File IW-1 Return- International Worker Monthly Return Under EPFO

Overview : This comprehensive guide elaborates on the crucial filing of monthly returns (IW-1) for international workers to the EPFO. It explains the step-by-step process of filing through the Employer e-Sewa portal. Besides understanding the significance of accurate and timely filing, the blog also covers potential consequences that may arise due to the non-filing of the IW-1 returns. Read thoroughly to enhance your knowledge about IW EPFO Portal.

The employer of an establishment to which EPF Scheme applies is required to send a consolidated return of international workers within 15 days of application, and a monthly return indicating workers qualifying to become members and leaving service. The return should include basic wage, retaining allowance, dearness allowance, and food concession details.

The employer must send a ‘Nil’ return if there are no international workers. The EPFO reviews the progress based on the monthly return, and the employer is directed to state whether any international worker is employed or sends a ‘Nil’ return.

What is the IW-1 or IW1 Return Filed to the EPFO?

IW1 Return is a monthly return that employers in India are required to file with the Employees’ Provident Fund Organization (EPFO) for their international workers. The IW1 return must be filed through Form 5 within 15 days of the close of each month and includes details such as the names, nationalities, and Universal Account Numbers (UANs) of international workers who are eligible to become members of the EPF for the first time during the preceding month.

Additionally, the return must include declarations in Form 2 furnished by qualifying international workers, as well as a list of international workers who have left the employer’s service during the preceding month. Employers must also provide details of the basic wage, retaining allowance (if any), dearness allowance, and cash value of any food concession paid to each international worker.

Employers must file accurate and timely IW returns to ensure that their international workers can reap the benefits of the EPF scheme without any hassle. The EPFO office reviews the progress based on the monthly return filed by the employer. If there are no international workers, the employer is required to send a ‘Nil’ return.

Step-by-Step Process to File the IW-1 Return

The IW-1 return for international workers in India is filed online through the EPFO’s Employer e-Sewa portal. Begin by logging in at unifiedportal-emp.epfindia.gov.in/epfo. Once on the dashboard, navigate to the “Monthly IW-1 (International Workers)”, access the form and fill in the requisite details. Upload necessary documents to complete the process. The following step wise guide on IW Return will help you in your endeavours:

• Visit the Employer e-Sewa portal (unifiedportal-emp.epfindia.gov.in/epfo).
• Log in to the portal using your employer credentials.
• Click on the “Monthly IW-1 (International Workers)” option under the “Monthly Contribution” tab on the dashboard.
• Enter the required details, such as the month and year for which the return is being filed and select the establishment and the international workers (IW) eligible to become EPFO members.
• Upload the necessary documents, such as Form 5 and Form 2 declarations for each eligible international worker, along with the list of international workers who have left the employer’s service during the month.
• Verify the details and submit the iw return.

Consequences of Not Filing IW-1 Returns

Timely and accurate filing of IW1 Returns is paramount for employers, serving as a vital compliance measure under EPF regulations. Failure to meet the due date leads to adverse consequences, including penalties from the EPFO and other legal actions, varying with delay periods and the number of international workers. A few of these consequences have been listed below to help you get a clear picture of the necessity of IW1 return filing.

• Penalty: The IW EPFO can impose a penalty on the employer for not filing the IW-1 return on time. The penalty amount may vary depending on the period of delay and the number of international workers involved.
• Legal action: The EPFO may take legal action against the employer for non-compliance with EPF regulations. This can result in fines, imprisonment, or both.
• Inconvenience to international workers: Non-filing of the IW EPFO Portal return can cause inconvenience to international workers who are eligible to become members of the IW EPFO Portal’s scheme. They may not be able to avail the benefits of the scheme, such as retirement savings and pension, due to the employer’s negligence.

You may also experience a few more consequences and miss out on numerous benefits if you fail to file IW1 Return under EPFO. Make sure to file this necessary return timely to avoid financial penalties or any other serious legal punishment as any of such legal action can influence your organizational development pace.

Conclusion

Filing IW-1 monthly returns is pivotal for employers as it ensures compliance with EPFO regulations and facilitates seamless benefits to international workers. While the process may seem intricate, the aforementioned step-by-step guide makes it easy to understand about IW Return filing and follow it for ensuring timely compliance. Timely and accurate IW-1 EPFO Portal submissions not only fulfill regulatory obligations but also contribute to the smooth functioning of the EPF scheme.

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Editorial Team | in

Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.