E-Nomination for Email Campaign

What are e-nomination in EPF and its importance?

What are e-nomination and its importance?

Nomination is a process to select one or more nominees as beneficiaries to receive the proceeds from EPF, EPS & EDLI on the demise of the member. The nominees could be the spouse, parents, children, and in some cases distant relatives and friends as given below.

A male EPF member can nominate his spouse, children, step children, dependent parents and his deceased son’s widow and children.  In the case of a female member, the nominee can be her husband, children, (whether married or unmarried) her dependent parents, her husband’s dependent parents and her deceased son’s widow and children.  The member can nominate only one or more persons belonging to the family.

Nomination made in favour of a person outside of the family is treated as invalid.  In case the member does not have a family at the time of joining EPF, he can nominate any other person or persons as nominee.  However, if subsequently the member acquires a family after some time, then the earlier nomination will become invalid and he has to make a fresh nomination in favour of one or more persons within the family.

If a member who is married nominates his or her spouse as nominee and subsequently if they get divorced, then he or she has to change the nomination as the earlier nomination becomes invalid.

For the EPS scheme a married member can nominate only his or her spouse and children.  In case the member has no family and has not made any nomination then the claims will go to the legal heirs.

The EPFO has been providing guidelines on e-nomination and its importance in the light of the Covid-19 pandemic sweeping the country.  The Covid-19 pandemic has pushed dependents of EPF members into deep trouble as they could not claim settlement due to the non-filing of nominees in the concerned accounts.

Nominating a person to receive the proceeds from EPF, EPS, and EDLI is of utmost importance. Earlier members had to file Form-2 with the respective PF Office, but the Digital India programme has changed all that. A member can now sit in his home and update the nominee details in just a few minutes without any complications. With e-nomination, the members who have not submitted their nominee details can easily execute this important step. Under the present situation, this is a great boon to members and their dependents. This will surely go a long way in ensuring speedier settlement of claims in the event of the demise of a member.

How to file e-nomination?

Visit the EPFO website at www.epfindia.gov.in and select Services  >>  For Employees  – then click on “Member UAN/Online Services”.

  • Login with your Aadhar linked UAN and password
  • Select ‘e-nomination’ on opening the “Manage” tab
  • Enter all the details in the ‘Provide details’ tab and click on ‘Save’ button
  • To update family declaration click ‘Yes’
  • Click on ‘Add Family Details’ and furnish the required details
  • Click on ‘Nominee Details’ and provide the details and click on ‘Save EPF Nomination’
  • Next click on ‘E-sign’ to generate OTP on your registered mobile phone
  • Submit OTP sent to your mobile number (has to be linked with Aadhaar)
  • On successful verification, your e-nomination will be registered with the EPFO.
  • Documents required to be uploaded – Member Aadhaar with updated photograph and Nominee Photograph, Aadhaar and Bank details with IFSC code and address for both member and nominee.

Last date for filing nominee details

December 31, 2021 was reported to be the last date to update nominee details through the e-nomination portal. However, EPFO has clarified that one can update the nominee details even beyond December 31, 2021, and that no deadline has been set for the same as of now.

GetifyHR is fully geared to assist employers and through them the employees to update nominee details. Our Payroll Module has been fully updated to handle this issue in an easy and simplified manner. You can trust us to be with you always!

attendance management BLOG

Is managing Employee attendance a tedious and frustrating operation

Ask any HR Manager and he will tell you that the most valuable resource in the organization is the employees. Managing them resourcefully will bring success, whereas poor management of this resource will bring failure. How do you manage this resource? Well, the answer is simple. If your attendance management is poor and leads to frustration, you can be sure that the productivity of the company suffers and this will lead to reduced profits.

What you need is an efficiently performing attendance management system that can improve the overall efficiency.

This concise Q & A session will give you a clear picture of how to improve productivity by efficiently managing your employee attendance.

What is the ideal way to manage employee attendance efficiently?

A poorly managed attendance Management will negatively affect the payroll.  Any errors in your attendance will result in either over-paying or underpaying your employees. When you are manually managing the attendance you not only consume more time but are also prone to serious errors. If your workforce is large and spread over different locations, then you can imagine the problems this would cause to your payroll and the ramifications thereon.

Using custom-made software or other applications will not improve the situation much. The most effective solution is to take the services of an outsourcer offering Payroll Software that is fully integrated with HR Management. The attendance module in this package will process the data and provide error-free calculation of working hours, overtime, and loss of pay details. This will make payroll processing easier and simpler and provide highly accurate output.

Why is it important to have a clear Attendance Policy?

Formulating a clear Attendance Policy is the first step in managing your attendance effectively, and this is one of the biggest problems faced by companies. When you don’t have a clear Attendance Policy, you will not be able to regulate attendance effectively. By using a software or application, you will not be able to manage attendance properly as they are time-consuming and prone to errors.

The ideal solution is outsourcing. When you outsource these operations to an efficient service provider, you can rest assured of a high-performing system that will give error-free results. When you outsource, you will be able to formulate a clear Attendance Policy. By doing so you will be able to arrange the shifts, shift timings, week-off policies and create attendance regulations for each employee based on the nature of duty. This paves the way for systematic and error-free attendance management and relieves the management from a lot of stress.

Do you feel that lack of efficient connectivity is creating confusion for both the employees and the management?

Lack of proper connectivity affects both the employees and employers. For employees, the need is to have their attendance details easily accessible and at the required time. This will not be possible when you are using software or application that has their limitations. With an outsourced, cloud-based package you can be assured of an application that is accessible from any device. Mobile connectivity is the need of the hour and this is what you get when you outsource to an efficient Service Provider.

Easy access to attendance reports using a Smartphone will enable the employee and employer to access valuable information on the move. These applications are provided with an efficient ESS portal that allows access to data from anywhere. Location-wise, shift-wise information is now at your fingertips.

Are you in a situation where you are not able to keep track of your employees?

This is a situation that many employers find themselves in especially when there is a distribution of workforce across different locations. Custom-built software or applications will not be able to handle this aspect effectively.

If you are looking to keep track of all your employees and gauge their performance, then the ideal solution is to outsource to a Service Provider.

