share of contribution is the AC1 of the employer share. It should be equal to column 9 of Monthly PF Statement. Employee share of contribution is the total PF of the employee. It should be equal to column 7 of the Monthly PF Statement.
Povident Fund (PF) is a benefit for the employees. Employee contributes 12% of his monthly basic earned salary to the PF account (A/c 1). The employer contributes 3.67% to the same account (A/c1) and 8.33% to A/c 10. It is a type of saving to the employee. The employee can avail loan from the PF account also. At the end the employee can close the PF account and withdraw the amount along with interest.
2. How PF is assigned to the Employee in Webpay?
Assigning PF in Webpay includes few steps. First of all we enable PF for the whole company, assign PF Limits and declare store PF accounts percentage in PF/ESI/PF configuration form at a company level. After this we enable the PF and Pension deduction in Employee master on Employee level. After this we have to make the paycode(Basic) as a part of PF Gross on which PF has to be deducted and then we assign the Basic paycode to the employee.
3. On which paycode PF is deducted?
On Basic and DA, PF is deducted
4. What are the necessary steps of checking if PF is not being deducted in Webpay?
If PF is not deducted of any employee then first of all we have to check the company level PF settings like PF enabled or not, PF Limit and PF accounts, after checking these, we will move to employee level setting like PF enabled or not, similarly PF limits and then we will check the paycode, which is part of PF gross; and whether that paycode is assigned to the employee or not.
5. What are the limits of PF?
At present there are two kinds of PF limits. One is 6500 which is statutory limit and other is Basic which is 999999999 (Max).
6. What are the accounts PF viz.,AC1, AC10 , AC2 ,AC21 , AC22? What are the percentages of these accounts?
AC1: 12% of earned basic wage of employee, 3.67% of Employer contribution are deposited and amount greater than pension limit of Rs.541 (over and above after calculating at 8.33%). AC10: 8.33% of earned basic wage or max 541 are deposited. AC2 (Admin Charge): 1.1 % of basic wage of employee. AC21 (Admin Charge): 0.5% of either Basic wage or Pension wage or EDLI wage. AC22 (Admin Charge): .01 % of either earned basic wage or pension wage or EDLI wage. Whether the admin charge (AC21 and AC22) would be deducted on basic or pension wage is opted from PF/ESI/PT configuration form. AC1 is EPF account, AC10 is Pension account and AC2 ,AC21 and AC22 are the admin accounts.
7. How PF is calculated and distributed among different accounts?
If employee's Basic is 20,000, employee's limit is 999999999 (Max) and payable days for the month of april is 15 days then payable Basic would be 20,000/30*15 that is 10,000. Since PF is deducted on earned wages, therefore, PF would be 10,000*12% that is 1200. Now AC10 is 8.33% of 10000 (Basic) that is 833. Since in AC10 we can not deposit more than 541 ,hence the remaining amount (833-541) that is 292 would be deposited to account AC1 along with Employees 12 % of Basic. This means in AC1 there would employer 3.67% and employees 12% of PF are deposited that is 1492 (292+1200) and in AC10 there would be 541 deposited. AC2 would be 1.1 % * 10,000 that is 110. AC21 and AC22 wages selected on BASIC and PENSION wages respectively in config form, then AC21 would be 10,000* .5/100 that is 50 and AC22 would be 6500*.01% that is .65 Rs (65 paise).
8. What is the Employee PF and Employer PF?
Employee contributes 12% of his monthly earned basic salary to the PF account and the employer also contribute 12% to the same account. Employee's PF is totally deposited to AC1(EPF) account and employeer PF is divided into two account viz. AC1 and AC10. Employer is also to bear the admin charges vi.z AC2, AC21, AC22.
9. What is the concept of CTC?
CTC means Cost To the Company, therefore employer's contribution is part of CTC. Employer's contribution is 12% and 1.61% toward admin charges.
10. Why is 13.61% (employer PF share) deducted from CTC to calculate supplementary allowance?
In CTC salary structure, employer PF contribution is part of CTC. Total contribution includes 12% of PF, 1.1 % of AC2 , 0.5% of AC21 and 0.01% of AC22. It becomes 13.61% in total.
Important Note: Earlier when the CTC concept was not prevalent, the limit was 6500 and employer PF contribution was not part of CTC.
11. What happens with PF if employee is kept on HOLD for any month?
There is an option in the PF/ESI/PT configuration form i.e. whether PF of employee whose salary is being withheld needs to be deposited or not. If the option is checked then PF would be deposited when the salary is withheld else it would be deposited in the month salary is released.
12. What are Basic Wages, Pension Wages and EDLI wages?
If the Limit is maximum (Actual earning) (999999999): In this case earned basic is Basic wage. If the Limit is 6500 and if basic is greater than 6500 then 6500 else Basic would be the Basic wage. Pension Wage: if Basic is greater than 6500 then 6500 else Basic would be pension wage but pension wage should be enabled. EDLI Wage: If Basic is greater than 6500 then 6500 else Basic would be EDLI wage.
13. What is prorate PF contribution (Calculate PF Proportionately)?
If Calculate PF Proportionately is enabled in PF/ESI/PT config form then PF would be deposited proportionately. Example if Basic is 10000, Limit is 6500 and payable days is 25 days and calender days of the month is 30 then PF would be = 6500*25/30=5417, Similary if flag is not checked then PF would be 6500 because earned basic(10000*25/30) is greater than 6500.
