payroll assignment in tally pdf

SscLatestNews.com

Payroll in Tally Chapter 21 PDF Download

Payroll in Tally Chapter 21 PDF Download : In This Chapter: Introduction, Features of Payroll, Benefits of using payroll, Enabling Payroll, Creating Payroll Masters, Payroll Voucher, Print Pay Slip, Print Pay Sheet, Salary Payment Advice, Assignment.

Table of Contents

Download Any Book for Free PDF BA B.Sc B.Com BBA

M.com books & notes semester wise pdf download 1st 2nd, year, ccc books & notes study material in pdf download, rrb group d book & notes previous year question paper in pdf download, b.com books & notes for all semester in hindi pdf download.

Payroll in Tally Chapter 21 PDF Download

Tally ERP 9 and Prime new features include Payroll. Tally Payroll is integrated with Accounting to give the user the benefits of simplified Payroll processing and accounting. Tally Payroll supports pay slip printing: flexible salary/wage, attendance, leave and overtime registers: gratuity and statutory reports.

LLB Books & Notes Study Material For All Semester 1st 2nd 3rd Year

Ctet previous year question paper in pdf download, mba books & notes for all semester 1st year, b.com books & notes for all semester in pdf 1st 2nd 3rd year.

दोस्तों यदि हम Tally Course में Payroll की बात करें तो Payroll बहुत ही म्हत्त्प्वूर्ण Topic होता है Tally Payroll के माध्यम से आप Compony के सभी व्यक्तियों की Salary को Manage करते है | हम आज की पोस्ट में आपको Tally Erp.9 and Prime Software में Payroll को कैसे लगाते है सीखने जा रहे है जिसे आप निचे दिए गये टेबल में PDF Download डाउनलोड कर सकते है | Tally Payroll in Hindi English दोनों ही भाषा में पढ़ सकते है |

Download Tally Book Chapter 21 Payroll in PDF

Tally Erp 9 & Prime Books Notes Chapter Wise PDF Download

Follow On Facebook Page

PAY_PAYROLL_ASSIGNMENTS

Schema: FUSION

Object owner: PAY

Object type: VIEW

Payroll in Tally Prime step by step Training Notes

Payroll in Tally Prime Training Notes. How to activate Payroll, Create Pay Heads, Employee, Attendance and Payroll vouchers. Step by step training guide for self study and Tally computer Training Institutes.

Payroll in Tally Prime : Step by Step

Create a new company :.

F3 : Company > Create F11: Company Features > Payroll Maintain Payroll : Yes

Add Capital in Company

F6 (Receipt ) Add Capital of 10,0000 Dr Cash Cr Capital (under Capital Account)

Create Employees Group in Tally Prime

Gateway of Tally > Create > Payroll Masters > Employees Group

Create Units (Work)

Gateway of Tally > Create > Payroll Masters > Units (works)

Create Attendance / Production Type

Gateway of Tally > Create > Payroll Masters > Attendance/ Production Type

Create Pay Heads in Tally Prime

Gateway of Tally > Create > Payroll Masters > Pay Heads

Name : Basic Pay

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : Yes Calculation Type : On attendance Attendance with Pay : Present Calculation Period : Months Basis of calculation : As per calendar period Rounding Method : Normal rounding

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : As computed value Rounding Method : Normal rounding

Computation Info Compute : On specific Formula Add Pay Head : Basic Pay Slab Type : Percentage Value : 20 %

Computation Info Compute : On specific Formula Add Pay Head : Basic Pay Slab Rate : Percentage Value : 40 %

Name :Transport Allowance (TA)

Computation Info Compute : On specific Formula Add Pay Head : Basic Pay Slab Rate : Percentage Value : 10 %

Name : Bonus

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : Flat Rate Calculation Period: Monthly

Name :Provident Funs (PF)

Pay Head Type: Deduction from Employees Under : Current Liability Affect Net Salary : Yes Calculation Type : As computed value Rounding Method : Normal rounding

Computation Info Compute : On specific Formula Add Pay Head : Basic Pay Slab Rate : Percentage Value : 12%

Name : ESIC

Computation Info Compute : On specific Formula Add Pay Head : Basic Pay Add Pay Head : DA Slab Rate : Percentage Value : 3%

Name : Over Time

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : On production Production type : Over time

Create Employees in Tally Prime

Gateway of tally > create > payroll masters > employee.

Employee Creation Window Name : Rajesh Saxena Under : Marketing DOJ : 1 st April 2021 Define Salary Details : Yes

Salary Detail Window Pay Head Basic Pay :20000 DA: HRA: Transport Allowance (TA) : Bonus : 1000 Overtime : 50 ( Rate ) Provident Fund (PF) ESIC

Employee Number : M111 Designation : Manager Function : Marketing Management Location : Delhi Gender : Male DOB : 01-April-1990 Blood Group : A Positive Father Name : Rohit Saxena Spouse Name : Reena Address : Muzaffarnagar Phone Number : 9876543433 e-mail : [email protected]

Provide Bank Detail – Yes Bank Details window appear Account Number : 123456767788 IFSC code: ABCD0123456 Bank Name : Specify Bank Name Bank Name : State Bank of India Transaction Type : e-fund transfer

PAN Number : ASDFG1234C Aadhar number :1234567891234567 PF Account number : ABCD11334 PRAN : 576778788 ESI NUMBER : 5654433 ESI DISPENSARY : DELHI

Gateway of Tally > Display more Reports> Payroll Reports> Employee Profile

Note : Over time rate to be filled for each employees at salary details

Payroll Vouchers in Tally Prime

Attendance boucher creation.

Gateway of Tally > Voucher > F10: Other Vouchers > Payroll vouchers > Attendance

Change Voucher Date 31 -05-2021 Ctrl + F (Auto fill) Attendance Auto Fill Window

Voucher Date : 31-05-2021 Employees Group : All Group Attendance Type : Present Default value : 0 Sort by : Employees Name

Fill the value : Number of Present days for each individual from the below table. Month May (1-5-2021 to 31-5-2021)

Repeat for above step for attendance type : Overtime

Payroll Boucher Creation in Tally Prime

Gateway of Tally > Voucher > F10: Other Vouchers > Payroll vouchers > Payroll Ctrl +F (Auto fill)

Payroll Autofill window Process for : Salary From : 01-05-2021 To: 31-05-2021 Employees Group : All Items Sort by : Employees Name Payroll Ledger : Cash Accept

Display the Salary Information

Gateway of Tally > Display more report >Payroll reports > Pay slip Pay Sheet Attendance Sheet Payroll Register Attendance Register Employee Profile Employee Head count

Thanks for study the Payroll in Tally Prime Notes.