When you associate with a Service Provider like GetifyHR, you are associating with a high-performance cloud-based tool that keeps perfect track of all your employees on a day-to-day basis. This system is supported by Geo-tracking and Geo-fencing facilities, and this helps to locate each employee concerning the location he or she is posted. The log-in and log-out times are properly recorded and with the integrated Biometric that is in-built, the performance of each employee comes under minute scrutiny. The HR team will have access to records that allows them to make the right decisions on the allotment of work to the right employees in different locations.

Conclusion

An efficient Attendance Management system is the best solution to avoid employee-related issues. Present-day businesses are in dire need of a perfectly working application that integrates Payroll, HR management, Attendance & Leave Management, and Statutory Compliance rules and regulations. Only then can the management and employees work cohesively for the growth of the organization.

GetifyHR with its proven experience and professional approach in handling these tasks is the ideal choice to associate with. Our cloud-based application can seamlessly handle Payroll, HR management, Attendance & Leave management, and Statutory Compliance requirements with perfect integration.

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What are the challenges faced by Employers in managing Employee Leave?

Leave management is a highly challenging task that can frustrate even the best of HR Managers. The use of outdated processes worsens the scenario and you are left with anxiety and frustration on both the employer and employee sides. The use of outdated tools and manual errors that creep in while entering the data gives room for inaccuracies. There is nothing worse than seeing inaccuracies in one’s leave balances.

This would create chaos for both the Administration and the employees and will have a negative impact on the business.

What is Leave Management?

Leave management is a set of processes that tracks the employee leave in an organization. Right from receiving the leave application, leave approval or rejection and tracking of employee leave is a task that needs a high degree of perfection. The task includes routing the application through a hierarchy of decision-makers, taking the decision and notifying it to the employee, updating the payroll and the employee attendance records, and the company’s leave policies.

This article discusses a few of the challenges faced by employers in managing employee leave.

1.  Are Employees aware of the number of leave days they have left?

No. Most employees are not aware of their leave dues. This is one of the biggest challenges faced by the employer, a challenge that both the HR team and the employees are left searching for an answer. The reason is that it is pretty difficult to keep track of the number of days left when you use outdated applications. When an employee is not aware of the number of leave days he has, he will send a request to the HR team to get the answer. This prevents them to plan their activity as the answer has to come from the HR team. This takes time and in the meantime, the employee stands to lose time and money.

During this process, the HR team will be flooded with leave applications and will lose valuable time confirming the leave dues of each employee. This will reduce their time and business activities and become frustrating for both the HR team and the employees. The ideal solution in this situation is to outsource Leave Management to an efficient service provider who can handle all aspects of Payroll including Leave management.

GetifyHR is ideally placed to provide this service with its efficient cloud-based payroll application.

2.  Do Inaccuracies in the Payroll create problems in managing leave?

Yes. Inaccuracies in payroll do create problems in managing leave. When we use outdated applications, the possibility of errors creeping in is high. The Payroll reflects such errors in the Leave management module.  This will create more problems for both the HR team and the employees. For example, in cases where some leave are paid and some unpaid, if improper entries are made then you are sure to get inaccurate reports. You will not be able to confirm the dues correctly and this will lead to confusion and distrust between the employer and the employee.

The only solution is to opt for an outsourcing module that provides a full-fledged automation system that seamlessly integrates all the modules of Payroll, HR management, Attendance and Leave management, and Statutory Compliance. This will help you to maintain greater accuracy and make your payroll and leave records error-free.

3.  Does following a proper Leave Policy assist accurate leave management?

Yes, maintaining a proper Leave Policy will help you to handle leave much more accurately. The Leave Policy of each organization has to be properly framed according to the work culture of the company. Once this is properly established, you will be able to handle the leave of employees in a perfect and non-discriminatory manner. This leave policy has to be shared with each employee so that they are fully aware of their leave dues. The moment such a system is in place, and then all the problems associated with employee leave will become simpler and error-free. This will also enable proper scheduling or re-scheduling of leave according to the needs of the employees.

4.  Does an inefficient Leave Management System leave the employer and the employees frustrated?

Yes, when you depend on an inefficient Leave management system both the employer and employee are frustrated. The frustration stems from the inadequacies in the leave management system and the unintentional errors in data entry that give erroneous reports. Some companies still depend on spreadsheets and other outdated applications that prove to be inadequate to handle leave. This creates a lot of confusion when a leave request is made and what we get are a highly frustrated employee and an apologetic HR team.

This is not a happy situation to be in and the only solution is to outsource your payroll to an efficient service provider. GetifyHR with its vast experience and backing of a professional team is the ideal choice in this situation.

Conclusion

We have highlighted the importance of an efficiently working Leave Management module if you are to avoid leave related problems with your employees. Under the present scenario, the ideal choice is to outsource this task to a reputed service provider. Present-day business requires a Payroll and HR management system that can not only handle Payroll but also HR activities like Attendance and Leave management and Statutory Compliance issues.

Choosing a cloud-based application is ideal as it is not only efficient but also reduces the expenditure on special hardware. GetifyHR, with its proven experience and professionalism, offers the ideal tool to handle these tasks. The outsourcing application offered by GetifyHR can seamlessly handle Payroll, HR Management, Attendance & Leave Management, and Statutory Compliance requirements.

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How Payroll Outsourcing can help your Business?

Payroll Management is a time consuming and tedious process when attempted manually.  The inaccuracies that creep in will not only create greater headaches for the management, but will also provide ammunition to the employee to question them.  This would create mutual distrust and lead to production losses.

Being a highly critical operation in any business, the payroll operations can be efficiently serviced by outsourcing to professional service providers.  Payroll outsourcing provides great benefits as it not only brings greater accuracy in the rather mundane task, but also enables the HR team to focus on more important operations of the company.

The COVID-19 pandemic has forced companies to re-adjust their functioning and this has entailed greater use of technology and professional expertise to optimise productivity and improve efficiency.  This pandemic has thrown regular working out-of -gear and also forced governments to constantly modify their rules and regulations to suit the employees.  This has necessitated the management to get regularly updated, and the best way to achieve this is by outsourcing your payroll to professional service providers.

What is Payroll Outsourcing?

Payroll Outsourcing is a process in which businesses hire the services of professional firms to manage all the payroll functions.   This not only save money, time and effort, but also frees time for their HR team to focus more on the core activities of the company.  When compared with in-house payroll management, outsourcing payroll provides greater accuracy and saves time.  In this article we shall delve deeper into the benefits of payroll outsourcing and how it helps businesses to grow.

