Payroll system is used to record all the details of employee like Salary details, Attendance details.
In tally accounting software we don't need to use the journal voucher to record salary details, for this we will use payroll system.
First of all we have to enable payroll option at Gateway of tally (Master).
For that visit to gateway of tally and press F11(or Fn+ F11 ) and at payroll option switch No to Yes to maintain payroll.
First of all we have to enable payroll option at Gateway of tally (Master).
For that visit to gateway of tally and press F11(or Fn+ F11 ) and at payroll option switch No to Yes to maintain payroll.
There we will use two voucher
- Payroll
This voucher is used to record salary details. - Attendance
This voucher is used to record attendance details.
There are main 6 options in payroll masters
- Employee Category
- Employee Group
- Units(Work)
- Attendance/Production Type
- Pay Heads
- Employee
Employee Category
This will define category for employee like
- A Grade
- B Grade
- C Grade
Create employee category
- Name
A Grade - Allocate Revenue Items
Yes - Allocate Non-revenue items
No
List of groups under category
- A Grade
- MD
- Director
- CEO
- Manager
- Principal
- B Grade
- Teacher/Trainer
- Clerk
- Receiptionis
- HOD
- C Grade
- Security Guard
- Driver
- Electrician
- Sweeper
Create employee Group
- Category
A Grade - Name
CEO - Under
Primary - Define Salary details
No
Units
In payroll system, units are used to set attendance, overtime in minutes/hours/days/Weeks
Create unit
Type
Simple
- Symbol
- Mnt : Minute
- Hr : Hours
- Dy : Days
- Wk : weeks
- Formal name
Days
Attendance/Production type
In this option we will create Present, absense, overtime.
Create attendance/production type
- Name
Present/Absent/Leave/Overtime - Under
Primary - Attendance type
- Present: Attendance/Leave with pay
- Absent: Leave without pay
- Leave: Attendance with pay
- Overtime: Production
- Unit
- Present: days
- Overtime: hr
Pay heads
Net salary is a combination of different part, these parts are known as pay heads.
List of pay heads
Earnings
- BS: Basic salary
- HRA: Home rent allowance
- DA: Dearness allowance
- TA: Travelling allowance
- OT: Overtime
Deductions
- PF: Provident fund
- PT: Professional tax
Formula of net salary
Net salary = Total earnings - Deductions
Net salary = (Basic salary + HRA + DA + TA + Overtime) - (PF + PT)
Now create all the pay heads
Name: Basic Salary
Pay head information
- Pay head type: Earnings for employees
- Income type: Fixed
- Under: Indirect expenses
- Affect net salary? : Yes
- Name to be displayed in payslip: Basic Salary
- Use for calculatioin of gratuity: No
- Calculation type: On attendance
- Attendance/leave with pay: Not applicable
- Leave without pay: Absent
- Calculation period: Months
- Basis of calculation(per day): As per calendar period
Name: HRA
Pay head information
- Pay head type: Earnings for employees
- Income type: Fixed
- Under: Indirect expenses
- Affect net salary? : Yes
- Name to be displayed in payslip: Hourse rent allowance
- Use for calculatioin of gratuity: No
- Calculation type: As computed value
- Calculation period: Months
Note: According to gov 5% to 70% on basic salary
Name: DA
Pay head information
- Pay head type: Earnings for employees
- Income type: Fixed
- Under: Indirect expenses
- Name to be displayed in payslip: Dearness Allowance
- Use for calculatioin of gratuity: No
- Calculation type: As computed value
- Calculation period: Months
Note: According to gov 5% to 70% on basic salary
Name: TA
Pay head information
- Pay head type: Earnings for employees
- Income type: Fixed
- Under: Indirect expenses
- Name to be displayed in payslip: Travelling allowance
- Use for calculatioin of gratuity: No
- Calculation type: Flat rate
- Calculation period: Months
Name: Overtime
Pay head information
- Pay head type: Earnings for employees
- Income type: Fixed
- Under: Indirect expenses
- Name to be displayed in payslip: Overtime
- Use for calculatioin of gratuity: No
- Calculation type: on production
Name: PF
Pay head information
- Pay head type: Deductions from employees
- Under: Current liabilities
- Affect net salary? : Yes
- Name to be displayed in payslip: Provident Fund
- Calculation type: As computed value
- Calculation period: Months
Note:
Up to 15000: 12%
Greater than 15k : 1800
Name: PT
Pay head information
- Pay head type: Employees Statutory Deductions
- Under: Duties and taxes
- Affect net salary? : Yes
- Name to be displayed in payslip: Professional tax
- Calculation type: As computed value
- Calculation period: Months
Note:
Up to 7500: 0
7500 < salary < 10000: 175
> 10000 : 200
Now pay salary using payroll voucher
- Payroll voucher: CTRL + F4
- Autofill salary details: CTRL + F