ESIC Return Filing

The Employee State Insurance Act of 1948 requires businesses to file ESIC returns. This statute grants medical, financial, maternity, disability, and dependent benefits to employees in the event of illness, maternity, or injury at work. In India, ESI registration enrolls employees in a company's self-financing health security system, which is overseen by the Employees' State Insurance Corporation under the Employees' State Insurance Act of 1948. ESI registration provides medical and financial benefits to employees in tough situations. It is applicable to firms with ten or more employees earning up to Rs.21,000 per month.

Understanding of ESIC Return Filing in India

ESIC return filing refers to the submission of employee-related documentation and information to the Employee State Insurance Corporation under the Employee State Insurance (ESI) Act of 1948. These ESIC Return needs to be filed on time as non compliance with the same can lead to fines and penalties which can cause unnecessary loss. The entire process of ESI return filing is easy and online, hence one can complete it while sitting at his or her comfort place but in order to file the same correctly knowledge of the same is necessary.

ESIC Return Due Date under the India Laws

The ESI return due date can be broken down in the following ways for monthly and ESI Half Yearly Return submissions:

• Monthly ESIC Return and Contribution: The employees who have registered with the ESIC must make a monthly contribution and are required to submit their ESI returns by the 15th day following each month.
• ESI Half Yearly Return Submission: Submission of ESI Half Yearly Return covering a time period of six months has been mandated by the ESIC. The returns are due by 12th May each year whose returns are from 1st October to 31st March whereas those returns which are from 1st April to 30th September must be filed by 12th November.

Benefits of ESIC Return Filing in India

The companies or businesses registered under the Employees’ State Insurance (ESI) scheme should file for ESI returns as it is beneficial for them. The benefits of filing ESI returns are:

• ESIC Return Filing ensures compliance.
• Benefits employees by providing financial assistance during difficult times.
• Helps maintain records during audits.
• Builds trust, and is helpful during unemployment.
• It also simplifies the process of claims, as employee information is regularly updated through filings.
• Regular filings also help maintain records of wages and contributions for employee insurance.
• ESIC Return Filing is beneficial for businesses and employees alike.

Documents Required for ESI Returns Filing in India

Required documents for ESI Returns Filing in India is as follow:

• ESI Registration Certificate: Proof of establishment’s ESI registration.
• Form-1: Employee registration details.
• Attendance Records: Records of employee attendance.
• Salary Register/Payroll: Monthly salary and wage details.
• Contribution Calculation: Documentation of how contributions are calculated.
• Form-6: Monthly ESI contribution return.
• Bank Payment Receipt: Proof of ESI contribution payment.
• Form-12: For updates to employee or establishment details (if applicable).
• Form-5: For employee record updates (if applicable).
• Compliance Records: Documentation showing adherence to ESI regulations.
• Register for Wages: This register consists of details about the wages paid to the employees.
• Inspection Book: An inspection book is a record consisting of details about all the ESI inspections conducted.
• ESI Returns and Challans: The monthly ESI contributions and filings are documented.

Process of ESIC Return Filing in India

Before ESI registration, the workers and employer are assigned a 17-digit code along with a user ID and a password which helps them to access the portal. The steps that should be followed for ESIC return filing are:

• Step1: The employer is required to log in to the official ESIC website using their provided credentials.
• Step2: After logging in, the employee can navigate to the employee detail modification section, if required. In order to proceed with the process of return filing, click on the ‘File Monthly Returns’ option which is in the menu on the right-hand side by which the employee details can be verified.
• Step3: For the completion of the process of monthly ESI contribution, enter the necessary bank details and submit the form.
• Step4: The next step is to generate ESIC challan payment after doing the proper ESIC payment for which the employee has to go to the ‘List of Actions’ after ESIC payment and click on ‘Generate challan’. ESIC challan payment is an important document that should be preserved for future inspections. ESI Payment due date must be taken care of at this step.
• Step5: One has to opt for ‘Self-certification’ under the section of ‘Monthly Contribution’ and agree to the declaration by clicking and ticking on the checkbox. It is mandatory to upload a certificate from a Chartered Accountant for employers with over 40 employees.
• Step6: The last step is to click on ‘Submit’ which concludes the process of ESI return filing.

Penalties for Delayed ESIC Return Filing

Given below is the table of penalties for delayed ESIC return filing:

Time Taken for ESIC Return Filing

Why Choose Bizfoc?

Choosing Bizoc for ESIC return filing ensures expert handling, accuracy, and efficiency, with their extensive experience and up-to-date knowledge of regulations. They streamline the filing process, minimize errors, manage documentation, and offer ongoing support, freeing up your time and reducing compliance risks.

Conclusion

In India, ESI registration and the process of ESIC return filing for businesses is a crucial process as it provides health, financial and social security benefits to its employees and makes sure that they meet their legal duties. ESIC return filing is beneficial for both the business as well as its employees in many ways as it ensures compliance, manages employee details and provides financial support to the employees during sickness, pregnancy and other such issues.

Frequently Asked Questions (FAQs)