How to Avoid the Most Common Payroll Mistakes Small Businesses make ?

How to Avoid the Most Common Payroll Mistakes Small Businesses make ?

Small business owners and managers often have their hands full with loads of tasks. And so, it is not uncommon for them to make mistakes while processing payroll. 

To an outsider, it may seem like an easy task but those who have ever worked on payroll processing know that it is not at all easy. 

Errors in payroll processing can lead to dire consequences. These consequences can include paying hefty fines and penalties, losing the trust of employees, and the reputation of the firm getting severely damaged. Therefore, avoiding payroll mistakes is absolutely essential for all small businesses. 

Let’s discuss the most common mistakes that small businesses make when it comes to payroll processing:

  1. Delay in payroll processing or not paying at all

Due to busy schedules or other problems in professional or personal lives, payroll processing can be delayed. So, delay in payroll processing means that the employees will not be paid their compensation on time. This can be incredibly frustrating for the employees and they might lose their trust in the company’s management. 

It is not uncommon for businesses to completely forget to pay an employee or two. They might not be properly registered on the company’s records or their name gets overlooked or gets deleted somehow – any of these scenarios can lead to the employee not getting paid at all. This should be avoided at all costs as in such cases, the employee will not only be tempted to resign but the company’s reputation will also be tarnished among other employees and in the industry. 

  1. Improper Payroll set-up

If the payroll set-up is not up to mark, it can lead to numerous payroll mistakes. So, to avoid payroll mistakes, one should first check whether the payroll set-up has all the required aspects or not. A proper payroll setup must incorporate taxes, reimbursements, and employee classifications. 

On occasions where the business is not registered, legal and statutory compliances are not considered properly, and employees are not classified correctly, the payroll is bound to be filled with errors. Moreover, penalties are also very likely to be levied by the tax authorities. 

  1. Not paying payroll taxes

The local, state and central governments all have various laws regarding taxes. Not all taxes are going to apply to your business. You need to check which ones do and when you are ready, you need to pay them timely. 

However, plenty of businesses fail to pay taxes at the right time each year. Many of them are accused of tax fraud and have to pay huge amounts of penalties to the government. 

Therefore, in order to avoid that, taxes need to be properly understood by small businesses. It is extremely important to figure out what taxes you need to pay and what you need to deduct from the payroll of your employees. This will ensure proper compliance to statutory requirements and help you to avoid payroll mistakes.

Contributions Deductions in Payroll 01 1
  1. Incorrect Payment

This is a payroll error that is extremely common among firms. that is, to pay the incorrect amount to their staff. Overpayments and underpayments are an issue everywhere in the world and even the top companies have made such mistakes.

Such situations damage the reputation of the company and it also loses trust and respect from its employees. Not to mention, it takes extra time and energy to resolve these issues and so, you get sidetracked from the important business tasks. Therefore, this error must be avoided at all costs. 

  1. Improper Records

If the records of your staff are not accurate, there are bound to be errors in payroll processing. Their bank account details, stipend details, tax information, statutory requirements, everything must be properly recorded so that payroll processing is accurate and smooth. In addition to this, make sure that payments and bonuses are also tracked properly. Salary slips of each employee must be kept safe because they can come in handy in future. 

Small businesses must record all these details because it can help them steer clear of penalties when there is an inspection by tax authorities or any other government body. 

  1. Wrong employee classification

Companies may classify their employees incorrectly and this leads to incorrect payroll processing and payments. This happens more often than you’d think. Many companies hire independent contractors and gig workers apart from full-time employees. Many times, the firms mix up their employees belonging to different classifications. 

This should not be taken lightly. Based on the employee classification, their salaries get reported to the tax authorities because they are taxed according to that. Moreover, governments have different laws and liable taxes for different types of employees. 

Therefore, whenever a new employee is hired, it’s important to double-check their classification and see if it’s correctly entered in all records or not. 