Saves time and improvise productivity.

Manual payroll processing or in-house payroll processing is both time consuming, costly and frustrating.  Generating the payslips on time, every time, keeping track of the deductions, the dues, fresh hires, terminations, and complying with the Government’s statutory requirements are all a highly complex task.  Whether we like it or not, these have to be generated time and again without excuses and without mistakes.

When you outsource this operation to a professional service provider, you save time, and manpower and this will allow you to focus more on core business activities.  The HR team and the Accounting department are free to use their expertise on other important tasks that would improve productivity.

Minimizing Expenses

Minimizing Expenses is a vital factor when you are looking to improve your company’s income.  This can happen only when you are able to save time as the more time you save the more you earn. By outsourcing payroll to a professional service provider, you can be assured that all information regarding payslips, deductions, tax dues and statutory returns are managed in a cost-effective manner.

Payroll tasks like generating the payslips, calculating the deductions, the hours worked, paid time-off, leave availed, disbursing the pay checks, filing the tax returns are generated with ease and just with the click of a few buttons.  This enables the saving of time which when factored with the cost will show tremendous saving. This not only allows you to refocus the role of your HR team, but also ensures cost cutting due to use of technology, reduction in man-hours and space required to house the payroll department.

Overall, payroll outsourcing takes on the task of tracking the employees, reconciling the accounts, and managing the complex statutory compliance issues and tax administration.

Usage of latest technology!

The past few years have shown rapid technological advancements in the use of computers and the internet.  Top ranking Payroll Service Providers use the highly advanced cloud-based systems to manage business data.  This makes the system more efficient and robust, and provides greater accuracy and transparency in payroll processing.

Professional Payroll Service providers like GetifyHR use advanced payroll technologies to manage the process with ease by seamlessly integrating Payroll Management, HR Management, Attendance & Leave management, Task management and Statutory Compliance.

Enhances the functioning of HR Department.

One of the important benefits of Payroll Outsourcing is in freeing the HR department to focus more on core business activities.  Manual payroll processing or in-house payroll processing will force the HR Department to concentrate more on this aspect thus disrupting their role in recruitment and employee retainment issues.  Outsourcing this activity will allow the HR team to focus on core functions such as:

  • Monitoring the Employees
  • Improving Employee retention
  • Attracting better talent through job satisfaction
  • Simplifying the process of onboarding
  • Arranging training sessions to reduce the skill gaps

In effect, the HR team becomes more dynamic and can specialize in people management for the benefit of the company.

Ensuring enhanced security of data.

Payroll processing is a complex process that has its own risks.  The risks are mainly identity theft, tampering with data for personal gain, and misappropriation of funds.  Outsourcing payroll to a reputed service provider can bring in a high degree of security.  The important data is stored in highly secure cloud-based servers that ensure the very best of protection and data encryption.

Implementing Statutory Compliance.

Statutory Compliance is a critical component of business functioning.  Whether you have 20 employees or 100 employees, every business is liable to comply with Government rules and regulations.  Complying provides protection to companies to avoid legal issues.

When you outsource payroll, the process is simplified and enables the company to comply and avoid payment of fines and other legal issues.  The government regulations are prone to frequent change, therefore, the company has to be full updated as and when the changes are made. This task is easily enabled when you outsource payroll.  A professional payroll outsourcing service provider has a team of dedicated experts to keep clients updated of the changes, thus ensuring compliance at all times.

Efficient Employee Self-Service features

Providing an efficient Employee Self-Service (ESS) facility is an important feature that you can access when you outsource your payroll.  Having an integrated payroll system with an employee self-service option has a lot of benefits to both the employees and the employer.  Some of these benefits include:

  • Assignment of tasks in a hierarchical fashion.
  • Monitor the time each employee spends on a task.
  • Update the personal information of employees
  • Previewing pay information
  • Viewing the Attendance & Leave information
  • Providing Mobile apps and remote access to the services.

GetifyHR provides high performance payroll outsourcing module that encompasses an efficient ESS system.

Conclusion

Payroll processing is a critical business function that may not directly affect the business.  However, if the process is inefficient, the overall business would be badly affected. A professional payroll outsourcing service provider offers a platform that integrates Payroll management, HR management, Attendance & Leave management, Statutory Compliance and Task management.

GetifyHR has achieved excellent results with its integrated cloud-based payroll module.  You can be assured of high level accuracy and the support of highly qualified experts to manage your payroll. This will not only enhance productivity but also give the client the ability to focus fully on growing the business.

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Risks of Non-Compliance and How to Avoid Compliance Penalties?

Compliance is a generalized term that indicates adherence to varying rules and laws passed by the Government. Statutory Compliance is complying with or adhering to rules and laws about labour and human resource.

Organizations that employ people are required to follow a set of guidelines that fall under statutory compliance. Penalties include fines and in some cases imprisonment if companies fail to fully comply with these rules and regulations. Following these rules and laws is, therefore, very important for the organization if it needs to function smoothly. In this article, we will discuss how companies can avoid compliance penalties.

What are the risks of non-compliance?

Statutory compliance is vital for any company and their HR teams have to be on their toes to frequently update the new regulations and see that the company is fully compliant. Let us first understand the consequences of failing to comply with the rules and regulations.

Fines

The first risk of non-compliance is the possibility of fines.  Governing bodies have put in place stringent penalties to compel companies to comply with the rules and regulations, and fines are their first line of penalties.  Thousands of rupees are collected as fines for non-compliance and the amounts would vary based on the seriousness of the offense. This entails that you not only have to pay the fines but will also have to spend for legal costs.

Imprisonment

For very serious lapses in complying with the Statutory Compliance rules and regulations, imprisonment of up to 6 months with or without fines is enforced.

Loss of Reputation

One of the serious outcomes of non-compliance is the loss of reputation suffered by the company and this, in turn, will amount to a loss of customers.

Dissatisfaction of Employees

When penal action is taken against a company for non-compliance it also brings in dissatisfaction within the employees as non-compliance of any degree would also affect them. This would in turn bring about unwanted tension and would provide enough fodder for potential employees to stay away from joining the company. Employee retention would suffer and it also curtails the entry of new employees. Overall this would harm the company’s working.

