MDT Associate

Frequently Asked Questions

What is the Employee Social Insurance Scheme (ESI) and how does it benefit employees?

India's Employees' State Insurance Scheme is a multi-faceted Social Security Scheme. During the term of his disability, the scheme provides full medical care to the employee enrolled under the ESI Act, 1948, with the goal of restoring his health and working capacity. It gives financial support to cover the loss of his or her wages while he or she is unable to work due to illness, maternity, or an injury on the job. His or her family and members are also covered under the plan.

Is it possible for an employee to contribute to the EPF after leaving the company?

No, it is not. There can be no recovery if earnings and the Employer are not available. Any member's contribution must be matched by the employer's share of the contribution.

Is it possible for an employee to join the EPF at any age?

An employee who has already reached the age of 58 cannot join the Pension Fund because there is no age restriction for becoming a member of the Provident Fund.

Who qualifies for an EPF deduction?

According to the EPF Act, any business with 20 or more employees is required to enrol in the EPF Scheme. Businesses with fewer than 20 employees, on the other hand, may register voluntarily. It is mandatory for such firms to deduct EPF from all employees earning less than Rs 15000 per month (basic wage plus dearness allowance). Employees earning more than INR 15,000 per month may elect to have their EPF deducted.

Is there a threshold below which tax is not deducted?

Under various provisions of the Income Tax Act, the threshold limit for deducting tax at source is set at a varied level. There is no duty to deduct tax at source if the expenditures/payments made throughout the year are less than the threshold level.

How does the payroll system function?

Everything that has to do with paying employees and filing employment taxes is included in the payroll system. The payroll system's numerous duties include tracking employees' work hours, calculating their earnings, gratuities, and bonuses, and deducting taxes and statutory deductions such as ESI, EPF, and WWF.
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