  1. Overtime payments not paid

When you do not pay your employees for overtime, it is likely that they will get upset with you and may lose respect for you and the company. But apart from this, it is also illegal to not pay your employees for overtime. According to the guidelines set by the government in the form of labour laws, each employee must be paid for overtime. You will be fined by the authorities if you do not follow this. 

  1. Not keeping track of changing labour laws and tax regulations

Sometimes you do everything right like accurately processing payroll and paying the correct salary to every employee. Still, you get fined by the government and end up paying a large amount of money in the form of a penalty. Why does this happen?

Because you were not up to date with the government rules and regulations relating to payroll and tax. You thought you were doing everything right but you didn’t know about the updated laws. So, you ended up not adhering to the laws properly and thus, made things worse for the company. The company will not only have to pay hefty fines but its image will also be tarnished. 

That is why it is of utmost importance to keep track of the laws set by the local, state and central government regarding payroll and taxes. 

How Workex will help you avoid payroll mistakes

We covered a lot of common payroll mistakes that small businesses usually commit. Reading all these might have caused you a lot of stress. It is normal to stress about this but there is actually a way in which you can sit back and not worry at all about making these mistakes. 

What is the way you ask?

Workex

Automated-payroll-processing
Why does your company need an attendance management system?

Why does your company need an attendance management system?

Why does your company need an attendance management system?

Organizations need to adapt to the new technological innovations in the work environment if they want to fulfil the evolving workplace management needs. It is essential for any company to have a proper system for managing their staff but it is easier said than done, especially for SMEs.

SMEs have a shortage of resources and labour and so, managing their staff becomes more of a challenge. This is why, every company struggling with managing their staff, needs to consider an attendance management system. In this article, we will have a look at all the reasons why your company needs an attendance management system. 

What is an Attendance Management System?

Having an efficient attendance management system is the key to a positive work environment. An attendance management system does more than just storing employee information. It keeps track of employees’ attendance, shifts, overtime, paid time off, etc. This in turn makes payroll management and monitoring the performance of each employee a lot easier. 

If every company incorporates such an effective system, managing the staff becomes relatively smooth. Now, let’s dive into how it makes the process smooth and what are the benefits of having an attendance management system. 

Benefits of attendance management system

A web-based attendance management system comes with varying benefits for any organization from accurate and fast payroll calculation to proper statutory compliance. 

  1. Accuracy

Human error is inevitable, it doesn’t matter how capable the said human is. Automated attendance management systems, however, have no room for errors and ensure accuracy in record keeping. 

When the attendance data of employees is accurate, it ultimately leads to accurate performance and payroll data. 

Maintaining accuracy in every aspect of staff management means that the staff remains happy and satisfied, leading to greater productivity.

  1. Cost-effective

If errors are reduced in the attendance records of employees to a bare minimum, the firms will automatically save money in the long term. Firms will have accurate data of when their employees have taken paid time off and when an unscheduled absence. This will help in the proper calculation of the salary of an employee and not losing money in overpaying. 

Additionally, if a staff member’s performance level is consistently low in the reports, the company can make the right decision regarding the future of the employee in the company. 

  1. Productivity and Efficiency

Managing the attendance of employees by yourself can be an arduous task and there is also a lot of room for errors. So, generally, the attendance records require to be rechecked again and again to maintain as much accuracy as possible. 

Hence, it is clear that attendance management takes up a lot of time and effort. Now, SMEs may not have so much time on their hands due to a shortage of labour. This is where the help of a web-based attendance management system can be a game-changer. It will lead to greater productivity and efficiency of your business. 

  1. Insights

A proper attendance management system allows you to clearly see the performance reports of each employee in just a few clicks. You are able to generate performance reports based on the punctuality, attendance, and absences of your employees. 

This will create a much more transparent atmosphere in your working environment. Employees will naturally try to be better at their jobs when they know that their performance is being tracked and analysed.