Loss of Productivity

Non-compliance would also result in loss of production due to the stoppage of production brought about by unscheduled inspections and audits by the authorities. This would lead to a waste of time and money. In cases where non-compliance is serious, the authorities can even order companies to suspend operations.

What are the Acts businesses have to comply with?

Before we venture into the penalties of non-compliance with Statutory Compliance rules and regulations, let’s have a look at what these Acts are that all businesses have to comply with.  We can divide these Acts into 5 sections.  They are:

  1. Acts that control Wages
  2. Acts that provide for Social Security
  3. Acts that control Industrial Relations
  4. Acts to benefit Women and
  5. Acts that control other aspects of the employees

1.  Acts that control Wages

1.1  Payment of Wages Act, 1936

1.2  Minimum Wages Act, 1948

1.3  Payment of Bonus Act, 1965

1.4  Equal Remuneration Act, 1976

2.  Acts that provide for Social Security

2.1  Employees’ Provident Fund Act, 1952

2.2  Employees’ State Insurance Act, 1948

2.3  Payment of Gratuity Act, 1972

2.4  Labour Welfare Fund Act, 1965

3.  Acts that control Industrial Relations

3.1  Industrial Disputes Act, 1947

3.2  Industrial Employment (Standing Orders) Act, 1946

3.3  Trade Unions Act, 1926

3.4  Factories Act, 1948

3.5  Shops and Establishment Act, 1947

3.6  The Industrial Establishment Act, 1963

4.  Acts for the benefit of Women

4.1  Equal Remuneration Act, 1976

4.2  Maternity Benefit Act, 1961

4.3  Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

5.  Other Acts

Apart from these a group of Acts is in force to take care of other aspects of the employee that does not find representation in the above mentioned Acts. They are:

5.1  The Professional Tax Act, 1975

5.2  The Child Labour (Prohibition & Regulation Act, 1986

5.3  The Contract Labour (Regulation and Abolition) Act, 1970

5.4  The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959

5.5  The Apprentice Act, 19651

5.6  The Employees Compensation Act, 1923

5.7  The Interstate  Migrant Workmen (Regulation and Conditions of Services) Act, 1979

What are the penalties for non-compliance?

Statutory Compliance is a critical aspect of any business or organization. Failure to comply with these statutory requirements can pose immense problems. These include penalties in the form of fines and imprisonment when the non-compliance issue is serious. We shall briefly discuss the penalties under the various important Acts pertaining to Payment of Wages and Social Security in the following paragraphs.

1.  Penalty for non-compliance with the EPF Act, 1952

Any person who fails to pay the contribution towards EPF or makes false statements or representation is liable to be punished with imprisonment for a period that may extend up to 1 year or with a fine of ₹5000/- or with both. The Act also enforces penalties for non-payment of inspection charges or administrative charges. The penalty for such non-compliance is punishable with imprisonment for a period that is not less than 6 months and may extend up to 1 year and a fine of ₹5000/-.

However, if the employee contribution is also not paid then the punishment may extend to a term of 3 years but not less than 1 year and a fine of ₹10000/-.

The filing date for the Monthly EPF returns is 25th of each month, and for the Annual Return under Form 3A and 6A it is on or before the 30th of April every year. The Act also requires the filing of Form 2, Form 5, and Form 10 as and when required.

2.  Penalty for non-compliance with the ESI Act, 1948

Penalties for non-payment, delayed payment, or falsifying payments and returns include imprisonment for a period extending up to 2 years and a fine of ₹5,000/-. For non-payment, simple interest @ 12% per annum for each day of delay is collected.

Filing of return for the half-year from April to September is on or before 12th November, and for  the period October to March is on or before 12 May.

3.  Penalty for non-payment of Gratuity under the Payment of Gratuity Act, 1972

Failure to make the gratuity payment or providing false statement or giving false representation is punishable with imprisonment for a term which may extend to six months or with a fine of ₹1000/- or with both. As soon as the Gratuity is due, the employer shall determine the amount due to the employee. The amount has to be paid to the employee within 30 days from the date it becomes payable.

4.  Penalty under Labour Welfare Fund Act, 1965

In Tamilnadu, if any person who willfully fails to produce any document required by the Board or fails to furnish any information called for by the Board or fails to comply with any directions issued by the Board is liable to be imprisoned for a term or 3 months or with fine of five hundred rupees or with both.

The rules vary from state to state. The Labour Welfare Fund requires the filing of an annual return and the dates vary from state to state. In Tamil Nadu, the due date is 31st January of every year.

5.  Penalty for non-payment of wages under the Payment of Wages Act, 1936

Wages have to be disbursed to the employees on the dates mentioned in the state’s Payment of Wages Act. For non-payment of wages on time by the employer a penalty in the form of a fine not less than ₹1000/- that may extend to ₹5000 is enforced.  For subsequent convictions the fine will not be less than ₹5000/- and may extend up to ₹10000/-.

Similarly, for failing to maintain the register or not furnishing the required information or giving false information, the fine shall not be less than ₹1000/- and may extend up to ₹5000/-. For repeat conviction of non-payment of wages, imprisonment not less than one month which may extend up to 6 months, and fine not less than ₹2000/- and extendable up to ₹15000/- may be collected. There is also provision for collecting additional fine up to ₹100/- per day.

This is a state subject and therefore varies from state to state. In Tamil Nadu, an Annual Return in Form IV has to be filed with the Inspector within the jurisdiction of the factory or industrial establishment not later than 31st January of each year.

6.  Penalty for non-payment of minimum wages under the Minimum Wages Act, 1948

Non-payment of minimum wages as per the Minimum Wages Act, 1948 is punishable under section 22 of the Act by imprisonment up to 6 months or fine or both. This may differ from state to state. Incidentally, the Delhi Government has increased the fine from ₹500/- to ₹50000/- for non-payment of Minimum wages and the imprisonment has been increased from 6 months to 3 years.

This is state-specific and varies from state to state. In Tamil Nadu, filing of an Annual return in Form III is mandatory, and the Government will notify the dates.

7.  Penalty for non-compliance with the Payment of Bonus Act, 1965

If any person does not comply with the provisions of the Bonus Act 1965 or any rule made thereunder or fails to meet the direction or requisition, shall be punishable for a term which may extend up to 6 months or with a fine of ₹1000/- or with both. However, if there is a dispute and the employer and employees are not in agreement with the terms, then the issue comes under the purview of the Industrial Disputes Act.

