Payroll Management In Tally Prime Step By Step Guide

Tally Payroll is integrated with Accounting to give the user the benefits of simplified Payroll processing and accounting.

Tally Payroll enables users to set up and implement salary structures, ranging from simple to complex, as per the organization’s requirements. Yes can also align and automate payroll processes and directly integrate them with main stream accounting applications. Payroll data can be viewed as part of the existing and configurable cost centre reports for business analysis.

Tally Payroll also supports configurable formats for payslip printing; flexible salary/wage, attendance, leave and overtime registers; gratuity and Expat reports.

In This Tutorials You Will Learn How To Record Salary Details In Payroll Feature Of Tally Prime

How To Record Salary Details In Tally Prime :

• Create Pay Heads

The components of structured salary are created under Pay Head Create the salary structure components in Pay head.

The salary components constituting Pay Structures are called Pay Heads. A Pay Head may be an earning, which is paid to an 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.

The Pay head creation in tally is very user friendly. Tally allows creating any complex type of pay head.

Pay Head Type

A Pay Head is categorized as Allowances, Deductions or Reimbursements

In Tally Payroll, Pay Head types are provided in a natural language for ease of use, as follows:

1. Earning for Employees

2. Deduction from Employees

3. Employer’s Statutory deductions

4. Employer’s Statutory Contribution

5. Gratuity 6. Loans and Advances

7. Reimbursement to Employees

Calculation Types

The Calculation of the Pay Head is bases on its Calculation Type.

Tally payroll allows following calculation methods

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

The following computational models are supported in Calculation Types.

1. As Flat Rate

As Flat Rate is a Calculation where the value of the Payroll head is a fixed amount for a period. Pro-rated. In Tally the attendance can be of Payable days (Present) or loss of pay (Absent) type.

2. On Production

On production calculation type is used to calculate the Production incentive type of Pay head. The production date can be entered in Attendance voucher against a Production type.

3. As Computed Value

As Computed Value is used if the Pay Head value is based on a dependent component. You will be able to define the dependent component by specifying the formula or using the current sub- total or current earning or deduction total. You can also define the slab either by percentage to value or the combination in a slab. i.e. HRA as 40% of Basic Salary

4. 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 useful for Pay Heads that have variable values and are not related to any attendance/production data.

• Create Employee Masters

Create an Employee master. Enter the requisite Employee Details & Employee group by grouping employees under the function they perform; their department or designation.

• Create Salary Details

Create the applicable Salary Details for both Employee Groups as well as Individual Employees with earnings, deductions and basis of computation.

• Process Payroll and Generate the Payslip

Pass a Payroll voucher to enter all Earnings and Deductions in Payroll transactions that are paid along with the salary Payslip for all employees

Generate the Payslip that provides employee as well as attendance details, itemizes 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 employees to how the net amount was arrived at.

Step - 2 Enable Payroll Master In Tally Prime Features Press F11

Here Required To Press F11 Key For Open Tally Prime Company Features And After Pressing F11 Key. Then You have to Enable Maintain Payroll = Yes After This You Can Press CTRL + A For Quick Creation.

Step - 3 Create Employee Groupe From Payroll Master

Note : Gateway Of Tally >> Create >> Employee Group

Tally allows you to set up default (common) information for employees. An Employee Group allows you to group employees in a logical manner.

The Salary structure can be defined at the Employee Group level. Referring to this Group as a template and changing accordingly will ease building all your employee records on it.

For example, by department or function such as Production, Salas, Administration and so on, or by designation such as Managers, supervisors, Workers and so on.

• Enter the Name of the Employee group.

• Select the group from the List of Employee Groups.

• Accept to save the Employee Group.

You can create multiple Employee Groups in this mode.

Here Two Employee Group Create First Marketing And Second Sale Team.

3.1 Employee Group Creation : Marketing

Note : Gateway Of Tally >> Create >> Employee Group

3.2 Employee Group Creation : Sales Team

Note : Gateway Of Tally >> Create >> Employee Group

Step - 4 Work Of Unit Creation From Payroll Master

Note : Gateway Of Tally >> Create >> Unit (Works)

Step - 4.1 Work Of Unit Creation

Note : Here Created Three Work Unit

1 Hours,

2 Minutes ,

3 Compound Hours To Minutes

Step - 5 ATTENDANCE / PRODUCTION TYPE Creation

The Attendance / Production type is used to record the attendance and production data. Bases on the component (Pay head) structure, you can define multiple attendance / production types.

Examples for attendance / production types are No. of days present or conversely, No. of days Absent and production based such as Hours worked, Number of Pieces produced. Attendance/Production Type is associated with the Pay Head in employee’s Pay structure. The variable data is entered in the Attendance voucher for the payroll period.

Attendance/Production Type may also be defined in hierarchical groups whereby Types having a common Unit are combined under logical groups.

