Things You Must Know About Esi Registrations & Returns.

Employee State Insurance (ESI) is a social security scheme and a health supportive insurance plan for Indian employees in the organised sector, which offers them lifetime medical and disablement benefits on contribution of a small amount while they are working, being contributed by both employer and employee. It is managed by Employee State Insurance Corporation (ESIC) working under Ministry of Labour and Employment, Govt of India and is governed under the ESI ACT, 1948.

ESI Registrations

Initiated for benefit of factory workers, the scheme later became applicable for all entities having 10 or more employees getting to work on low wages. The ESI scheme ensures numerous benefits to employees and covers a major network of clinics & hospitals having expertise in critical medical ailments. For every establishment/unit/factory with over 10 employees and having a payout wage rate of less than Rs 21,000 per month, it is mandatory for them to get registered under the ESI ACT within 15 days of their applicability of act.

According to this Act, every employee earning Rs 21,000 p.m or less have to contribute 1.75% of his/her pay towards ESI, while the employer/company contribution would be be proportioned to 4.75% of the wages paid.  Below is a complete list of documents required for registering under the ESI Scheme…

  1. A list of employees with their monthly pay details ;
  2. A list of directors, partners and shareholders of the company;
  3. A registration certificate of a license obtained by firm under Factory Act or Shops and Establishment Act.
  4. Certification of registration of firm (being Memorandum and Article of Association in case of private company and partnership deed in case of LLPs etc)
  5. PAN details of employees and business.
  6. Bank details of business with updated transaction details of wages paid.

 

ESI Registrations Procedure :-

Step 1 :- Once documents are ready , Go to http://www.esic.in  and fill in the signup form (enter company name ,principal employer name, region or state, email address  etc).

Step 2 :- The ESIC department mails the temporary login credentials to the applicant which can further be used to login in to the website .

Step 3 :- On Dashboard , Select ‘New Employer Registration’ and the type of unit being Factory or Shop Establishment .

Step 4 : Complete the Employer Registration  Form-01 by filing all necessary details required. (fill important fields marked with  asterisk ‘*’)

Step 5 :- Once verified ,a registration number of 17 unique digits will be provided to the applicant which will be used in future for filing ESI .

As registration has been mandated for all entities with 10 or more employees, an organisation can anytime update details of employee additions , payout changes etc to the ESI department by logging in to the official ESIC website .

 

Documents Required

Employee attendance record
Register for Form No 6
Register of Wages
Inspection records
Monthly challans and returns made to ESIC

 

Filing Of ESI Returns :-

Step 1 :- Use the login credentials to Log in to the ESIC Online portal located to http://www.esic.nic.in/.

Step 2 :- On Employer Dashboard , a list of actions is displayed to which a number of changes can be made to the existing records like additions of new employee records , reporting accident , other expenses etc. For filing monthly return  locate to ‘File Monthly Return’ option.

Step 3:- After updating employee details like payment records , inspection records, attendance etc, Enter bank details and click on Submit to file your monthly ESI contribution.

Step 4 :- On successful payment of return , a challan for the made transaction is generated  which can be downloaded by clicking on Download Challan button .

 

ESI – FAQs

Q.1 How Does ESI registrations Help Employees ?

To registered employees the scheme not only provide medical care but also provide financial assistance to workers to get compensated for the loss of his/her wage during period of sickness , employment injury maternity etc. The scheme also covers medical care of family members also.

Q.2 What is a Sub Code Number?

It is a unique identification code allotted to sub branch of a registered factory or establishment under ESI registrations scheme.

Q.3 What Records are to be submitted by employer in ESI Returns/Reports?

  • Absent reports as sought by branch manager.
  • Accident Reports in Form 12, in case any accident happens.
  • Attendance, books of accounts, wages reports/ records as sorted by Social Security officer on last inspection.

File Easy ESI Returns with our Diligent Support Team  – TaxReturnWala.com