The annual return under Form D for payment under the Bonus Act has to be filed for every calendar year before 1st February of the following year irrespective of the financial year that an employer follows.

8.  Penalty for non-compliance with the Equal Remuneration Act, 1976

If an employee contravenes the provisions of the Act by not paying equal remuneration to men and women workers for the same work or work of similar nature, or discriminates between men and women, he shall be punishable with a fine which shall not be less than ₹1000/- which may extend to ₹ 20000/- or with imprisonment for a term which shall be not less than 3 months but which may extend for 1 year or with both. For subsequent offenses, the imprisonment may extend to two years.

If the employer omits or fails to maintain any registers or other documents, or fails to produce when called for, or refuses to produce the same, he will be punishable with simple imprisonment for a term which may extend to one month or with a fine which may extend to ₹ 10000/- or with both.

The Act does not require the submission of any return. However, the employer has to maintain a Register of employed in Form D that has to be produced before the Inspector appointed under the Act.

How do you avoid the risks of non-compliance?

Payroll is a vital part of any organization that employs people. Businesses generally maintain their payroll function in-house either manually or by relying on a do-it-yourself payroll application. Whether you perform this task manually using a desktop with customized software or an online solution, there are serious issues especially when it comes to statutory compliance. Doing it in-house may not be able to keep you fully updated on the changes and this would pose serious problems in the working of the business.

Payroll and Statutory Compliance tasks are time-consuming and complicated. Any mistakes in payslip generation or filing the compliance reports would have serious consequences. The best option is to outsource this task to a reputed concern whose payroll module and expertise in statutory compliance would help to drastically reduce the burden and the risks.

The present crop of high-tech firms offers a lasting solution to this vexing problem. This would not only help to reduce the in-house workload but also help to generate the regular reports more accurately and in full compliance with the rules and regulations. The present-day payroll packages using cloud technology provide the ideal solution.

Outsourcing to a company like GetifyHR helps the organization to mitigate risks and lessens the in-house workload. This can help the company to regularly identify compliance obligations and act accordingly. GetifyH, with its vast experience in managing Payroll and Statutory Compliance issues, has the right tools and trained professionals to handle this task with ease. This will enable the company to focus fully on developing the business.

Conclusion

Statutory Compliance is a highly complicated function and companies should be on their toes to keep themselves fully updated on the changes in rules and regulations. When you get the assistance of professional service providers, you get the required expertise to guide you and keep you fully updated. You will not only be able to mitigate the risks but would also be able to:

  • Identify the compliance obligations and keep abreast of the changes.
  • Meet all compliance rules and regulations.
  • Ensure filing of returns, and remittance of dues to the department on time, without any mistakes.
  • Ensure that the employees get their share of remittances regularly under prevailing rates.
  • Streamline the workflow and help the HR team to focus more on managing the staff and employees.
  • Storing the information in an organized manner for future use by the accounts department.
  • Providing adequate security to vital data.

Failure to comply with government rules and regulations can endanger your profitability. As an employer, you are duty-bound to comply with these rules and regulations and the best option is to outsource these operations to a company like GetifyHR. You not only reduce your stress levels but will also be able to free time for your HR teams in particular. This will help you to focus more on business development.

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A quick guide to choosing the Right Payroll Outsourcing company

Introduction

Businesses should focus fully on their core activity and what they are good at and leave other functions to experts. Payroll is one of those functions that deserve the assistance of experts.

Payroll processing is not only a vital function but is also a highly complex operation and when managed perfectly will save the company a lot of time, money, and manpower. Outsourcing this vital operation to a reliable service provider is the best solution. Importantly, it will keep you on the right side of the law as it will enable you to stay compliant with the statutory rules and regulations.

The difficult part is to choose the right partner to handle the payroll operations. You should first decide whether you want to outsource the payroll module alone or also outsource to someone who can also handle the HR module. Ideally, it is advisable to outsource to a company that can handle both payroll and HR requirements as it will help you to handle month-end operations without much stress. Statistics show that one out of three employers has been penalized for mistakes in the payroll and for being non-compliant. This guide will enable you to ask the right questions and help you to make the right choice.

What do you need to decide first and foremost?

Before we jump into the aspect of choosing the outsourcer, you have to be very clear about what your requirements are.

– First, identify your company’s needs very clearly.

– Decide on your plans for future developments.

– Decide on how much funds you can allocate for this operation

– Be clear about the number of employees whose payroll will be handled by the service provider.

– List out the Statutory Compliant rules and regulations that you have to comply with.

– Whether future staff/employee recruitments will also be handled by the outsourcer.

– Whether you require a fully functional Employee Self Service portal to track time and attendance.

Tips to choose the right service provider

The next step is to choose the Payroll Service Provider that best suits your requirements. Here are a few points that you have to look for in an outsourcing partner before you hand over this vital operation.

  1. Choose an outsourcer who is efficient in handling Payroll and HR management.
  2. Verify their Experience.
  3. Identify the Specializations that they handle.
  4. Software features that they offer and the technology that they use.
  5. Who takes responsibility for mistakes?
  6. Flexibility in information transfer.
  7. Whether the vital data is secure?
  8. Their Service commitment.
  9. Pricing of their Services.
  10. Their ability to handle Statutory Rules and Regulations.

Let us now delve deeper into these points to understand their importance and why we should have the right answers before making our choice.

1.  Choose an outsourcer who can handle both Payroll and HR management:

This is the ideal choice because you will be able to free a lot of time for your HR team to handle the more important core business activities. On the other hand, if you outsource these activities to two different companies you may not be able to function smoothly. A sound choice made here would enable you to handle these issues without much stress and you will find that the operations work seamlessly without any hiccups.

2.  Verify their Experience:

This is very important as this industry matures with experience, the more the experience, the better the service. You can verify with the clients of the service providers about their experience before making your choice.

3. Identify the Specialization that they handle:

Identify whether they can handle the Payroll and HR operations of the core sector that you handle. Every industry has its complexity when it comes to Payroll and HR management, therefore handing over this operation to someone who is not specialized in this activity will only create complications that would upset the entire working of the organization.

4.  Software features that they offer and the technology they use:

The use of advanced technology has vastly improved the performance of the applications that are now on offer in the industry. Look for a service provider who is using cloud technology to store data as this would lessen your burden of equipping yourself with more advanced hardware.

