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Payroll

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0% found this document useful (0 votes)
123 views27 pages

Payroll

Uploaded by

chellapandian k
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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LAB:10

Payroll Creation and Calculation Sum


Payroll in TallyPrime
The Payroll is Menu to create different payroll masters required for computing earnings and
deductions for employees. A collection of predefined processes in TallyPrime enable error-free
automation of payroll process. The payroll feature also provides management related information,
statutory forms and reports in the prescribed formats.
 Payroll Statements,
 Pay Slip,
 Attendance and
 Overtime Registers.
Payroll vouchers record payroll-related data for employee and employer contributions. You
can enter separate vouchers for every day or a single voucher for a given pay period, such as a month,
with aggregated values. You can also enter data for one or more, or all employees.

Employee Details
Name S.Nishanth P.Rathika
Department Administrative Sales
Designation Manager Sales Manager
Date of Join 1.8.2005 1.6.2010
Employee ID 258 1087
Bank Name HDFC Bank Ltd HDFC Bank Ltd
Account number 1234567890 9876543210

Employee Salary Details


S.Nishanth P.Rathika
Basic Pay Rs.35,000 Basic pay Rs.20,000
DA 40% for Basic Pay DA 20% for Basic pay
TA 6% for Basic Pay TA 5% for Basic pay
Medical Allowance Rs.1,000 Per Month Medical Allowance Rs.600 per Month
Advance Rs.1,500 Per Month Public Provident Fund 6.5% for Basic pay
Food Allowance Rs.1300 Per Month Food allowance Rs.500 per Month
House Rent 15% for Basic Pay House Rent 8.5% for Basic pay
Allowance Allowance
Provident Fund 10% for Basic Pay + Provident Fund 7% for Basic pay + DA
DA
Income Tax 15% for DA Income tax 10% for DA
House Loan Rs.700 Per Month City Compensatory 15% for Basic pay
Allowance
Over Time 10hrs Over Time 8hrs
Create Company
To get started with Tally Prime, you need to first create your company to keep a record of all
your day-to-day business transactions. To create the company, you need the company name and
financial year information. You can enter all other details such as contact information, security, while
creating the company or any time later.
How to create a company in Tally Prime
 In tally, after login double click on the create company option under company information.
 Go to Top Menu ->Company ->Create -> Enter

Ledger in Tally Prime


Ledgers in Tally Prime The ledgers in Tally Prime or in the Books of Accounts affect assets,
liabilities, income or expenses. Tally Prime can generate a Profit & Loss A/c and Balance Sheet
immediately after a transaction has been entered. It can also generate a range of comprehensive
financial statements and reports.
Create a Single Ledger
 Press Alt+G (Go To) ->Create Master -> type or select Ledger and press Enter.
Alternatively, Gateway of Tally ->Create -> type or select Ledger and press Enter.
 Enter the Name of the ledger account.
Duplicate names are not allowed.
 Enter the alias of the ledger account, if required.
You can access the ledgers using the original name or the alias name
 Select a group category from the List of Groups.
 Enter the Opening Balance.
The opening balance is applicable when the ledger is an asset or a liability, and also if it has
a balance in the account as on the books beginning date.
 Press Ctrl + A to save, as always

Create Employee Group


 Gateway of Tally ->Create type or select ->Payroll Masters Employee Group and press
Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Employee Group -> and press
Enter.
 Enter the Name of the Administrative Department
 Select the group under which the Primary is to be added.
 Set the option Define Salary Details to No.

 Accept the screen. As always, you can press Ctrl+A to save.


 Create Employee Group for Sales Department

Create Employee
 Gateway of Tally ->Create type or select Employee -> and pressEnter.
Alternatively, press Alt+G (Go To) ->Create Master ->Employee -> and press Enter.
 Enter the Name of theEmployee. (S.Nishanth and P.Rathika)
 Select the group under which the(Administrative Department and Sales Department)is to
be added.
 Enter the Date of joining.
 Set the option Define Salary Details to No.
 Set the option Provide bank Details to Yes.
 Accept the screen. As always, you can press Ctrl+A to save.
Create Payroll Unit in TallyPrime
 Gateway of Tally > Create > type or select Units (Work) > and press Enter. ...
 Select Type as Simple.
 Enter the Symbol for the Unit.
 Enter the Formal Name.
 Provide the Number of Decimal Places, as applicable.

