Employees Provident Fund

how to record EPF for employees & employer? I tried many times. End up it will double up in expense or something wrong somewhere.

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When you are creating the payslip items create Employee deduction and name it EPF Liability ,ensure the item is a liability. Select the desired liability account. Then create Employer contribution and name it PF Expense and select an expense account you have already created for that purpose, then select the liability account as well.
You may go to chart of account and create ‘PF liabilities’ account and select it as the liability account for both the expense and the deduction in the payslip item creation screen. It will make it easy for you to see what is happening to PF.

So after running the payroll, the EPS liability will be created and the expense will also be accrued. So the accrued expense and the deduction which is now a liability will be in the PF liabilities in the Balance sheet. You can then spend money to pay it.

I’ve created as u said,

Then I created the payslip,

And it appear in summary like this

Then, I spend $216 to clear the EPF. so, it clear the value in liability account and under expense account it shows $117 only. It should be $216 rite? $99 for employee & $117 for employer. So now, how to make the EPF account under Expense become $216. It shows like I only spend $117 for the EPF.

Hi, The EPF of $117 is an expense the employer is making as part of the Provident fund contributed to the employees or for the benefit of the employees,
The $99 is not an expense. it actually money withheld from Employees to be paid by the company on behalf of the employees into the employees provident fund account eventually or to be given to the financial institution managing the employees provident fund eventually, in other words it a Liability.

The reason why the $117 is added to the EPF liabilities account is because we assume we have done the payroll and accrued the expense ($117) but we haven’t paid it yet so let keep it in the provident fund liabilities account together with the $99 withheld from customers to make $216 in the liability account.

I hope you understand now? I am waiting for your reply

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Please check your wages and salaries account you find that it has debited 1100 and not 1001. This shows that $ 99 has already been charges as wages and salaries expense. With regard to cash payment you have withheld this amount (99) to be created as liability. So 99 is charges as expense in wages and 117 is charged as expense in employer contribution expense.


Oo I see… I understand now. Thanks!!

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how to check employees provident fund status online? please explain the procedure… m waiting for your replay…!

Online status where ?

Actually i didnt getting you properly please improve your Query. may be you will find from http://gostatus.in/pf-status/ Thank u…

You can’t check the employees provident fund status from the Manager software.