Ensure that the outsourcer has the necessary technical skills to upgrade and customize the application as and when required. Verify the usability of the reports and whether they conform to industry standards. Features like the Employee Self Service (ESS) module that the employee can access are important in today’s working atmosphere.

5.  Responsibility for mistakes:

You have to determine who will take responsibility for the mistakes in reporting and the subsequent penalties that the company has to bear.

6.  Flexibility in information transfer:

The Service Provider should be in a position to provide flexibility in the way the information gets transferred. You should be able to print the reports, or post them to the net or transmit them in the form of a data file. They should be able to find a solution when there is some break in transmission.

7.  Whether the data is secure:

Data security is a vital factor in outsourcing. Your data is highly sensitive and you must verify that it is securely encrypted and has full control over who can access it.

8.  Service:

Timely service is vital for a process of this nature. Verify that the outsourcer is in a position to provide service always and not only on the days that the payroll is generated.

9.  Pricing of the Service:

Understand fully the cost for the package and see that all the features that you require are included in the entire package. Before you sign on the dotted line verify these facts.  Any misunderstanding here will create a lot of unpleasantness later.

10.  Ability to handle Statutory Rules and Regulations:

This is a highly critical area in any business and any weakness in one’s ability to comply with the government laws will bring greater problems by way of penalties that could be in the form of fines or some cases imprisonment. Make sure that the service provider is efficient in handling statutory compliant issues and is well prepared to handle changes as and when they occur.

Conclusion

Outsourcing your Payroll and HR management operations to an efficient Service Provider is a choice that makes the entire business run easier, quicker, and more efficiently. Since most outsourcers provide a package that integrates Payroll operations and HR Management, you can rest assured of a seamlessly running package that provides all information as and when you require them with greater accuracy. This not only saves you time and money but will also enable your HR team to concentrate more on core activities rather than on the mundane payroll activities. This will enable the entire workforce to perform with greater efficiency and in the long run, will bring greater growth.

GetifyHR is one of the top-rated payroll outsourcing companies in the industry and has over the years built a large number of satisfied clientele. We have the expertise to cater to a wide array of business needs and that could transfer to greater growth to the client. Whether your business is big or small, an association with an experienced and committed payroll outsourcing service provider will bring about a quantitative change in its growth. The tips given here are the result of serious research and we are sure you will be able to make the right choice in your search for a payroll outsourcing company.

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15 Mistakes to avoid when Starting a Business

Introduction

People enter into business to make money or profits. Business is, therefore, an activity to make one’s livelihood and involves setting up an organization to produce or buy or sell products or services. Building a business is not a very easy task and if you are an entrepreneur you would make mistakes along the way. You learn from these mistakes and try to avoid them in the future.

“You only have to do a few things right in your life so long as you don’t do too many things wrong.” These words of Warren Buffett tell us one simple truth. Avoid mistakes or wrong decisions and the right decision will bring you success. The following 15 mistakes you have to avoid when starting a business.

1.  Wrong choice of Partner

If you are going it alone this issue does not arise, but if you require higher investment you may need a partner to support the business. The choice that you make is critical for your business. Be very careful when you make this choice. The person whom you choose should be able to take up the responsibilities alone and possess the skills to run the business. Most importantly your vision should match. Give this issue very serious thought before you make the decision. There is always the possibility of your partner separating as time goes by.

2.  Starting Business without any Market Research

Whatever business you start, you should know the pros and cons of it and study its market potential.  Thorough market research will give you a clear picture of how you can handle the business. The rule is to test your products or services first before you venture into them. Your idea of how good your product is need not necessarily match the view of your customer.

3.  Starting Business without Planning

Planning is a very vital aspect when you start your business. Planning not only includes the way you operate but also the kind of infrastructure you require. Your focus should be on how to operate and what infrastructure you require.

4.  Starting with an I-know-everything attitude

If you are just stepping into the business world, this I-know-everything attitude will bring you down to your knees. Business is all about learning and maturing from what you have learned. This means that if you have experience in running a business or if you are a novice taking your first step, you must use every opportunity that comes your way to broaden your knowledge.

5.  Not willing to change

Many businessmen have very rigid ideas about how they are going to run their business. They are not willing to change according to the changing times. People change, their habits change and this is shows in the way they do their purchases. This change is bound to reflect in the way you conduct your business. In a highly connected world, these changes occur at a faster pace and we should be prepared to embrace these changes.

6.  Not understanding your Strengths and Weaknesses

Business growth depends upon the rapport you create with your customers. This means you should know your strengths and weaknesses and be prepared to work on your weaknesses. Only then can you set a growth path for your business.

7.  Putting too much emphasis on growth

Many businesses have failed because they focused only on growth and forgot to address another important aspect namely the quality of your service and customer satisfaction.  If these two aspects are neglected your business is bound to fail.

8.  Expecting potential customers to find you

Today’s business environment is bustling with many businesses that actively encourage customers to associate with them. This is the age where you have to be where your customers are. It is your responsibility to find your customers.

9.  Downplaying the importance of Technology

You are living in a connected world that depends tremendously on technology. If you refuse to understand the importance of technology and how it is going to shape your business, then you are bound to fail in a highly competitive world.

10.  Underestimating your Competition

A proper study of the competition is always helpful when you start a business. If you are the kind who ignores competition, you are inviting trouble. Once you have all the information about your competition, you can plan your activities accordingly. One aspect connected with this is market saturation. If there is a saturation of companies marketing the same product, then give serious thought to this aspect. This leaves you with a small portion of the pie in a highly competitive market.

11.  Avoid doing what you Love

People may advice you to do what you love. This may be ill-conceived advice as it is always better to do something that you are talented and good at rather than something that you love. In all probability, you may not be good at what you love. So be very judgemental about this aspect.

12.  Starting a business without adequate investment.

Most businesses will not make profits as and when they start. Making profits is a long drawn process and companies may take years to see a reasonable profit. This means you should have enough funds to manage till you reach a healthy stage in business. Always be prepared for such eventualities as only then can you succeed in your venture.

13.  Not taking your business Online

The Internet has brought tremendous changes in way we do business. We measure market acceptability in terms of how well you are visible online. More and more people now are searching online for things that they need, and if you are missing from this search you are missing a large chunk of customers. Even if you are not having a website, you should have a presence on social media like Facebook or Linkedin. This gives you a better chance for success.

