IndigoLearn

Forums

Employer contributions

While calculating the earnings in illustration 3,Why employer's contribution was not added to workers


Maheesh 32

Maheesh 32

CA Inter

410

15-Aug-20 18:58

40

Answers (5)

Earnings of workers doesn't include employer's contribution because employer's contribution to ESI or PF goes to the account of ESI or PF . The worker don't get those earnings including with wages.


Sri Varshini

Sri Varshini

CA Inter

575

15-Aug-20 19:41

Sri Varshini

Earnings of workers doesn't include employer's contribution because employer's contribution to ESI or PF goes to the account of ESI or PF . The worker don't get those earnings including with wages.

Yeah then why in the first illustration employer's contribution was added to Earnings of employee?

Attachments

IMG_2559.PNG


Thread Starter

Maheesh 32

Maheesh 32

CA Inter

410

15-Aug-20 23:46

In illustration 1 they have asked to calculate Effective Hourly Rate. Effective hourly rate is calculated for the purpose of the company. For company employer's contribution is an expense but for the employee it is not an income. In illustration 5 while calculating expenses to the company we will add employer's contribution because it is expense to the company.

Attachments

IMG20200816094228.jpg


Sri Varshini

Sri Varshini

CA Inter

575

16-Aug-20 09:43

Here stmt of employee cost is cost to the company


Sri Varshini

Sri Varshini

CA Inter

575

16-Aug-20 09:44

Thank u


Thread Starter

Maheesh 32

Maheesh 32

CA Inter

410

16-Aug-20 12:46

GET15
IL Pass percentages
Tally + Excel Free