Payroll tally notes with assignment, gst implementation in tally notes, fundamental of accounting and tally prime notes, introduction of tally prime notes, 3 thoughts on “payroll in tally prime step by step training notes”.

Thank you so much

Thank you very much. Lots of other videos took too long time, but for your writing i can understand mostly.

Your email address will not be published. Required fields are marked *

No 1 Data Analytics and Data Science institute in Dehradun Uttarakhand

Search for:

Complete Tutorial on Payroll Accounting in Tally Prime

Table of Contents

What is Payroll Acounting?

Payroll, is a process. where businesses generally compute and withhold government taxes like social security and individual income taxes from an employee’s salary. Many companies also have benefit plans like health insurance, which include deductions of premiums from its employees’ salaries according to employee customization, adding another layer of activity for payroll processing.

Components of Payroll process

Allowances Allowances are categories of expenditures in India that are not taxable, provided they match certain specifications and do not exceed a certain amount.

Allowances in India include those for:

Leave travel
Special allowance.

Component of salary

Basic salary.

Basic salary is a fixed amount paid to employees by their employers in return for the work performed or performance of professional duties by the former. Base salary, therefore, does not include bonuses, benefits or any other compensation from employers. As the name suggests, basic salary is the core of the salary of an employee.

Allowances

Dearness allowance.

Dearness Allowance is cost-of-living change allowance which the government pays to the employees of the public sector as well as pensioners of the same. DA component of the salary applies to both employees in India and Bangladesh.

House Rent Allowance

HRA or House Rent Allowance is a salary component paid by employer to employees for meeting the accommodation expense of renting a place for residential purposes. HRA forms an integral component of a person’s salary. HRA is applicable to both salaried as well as self-employed individuals.

They account HRA for salaried people for under section 10 (13A) of the Income Tax Act under rule 2A of Income Tax rules. Similarly, self-employed individuals are not considered for HRA exemption under this section but can claim tax benefits under section 80GG of the Income Tax Act.

Conveyance Allowance –

Conveyance allowance, also known as transport allowance, is a kind of allowance offered by employers to their employees to compensate for their travel expense to and from their residence and workplace. Note – In Union Budget 2018, a standard deduction of Rs. 40,000 has been introduced instead of transport (Rs 19,200) and medical (Rs 15,000) allowances.

Leave Travel Allowance –

Leave travel allowance is eligible for tax exemption. It is offered by employers to their employees to cover the latter’s travel expense when he or she is on leave from work. The amount paid as leave travel allowance is exempt from tax under Section 10(5) of Income Tax Act, 1961. Leave travel allowance only covers domestic travel and the mode of travel needs to be air, railway or public transport.

Medical Allowance –

Medical allowance is a fixed allowance paid to the employees of an organization to meet their medical expenditure. Note – In Union Budget 2018, a standard deduction of Rs. 40,000 has been introduced in lieu of transport (Rs 19,200) and medical (Rs 15,000) allowances.

Books and Periodicals Allowance –

Books and periodicals allowance is a type of allowance provided to employees for helping them meet the expenses associated with purchase of books, periodicals and newspapers. It is tax exempt to the extent of actual expenditure incurred towards purchase of books and periodicals.

Professional Tax

Professional tax is a tax levied on the income earned by salaried employees and professionals, including chartered accountants, doctors and lawyers, etc. by to the state government. Different states have varying methods of calculating professional tax. The maximum amount that is payable in a year is Rs. 2,500.

Gratuity is a lump sum benefit paid by employers to those employees who are retiring from the organization. This is only payable to those who have completed 5 or more years with the company. The gratuity amount is paid in gratitude for the services rendered by the individual during the period of employment. According to the Payment of Gratuity Act, 1972, gratuity is calculated as 4.81% of the basic pay. Most firms with a workforce of 10 or more employees come under the Act.

PF Contribution

The employer’s contribution is divided into the below mentioned categories:

Employees Provident Fund 3.67
Employees’ Pension Scheme (EPS) 8.33
Employee’s Deposit Link Insurance Scheme (EDLIS) 0.50
EPF Admin Charges 1.10
EDLIS Admin Charges 0.01

It is mandatory for the employee and the employer to make a EPF contribution. Each make a 12% contribution of the employees’ dearness allowance and basic salary towards EPF. Given below are the details of the employees’ and employers’ contribution towards EPF.

The employer deducts employee’s contribution towards EPF – 12% of the employee’s salary on a monthly basis for contribution towards EPF. The entire contribution goes towards the EPF account.
Employer’s contribution towards EPF – The employer also contributes 12% of the employee’s salary towards EPF.

To understand methodology employed in the ET EPF Calculator, let us take the following case: 1. Employees’ Basic Pay + DA: Rs 50000 2. Employee contribution towards EPF: 12%*50000 = Rs 6000 3. Employer contribution towards EPF = 3.67% of 50000 = 3.67%*50000 = Rs 1835…. (A) 4. Employer contribution in Employee Pension Scheme (EPS): 8.33% * 50000 = Rs 4165 …. (I) 5. Employer contribution in EPS on the threshold income of Rs 15000: 8.33% of 15000 = Rs 1249.50 …. (II) 6 Excess contribution of employer towards EPS above the threshold (I) – (II): Rs 4165 – Rs 1249.50 = Rs 2915.50 …. (B) 7. The excess amount in (B) is added to the employer contribution towards EPF in (A) = 2915.50+ 1835 = Rs 4750.50

Hence, the final employer contribution towards EPF will be Rs 4,750 (the result is rounded off to the nearest decimal place as stipulated by EPFO).