  1. Hassle-free Workflow Management

Manual management of attendance of employees is not just time-taking but takes up a lot of effort as well. On the other hand, the attendance management system provides easy access to the data of each of your employees. It eases the workflow of payrolls, leaves, and performance reviews, along with automating notifications to the manager for early departure, overtime, etc. 

Managers are also capable of managing the schedules of employees, assigning them work, and keeping track of shift swaps. It is also helpful in forecasting budgets, resources, and workloads. 

  1. Flexibility/Accessibility

As the world has mostly shifted to remote work in the past couple of years, tracking the attendance and performance of employees has become increasingly difficult.

This is where an attendance management system comes to the rescue. With most such systems, employees can easily enter their clock-in and clock-out times, in just a few clicks or just a few taps on their smartphone, no matter where they are. 

Therefore, attendance management systems have greater flexibility and accessibility for tracking employees’ attendance, shift times, and performance.

  1. Integration/Configuration

Attendance management systems can be configured to suit the needs of your business and that is one of its greatest benefits. You can also integrate them with any third-party attendance hardware (swipe, biometric). They can also be configured to capture GPS-based attendance with smartphone apps. You also get the option to create customized attendance policies according to the needs of your company. 

  1. Compliance

If your employee records are not error-free, it can also cause issues with statutory compliance. Labour laws can be accidentally violated which, in turn, can cost your company an immense amount of money in expensive legal defence and fines. 

Since an attendance management system accurately records employee attendance, complying with statutory laws becomes simpler. Integrating the attendance system with the payroll system fully ensures that all the labour laws regarding compensation are met. 

  1. Real-time tracking

Web-based attendance management allows the managers to track the employees’ performance in real-time. They also provide automated inputs for payroll processing. Thus, all the information about the employees’ time is available in real-time to the managers. It allows them to easily manage alternative payment schedules and adjust work schedules and workforce activities in real-time. 

  1. Security

Attendance management systems are known for providing highly secure systems and architecture for the safekeeping of all employees’ data. The tight security also helps in preventing fraud of any kind like time theft, buddy punching, etc. Therefore, these systems are a must-have for any organization where security is a primary concern. 

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Workex Staff Attendance Management System

Now that you have been provided with various reasons as to why your company needs an attendance management system, it is time for you to choose one. There is a myriad of attendance management software and systems available on the web. Workex also happens to be one of them.

Our Workex App provides an effective staff and payroll management system. This mobile application is an attendance management system integrated with payroll management system. So, it is a complete solution for all your staff management needs. 

Once you have signed up on our app and onboarded all your employees, Workex will be responsible for providing you with 100% accurate attendance, leaves and overtime management, automatic payroll calculation, and employee performance tracking. 

The best part about our app is that you can try all of these services on Workex App for free for the first three months. At the end of the three months, you can continue using our services for a minimal fee.

Conclusion

Hence, there is no question that an attendance system will definitely make the lives of business owners, managers, and employees easier. Now all that is left for you to do is find a system or software that suits your business needs. Luckily, Workex can be a great option.

So, you should not waste any more time and get the best attendance management system for your business by installing the Workex Power App!

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Compliance challenges faced by the SMEs in India

Compliance challenges faced by the SMEs in India

Medium and small-sized businesses face an abundance of issues, and a significant part of them are compliance challenges. MSMEs form the backbone of the Indian economy and their total contribution to the country’s GDP is 37.54%. However, it is still lower than what they should be contributing on the basis of their manufacturing and exports. Why is it so?

Did you know

Such businesses have an unorganized nature and are lacking in adequate resources which causes them to fall back in various departments. Legal compliance and statutory compliance comes under one of these departments. All firms in India, whether big or small, have to follow certain guidelines set by the government but complying with them is a huge challenge for small and medium enterprises. 

Failure to comply with these laws can result in huge losses and fines for a company and that is why it gets difficult for SMEs to maintain their profits. Let’s take a look at the reasons why SMEs in India struggle with compliance:

compliance-challenges
  1. Lack of legal knowledge

As mentioned above, every business has to follow certain government laws regarding their industry, taxes, environment, etc. There are a large number of such regulations, set by the local, state, and central governments and they are ever-evolving. 

