PAYROLL

What is payroll ?
A payroll is a company's list of its employees, but the term is commonly used to refer to: the
total amount of money that a company pays to its employees. A company's records of its
employees' salaries and allowances, deduction, and withheld taxes. The company's department
that calculates funds and pays these.

STEP 1  
   PAYROLL SYSTEM ( In TALLY 9.0 )
Alt F1  CREATE COMPANY
PRESS F11
ACCOUNTING FEATURES
MAINTAIN PAYROLL YES
MAINTAIN MORE THAN ONE YES
Accept

ESC
-----------------------------
STEP 2 
  ACCOUNTS INFO.
GROUP
CREATE
NAME PAYBLE SALARY
UNDER  INDIRECT EXPENSES
Accept
ESC
-----------------------------

1
STEP 3 “A” GETWAY OF TALLY
PAYROLL INFO.
PAY HEAD
CREATE
NAME  BASIC SALARY
PAY HEAD TYPE EARNING FOR EMPLOYEE
UNDER PAYABLE SALARY
APPEARS IN PAY SLIP YES
GRATUITY NO
CALCULATION TYPE ON ATTENDANCE
ATTENDANCE/LEAVE WITH PAY NOT APPLICABLE
LEAVE WITHOUT PAY PRESS ALT+C 
( FOR CREATE LEDGER) OF “LEAVE”
CALCULATION PERIOD MONTHS
PER DAY CALCULATION BASIS USER DEFINED
MONTHS OF 30 DAYS
ROUNDING INFO. NORMAL ROUNDING
LIMIT 1

STEP 3 “B”
 HRA (HOUSE RENT ALLOWANCE)
PAY HEAD TYPE EARNING FOR EMPLOYEE
UNDER PAYABLE SALARY
APPEARS IN PAY SLIP YES
NAME TO APPEAR IN PAY SLIP HRA
GRATUITY NO
CALCULATION TYPE AS COMPUTED VALUE
2
 ROUNDING INFO. NORMAL ROUNDING
LIMIT 1

COMPUTATION INFO.

COMPUTE ON SPECIFIED FORMULA

PAY HEAD BASIC SALARY
Effective from From amount Amount up to Slab type Value basic
1-4-20__ - - percentage 20 %

STEP 3 “C”
 
    PT (PROFESSIONAL TAX)
PAY HEAD TYPE DEDUCTION FROM EMPLOYEES
UNDER CURRENT LIABILITIES
APPEARS IN PAY SLIP YES
NAME TO APPEAR IN PAY SLIP PROFESSIONAL TAX
CALCULATION TYPE AS COMPUTED VALUE
ROUNDING INFO. NORMAL ROUNDING
LIMIT 1

COMPUTATION INFO.

COMPUTE ON CURRENT EARNINGS TOTAL

PROCESS : - 

 1ST PUT THE SALARY ON AMOUNT UPTO COLUMN, e.g. 2500 ENTER
 THEN CHOOSE “VALUE” OPTION IN SLAB TYPE, ENTER
 THEN AGAIN PUT ANOTHER SALARY AMOUNT JUST BELOW THE 1st
AMOUNT

3
  i.e. 2500 ENTER
 THEN CHOOSE “VALUE” OPTION AGAIN IN SLAB TYPE, ENTER
 THEN GIVE THE VALUE IN VALUE BASIS COLUMN e.g. 150, ENTER
 THEN REPEAT THE SAME PROCESS AGAIN &

EXAMPLE MAKE IT LIKE TABLE SHOWN BELOW…

Effective from From amount Amount up to Slab type Value basic

1-4-20__ 10,000 VALUE 0
10000 15000 VALUE 700
15000 25000 VALUE 1200
25000 40000 VALUE 1700
40000 VALUE 2000

STEP 3 “D”
     PAYBLE SALARY
PAY HEAD TYPE NOT APPLICABLE
UNDER CURRENT LIABILITIES
Accept
ESC
-----------------------------

4
STEP 4 
GATWAY OF TALLY
PAYROLL INFO.
EMPLOYEE GROUP
CREATE
CATEGORY  PRIMARY COST CATEGORY
NAME  MANAGER
UNDER  PRIMARY
Accept

CATEGORY  PRIMARY COST CATEGORY

NAME  STAFF
UNDER  PRIMARY
Accept
CATEGORY  PRIMARY COST CATEGORY
NAME  ACCOUNTANT
UNDER  PRIMARY
Accept
ESC
-----------------------------
STEP 5 
EMPLOYEE CREATION
CATEGORY  PRIMARY COST CATEGORY
NAME  Mr. Aniket Choudhary
UNDER  MANAGER
( Fill remaining information )
Accept

5
NAME  Mr. Swapnil Chauhan
UNDER  STAFF
( Fill remaining information )
Accept

NAME  Mr. Poonam Malhotra

UNDER  MANAGER
( Fill remaining information )
Accept

ESC
GATWAY OF TALLY
PAYROLL INFO.
SALARY DETAILS
CREATE
(select employee name only don’t select group)
Mr. Aniket Choudhary
EFFECTIVE FROM PAY HEAD RATE
1-4-20__ BASIC SALARY 50000
HRA
PT

(Same select other employee and input their salary)

step
CREATE
THEN, NAME OF THE EMPLOYEES WILL DISPLAY
THEN, SELECT ANY EMPLOYEE FROM THAT LIST, ENTER
THEN, SELECT “BASIC SALARY” UNDER PAY HEAD COLUMN
6
 THEN, MENTION THE SALARY UNDER RATE COLUMN e.g. 10000, ENTER
THEN, SELECT ‘HRA’, ‘PROFESSIONAL TAX’ ONE BY ONE CONTINUOUSLY,
ENTER.
ESC
-----------------------------
STEP 7
THEN, GO TO GATEWAY OF TALLY & SELECT ‘’PAYROLL
VOUCHER”
THEN PRESS CNTRL+F5 FOR ATTENDANCE
THEN, SELECT EMPLOYEE NAME e.g. Mr. Aniket Choudhary,
AND PRESS ENTER
THEN, SELECT LEAVE IN THE COLUMN OF
ATTENDANCE/PRODUCTION TYPES
THEN, GIVE THE VALUE OF LEAVES e.g. 3, ENTER
THEN, CNTRL+F4 &ALT+A FOR EMPLOYEE FILTER
THEN, CLICK ENTER, ENTER TILL EMPLOYEE GROUP,
THEN, SELECT ALL
THEN, IN PAYROLL LEDGER SELECT PAYBLE SALARY, ENTER
ESC
-----------------------------
STEP 6 
DISPLAY
PAYROLL REPORT 
STATEMENT PAYROLL PAY SLIP &
PRESS ALT + P FOR PRINT PREVIEW

7
STEP 8   “ACCOUNTING VOUCHER”
F5 (PAYMENT)
NOTE : ( PRESS F12 USE SINGLE ENTRY MODE FOR PAYMENT / RECIEPT / CONTRA YES

ALT+A
EMPLOYEE FILTERS
THEN, SELECT EMPLOYEE GROUP OR ALL
THEN, SELECT PAYROLL LEDGER 
PAYBLE SALARY

------------------------------------------- THE END -----------------------------------------

YOU CAN ALSO CREATE FOLLOWING PAYHEAD

ALLOWNCES

HRA House Rent Allowance

TA Travel Allowance)

DA Dearness Allowance OR Daily Allowance

OV Overtime Allowance

DEDUCTIONS

PT Professional Tax

IT Income Tax

PF provident fund