Lectures List
capscom technology computer course almora

Payroll Management in tally prime

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.
 

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

This will define category for employee like 
  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

In payroll system, units are used to set attendance, overtime in minutes/hours/days/Weeks
 

Create unit

Type

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

Attendance/Production type

In this option we will create Present, absense, overtime.
 

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

Net salary is a combination of different part, these parts are known as 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
Author/Written by: Mr Hemant Singh (Founder)
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