What is ESIC scheme

What is esic sheme If a company has 10 or more employees (20 in case of Maharashtra and Chandigarh) whose gross salary is below Rs. 21,000 per month, then the employer is required to avail ESIC scheme for such employees. The employer’s contribution will be 4.75% of gross salary, whereas the employee’s contribution will be 1.75% of gross salary.

5 Steps to Payroll

Payroll in tally prime

How to maintain payroll in tally prime, how to enable payroll in tally prime.

Go to gateway of tally prime>Press Alt+K >F12
Show all features >Set to YES
Maintain Payroll >Yes.
Enable payroll statutory> Yes

Statutory details Screen

1)Company Code :Enter provident fund code no of the company issued by the department.

Company Account Group Code :Enter the provident fund code of the company issued by the department.

Company Security Code : Enter the security code of the company issued by the department.

Employee state insurance :

3) company code :Enter the ESI code of the company issued by the department.

4)ESI Branch Office : Enter the nearest ESI office under whose authority the company is located.

5) Standard working days per month .Enter the constant pay period to be considered for ESI calculation .If this field is left blank the calculation is done based on the calendar day sin each month.

6)tax deducted and collected account number :specify th e10 digit TAN assigned to the employer .

7 Income tax circle /ward specify the name of the Income tax circle to which the employer is associated.

Diductor type : Select Government for a company belonging to central or statement government for all others select other.

9Name of person responsible :Enter the name of the person Responsible for TDS deduction in the company

Destination specify the official Destination of the person responsible for TDS deduction.

Press Enter to Accept the Screen.

Press Y or Enter to Accept the Screen.

How to create payroll Masters

Go to gateway of Tally>Create>payroll Master

Create Payroll Masters

Employee Group Master

Business with multiple Department Division function or Activities may create the required employee group and classify individual employees under specified group .Production marketing stores .Support or particular group of employees such as managers supervisors sub staff and so on.

To create sales Employee Group

Go to gateway of Tally > Create

Payroll Master >Employee group
In name Type : Supervisor Highly skilled

Under : Primary

Define salary detail : Set to Nl

Create Employee Masters In Tally Prime

Go to Gateway of Tally > create > in Payroll Masters> Employee
Create the employee as mention in screen above
Press enters accept the screen
Similarly create the employee masters for other employees with their department.

Payroll Units

As per the company requirement Unit of Measurement are created for the calculation of pay head. The unit can be created into two types 1) Simple Unit 2)compound Unit

Simple unit contains day week, month hours pcs etc. Compound Units include the unit which combination of two simple units like hours of 60 minutes. The month of 26 days Days of 8 hours etc.

Create the following unit as mention below

Hrs of 60 minutes

How to create a simple payroll unit in Tally Prime

Go to the gateway of tally>payrioll info >Units(working period)>create

In unit creation Screen

Type:Simple
Symobol:hrs
Formal Name :Hours
Number of decimal places :2

Press enter to accept the unit creation screen

create Minutes as simple units

Type: Simple
Symbol: mins
Formal: Minutes
Number of decimal places :0

Create Compound Payroll Unit in tally Prime

Press Backspace and select compound as the type of Unit

Type compound
First unit: Hrs
Second Unit:Mins
the complete compound Unit screen appears as shown below

Attendance /Production Types

Attendance /Production types masters are used to record the nature of attendance production ie time and work rate . In tally prime, you can create attendance type based on time such as present and absent or based on work-based production units such as piece production.

Create the following attendance type for company.

To create present attendance type

Go to the gateway of tally >create >attendance /production type

Under: Primary

Attendance Type : Attendance /leave with pay

Period type:days automatically selected

The completer attendance production creation screen appears as shown.

Press y to accept

Similarly, create remaining attendance and production as mentioned in table.

Pay heads are treated as expense liability with the employers point of view it is considered as Income /earning and deductions.

Example of pay head includes Basic pay ,Dearness Allowance ,House rent Allowance, Uniform allowance ,etc. It also includes deductions employee provident funds EPS employees state insurance ESI professional tax .

Basic Salary pay head in Tally prime

Go to gateway of Tally >Create >Payroll Master > Pay head
In name Type :Basic Salary
In pay head Type :Earning from Employee
Income Type :Fixed
Affect net salary :Yes
name to be displayed in payslip : automatic

If income tax and gratuity applicable

Use for calculation for gratuity Yes
Set /alter income tax details :Yes

A new screen appear

Select Income tax component :Basic Salary
Tax calculation basis :On Projected Value
Deduct TDS across the period Yes

HRA pay head in Tally Prime

In name Type :HRA
Use for calculation for gratuity No
Select Income tax component :House Rent Allowance
Calculations Type :As computed Value
Caluation period :Month :
Normal rounding :limit :1

computation Information

Computer :On specific formula

Specified formula

a new screen appear

Select :Basic Salary +DA
Effective from :Mention date 1/4/2021
In slap select :percentage

Dearness Allowance pay head

In name Type :DA
Under :Indirect
Use for calculation for gratuity :yes
Select Income tax component :Dearness Allowance (considered for retirement benefits)
Calculation period :Month

A new screen appear : Select : Basic salary

Select :Basic Salary

In slap select :percentage

In name Type :Bonus
name to be displayed in payslip : Bonus Automatic
Use for calculation for gratuity :no
Select Income tax component :Bonus
Deduct TDS across the period No

Employee PF deduction 12%

Gateway of Tally > Create > type or select Pay Heads. Alternatively, press Alt+G (Go To) > Create Master > type or select Pay Heads. In case the master is inactive, you will be prompted to enable the payroll feature for your Company. Select Yes or press Y to proceed.
Enter the name of the Pay Head in the Name field.
Select Employees’ Statutory Deductions as the Pay Head Type from the List of Pay Head Types.
Select PF Account (A/c No. 1)
in the Statutory Pay Type field. Select Current Liabilities from the List of Groups in the Under field.
By default, Affect Net Salary is set to Yes. Type No,
if you do not want this component to be included in the pay slip. By default, the pay head component name entered in the Name field appears in the pay slip.
Enter the Name to be display in Payslip if you want to change the default pay head component name.
By default, the Calculation Type field is set to As Computed Value, and the Calculation Period field is set to Months.
Select Normal Rounding from the List of Rounding Methods, and type 1 as the rounding Limit.
Select On Specified Formula, from the Computation On list, in the Compute field.
The Computation on Specified Formula sub-screen appears.
In the Pay Head column, select Basic Pay from the List of Pay Heads and select End of List to return to Pay Head Creation.
Enter the desired date in the field Effective Date field, when the PF deduction begins.
Select Percentage from the List of Slabs in the Slab Type field.
Enter the required percentage for PF in the Value Basis field.
Accept the screen. As always, you can press Ctrl+A to save.

