Question

Contribution payable by employer in a year is to be charged to

Answer 1

Answer : - The contribution payable by the  employer for a year is charged to the profit and loss statement of that year. Apart from  the amount of contribution paid, even a shortfall of the  amount of contribution paid compared to the amount payable for that  year is also supposed to be charged to the statement of profit and loss for the corresponding year. On the

other side , if contribution paid is in excess of  amount payable for corresponding year, the excess  is treated as  pre-payment.

Answer 2

It is to be charged to employer itself in the account of PF admin charge.

PF admin charges is the contribution from employer’s end. It is calculated on the base of the Basic+DA from an employee’’ salary.

The division of EPF input is different for the employee and the employer.

In addition to 12% of employer PF/PS contribution, the employer is also liable to pay for other charges.