Now, SMEs do not have a well-developed HR department to stay abreast with the laws and regulations. An average business owner or manager in these companies cannot be expected to have expertise in legal know-how. They usually get updated about these laws through their peers in the industry or newspapers or other media sources but understanding them properly requires legal competence. 

Therefore, due to a lack of proper legal knowledge in these companies, they tend to sometimes overlook certain regulations or fail to accurately comply with them. These compliance issues, in turn, result in huge fines or legal battles, which can be a nightmare for SMEs, given their lack of funds. Hence, without a legal expert guiding them, such firms will continue to flout the compliance norms.

  1.  GST Liability

Since its introduction in India’s economy, GST has eased the way startups do business since it has combined all the levies and taxes of the state and central government into one. However, the effect of GST on Indian businesses is not so one-dimensional. 

Despite making it easier for businesses to pay taxes, GST has also escalated the pressure of compliance on small and medium businesses. Filing for GST often causes cash flow problems for SMEs especially, startups because they are also liable to pay taxes on the pending and unrealised invoice bills. 

Therefore, GST plays a significant role in causing compliance issues for small businesses. 

  1. Absence of digitisation

The medium and small sized enterprises in India do not work like the ones in developed countries such as the UK and USA, using technology for everything. Here, most of these companies are still reliant on people instead of computers and papers instead of spreadsheets. 

Since, in SMEs, most of the records are kept in books rather than digitally, it can cause a lot of problems including loss in ownership, timelines, accountability, and transparency. These problems can often lead to overlooking compliance obligations and therefore, result in paying big fines and penalties to the authorities. 

Sometimes, essential compliance documents can be misplaced. If firms do not have digitally scanned copies of these documents stored in their computers, it can lead to compliance issues. 

Therefore, without the assistance of technology, maintaining compliance can be an enormous challenge. SMEs in India do not have enough resources to equip themselves with all the necessary technology, so it becomes immensely difficult for them to comply with statutory and legal requirements.

  1. Budgetary constraints

SMEs in India are mainly businesses operating in trading, services, and manufacturing sectors. Such firms are usually self-funded or take loans from banks. Since they do not have investors and ample amounts of funds, they have to decide carefully on where to spend money. 

Most of the budget is allocated to operations such as machinery, stock, interest, wages, electricity, etc. More often than not, the compliance division is the last one to be included in the budgetary provisions, if included at all. The Accounts/Finance team is usually responsible for managing compliance for the firm. This means that the time, energy, and resources dedicated to compliance is insufficient in these companies. 

SMEs are provided with an opportunity to raise funds on national stock exchanges through IPO. However, most of the SMEs fail to do so because of their compliance status. Therefore, the problem here is that these companies do not have enough funds for maintaining compliance and they cannot obtain funds because they are not properly compliant. 

  1. Absence of legal experts

Even when companies know all about the statutory and legal requirements they have to comply with, it is not enough. Without a legal expert in the company, it is highly likely to struggle with maintaining compliance. 

There are hundreds of compliances and filings to be fulfilled each year in SMEs along with hundreds of acts, licences, and registrations to be dealt with. Thus, SMEs have to deal with a complex web of compliance and without the right expertise, they cannot be expected to be perfect at it. 

Now, an SME cannot seek the services of legal experts unless they have spare funds available. Therefore, most such companies try to manage compliance without any legal expertise, resulting in non-compliance and dealing with penalties and legal issues. 

How does Workex support SMEs to overcome compliance challenges?

At Workex, we aim to do our best to aid SMEs with the compliance challenges in India. For those of you who are managing a small or medium sized business and struggling with compliance, Workex is the best pocket-friendly solution for you. 

