New Delhi: The Employees Provident Fund Organisation (EPFO) has issued a new circular regarding  payment of past contributions of employees by an employer through Demand Draft.

EPFO in a circular dated April 4 said that references have been received from Field Offices from time to time seeking guidance in cases where the employer is not able to remit the past dues in respect of the beneficiary employees through Electronic Challan-cum-Return (ECR) but has agreed to pay the said dues through Demand Draft.

The matter has been examined and although the filing of the ECR and remittance of dues through internet banking should be the preferred mode of remittance, not allowing the employer to remit the employee contribution deducted from the employees’ wages and employer contribution should be avoided.

“It is therefore clarified that where the Officer-in-Charge of the Region is satisfied that such request is for a one-time payment of past dues and the employer is not seeking a mode other than the internet banking for the payment of future remittances, he may collect the dues in the manner as is practiced for recovery of any demand in arrear, i.e., through a Demand Draft in the name of RPFC-in-Charge of the Region and payable at the bank branch where the Regional Office concerned holds a bank account,” said the EPFO Circular.

EPFO added that an undertaking from the employer should be obtained for verification of beneficiaries in case a claim arises. EPFO said that all out efforts should be made to collect the returns from the employer.

The corresponding Damages and Interest payable by the employer should be timely determined and collected from the employer in the manner already specified in the Compliance Manual, the fund body added.

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