Employee PF Deductions payroll tally prime

Employer EPS @ 8.33%

Go to gateway of Tally >Create >Payroll Master > Pay head In name Type :Employer EPS @8.33%
In pay head Type :Employer statutory Contribution
Under :Indirect Expense
name to be displayed in payslip : Employer [email protected]%
Select :Basic Salary + DA

Value:8.33%

Employer PF contribution 3.67%

Go to gateway of Tally >Create >Payroll Master > Pay head In name Type :Employer EPS @3.67%
Statutory pay type :EPF account(a/c no 10)
name to be displayed in payslip : Employer [email protected]%
Effective from : Mention date 1/4/2021

Value:3.67%

Uniform Outfit Allowance

Go to gateway of Tally >Create >Payroll Master > Pay head In name Type :Uniform Outfit Allowance
In pay head Type :Earning for Employee
name to be displayed in payslip : Uniform Outfit Allowance
Use calculation for gratuity : No
Set Alter Tax detail :Yes

A new screen Appears

Select : Other earning Allowance (Fully exempted)

Uniform washing Alllowance

Go to gateway of tally > create > Now similarly as created Uniform outfit allowance create Uniform Washing Allowance the only difference is percentage which need to set 3%. For more see the picture s below.

EDLI contribution 5%

Go to gateway of Tally >Create >Payroll Master > Pay head In name Type : EDLI Contribution 5%
In pay head Type :
Employee others Charges
Statutory pay Type :EDLI contibution A/c no 21
Under : Current Liabilities
Affect net salary : no
Calculated Type :As computed Value
calculation period :month
Calculation period : Month
Normal rounding:limit :1
Computational information :On PF gross
percentage :.50%.

PF Admin Charges

Go to Gateway of Tally >Create >Payroll Master > Pay head In name Type: PF admin Charges
Statutory pay Type :Admin charges A/c (2)
Computational information:On PF gross

Create Pay structure of Employer

Salary set up at group level.

Go to gateway of tally >alter>

Name : Supervisor Highly Skilled

Define salary :yes

a new screen will open

Type Effective date :1/4/21

Rate:949.69

similarly select other pay head as mention in the picture below.

Salary set up at employee level

If you set up salary at group level then you can set up salary at employee level just to copy the detail from group as shown in the picture below.

Create pay head Salary payable

Go to gateway of tally >Payroll Master >Pay head >
Create >Salary Payable >
Pay head Types : Not Applicable
Under Current Liability

Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Attendance . Alternatively, press Alt + G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Attendance .
Press F2 (Date) to change the date.
Select the employee whose attendance you want to record from the List of Employees .
Select the Attendance/Production Type from the list.
Enter the Value .
Select End of List from the List of Employees.
Accept the screen. As always, you can press Ctrl + A to save.

Processing Salary (Payroll)

Gateway of Tally > Vouchers > press Ctrl+F4 (Payroll). Alternatively, Alt+G (Go To) >Create Voucher > press Ctrl+F4 (Payroll). Press F2 to change the Voucher Date.
Press Ctrl+F to select the Payroll Autofill in the Autofill screen.
Type of transaction: select the Type of Autofill as Payroll Autofill.
Process for: select the Salary in the Process for field. From (blank for beginning): enter the From Dates. To (Blank for end): enter the To Dates.
Employee/Group: select the Employee/Group from the List of Employees/Group, whose salary you want to process.
Sort by: Select the sorting option in the Sort by field. Payroll/Bank/Cash Ledger: Select the appropriate Payroll Ledger from the List of Ledger Accounts.
Note: If the salary payment is done through cash, you can select Cash as Payroll Ledger.
Enter the User Defined Pay Head values. such as Variable Pay or Salary Advance Deductions.
Enter the Narration, if any. By default, the payroll voucher shows the pay period in the Narration field.

PF contibution Voucher entry

Go to Gateway of Tally >voucher entry

Press CTRL +F
A new screen appears
Select: payroll auto fill
process for: PF contribution
select date
sort by employee
payroll: select bank

Thanks, I’m not interested

TallyPrime Server
Developer Reference
Tally.ERP 9

Payroll in TallyPrime

TallyPrime offers various features that allows you to implement and process payroll. You can use the Payroll Info. menu to create different payroll masters required for computing earnings and deductions for employees.

Introduction to Payroll

The payroll feature in TallyPrime is fully integrated with accounting to streamline payroll processing.

Organisations can set up and process payroll using simple and complex criteria. A collection of predefined processes in TallyPrime enable error-free automation of payroll process.

The payroll feature also provides management related information, statutory forms and reports in the prescribed formats such as:

Pay Slip, Payroll Statements, Attendance and Overtime Registers.
Gratuity, Provident Fund (PF), Employee State Insurance (ESI), National Pension Scheme (NPS).
Professional Tax (PT) and Income Tax (IT).
Expat Reports.
Full integration with accounts for simplified payroll processing and accounting.
User-defined classifications and sub-classifications for comprehensive reporting on aspects such as employees, employee groups, pay components, or departments.
Support for user-defined Earnings and Deductions Pay Heads.
Flexible and user-defined criteria for simple or complex calculations.
Unlimited grouping of Payroll Masters.
Support for user-defined production units such as attendance, production, or time-based remuneration units.
Flexible processing period for payroll.
Comprehensive reports for cost centre as well as employee-wise costing.
Predefined processes for accurate and timely salary processing, employee statutory deductions & employer statutory contributions.
Processing payments using the e-payments capability in TallyPrime.
Auto-fill facility to expedite the attendance, payroll, and employer’s contribution processes.
Accurate computation and deduction of statutory payments such as Income Tax, ESI, EPF, NPS, Professional Tax, and Gratuity.
Generate statutory forms and challans for Income Tax and EPF & ESI, as prescribed.
Facility to drill-down to the voucher level for any alteration.
Compute arrears of previous period(s).
Track loan details of employees.