14. What is prorate Pension contribution?
If deduct pension wage prorate option is enabled in PF/ESI/PF config form then in AC10, pension would be deposited on the basis of payable days, remaining amount would be deposited in AC1.
15. What are Exempted and Non Exempted establishments?
If company is Non-Exempted then AC21 amount is deposited in Admin account and if company is Exempted then AC21 amount is deposited in Inspection account which is shown on PF challan form.
16. What happens when DEDUCT AC10 ON ARREAR on following case in Webpay?
a). ALL b). None c). New joinees
AC10 is Pension account. "All" here denotes that for all the employees the appropriate contribution would be deposited under AC10. "None" here denotes that for no employee contribution would be deposited under AC10. "New Joinees" denotes only for new joiners.
17. What is voluntary PF and under which account it is deposited?
If Employee wishes to contributes extra towards their PF fund then the amount contributed over and above PF contribution is known as Voluntary PF. It is deposited in AC1 of Employee EPF fund.
18. What happens when PF is negative?
If PF comes out to be negative then PF becomes zero,
19. How PF is deducted on arrear and is deposited with subsequent account to payable month?
For Example:- If Arrear PF is 240. In which AC1 is 73 and AC10 is 167 and payable month PF is 780 then AC1 would be (239+73) and AC10 would be (541+167) to the payable month PF accounts.
20. What happens with If Round PF Amount separately on Arrear PF Gross ?
If Round Arrear PF amount separately opton is enabled then arrear PF account and payable month PF account is rounded and stored in database and then added but if it is not enabled then Arrear PF is added to the Payable month PF amount and then rounded off. With this in some of the cases there might be a difference of One Rupee.
21. Why PF is deducted on Leave Encashment? (Now it is NOT, earlier it was)
Since Leave encashment is calculated on Basic, hence, PF was deducted on Leave encashment but now it is not deducted.
22. Whar do you mean by EPF subscriber, EPS subscriber and EDLI subscriber?
EPF subscriber: It is the count of employee's whose PF is payable in the given month. Payable amount might be zero. EPS subscriber: It is the count of employee's whose pension is calculated. ELDI Wages: It is same as EPF subscriber.
23. What are the Statutory forms of PF?
Statutory Forms of PF in Webpay are: PF form 5: New joinees details. Form 10: Left employee details. PF challan: PF challan deposited monthly. PF form 9: First time Establishment details. PF Eligibility Report: To count the month wise subscriber. PF 12 A: It is PF return. PF 3A: Whole year PF details. Form 6A: Yearly PF return, deposited at the end of March. DBF: It is deposited along with FORM 6A. PF FORM 2: EPF and EPS nominees details.
24. How subscriber is calculated on PF FORM 12A?
On PF 12 A total subscriber is not calculated as no. of count of given month. It is calculated as previous month total subscriber adds with given month new joiners and substracts with previous month left employee. For Example: If I have to calculate the May month subscriber than i will have to take April month total subscriber and it would be added with May month joiners and substract with April month left employee.
25. How can you check PF challan amount and subscriber if client raises a question on it?
Total Subscriber can be checked from Monthly PF statement details. Basic wage is the total basic amount of the subscriber. This amount should be equal to column 6 of the Monthly PF Statement. Employer share of contribution is the AC1 of the employer share. It should be equal to column 9 of Monthly PF Statement. Employee share of contribution is the total PF of the employee. It should be equal to column 7 of the Monthly PF Statement.
Capturing attendance through SMS in Webpay
Capturing attendance through SMS in Webpay
In WebPay option to mark attendance is available. Following point should be kept in mind while sending attendance SMS:
SMS format for In time:
companycode in empcode
eg. Itsource in e0001 (Here Itsource is the company code (this is given by the SMS gateway provider), in refers to timein, e0001 is the employee code
SMS format for Out time: Itsource out e0001
When user sends attendance via SMS he/she will get reply SMS immediately:
“Sender is EmpCode and message is In”
When user sends wrong SMS (or SMS format is not correct) he/she will get reply SMS immediately: “Invalid msg.”
Please note that empcode doesn’t have any special character.
Please note that it is to be configured for each company separately.
Blog by BBSPL
In WebPay option to mark attendance is available. Following point should be kept in mind while sending attendance SMS:
SMS format for In time:
companycode in empcode
eg. Itsource in e0001 (Here Itsource is the company code (this is given by the SMS gateway provider), in refers to timein, e0001 is the employee code
SMS format for Out time: Itsource out e0001
When user sends attendance via SMS he/she will get reply SMS immediately:
“Sender is EmpCode and message is In”
When user sends wrong SMS (or SMS format is not correct) he/she will get reply SMS immediately: “Invalid msg.”
Please note that empcode doesn’t have any special character.
Please note that it is to be configured for each company separately.
Blog by BBSPL
Friday, August 12, 2011
Federal Bank Report Format in Webpay
Federal Bank Report Format in Webpay:
To get the last row i.e. Company Bank account in the Federal Bank Report in Webpay, please go to menu Assign & Process --> Enter - Update Payment Details. Here in you need to record, when did you transfer the payment and from which bank account of the company.
Now generate the Federal Bank Report.
Blog by BBSPL
To get the last row i.e. Company Bank account in the Federal Bank Report in Webpay, please go to menu Assign & Process --> Enter - Update Payment Details. Here in you need to record, when did you transfer the payment and from which bank account of the company.
Now generate the Federal Bank Report.
Blog by BBSPL
Subscribe to:
Posts (Atom)