14.  Adopting wrong Marketing Strategies

This is a common mistake among entrepreneurs who feel that they have a great idea but fail to realize that it does not suit the product and the current day marketing scenario.  You should give this aspect very serious thought before you venture into the business. The guidance of an expert could be useful to avoid this mistake.

15.  Fear of Failure

Many entrepreneurs have fear of failure and this prevents them from taking risks. If you plan to become a successful businessman, you have to be prepared to take risks. Mind you, the chance of the risk taken becoming successful is not guaranteed. If you fear failure, then you are bound to fail in your venture. Be prepared for failures. Only then can you achieve success.

GetifyHR started as a Payroll Outsourcing Services provider and is today widely accepted in the industry for its excellent service and support. By integrating HR Outsourcing Services, we achieved greater acceptance and today offer services like attendance Management, Leave Management, Statutory Compliance Services, EPF & ESI Registrations, and Task Management Services. At every point in our growth, we have avoided making mistakes that could hamper our growth. Today we are one of the leading players in the industry.

Conclusion

The above 15 mistakes are the most common mistakes that people make when starting a business. With better clarity and focus on what you have set out to do, and by avoiding these mistakes you can become a successful businessman.

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7 Effective Strategies to Business Success through Goal Setting

A business is the outcome of serious thought and planning to make life successful and significant. Many people set out their plans and step into the shoes of a businessman. The steps that they take thereafter may lead to success or failure and this would fully depend on the action they take to achieve what they have set out to do.

Why set goals?

When you wear a businessman’s shoe, your first and foremost priority is to clearly identify your objective. You should be clear in your mind about where you want to be in the next five years. If you want to succeed in your objective then you have to set clear goals. Without setting goals you will lack focus and be directionless.

Once you set goals, you are in effect taking full control of the direction of your business and life. Goal setting is, therefore, a process that needs careful consideration of what you hope to achieve within a specific time and follows up with a dedicated effort to achieve it.

Your company will be successful only when you have a clear vision of what you want to achieve, how, and when!

How to set goals?

There are different methods by which you can set business goals. Your choice will depend on the nature of your business and whether the method that you adopt fits your culture and approach in handling issues. The following paragraphs set out 7 effective strategies that will bring success to your business.

1.  Objectives and Key Results (OKR)

This is a collaborative goal-setting methodology that drives the entire company right from the top management to the employee level to fully focus on the goal. Everyone in the organization connects to the business goals and this enhances the performance and generates positive results. One advantage of this method is that it creates a greater rapport between the management and the employees, which in turn will push up productivity.

2.  The SMART way

The expansion of the word SMART will give you five actions that you need to implement to achieve your goals.  They are Specific, Measurable, Attainable, Relevant, and Time-Bound. When you use the SMART methodology to achieve goals, you are using a powerful system that drives performance. Normally this method is used to set goals for a year.  For example if you wish to improve your company’s performance by 20% over the last year’s performance, then using this method will help.

i. Setting Specific Goals:

In this method, you first set Specific goals that you hope to achieve. These goals will set the tone for the company and define where you want to be at a specific time.

ii. Setting Measurable goals

Measurable goals are amount and date-specific. You can measure your success by how much you have achieved and within what time frame.

iii. Setting Attainable Goals

The goals that you set should be attainable or achievable. When you set a goal that is way beyond your capacity it will only demotivate you and the people working with you. You will lose your confidence. So be judicious in the goals that you set and see that they are attainable by your team.

iv. Setting Relevant Goals

Set goals that are relevant to what you need in life and your career. This will give you more focus in achieving your goals.

v. Setting Time-Bound Goals

Every goal that you set must be time-bound. When you set a deadline, your focus and dedication to achieve it would be greater.

3. Plan your Action

Without clear planning, all the hard work that you put in will go to waste. Planning is without doubt one of the most important activities on your path to success. If you want to achieve success, you have to plan meticulously.

4.  Avoid Distractions

Distractions are the bane of our society. We have Smartphones, the internet, social media, entertainment media, and so on to distract us from our goals. Under these circumstances, it becomes harder to stay productive and achieve success. Your first step is to identify the distractions and take conscious efforts to eradicate them.  This will go a long way in helping you to achieve your goals.

5.  Time Management

Time management is very vital for achieving one’s goals. Set deadlines for your goals and keep track of them. When you organize time properly or systematically, you will manage your daily routines more effectively and will spend time on things that count. This will enable you to achieve your business goals within a planned time frame.

6.  Prioritize your Tasks

When you prioritize your tasks you will do the most important tasks first and then proceed to complete the other less important tasks. People generally tend to do the easier jobs first and then attempt the harder tasks. This is counter-productive and will stop you from achieving your company goals. The technique is known as  “Eat the Frog” technique and it recommends that you eat the biggest frog first and then proceed to eat the smaller ones; similarly, you take up the most important task first and then complete the lesser tasks.

7.  Monitor your Progress

Constant monitoring of the progress of the activities is a must if you have to achieve your business goals. This will enable you to keep track of your progress and will also help you to make course corrections when you identify some shortfalls. By constantly monitoring the progress, you can evaluate your performance and adjust to the needs to reach your goals.

How setting goals help businesses?

The goals that you set and the focus and dedication you have in achieving them will determine the success of your company. When you follow the steps enumerated here you are sure to achieve the success that you have planned for.

GetifyHR has been a leading player in Payroll and HR Management sector in the country.  Our Payroll Outsourcing Services have been widely accepted in the industry and is the outcome of vast experience and effective goal setting.  Using goal setting techniques, we have been able integrate HR Outsourcing Services within a set time frame.  We have achieved all our further integrations like Statutory Compliance Services, EPF and ESI Registrations, Attendance Management Services, Leave Management Services and Task Management Services by following the goal setting steps enumerated here.

Conclusion

Setting goals, implementing them, unitedly working to achieve them, monitoring and reviewing them to set the path to success, and finally achieving the goals are a continuous process.  This process gets back on track when you set newer goals.  Goal setting in many ways helps the organization and the employees to identify the Key Performance Indicators (KPIs) and update them over a period of time.  These activities facilitates business growth

By deploying these strategies you are not only enhancing the growth and productivity of the company, but you are also encouraging your employees to directly support the priorities of the company. This paves the way for a stronger Management – Employee relationship.

