Every EPFO member has a Universal Account Number (UAN) that links their PF accounts across employers. When an employee is onboarded in Zoho Payroll, the UAN is entered and validated. Zoho Payroll uses the UAN in the ECR file, ensuring contributions are credited to the correct employee account at EPFO.
The employer’s EPF contribution (3.67% to EPF + 8.33% to EPS = 12% total) is a cost borne by the employer and is typically included in CTC. Employees do not receive this in hand; it accumulates in the PF and pension fund accounts. Zoho Payroll displays the employer contribution on the payslip for transparency.
Under the new income tax regime, the employee’s EPF contribution still qualifies for Section 80C deduction if the old regime is selected. Under the new regime, 80C deductions are not available. Zoho Payroll factors this into TDS computation based on the selected tax regime, ensuring accurate TDS on salary.
EPF Contribution in Zoho Payroll is the monthly deposit to an employee’s EPFO account. The employee contributes 12% of PF wages entirely to EPF. The employer contributes 12% split as 3.67% to EPF and 8.33% to EPS. Zoho Payroll calculates, displays, and generates EPFO ECR files for both contributions.
After each pay run is finalised, Zoho Payroll generates the ECR (Electronic Challan cum Return) file in EPFO-prescribed format with UAN, employee name, PF wages, employee and employer contributions for each member. This file is downloaded and uploaded to the EPFO Unified Portal for challan payment and return filing.
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