In the Start-up where I am working, we have more than 100 employees who are on professional fees. Now they need salary slips which I have informed that we cannot provide them. In that case what are the other modes that I can use it to give them which will show their monthly income received from the company.
From India, Mumbai
2From India, Mumbai
Dear Kena,
You have 100 hundred employees for which you say that you cannot provide salary slips. Why? If they are employees then shops and establishment act mandates issue of salary slip per month. Why you wish to go against this law?
Is your company using services of employees as consultants? Are you paying "professional fee" instead of "salary"? Yes, this arrangement can work fine till it is noticed by Enforcement Officer of EPFO or even Labour authorities also. If you wish to avoid legal wrangle in future then I strongly recommend following the law.
Thanks,
Dinesh Divekar
From India, Bangalore
You have 100 hundred employees for which you say that you cannot provide salary slips. Why? If they are employees then shops and establishment act mandates issue of salary slip per month. Why you wish to go against this law?
Is your company using services of employees as consultants? Are you paying "professional fee" instead of "salary"? Yes, this arrangement can work fine till it is noticed by Enforcement Officer of EPFO or even Labour authorities also. If you wish to avoid legal wrangle in future then I strongly recommend following the law.
Thanks,
Dinesh Divekar
From India, Bangalore
Hi, We have hired employees on professional fees and not on salaries. Hence we need to issue payment vouchers. These are consultants and not employees with us.
From India, Mumbai
From India, Mumbai
Probably you can issue form 16A.
Which will serve as TDS certificate.
Form 16A will have details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.
Income received from consultancy is termed as income from profits and gains of business or profession.
I am sure company knows difference between consultant and employee.
Hope these consultants are bringing in unique set of skills that are not commonly available in your organisation.Consulting is experience oriented work and less of work orientation.
Think about all aspects including number of employees and number of consultants or at some stage Labour office may have something to say.
From India, Pune
Which will serve as TDS certificate.
Form 16A will have details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.
Income received from consultancy is termed as income from profits and gains of business or profession.
I am sure company knows difference between consultant and employee.
Hope these consultants are bringing in unique set of skills that are not commonly available in your organisation.Consulting is experience oriented work and less of work orientation.
Think about all aspects including number of employees and number of consultants or at some stage Labour office may have something to say.
From India, Pune
Hi,
On monthly basis, you can circulate them details of their fee that contains their PAN, Bank, Standard fee, deduction, actual fee.
As the members above said that inspector from EPFO and from Labour department, may raise queries about their coverage they are very much right.
If the monthly fee is more than the statutory limit ( 15000 (Basic+DA)for PF, 21000(Gross) for ESI, you can get the form 11, filled from them stating that they were not a member of of in their previous employment. This will save you from PF inspector to some extent.
Regards
Puran
From India, New Delhi
On monthly basis, you can circulate them details of their fee that contains their PAN, Bank, Standard fee, deduction, actual fee.
As the members above said that inspector from EPFO and from Labour department, may raise queries about their coverage they are very much right.
If the monthly fee is more than the statutory limit ( 15000 (Basic+DA)for PF, 21000(Gross) for ESI, you can get the form 11, filled from them stating that they were not a member of of in their previous employment. This will save you from PF inspector to some extent.
Regards
Puran
From India, New Delhi
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