1. How do I set up HR and 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 tax reporting unit (TRU) for provident fund.

Here are the sequence of steps to set up the TRU for the provident fund component:
Navigation: Manage Implementation Project List > Manage Legal Reporting Unit HCM Information

  1. Set the scope for this task by selecting the parent Legal Entity and then the Legal Reporting Unit.

  2. On the Manage Legal Reporting Unit HCM Information page, select the provident fund TRU and click Apply and Go To Task.

  3. Edit the tax reporting unit of type Provident Fund by selecting the Correct mode.

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

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

      Enter the PF Ceiling limit for overriding statutory PF limit.
      Exclude EPS Contribution from Taxable Perquisite Select Yes or No to exclude or include the EPS Contribution from the Taxable perquisite.
      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 override percentage can be used only for specific PF TRU organizations.

    2. In the Voluntary Provident Fund Period, enter the period within the financial year and the timeline in every month to add the employee's volutary provident fund information.

    3. In the Provident Fund Representative Details, select the Employer Representative from the list of values. The Employer Representative needs to be at supervisory level.

    4. In the Provident Fund Deductee Challan Mapping, enter the details of the PF deductee challan mapping:
      Field Description
      Financial Year

      Enter the financial year of the PF Deductee Challan.
      Month

      Add the month for the PF Deductee challan.
      Payment Date

      Specify the payment date.

      Challan Number

      Specify the PF Deductee Challan number.
      Total Amount

      Enter the total amount.
      Comments Add any comments if more information is required.

    5. Submit the PF TRU details.