In TallyPrime, you can create the following to maintain payroll:

Employee Groups
Employee Categories
Payroll Units
Attendance/ Production Types
Salary Details
Income Tax Pay Head Configuration
Income Tax Declarations
Override Income Tax Exemption Value
Override Income Tax Value
Income Tax Configuration
Previous Employer Details for Income Tax
Payroll pay heads – Salary, PF, ESI, NPS, PF Admin Expenses

To know more, click the links below:

Forgot ID/Password?

Reset password.

Exploring Payroll in Tally.ERP 9

Payroll Features

Tally.ERP 9’s Payroll is fully integrated with accounting to give users the benefit of simplified payroll processing and accounting.

Tally.ERP 9’s Payroll enables users to set up, implement and process payroll with simple to complex criteria, as per the organisation’s requirements. The pre-defined processes available in Tally.ERP 9 helps in automating the payroll processing without any errors.

Tally.ERP 9’s Payroll also provides management related information, statutory forms and reports in the prescribed formats viz., Pay Slip, Payroll Statements, Attendance and Overtime Registers, Gratuity, PF, ESI, NPS, PT, Income Tax, Expat Reports and so on.

The key features of the payroll functionality in Tally.ERP 9 are as follows:

It is fully integrated with accounts to give the benefits of simplified payroll processing and accounting
It has user-defined classifications and sub-classifications for comprehensive reporting. This may be related to employees, employee groups, pay components, departments etc.
It provides the facility to create user-defined Earnings and Deductions Pay Heads
It allows flexible and user-definable criteria for simple or complex calculations
It allows unlimited grouping of Payroll Masters
It supports user-defined production units i.e., attendance/ production/ time based remuneration units
It provides a flexible payroll processing period
It provides comprehensive cost centre as well as employee-wise costing reports
It ensures an accurate & timely Salary processing, Employee Statutory Deductions & Employer Statutory Contributions with the help of predefined processes
It provides auto-fill facility to expedite the Attendance, Payroll & Employer’s Contribution processes.
It facilitates an accurate computation and deduction of Income Tax, ESI, EPF, NPS, Professional Tax, Gratuity etc.
It helps in the generation of Statutory forms & challans for Income Tax, EPF & ESI, as prescribed.
It provides the facility to drill-down to the voucher level for any alteration
It facilitates computation of arrears pertaining to prior period(s)
It helps in tracking employee loan details

Configure Payroll Settings

The other generic payroll related configurations can be set using the Payroll Configuration screen. To view the Payroll Configuration screen,

Go to Gateway of Tally > F12: Configure > Payroll Configuration

In the above screen,

Set the option Add Notes for Employees to Yes to enter any additional information about the employee in the Employee Creation/Alteration screen.
Set the option Show Statutory Details (for India/ SAARC companies only) to Yes to enter the PF, ESI, NPS and Employee PAN details in the Employee Creation screen and print the same information in the Employee Pay Slip.
Set the options, Show Passport & Visa Details and Show Contract Details, to Yes to capture the information regarding the Employee Passport Number, Passport Expiry date, Visa Number, Visa Expiry date, Contract Start and Expiry dates in the Employee Master and to display the same in the Expat Reports.
Set the option Show Resigned / Retired Employees to No, to avoid displaying the names of the resigned employees in the Attendance and Payroll Vouchers.
Set the option Show Employee Display Name to Yes, if a different name for an employee has to be printed in the payroll reports. This option is useful, if there are multiple employees in the company with the same name.

Five Easy Steps to Generate a Pay Slip

The new enhanced payroll in Tally.ERP 9 requires minimal effort for accurate salary processing. It takes only five easy steps to process payroll and generate Pay Slip in Tally.ERP 9.

Step 1: Create Employee Masters

Create the Employee masters and enter the requisite employee details. Create Employee Groups by categorising employees under the function they perform; their department or designation.

Step 2: Create Payroll Masters

Create the Payroll Units and Attendance/Production Type to record the Attendance and Production details.

Step 3: Create Pay Heads

The components of a structured salary are created under Pay Heads.

Create the salary structure components in pay head. You can create any complex type of pay head with ease in Tally.ERP 9.

Step 4: Create Salary Details

Create the applicable salary structure for both employee groups as well as individual employees.

Step 5: Process Payroll and Generate Pay Slip

Record a Payroll Voucher to enter all earnings and deductions that is paid to the employees.

Generate the Pay Slip that provides attendance details, itemises each component of the employee’s earnings and deductions, and displays the net amount paid to him for a given pay period. It also provides information to the employee as to how the net amount is arrived at.

Creating Pay Heads

The salary components constituting an employee’s pay structure is called a Pay Head. A Pay Head may be an earning to the employee, or a deduction, which is recovered from his/her salary. The value of these pay heads could be either fixed or variable, for each payroll period.

For example: Basic Pay is a fixed pay component whereas Variable Pay, Bonus are variable components.

Pay Head Type

A Pay Head is categorised as Earnings, Deductions or Reimbursements.

The preset Pay Head Types in Tally.ERP 9 are as shown below:

Earnings for Employees
Deductions from Employees
Employees’ Statutory Deductions
Employer’s Statutory Contributions
Employer’s Other Charges
Loans and Advances
Reimbursements to Employees

Statutory Pay Head Type

The Statutory Pay Head Type field is enabled when Employees’ Statutory Deductions, Employer’s Statutory Contributions and Employer’s Other Charges Pay Head Types are selected in the Pay Head Type field.

The preset Statutory Pay Head Types in Tally.ERP 9 are as shown below:

Employee State Insurance
PF Account (A/c No. 1)
EPS Account (A/c No. 10)
Professional Tax
Voluntary PF (A/c No. 1)
Admin Charges (A/c No. 2)
EDLI Admin Charges (A/c No. 22)
EDLI Contribution (A/c No. 21)
National Pension Scheme (Tier – I)
National Pension Scheme (Tier – II)

Note: Statutory Pay Head Type will appear only when the Payroll Statutory Features are enabled.