 Accept the screen.


Create Attendance / Production Type Present
 Gateway of Tally ->Create type or select Attendance / Production Type -> and pressEnter.
Alternatively, press Alt+G (Go To) ->Create Master ->Attendance / Production Type ->
and press Enter.
 Enter the Name in Present and Create the Attendance for Absent and Overtime.
 Select the group under which the Primary is to be added.
 Select the type Attendance Type which the Attendance/ Leave With Pay Press Enter.
(Leave without pay and Production)
 Accept the screen. As always, you can press Ctrl+A to save

Create Pay Head in Basic Pay


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter.
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
Payroll Pay Head Type
Deductions from Employees
 Name : Provident Fund , Public Provident Fund
 Under : Current Liabilities
Earnings from Employees
 Name : Basic Pay , DA, HRA, TA, MA, FA, CCA, Overtimeany Allowances Name
 Under : Indirect Expenses
Employees Statutory Deductions
 Name : Income Tax
 Under : Duties & Taxes
Loans and Advances
 Name : Advanceand House Loan
 Under : Loans and Advances Current Assets
 SelectIncome type for the pay head Fixed.
 Fixed, which forms a part of the employee’s Total Gross Salary. For example, Basic Pay
 Variable, which forms a part of the employee’s Total Earnings only. For example,
Overtime Wages
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation Flat
Rate.
Calculation Type
 Net Amount : Flat Rate
 Percentage : As Computed Value
 Basic Pay : On Attendance
 Over Time : On Production
 TheCalculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Accept the screen. As always, you can press Ctrl+A to save.
Create Pay Head in DA
 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter.
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field,select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute : On Specified Formula
Add pay Head in Basic pay press Enter
 Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in TA


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute : On Specified Formula
Add pay Head in Basic pay press Enter
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in Medical Allowance


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
Flat Rate.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in Advance


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Loans and Advances as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Loans and Advances from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 Calculation type: Select the required method of calculation from the List of Calculation in
Flat Rate.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in House Rent Allowance


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute : On Specified Formula
 Add pay Head in Basic pay press Enter
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in Provident Fund


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Deductions from Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Current Liabilities from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute : On Specified Formula
Add pay Head in Basic pay and, Add pay Head DA press Enter
 Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in Income Tax


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter.
 Enter Pay Head Name in the Name field.
 Select Employees Statutory Deduction as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 SelectDuties& Tax from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute : On Specified Formula
Add pay Head in DA press Enter
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in Public Provident Fund


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Deductions from Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Current Liabilities from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute : On Specified Formula
Add pay Head in Basic pay and,add pay Head DA press Enter
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in House Loan


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter .
 Enter Pay Head Name in the Name field.
 Select Loans and Advances as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Loans and Advances from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 Calculation type: Select the required method of calculation from the List of Calculation in
Flat Rate.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in City Compensatory Allowance


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter.
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
As Computed Value.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
 Computation Information, Select Compute: On Specified Formula
Accept the screen. As always, you can press Ctrl+A to save.