The Attendance/Production Type may be Attendance/leave with pay, Leave without Pay (if salary is to be paid based on number of days attended) Paid Leave, Unpaid Leave, Absent and Production type which can be based on Piece Production, Overtime House, and so on.

1. Enter the Name of the Attendance Type

2. Select Primary from the list for the field Under.

3. Select Production as the Attendance Type. 300

4. The Unit field will appear, select the appropriate type of unit from the list.

5. Accept to save the Attendance Type.

Similarly, you can create Box Production Attendance Type

1. Over Time

2. Absent

Note : Gateway Of Tally >> Create >> Attendance / Production Type

5.1 ATTENDANCE / PRODUCTION TYPE Creation : LEAVE CREATION

Note : Gateway Of Tally >> Create >> Attendance / Production Type

5.2 ATTENDANCE / PRODUCTION TYPE Creation : Over Time

Note : Gateway Of Tally >> Create >> Attendance / Production Type

Step 6 : Pay Heads Creation

Creating An Earning Pay Head

To create an Earning Pay Head, Basic Salary, under Indirect Expenses:

Note : Gateway Of Tally >> Create >> Pay Heads

Earning For Employee

Basic
Bonus
DA
HRA
Over Time
Reimbursements
TA

Deduction From Employee

ESI
Leave
PF

6.1 PAY HEADS CREATION BASIC

Note : Gateway Of Tally >> Create >> Pay Heads

1. Enter the Name of the Earning Pay Head.

2. Select Earning for Employees as the Pay Head Type form the List of Pay Head Types.

3. Select the respective Pay Head Group Earnings from the list for the field Under.

4. select Yes from the list if you want the Pay head to affect the net salary.

5. The Pay Head name entered in the Name field will appear in this field. You can change the same, if required. The name entered in this field will appear on the payslip.

6. Select Flat Rate from the List of Calculation Types.

7. Select the Calculation Period Type from the list. 290

8. Based on the Calculation Period Type, you can select and enter the details for Per Day Calculation Basis.

9. Select the Rounding Method from the list if applicable.

10.Accept to save the Pay Head.

Similarly, you can crate Earning Pay Heads for HRA, Conveyance and so on…

6.2 PAY HEADS CREATION Bonus

Note : Gateway Of Tally >> Create >> Pay Heads

6.3 PAY HEADS CREATION DA

Note : Gateway Of Tally >> Create >> Pay Heads

6.4 PAY HEADS CREATION HRA

Note : Gateway Of Tally >> Create >> Pay Heads

6.5 PAY HEADS CREATION Over Time

Note : Gateway Of Tally >> Create >> Pay Heads

6.6 PAY HEADS CREATION REIMBURSEMENTS

Note : Gateway Of Tally >> Create >> Pay Heads

6.7 PAY HEADS CREATION TA

Note : Gateway Of Tally >> Create >> Pay Heads

Creating A Deduction Pay Head

To create a Deduction Pay Head, Professional Tax under Employees’ Statutory Deductions:

1. Enter the Name of the Deduction Pay Head.

2. Select the Pay Head Type from the List of Pay Head Types.

3. Select the Group from the List of Groups.

4. select Yes from the list if you want the Pay Head to affect the net salary.

5. The Pay Head name entered in the Name field will appear in this field. You can change the same, if required. The name entered in this field will appear on the payslip. 291

6. Select the Calculation Type from the List of Calculation.

7. On selecting the Calculation type to ‘As Computed Value, a new field Calculation Period appears which will be set to Months automatically.

8. Select On Current Earnings Total from the list to be Computed On.

9. Specify the Slab Rate.

10. Select the Rounding Method from the list if applicable.

11.Accept to save the Pay Head.

Similarly, you can create a Deduction Pay Head for Provident Fund and so on

Note: If you are using any Pay Head component having Calculation Type As Computed Value and Compute: On Current Earning Total, while defining Salary Detail, the sequence of the component has to be selected accordingly.

6.8 PAY HEADS CREATION ESI

Note : Gateway Of Tally >> Create >> Pay Heads

6.9 PAY HEADS CREATION Leave

Note : Gateway Of Tally >> Create >> Pay Heads

6.10 PAY HEADS CREATION PF

Note : Gateway Of Tally >> Create >> Pay Heads

Step 7 : Create Payroll Voucher Type : Salary Slip

Payroll voucher is used to record Employees’ Payroll related transactions. This voucher may be used in two ways – Manual Entry and Automated Entry

Note : Gateway Of Tally >> Create >> Payroll Voucher Type Alteration

7.1 Salary Slip Class Creation

8 Employee Creation : Ankit Mishra

The Employee Creation screen allows you to enter basic setup information that applies to the employees. Enter General Information, Payment Details and Passport & Visa Details.

You can create multiple Employees in this mode

Note : Gateway Of Tally >> Create >> Employee Creation