Our Workex App provides all staff management solutions in one place including compliance. We have legal experts who strive to help you in avoiding all kinds of compliance challenges for your business. You just have to sit back, work on achieving your business goals, and we are here to take care of the following:

  • Statutory Compliance: Workex will take care of Statutory Compliance for your company, including the TDS calculations and ESI files. You will just have to upload the documents to the concerned government and portal and make the required payment. 
  • Labour Law Compliance: We guarantee 100% Labour Law Compliance for your firm, including Minimum Wage Compliance, Labour Welfare Fund, and Professional Tax Calculation. 

The best part of our services is that you get to try them for free for the first three months. Once you are satisfied with what we do, you can further our relationship after three months by paying a minimal fee. 

Therefore, all you need to do is install the Workex App and get your company and your employees onboard. After that, we promise to take care of all staff management tasks including attendance, leaves, and overtime management, accurate payroll calculation and processing, employee performance tracking, and statutory and labour law compliance. 

So, hurry and install the Workex App from Google Play Store today and get the solutions for all your compliance issues. 

Conclusion

SMEs generally tend to face a lot of compliance challenges in India. Those challenges have been detailed above in this article along with their causes. Non-compliance is something that companies should avoid at all costs and that is why SMEs need to seek help for dealing with compliance challenges. So, don’t forget that Workex is here to help.

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EPF Guide: How to withdraw PF balance in 2021

EPF Guide: How to withdraw PF balance in 2021

EPFO members cannot withdraw from their PF account until they are retired. However, in certain special circumstances, they are allowed to withdraw a part of the total amount in their EPF account. Therefore, if you are interested to know about the special conditions under which you can withdraw PF balance from your EPF account and how to carry out the process, this article is for you. 

Conditions for EPF withdrawal

Withdrawing from an EPF account can be done quite easily using one common form. However, if you are thinking of withdrawing from your EPF account, you must be aware if you are eligible to do so. You can withdraw PF balance only on specific occasions under specific conditions, such as:

Marriage or education of your children, yourself or your siblings

  • Minimum 7 years of service should be completed
  • The maximum amount that can be withdrawn from EPF account is 50% of the till-date contribution. This can be availed for a maximum of 3 times only.

Repayment or partial repayment of a home loan in your name, your spouse’s name, or jointly owned by both

  • Minimum 10 years of service should be completed
  • The maximum amount that can be withdrawn is up to 36 times your basic salary

Alterations or repairs of an existing house owned by you or your spouse or jointly by both

  • Minimum 5 years of service should be completed (10 years for repairs) after the house was constructed or bought
  • Maximum amount that can be withdrawn is 12 times your basic salary and can be availed only once

Construction or buying a house or flat or land for yourself or spouse or jointly

  • Minimum 5 years of service should be completed
  • Maximum amount that can be withdrawn is 36 times your basic salary. For buying a plot, the amount is 24 times your salary. This can be availed only once

Medical treatment for yourself or your family (spouse, children, dependent parents)

  • Withdrawing money is allowed for undergoing major surgery such as leprosy, cancer, heart illness, mental ailments, or even TB
  • Maximum amount that can be withdrawn is 6 times your basic salary

Early retirement

  • Age should be 57 years
  • Maximum amount that can be withdrawn is 90% of the EPF balance including the interest

You can withdraw the full EPF amount under the following conditions only:

  1. You are retired from the workforce.
  2. You are not employed for 2 months or more.

Therefore, you can withdraw money from your EPF account only under the above-mentioned conditions. 

Latest Update from EPFO: 

In the light of the second wave of Covid-19 ravaging most of India, the EPFO has decided to aid EPF subscribers financially. They have now allowed its members to withdraw a second Covid-19 advance from their EPF accounts if they have already availed the first Covid-19 advance. 

Therefore, the members can withdraw PF balance up to 75% of the total funds in their EPF account or extent of their basic wages and DA for three months, whichever is less. The provision for first Covid-19 advance withdrawal came about in March 2020 under Pradhan Mantri Garib Kalyan Yojana.  