Use for Gratuity

This parameter should be set to Yes, for the Pay Head components that will be used for the Gratuity calculation (For example: Basic Pay and DA etc.)

Calculation Types

The method of calculation of the Pay Head is based on its Calculation Type.

Note: The formula defined in Calculation Type will be used for computation only while using Payroll Auto Fill feature in the Payroll Voucher, and not in manual entry mode of Payroll voucher.

The following computation modes are supported in Calculation Types of Tally.ERP 9.

Flat Rate is used where the value of the Pay head is a fixed amount for a period. Pro-rata calculation will not happen if this calculation type is selected in the pay head.

Examples of Flat Rate Calculation Type:

Conveyance Allowance of ` 800 per month
Fixed Loan Installment deduction amount

On Attendance

On Attendance type is based on the attendance data where the component will get pro-rated based on the actual days the Employee is present/absent in office for the selected period. In Tally.ERP 9 the attendance can be recorded as positive days (Present) or loss of pay (Absent) type.

Example of On Attendance Calculation Type:

Basic Salary is calculated on Attendance

Attendance / Leave with pay: If you want to calculate the Pay Head Value using the positive attendance (Present), then select the same against this field.
Leave without Pay: If you want to calculate the Pay Head Value using the negative attendance (Absent), then select Not Applicable in the Attendance/Leave with Pay field and select Absent in the Leave without Pay field.

On Production

On Production Calculation Type is used to calculate the pay value based on the Production/Work done. The production data can be entered in Attendance voucher against the Production type.

Example of On Production Calculation Type:

As Computed Value

As Computed Value is used if the pay head value is dependent on another pay component. You will be able to define a pay component with this calculation type by specifying a formula/using current sub-total/on current earning/on deduction total. You can also define the slab either by percentage or value or a combination of both.

Example of As Computed Value:

HRA as 40% of Basic Salary

As User defined Value

As User defined Value allows you to manually enter the value at the time of processing the salary. This Calculation Type is used when the value of the pay is not fixed and does not depend on any pay component.

Example of As User Defined Value:

Variable Salary

Calculation Period

Calculation Period refers to the periodicity of Pay Head Calculation. There are four pre-defined calculation periods in Tally.ERP 9:

Per day Calculation Basis

Per day Calculation Basis refers to the calculation of per day Pay Head value Computation.

As per Calendar Period.

As per Calendar Period refers to the perpetual calendar month, i.e. if the payroll process is carried out for the month of March, then the attendance records will be entered for 31 days.

For example:

Employee’ Monthly Salary = Rs. 3000

Calculation Basis = As per Calendar Period

Per Day salary for Jan (31 days) = 3000/31 = 96.78

Leave Taken = 3 days in Jan

Salary Deductible = (3000/31)*3 = 290.32

Salary Payable = 3000 – 290.23 = 2709.67

User Defined

User Defined refers to the consistent payroll period irrespective of calendar month, i.e. if an employee’s salary is based on a standard month of 30 days irrespective of the calendar month, then you can select User Defined as the Calculation Basis and define the periodicity of the specified period or month.

Calculation Basis = User Defined month of 30 Days

Per Day salary for Jan (30 days) = 3000/30 = 100

Salary Deductible = (3000/30)*3 = 300

Salary Payable = 3000 – 300 = 2700

User Defined Calendar Type

User Defined Calendar Type option will provide flexibility to the user to select user defined calendar days for every Calculation Period. Once this option is selected, the user can have different number of working days for every Calculation Period.

For example the user can enter the total number of working days after reducing the Saturdays or Sundays or even holidays, if any, as per requirement.

Calculation Basis = User Defined Calendar Type

Working Days in Jan = 31- 4 (Sundays) – 2 (Holidays) =25 Days

Per Day salary for Jan (30 days) = 3000/25 = 120

Salary Deductible = (3000/25)*3 = 360

Salary Payable = 3000 – 360 = 2640

Rounding Method

There are four methods of Rounding Off in Tally.ERP 9:

Not Applicable – The decimal points will be taken into consideration and the amount will not be rounded off.
Downward Rounding – The decimal points will not be taken into consideration and the amount will be rounded off to the lower value.
Normal Rounding – The amount will be rounded off to the nearest currency value.
Upward Rounding – The amount will be rounded off to the higher value.

Computation Info

If As Computed Value is selected as the Calculation Type, then you can select the Pay Head Computation as per one of the following options:

On Current Deductions Total – This Calculation Type is used when the value of a pay head depends upon the total of the deduction pay heads already defined.
On Current Earnings Total – This Calculation Type is used when the value of a pay head depends upon the total earnings pay heads already defined.
On Current Sub Total – This Calculation Type is used when the value of a pay head depends upon the net total of earnings and deductions already defined.
On Specified Formula – This Calculation Type is used when the pay head value is computed on the basis of value of one or more pay heads already defined in the pay structure. (Tally.ERP 9 allows addition, subtraction, multiplication and also division of pay heads already defined in the pay structure For example: HRA is computed on 40% of the basic salary).

Effective From

The Effective From date is by default taken as the financial year start date during which the Pay Head is created. In case of revision in pay computation, then such revision for the given pay head can be defined by altering the Effective From date.

From Amount

In case there are multiple slabs for computation of pay head, then the start value for each slab should be provided in this field. By default, this field is skipped and assumed to be 0 for the first slab.

Amount Upto

The upper stratum value for each slab is provided in this field.

Percentage – This slab rate is used when the amount is stated as a percentage of a whole
Value – This slab rate is used when the amount is stated as absolute value.

Value Basis

Value Basis for each slab is provided in this field, which can be either an Amount or Percentage based on the Slab Type selected the previous field.

Employee Groups

Employees can be classified based on function, department, location, cadre/designation and various other parameters using Employee Groups.

In Tally.ERP 9, salary structures can be defined at the Employee Group level itself. For example, you can create the salary structure for a whole department i.e., Marketing, R&D, Sales, Accounts etc.

