ESIC Annual Return Filing Procedure and Registration

Narendra Kumar

01 Dec, 2020

ESIC returns is required to half yearly. i.e. for the period of April to September by 12^th November and for the period from October to March by 12^th May.

What is ESIC?

ESI stands for ‘Employees State Insurance’. It is Social Security to the all-employee of an organization. ESI Registration offers monetary and medical benefits to Employees in a case of sickness, maternity, and employment injury and to make provisions for related matters. The Employees’State Insurance Act, 1948 provides an integrated need based social insurance scheme. The Act also guarantees reasonably good medical care to workers and their immediate dependants.

Applicability of the Act & Scheme

Is extended in area-wise to establishments employing 20 or more persons.

Coverage of employees

Employees drawing gross wages up to Rs.15000/- per month, engaged either directly or through contractors.

The rate of Contribution of the wages

Employers’ 4.75%

Employees’ 1.75%

Manner and Time Limit for making Payment of contribution

The total amount of contribution i.e. employee’s share and employer’s share is to be deposited with the authorized bank through a challan in the prescribed form in on or before 21st of the month following the calendar month in which the wages fall due.

Benefits to the Employees under the Act

Medical, sickness, extended sickness for certain diseases, enhanced sickness, dependent maternity, besides funeral expenses, rehabilitation allowance, the medical benefit to the insured person and his or her spouse.

Compliance Requirement

• Duly registration under ESIC and change in any information shall be intimated.
• Declaration in prescribed form shall be taken from all employee.
• The declaration form shall be submitted to appropriate office Within 10 days of furnishing of declaration forms.
• On receiving of declaration forms, appropriate office shall allot insurance number and temporary identification certificate for each employee, which employer shall deliver to each employee.
• Particulars of a family of insured shall be furnished by each insured employee which shall be dispatched to the appropriate office within 10 days of furnishing.
• The appropriate office shall issue for each employee an identity card.
• Return of contributions shall be filed Within 42 days of termination of contribution period in quadruplicate.
• Payment of contribution shall be made Within 21 days of the last day of a calendar month.
• Returns shall be filed half yearly.

Annual Returns

Every ESI registered Companies have to file their return half-yearly and annually returns. They have to mention all the changes made during the year. They also have to submit the ESI contribution paid every half yearly, the period for contribution is 1^st April to 30^th September and 1^st October to 31^st March, which has to be given to the nearest branch office or ESIC regional commissioner.

The ESI return is to be filed within 42 days from the end of half year period which is 12th November for period April to September and 12^th May from October to March.

ESI scheme provides benefits to the employees and has a large network of dispensaries and hospitals throughout the country for providing fast and efficient medical care to the employees.

The following is the procedure to file the return of contribution through the Employee State Insurance corporation’s website:-

• While registering the employer is granted 17 digit code. Which will be used as user id and password will be separately sent to the employee along with id.
• Then select the monthly contribution section on the home page and go to view RC and select it.
• After continuing all the details of the employees paid contribution by the employer along with the wages detail will be displayed on the screen.
• Make the short payment of contribution for any employee if any, Then supplementary challans have to generate by using the modify challan option under the section of a monthly contribution.
• Miscellaneous challan has to be created by the amount of whose payment is to be made on the omitted wages (not related to identifying).
• Then under self-certification under the monthly contribution section. Please check to mark the declaration and click the submit button. If you are employing forty or more employees, please upload chartered accounts certificate before clicking on the submit button.
• If any payment is not made by any employer for the months in any of two periods for which they are required to submit the return of contribution in physical form to the concerned branch office/Employee state insurance regional commissioner.

Penalties

• For contraventions of Provisions of the Act, imprisonment up to 2 years and fine up to Rs.5,000/-
• For continual contraventions of the Act, imprisonment up to 5 years and the fine up to Rs.25,000/-