Composite Claim Form

Earlier, EPFO demanded separate documents like marriage invitation cards and utilisation certificates for EPF withdrawal. Fortunately, it has scrapped all these rules and now it can be done with just a single page Composite Claim Form (Aadhaar). This form now comes with self-certification. 

The form signed by the EPF subscriber will be construed as ‘self-certification’ by EPFO and no additional documents will be required to be submitted. Even attestation of the claim form from your employer is not needed for the successful submission of the claim. When the withdrawal claim is accepted, the amount will be sent to your UAN linked bank account. 

Process of how to withdraw PF balance

There are two ways to submit your claim to withdraw PF balance:

  1. Submitting an application for withdrawal in person. 
  2. Submitting the withdrawal request online

Here, we will be providing you with a step-by-step process of submitting the claim form for EPF withdrawal online:

Step 1

For submitting the request to withdraw PF balance online, make sure you have an activated UAN number. Once you have that, you need to go to the UAN e-Sewa portal and sign in using your UAN and password. 

Step 2

After logging in, you need to ensure that your KYC details are up to date. You can do this by clicking on the ‘Manage’ tab and then selecting the ‘KYC’ option.

kyc

Step 3

Once you are done verifying your KYC details, click on the ‘Save’ button. 

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Step 4

Then you need to go to the navigation bar and click on the ‘Online Services’ tab. From the dropdown, you need to select the ‘Claim’ option. 

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Step 5

The claim form will be opened where you will have to verify the last four digits of your bank account number. 

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Step 6

After verification of your account number, the following message will be displayed on your screen:

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You need to select the ‘Yes’ button here and then click on the ‘Proceed for Online Claim’ option. 

Step 7

The next page will show you all the options available for you. You will need to go to the ‘I want to apply’ tab and then select your desired claim option, ‘full EPF Settlement/EPF part withdrawal/pension withdrawal, etc. 

Step 8

After this, you need to select the PF Advance (Form 31) and enter the amount you wish to withdraw from your EPF, your reason for withdrawal, and other details. 

Step 9

Lastly, you need to click on the Certificate for submitting the application. 

The EPFO may ask you to submit scanned documents after you have submitted the application. Your employer will also need to authorise your request for EPF withdrawal to your bank account. This process including the verification and approval can take up to 20 days. 

Tax on EPF withdrawal

The amount withdrawn from EPF account is liable to tax but it can be exempted from tax in certain conditions. Let’s take a look at the tax rules on EPF withdrawal: 

  • If the contribution period must be more than 5 years, the withdrawal is not liable to tax. 
  • The tax on your EPF withdrawal depends on your salary in the year of withdrawal. 
  • It is liable to TDS if the withdrawn amount is more than Rs. 50,000.
  • TDS deducted will be 30% plus tax if the EPF account holder’s PAN details are not updated. If they are up to date, the TDS deducted is 10%. 
  • If your total income is not liable to tax, it is recommended for you to submit the Form 15H/15G as a declaration.
  • If your PF fund has been transferred to NPS, you will not be required to pay tax on withdrawal amount. 
  • If you have claimed tax exemptions on EPF for Section 80C, you are not eligible for tax exemptions. You are liable to pay tax on employee’s contribution, employer’s contribution as well as interest on each deposit. 

Advantages of EPF withdrawal online

Here is a list of advantages of submitting the EPF withdrawal application form online rather than offline:

  • Easy processing of application
  • Saves your time since you do not have to go to the EPFO office
  • Processing takes much less time compared to offline
  • Previous employer verification is not needed

Conclusion

Hence, we hope this guide helped you in obtaining all information you required to withdraw PF balance online. Now, you are ready to take an informed decision about your own withdrawal application. If you have any more questions about the withdrawal process, you can directly contact EPFOa experts on their Toll-Free Customer Care Number – 1800 118 005.

EPF Guide: How to transfer EPF account from one employer to another?

EPF Guide: How to transfer EPF account from one employer to another?

