ESI Returns Filings

ESI RETURNS FILING:

Description: ESI registered businesses have to file ESI returns on monthly basis. It is governed under the ESI Act, 1948; ESIC (Employees’ State Insurance Corporation) which provides benefits to employees in the event of their sickness, death, disablement, injury, etc.

Documents Required for ESI returns filing:

1. Copy of pan of company/partnership/firm
2. Copy of Certificate of Incorporation / Registration certificate
3. Copy of Bank Statement
4. Copy of all licenses issued in the name of establishment
5. A cancelled cheque
6. Copy of electricity Bill
7. Copy of rent/ lease agreement
8. Copy of pan and voter id of directors/partners
9. Copy of Board Resolution
10. List of all employees employed directly by the company or by the contractor.

Process for ESI returns filing:

• The login credentials will be available once registered. The same will be required for the online filing of returns.
• Once the login credentials are available, the employer must log in to the official website that is www.esic.nic.in.
• Once he is able to log in using the credentials, there is a list of actions that are available. For instance, modify employee details, report an accident and so on.
• To file the return, the employer must first verify if all the employee details are up to date and then file the return.
• The employer must then fill the bank details and submit them to file the returns.
• After that, the employer can go to the ‘List of Actions’ and ‘Generate Challan’.
• The challan must be downloaded and documented for future reference and inspections.
• The website also offers various actions that the employer can take like modify employee details, report accidents, add new employees, and so on.
• The contributions towards employee state insurance are very beneficial to employees, and hence the provisions for non-payment or delayed payment are very stringent.
• The half-yearly return of ESIC for the period April to September is due by 12 November, and October to March is due by 12 May.

Consequences of Non-Payment or Late Payment of Employees’ Contribution:

• Amount deducted from employee’s wages as an employee contribution is deemed to have been entrusted to the employer. Therefore, the employer has a higher responsibility to deposit the contribution with ESI.
• Non-payment or delayed payment of the Employee’s contribution deducted from the wages of the employee amounts to ‘Criminal Breach of trust’ is punishable under IPC Section(s) 406, 409 and also an offence u/s 85 (b – g) of ESI Act.
• Non-payments, delayed payments, or falsifying payments under ESI Act may attract imprisonment for a period extending up to 2 years and a fine of up to Rs5000/-

Returns to Be Filed After ESIC Registration:

• Register of attendance of the employees.
• Form 6 – Register.
• Register of wages.
• Register of any accidents which have happened on the premises of the business.
• Monthly returns and challans.

Payment of Contribution:

The Corporation may levy and recover damages as per the Regulations, at the following rates, not exceeding the amount of contribution payable for default or delay in payment of the contribution.

                 Period of Delay                                                Rate of Damages in % p.a.

Less than 2 months                                                                       5%

2 to 4 months                                                                                 10%

4 to 6 months                                                                                  15%

6 months and above                                                                      20%

Penalty for not paying ESIC returns:

The employer will be liable to pay simple interest at the rate of 12% per annum in respect of each day of delay or default in payment of contribution.