This helps the company to retain talent and reduces employee turnover. Setting goals and succeeding have their benefits. Nothing succeeds like success!

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Understanding the EPF Act, 1952, and EPS & EDLI Schemes

Employees’ Provident Fund Act, 1952

The Directive Principles of State Policy enshrined in the Constitution of India aims at ensuring socio-economic justice to the people and in establishing a Welfare State.  Private sector Employees’ who retired found themselves in trouble to earn a normal livelihood.

The government passed a legislation to introduce a long-term savings scheme that would support them in retirement or superannuation.  This gave them a life of dignity and a strong social security cover. This legislation is the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.

As a follow-up, in the year 1976, the government introduced the Employees’ Deposit Linked Insurance Scheme (EDLI) as a part of the EPF Act. This paved the way for the nominee of the policy to receive a lump-sum payment in the event of the death during the period of service, of the person insured.

To provide further security, in the year 1995 the government introduced the Employees’ Pension Scheme (EPS) to ensure more support.

Who the Act is Applicable to?

The Act applies to both the Employer and the Employee.

The Employer

The EPF Act provides that any establishment having 20 or more Employees’ comes under the purview of the Act. However, even organizations with less than 20 Employees’ can opt to register for this scheme.

The Employee

The Act mandates that all Employees’ who draw a salary (Basic wages) that is less than INR 15,000/- should become a member under the scheme. For those drawing more than INR 15,000/-, you are given the option to either join or not join as a member. However, once an employee drawing more than INR 15,000/- has become a member, he cannot opt-out of the scheme at a later date.

All the 3 Schemes, EPF, EPS & EDLI are bundled as one package and there is no option to choose as per one’s discretion.

How to contribute?

Both the Employer and the Employee have to mutually contribute to the EPF. Employees’ contribute 12% of their basic salary towards this fund and the employer contributes an equal amount. The entire portion of the contribution of the Employee is allocated to the EPF A/c. This accumulated fund earns interest at a specific rate as declared by the government from time to time.

The Employer also contributes 12% out of which 8.33% of the salary is allocated to the Employees’ Pension Fund (subject to a maximum of INR1250/-) and the remaining 3.67% is allocated to the EPF A/c. In addition to this, the employer also contributes to the Employee Deposit Linked Insurance Scheme. This is 0.50% of the basic pay subject to a minimum of INR 75/- per month per employee.

Apart from this, the employer has to contribute 0.50% of the basic towards the PF Administrative charges subject to a minimum of INR 75/- per month for a non-functional organization without any contributory member and INR 500/- for other establishments.

As mentioned earlier, the three schemes EPF, EPS, and EDLI are bundled schemes with no option to contribute separately as per our choice.

Therefore, we must understand the key functions of the 3 schemes.

Employees’ Provident Fund

This is the main ingredient of the EPF Act 1952. The main purpose of this enactment is to provide security to the employee on retirement. The Employees’ Provident Fund Organization (EPFO) controls this scheme.

In this scheme, the Employee and Employer contribute to the scheme. The Employee contributes 12% of salary (Basic wages) and the Employer contributes 3.67% of basic salary from the 12% that he contributes. The Employees’ Pension Scheme and the Employees’ Deposit Link Insurance scheme share the balance 8.67%.

The EPF scheme is exempt under the Income-tax Act.  This is the EEE exemption. The First E indicates that this investment is exempt from tax; the Second E indicates that the interest earned on this investment is exempt from tax and the Third E indicates that the income generated from this investment will not be taxable at the time of withdrawal.

The Finance Act, 2020, has modified this rule.  The rule now states that if the funds contributed by the employer in any of the schemes go beyond 7.50 lakhs, then the interest income on the incremental contribution is taxable.

Penalty for late payment /non-payment

The Act mandates that the employer has to remit his part of the contribution along with the employee portion on or before the 15th day of every month without fail. In case of default of payment, the employer is liable to pay U/s.7Q of the Act, simple interest at the rate of 12% per annum for each day of the default.

Under Section 14B of the Act, late filing of EPF Challan and contribution will attract the following penalties.

5% interest p.a for a delay of upto 2 months

10% interest p.a for a delay of 2-4 months

15% interest p.a for a delay of 4-6 months

25% interest p.a for a delay of more than 6 months

The PF a/c’s of members will be credited the interest once the penal dues are realized and the employer will be charged penal interest to cover the interest dues and also has to pay a penalty in case the employer is declared bankrupt. This indicates that the EPF dues are more important than any other debts or dues. Non-payment of dues could also attract arrest proceedings. The EPFO has the right to attach the bank a/c of the employer for non-payment of these dues.

Interest Rate on EPF

The interest rate for EPF contributions was 8.5% for the fiscal year 2020-21 and this remains unchanged for the fiscal year 2021-22 also. The interest calculation depends on the monthly running balance and the rate announced by the government.

Employees’ Pension Scheme (EPS)

The Employees’ Pension Scheme is a social security scheme launched in the year 1995 by the Employees’ Provident Fund Organization. The scheme provides a pension to an employee of the organized sector after retirement at the age of 58. This is subject to the employee having being employed for at least 10 years (this need not be continuous years of service).

The following are the criteria to become eligible for the scheme.

  • The employee should be a member of EPFO
  • He should have completed 10 years of service
  • The employee should be 58 years of age

The amount of premium is arrived at using the following computation:

Month Pension = Pensionable service x Pensionable salary /70

The maximum pensionable salary is INR15000/- per month

EPS funds don’t generate any interest.

Employees’ Deposit Linked Insurance (EDLI)

Introduced in the year 1976, the EDLI scheme provides the nominee a lump-sum amount in the event of the death of the person insured during the period of service.

Eligibility and other criteria

  • All EPF members get the benefit of the EDLI scheme
  • The plan is a term plan and the sum insured is variable as it depends on the remuneration of the person insured.
  • The Employer pays the premium amount.
  • The minimum assurance benefit for the scheme is INR 2.5 lakhs and the maximum is capped at INR 7 lakhs.

The Employees’ Provident Fund Act, 1952, the Employees’ Deposit Linked Insurance Scheme, 1976, and the Employees’ Pension Scheme, 1995 provide a strong social security cover to Employees’ in the private sector. These are a means of supporting the livelihood of such Employees’ once they retire from service. They are one among the pillars of a society that believes in being identified as a Welfare State.