Changing jobs is common among employees as they are always looking for better opportunities. Sometimes, they can be unhappy with their current job, which leads them to switch jobs. In such cases, the problem arises of how to transfer EPF account from the previous employer to the current employer. So, if you are facing the same problem, this article is meant to help you. 

When changing jobs, employees have two options regarding their PF accounts. The first option is that they can close the old EPF account and withdraw the amount and make a new one with their new employer. The second option is to transfer the account from the old employer to the current employer. 

Why should you transfer your EPF account?

It is recommended for an employee to choose the second option, that is, to transfer the EPF account and the funds from the previous employer to the new one. This is so because these funds will be of use to you for your retirement plans. EPF is a safe long-term investment for retirement and you should try to keep the funds for your retirement rather than withdrawing them now.

Step-by-step process to transfer EPF account from one employer to another

An employee might need to change jobs due to a myriad of reasons. On such an occasion, they may feel like the transfer process of their EPF account can be a challenge. Well, it is not that hard and you can easily do it in a few simple steps. Here is how you can do it:

transfer epf account

Step 1: Checking Eligibility

For transferring your EPF money online from one account to another, it is important to first check your eligibility. You can do so by going to the website – www.epfindia.gov.in and then opening the Online Transfer Claim Portal (OTCP) under the category FOR EMPLOYEES, which you will find on the homepage. 

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If you see that you are eligible for the online transfer, then you need to register as a member on the portal, if not already registered. After this, you can simply log in with your details on the Online Transfer Claim Application. Once you are logged in, click on the Request for Transfer of account option. This will file an online Transfer Claim.

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You have to ensure that either your previous or new employer has a digital signature. Also, you must have the previous and the new employers’ PF details with you. 

Step 2: Filling Application Form

When you have filed the online Transfer Claim, you can now fill in the application form. The application form for transferring your EPF account is divided into three parts: Part A, B, and C. 

In Part A, you need to fill in all your personal details such as name, mobile number, bank account number, etc.

In Part B, you will have to enter the details of your previous employer. Upon entering the PF account number and clicking on the option that reads click here to get details, you will see all the details related to your previous employer. But if you see that any of the information is missing, you must fill them in manually.

In Part C, you will need to enter the details of your current employer. Same as in Part B, you can enter the PF account number of your new employer and all their details will appear on the screen. And if any of them are missing, fill them manually.

Now, after filling in these details, you must remember to claim attestation. The application will show you options of either getting it attested through the previous employer or the current employer. You have to choose either of these two options.

The employer will get the notification on their email as well as on their EPF portal. Once your employer verifies your application, it will be sent to the EPFO. 

After completing the application, you can see the preview of the entire form. You can change the details if you find anything is missing or is incorrect by clicking on “To change application data, click here.” 

Step 3: Submitting the application form

Now you will see a Captcha code appear on your screen, type it in the box and then click on the GET PIN button. Before going ahead, you also need to confirm your assent by clicking on the I Agree button. 

Then you will receive the PIN on your registered mobile number, which you will need to enter on the application. After submitting this, your online transfer process is officially completed. 

Step 4: Tracking the transfer status

After you have successfully submitted the application, a tracking number will be generated. Using this tracking number, you are able to track your online transfer application.

Keep in mind that you must save the Printable Transfer Claim Form (Form 13) generated on your device.

You need to print it out, sign it, and send it to your previous or current employer, whoever you had chosen to complete the transfer application. 

It takes approximately 30-60 days for the transfer process to be completed. Using this portal, even your employer can view, verify or change, and submit the online transfer application. 

Conclusion

As an employee, changing jobs is a natural part of their career. Most of the employees change their jobs at least once in their careers. Thus, it is important for employees to be able to transfer their PF account from their previous employer to the current one whenever they change jobs. The sooner they do it, the better it will be for them since you may need to contact your old employer and get their details and verification on your transfer form. 

If you decide to withdraw your funds, you should remember that withdrawing funds within five years of employment is liable to tax. If you leave your funds lying in different EPF accounts, it can be a huge problem to access all your funds when you need them or when you retire.