Create Pay Head in Food Allowance


 Gateway of Tally ->Create type or select Pay Heads -> and press Enter.
Alternatively, press Alt+G (Go To) ->Create Master ->Pay Heads -> and press Enter.
 Enter Pay Head Name in the Name field.
 Select Earnings for Employees as the Pay head type from the list of Pay head type.
 Select Income type for the pay head in Fixed.
 Select Indirect Expenses from the List of Groups in the Under field.
 Select By default, Affect Net Salary is set to Yes.
 The Use for calculation of gratuity is set to No. Set this to Yes, if you want this pay head to
be considered for Gratuity calculation.
 Set/Alter Income Tax Details: Set the option to No.
 Calculation type: Select the required method of calculation from the List of Calculation in
Flat Rate.
 the Calculation period field, select the required calculation period from the List of
Calculation Periods in Months.
 Rounding Methods: Select the required Rounding off method from the Normal Rounding
enter.
The required rounding limit in the Limit field.
Create Salary Details
 Gateway of Tally ->Alter type or select Define Salary -> Employee A from the List of
Groups/Employees
Alternatively, press Alt+G (Go To) ->Alter Master ->type or search Define Salary -
>Employee A from the List of Groups/Employees. .
 Enter 1-8-1995 as the Effective From date.
OK
 Select the Pay Head in Basic payEnter.
 Enter the Rate value.
 Enter Percentage activated Salary Details Alteration ->Salary Details, the Party Salary
Details screen, press
F12 (Configure), and Allow to Override Slab percentage to Yes.
Accept the screen. As always, you can press Ctrl+A to save.

Create Attendance Voucher


 Gateway of Tally ->Vouchers press F10 (Other Vouchers) -> type or select Attendance
Alternatively, press Alt+G (Go To) ->Create Voucher ->press F10 (Other Vouchers) -
>type or select Attendance.
 Press Ctrl+F (Auto Fill) button.
 Enter/Alter the Voucher Date, if required.
 Select the Employee/Group from the List of Group/Employees.
 Select the Attendance/Production Type from the list in Present
 Enter the required number of days in the Default Value to Fill field (for example, 0 days for
absent and 26 days for present).
 Enter the Sort by field Value against the Employee Name
 Accept the screen. As always, you can press Ctrl+A to save the attendance voucher.

Create Attendance in Absent


 Gateway of Tally -> Vouchers press F10 (Other Vouchers) -> type or select Attendance
 Alternatively, press Alt+G (Go To) -> Create Voucher ->press F10 (Other Vouchers) ->type
or select Attendance .
 Press Ctrl+F (Auto Fill) button.
 OK
 Enter/Alter the Voucher Date, if required.
 Select the Employee/Group from the List of Group/Employees.
 Select the Attendance/Production Type from the list in Absent
 Enter the required number of days in the Default Value to Fill field (for example, 0 days for
absent and 26 days for present).
 Enter the Sort by field Value against the Employee Name
Accept the screen. As always, you can press Ctrl+A to save the attendance voucher.

Create Attendance in Overtime


 Gateway of Tally -> Vouchers press F10 (Other Vouchers) -> type or select Attendance
 Alternatively, press Alt+G (Go To) -> Create Voucher ->press F10 (Other Vouchers) ->type
or select Attendance.
 Press Ctrl+F (Auto Fill) button.
 OK
 Enter/Alter the Voucher Date, if required.
 Select the Employee/Group from the List of Group/Employees.
 Select the Attendance/Production Type from the list in Overtime
 Enter the required number of days in the Default Value to Fill field (for example, 0 days for
absent and 26 days for present).
 Enter the Sort by field Value against the Employee Name
Accept the screen. As always, you can press Ctrl+A to save the attendance voucher.

Create Payroll voucher


 Gateway of Tally ->Vouchers press Ctrl+F4 (Payroll).
Alternatively, Alt+G (Go To) ->Create Voucher -> press Ctrl+F4 (Payroll).
 Press F2 to change the Voucher Date.
 Press Ctrl+F to select the Payroll Autofill in the Autofill screen
 Type of transaction: select the Type of Autofill as Payroll Autofill
 Process for: select the Salary in the Process for field.
 From (blank for beginning):enter the From Dates.
 Employee/Group: select the Employee/Group from the List of Employees/Group, whose
salary you want to process
 Sort by: Select the sorting option in the Sort by field.
 Accept the screen. As always, you can press Ctrl+A to save the Payroll voucher.

Payroll Report

1. Gateway of Tally ->Display More Reports pressPayroll Reports->PaySilp


Alternatively, Alt+G (Go To) ->Payroll -> press Employee Pay Slip

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