Creating Single Employee Group

To create a single Employee Group (e.g. Sales),

Go to Gateway of Tally > Payroll Info. > Employee Groups > Create (under Single Group )

Select the required Employee Category from the List of Categories in the field Category
Enter the Name of the Employee group
Select the required group from the List of Employee Groups in the field Under
Set the option Define Salary Details to Yes and press Enter to view Salary Details Creation screen. In this screen, specify the salary details of the Employee Group

After defining the salary structure, press Enter to navigate to the Employee Group Creation screen

Press Y or Ctrl+Y to save the Employee Group

If the Salary Details are not defined while creation or alteration of an Employee Group , then the salary structure can be also be defined from Salary Details.

Employee Group Configuration

Press F12 key or click F12: Configure to add/remove options in the Employees Group Creation screen.

Allow ALIASES along with the Names: Set this option to Yes to add the Alias names

Allow Language ALIASES along with Names: Set this option to Yes to add the names in other languages as selected (only while using Multilingual feature)

Creating Multiple Employee Groups

Tally.ERP 9 allows creation of more than one Employee Group from a single screen. To create multiple Employee Groups:

Go to Gateway of Tally > Payroll Info.> Employees Groups> Create (under Multiple Groups)

Select the Employee Group under which new Employee Groups should be created in the Under Employee Group field. If an independent group is to be created, select All Items in this field
Under the Category field, select the Employee Category under which the group is to be created
Specify the group name under the Name of Employee Group field
In the Under field, select the Employee Group under which the newly created group is to be categorised

The completed Multi Employee Group Creation screen is displayed as shown:

Creating Employees

In Tally.ERP 9, all the necessary information of the employees can be recorded in the Employee Master. Apart from general information, you can also enter Payment, Statutory, Expat and Contract details of the employees. To enter Statutory related information in the Employee Master, enable the option Show Statutory Details in Payroll Configurations screen.

Creating Single Employee

To create an Employee under the Employee group, Sales,

Go to Gateway of Tally > Payroll Info. > Employees > Create (under Single Employee)

Enter the Name of the Employee
In Display Name in Reports field, the same name will be automatically filled. Enter the required name, that has to be printed in the reports, in this field
Select the Employee Group in the field Under
Enter the Date of Joining
Set the option Define Salary Details to Yes and press Enter to view Salary Details Creation In this screen, specify the salary details of the employee.
In the Effective From date field, the Date of Joining will be displayed by default and the system will not allow you to alter the Effective From date
Under the Pay Head column, select the relevant Pay Heads from the List of Pay Heads and enter the values for the necessary pay heads, as per requirement

After defining the salary structure, press Enter to navigate to Employee Creation screen

Any remarks or notes about an employee can be entered in the Notes field
Enter the employee General Information , employee’s Bank Details for salary processing, Payment Details , Statutory Details , Passport & Visa Details and Contract Details
Accept to save

If the Salary Details is not defined while creation or alteration of an Employee Group, then the salary structure can be defined from Salary Details .

Employee Configuration

Press F12 key or click F12: Configure to change the default display for the Employee Creation screen.

Creating Multiple Employees

To create multiple Employees,

Go to Gateway of Tally> Payroll Info.> Employees > Create (under Multiple Employees )

Select the Employee Group under which all the employees should be created in the Under Employee Group If an independent employee is to be created, select All Items in this field
Under the Category field, select the Employee Category under which the group is to be created. By default, Primary Cost Category is selected in this field
Specify the employee name under the Employee Name field
In the Under field, select the Employee Group under which the newly created employee is to be categorized
Enter the joining date in the Date of Joining field

The completed Multi Employee Creation screen appears as shown:

Salary Structure

To create Salary Details for an Employee,

Go to Gateway of Tally > Payroll Info. > Salary Details > Define

Select the Employee in the Name field from the List of Groups/Employees
Enter the Effective From date
If you select Copy From Employee , the Salary Details defined for any Employee, irrespective of Employee Group, can be selected.
If you select Copy From Employee Group , the Salary Details defined for the Employee Group will appear in the screen
If you select Copy From Parent Value , the Salary Details defined for the Employee Group to which the Employee belongs will appear in the screen
If you select Start Afresh , you have to select the Pay Heads from the List of Pay Heads and enter the values for the necessary Pay Heads, if required.
Modify values for the necessary Pay Heads as per Employees eligibility
Press Enter to Accept and save.

Salary Details Configuration

Go to Gateway of Tally > Payroll Info. > Salary Details > Alter

Select the required Employee/ Employee Group from the List of Groups/Employees
Press F12: Configure
Allow to Override Slab Percentage: Set Allow to Override Slab Percentage to No to prevent changes made to Slab Percentages. You can set it to Yes , to override the percentages already defined at the Pay Head Level
Allow Copy From Employee: If you want copy the Salary Details of an employee who belongs to a different Employee Group, set this option to Yes
Show Pay Head Type: Set Show Pay Head Type to Yes to display if the Pay Head is an Earning or a Deduction in the Salary Details screen
Show Calculation Type: Set Show Calculation Type to Yes to display the method of calculation adopted (As Computed Value , As User Defined Value , Flat Rate , On Attendance or On Production
Show Computed On: Set Show Computed On to Yes to display the Computation Information (On Current Deductions Total, On Current Earnings Total, On Current Sub Total, On Specified Formula)

Units (Work)

A Payroll Unit is similar to a Unit of Measure used in the Inventory module. In Tally.ERP 9, pay components are calculated for a given period depending on the payroll Units. You can create Simple as well as Compound Payroll Units measured on Attendance / Production Types such as Time, Work or Quantity.

Creating Payroll Simple Unit

Go to Gateway of Tally > Payroll Info. > Units (Work)

Select Type as Simple
Enter the Symbol for the Unit
Enter the Formal Name
Provide the Number of Decimal Places for the Unit if you want to use the Unit in fractions
Accept to Save

Similarly, you can create the other Payroll Units like Minutes , Hours , Pieces etc.

Creating Payroll Compound Unit

A Compound Payroll Unit involves a combination of two payroll Units. For example: Box of 10 Nos, Dozen of 12 Pcs, Hr of 60 Mins etc.

