Payroll Management in tally prime

There we will use two voucher 

1. Payroll
   This voucher is used to record salary details.
2. Attendance
   This voucher is used to record attendance details.

There are main 6 options in payroll masters

1. Employee Category
2. Employee Group
3. Units(Work)
4. Attendance/Production Type
5. Pay Heads
6. Employee

Employee Category

1. A Grade
2. B Grade
3. C Grade

Create employee category

• Name
  A Grade
• Allocate Revenue Items
  Yes
• Allocate Non-revenue items
  No

List of groups under category

1. A Grade
   
   • MD
   • Director
   • CEO
   • Manager
   • Principal
2. B Grade
   
   • Teacher/Trainer
   • Clerk
   • Receiptionis
   • HOD
3. C Grade
   
   • Security Guard
   • Driver
   • Electrician
   • Sweeper

Create employee Group

• Category
  A Grade
• Name
  CEO
• Under
  Primary
• Define Salary details
  No

Units

Create unit

Type

1. Symbol
   1. Mnt : Minute
   2. Hr : Hours
   3. Dy : Days
   4. Wk : weeks
2. Formal name
   Days

Attendance/Production type

Create attendance/production type

1. Name
   Present/Absent/Leave/Overtime
2. Under
   Primary
3. Attendance type
   1. Present: Attendance/Leave with pay
   2. Absent: Leave without pay
   3. Leave: Attendance with pay
   4. Overtime: Production
4. Unit
   
   1. Present: days
   2. Overtime: hr

Pay heads

List of pay heads

Earnings

1. BS: Basic salary
2. HRA: Home rent allowance
3. DA: Dearness allowance
4. TA: Travelling allowance
5. OT: Overtime

Deductions

1. PF: Provident fund
2. 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

1. Payroll voucher: CTRL + F4
2. Autofill salary details: CTRL + F