NAPS : Year End Reminder – Five Checkpoints to follow
As we approach the end of the Financial year, I would like to remind you of the following checkpoints to be observed vis a vis NAPS scheme in your establishment. These are quick points of internal audit which would be helpful to stay compliant –
1) Contract Termination / Onboarding : A supporting document for premature closure of NAPS contract should be maintained which could be Termnation Letter, resignation letter, Appointment letter (in case onboarded as employee)
2) Accounting Treatment : Kindly book Stipend Expenses under a separate ledger named “Stipend for Interns” and not under Salaries and Wages Ledger which pertains to regular employees. The grouping can be done under Employee / Workforce expenses schedule, but under a separate ledger / line item. (not to be clubbed with Salaries and Wages) as there is no employer- employee relationship with Interns.
3) Headcount : The total headcount should be maintained in the minimum and maximum range of 2.5% to 15% (25% in Maharashtra and Karnataka) of Total Headcount(Refer – PF challan for the same)
4) WC Policy for Accidental Coverage – Kindly ensure WC Policy cover ( physical injury resulting in death or disablement) for all candidates and timely renewal of the same
5) Candidate Eligibility – If Candidates having previous UAN (Previously registered under PF records) are enrolled, kindly keep a signed UAN declaration form for record
P.S. – The backlog DBT amount pending from Sept 2024 has been released by the NSDC
Feel free to react Team Payrule at sumit@payrule.in or +91 9316633890 for more information
Sumit Jain
+91 9316633890