1. Implementing Payroll for India
  2. Set Up Tax Reporting Unit for Provident Fund

Set Up Tax Reporting Unit for Provident Fund

Use the Manage Legal Reporting Unit HCM Information task to set up the TRU for provident fund.

You can set up the tax reporting unit for the provident fund component.

  1. Set the scope for this task by selecting the parent Legal Entity and then the Legal Reporting Unit, as described in previous tasks.

  2. Select Manage Legal Reporting Unit HCM Information in the implementation project task list.

  3. On the Manage Legal Reporting Unit HCM Information page, select the provident fund tax reporting unit and click Apply and Go To Task.

  4. On the Tax Reporting Unit Details page, select Correct option under Edit.

  5. For TRU of type India Provident Fund, click Provident Fund and complete the relevant information.

    1. In the Provident Fund Basic Information, complete the fields as shown below:

      Field Description
      Business Number

      Specify the business number for the employer PF.
      Base Business Number

      Specify the base business number

      Office Type

      Select the office type such as regional office, or head office.
      Trust Classification
      Trust Classification helps to identify the supported trust for provident fund computation. The following trust types are available to configure at organization level.

      • Un-Exempted - Attached with EPFO and follows the instruction and scheme provided by Provident Fund Organization

      • Exempted - Company Own Trust maintains the employee and employer contribution which again it abide to the EPFO scheme and policies, only EPS is contributed to EPFO.

      • Excluded - Excluded from PF contribution
      Industry Classification

      Specify the type of classification from the list.

      Recognized Provident Fund

      Select the recognized provident fund from the list.
      EDLI Coverage

      EDLI coverage would indicate the organization supports EDLI contribution.
      Business Nature

      Specify the business nature.

      Override Employee PF Contribution Percentage

      Enter the overridde percentage for the employee PF contribution, if required. If blank, the statutory employee PF contribution percentage is used.
      Override Employer PF Contribution Percentage

      Enter the overridde percentage for employer PF contribution, if required. If blank, the statutory employer PF contribution percentage is used.
      Override Employer EPS Contribution Percentage

      Enter the overridde percentage for the employer EPS contribution, if required.
      Override PF Salary Ceiling

      Enter the PF Ceiling limit for overriding statutory PF limit.
      Note: You can specify the percentage values for overriding the statutory PF percentages for employee, employer and EPS contributions rates at the PF TRU level. This percentage can be overridden only for specific PF TRU organizations.

    2. In the Provident Fund Representative Details, select the Employer Representative from the dropdown. The Employer Representative needs to be at supervisory level.

    3. Click Submit.