To create a compound payroll unit – Hrs of 60 mins

Select Compound in the field Type and press Enter

The Conversion field will be displayed for creating the compound payroll unit.

Select the First Unit from the Units In the above example, Hrs will be the First Unit.
Specify the conversion Factor in the Conversion In the above example, Conversion factor will be 60.
Specify the Second Unit from the Units In the above example, Mins will be the Second Unit.

Press CTRL + A or Enter to save the compound payroll unit creation screen.

Attendance/Production Type

An Attendance/Production Type is used to record the attendance and production data. Based on the various components (Pay head), you may need to define multiple attendance / production types. Examples for attendance types are days present or absent and for production based types are hours worked, number of pieces produced.

An Attendance/Production Type is associated with a pay head in an employee’s pay structure. Attendance/Production Types may also be defined in hierarchical groups whereby Attendance Types having a common Unit are combined under logical groups. e.g. Present Days can have Present and Leave with Pay as sub-groups.

The Attendance/Production Type may be:

Attendance/Leave with Pay: should be used to record the positive attendance and leave with pay (For example: Present, Sick Leave etc.)
Leave without Pay: should be used to record negative attendance (For example: Absent, Leave Without Pay etc.)
Production type: should be used to record the Production details (For example: Piece Production, Overtime Hours, and so on)
User Defined Calendar Type: should be used to create User Defined Calendar which can be later used to specify the variable number of days for each month. For example: 25 days in January, 24 days in February, 26 days in March and so on

To create the Attendance /Production Types, refer to:

Creating an Attendance Type
Creating a Production Type
Creating User Defined Calendar Type

Creating Bonus Pay Head

To create a Bonus Pay Head,

Go to Gateway of Tally > Payroll Info. > Pay Heads > Create Enter Pay Head name in the Name field
Select Bonus as the Pay Head Type from the list of Pay Head Type
Select the Income Type for the Pay Head
Select Indirect Expenses from the List of Groups in the Under field
By default, Affect Net Salary is set to Yes . Type No , if you do not want this component to be included in the Pay Slip
By default, the Pay Head component name entered in the Name field will appear in the Pay Slip, if you want to change the default Pay Head component name then alter it in Name to appear in Payslip
By default, Use for Gratuity is set to No
Select Other Earnings/Allowances (Fully Taxable) as the Income Tax Component
In Tax Calculation Basis select On Actual Value for User Defined Pay Heads as the amount will be different in each month so the Tax should be rationalised accordingly and spread across the remaining period. If value of pay head is fixed in nature then select On Projected Value
Set Deduct TDS across Period(s) to Yes to deduct Tax across the remaining period. If set to No , entire tax will be deducted in the same month
Set Exclude for ESI Eligibility to Yes, if you want to this Pay Head to be considered for ESI Calculation but not for ESI Eligibility.
In the Calculation Type field select As User Defined Value from the List of Calculation .
Press Enter to accept.

Get Govt. Certified Secure Assured Job Interview

Government certificate

Lifetime Valid

Job Support

Industry Recognized

Advance Your Career: Upskill Now!

Get industry recognized certification – contact us.

TutorialKart
SAP Tutorials
Salesforce Admin
Salesforce Developer
Visualforce
Informatica
Kafka Tutorial
Spark Tutorial
Tomcat Tutorial
Python Tkinter

Programming

Bash Script
Julia Tutorial
CouchDB Tutorial
MongoDB Tutorial
PostgreSQL Tutorial
Android Compose
Flutter Tutorial
Kotlin Android

Web & Server

Selenium Java
Learn Tally
Tally Tutorial
What is Tally
Tally Basics
Tally - Download & Install Tally.ERP 9
Tally - How to Start Tally.ERP 9
Tally - Screen Components
Tally - F12: Configurations
Tally - Accounting Features
Tally - Inventory Features
Tally - Statutory & Taxation
Creating Accounting Masters
Tally - Create Company
Tally - Alter/ Delete / Shut Company
Tally - Groups
Tally - Create Groups
Tally - Create Single Ledger
Tally - Create Multiple Ledger
Tally - Create Single Cost Center
Creating Inventory Masters
Tally - What is Stock group
Tally - Create single stock group
Tally - Create multiple stock groups
Tally - Stock Categories
Tally - Create Godowns /Locations
Tally - Create Unit of Measures
Tally - Create Stock items
GST In Tally
Tally - Enable GST in Tally.ERP 9
Payroll in Tally
Tally - Payroll Configurations
Tally - Enable Payroll
Tally - Enable Payroll Statutory
Tally - Define employee category
Tally - Define employee Groups
Tally - Create Employees Master Data
Tally - Create Simple Payroll Units
Tally - Create Compound Payroll Units
❯ Tally Tutorial

Tally Payroll Tutorial | Tally Payroll Accounting Training Tutorials

Tally payroll tutorial.

Tally Payroll tutorial for beginners. This payroll accounting training tutorials helps you to configure tally step by step from basics.

Payroll Accounting in Tally is one the major feature that manages salaries automatically. Payroll helps in generating pay slips and records all the transactions of tax, employee benefits, etc.

Payroll refers to a total amount paid by an organization to its employees over a period of time. Payroll is an expenditure on wages and salaries incurred by an organization in an accounting period.

What do you learn through Tally payroll tutorial

Step by step basic concepts of Tally payroll
You will learn payroll configuration, employee tax, etc
Important interview questions on Payroll
Real time scenarios on Tally payroll

Prerequisites to learn Tally Payroll

This tally payroll tutorials are designed from basics, so no knowledge is required to learn payroll
Before learning Tally payroll, refer Tally tutorial that explains step by step configuration of Tally.ERP 9

Tally Payroll Training Syllabus

Payroll configuration
Enable payroll in Tally
Enable payroll statutory & taxation
Define employee categories
Create employee group
Create employees
Create simple payroll units
Compound payroll units
Create attendance type
Create absent type
Create user defined calendar type
Create basic pay head
Create house rent allowance
Create conveyance pay head
Create overtime pay head
Create variable pay head
Create salary details