Payroll

Enabling Payroll in Tally

Go to Gateway of Tally > F11: Features> Accounting Features
Set the following features to Yes.
a. Maintain Payroll
b. More than one Payroll / Cost Category
Enable Payroll Statutory feature
Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation
Set Enable Payroll Statutory to Yes
And Set/Alter Payroll Statutory Details to Yes
Enter the following statutory details:-

Provident Fund
Company Code OR/BBS/11237/00132
Company Account Group Code
Company Security Code
Employee State Insurance
Company Code 440002434900024565
ESI Branch Office Bhubaneswar
Eligibility Amount 21000.00
Standard Working Days (per month)

Go to Gateway of Tally - Press F12: Configuration – Payroll Configuration.

Field Description
Show Statutory Details? Set this field to Yes
Show Passport/Visa Details? Set this field to Yes
Show Contract Details? Set this field to Yes

Create the following Units

Day, Hour, Month and Minutes to record the attendance used for calculation of pay.
GOT - Payroll Info – Units – Create.
Also create compound units such as Mth of 30 day and Hr of 60 Min
Create Attendance/Production Types
Go to GOT – Payroll Info – Attendance/Production Types – Create.

Name Under Attendance/Production Unit

Types
Absent Primary Leave without pay Automatically
appears
Present Primary Attendance/leave with Automatically
pay appears
Overtime Primary Production Hr of 60
Min

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 Create the following pay heads:
Go to Gateway of Tally > Payroll Info > Pay heads > Create
Leave Per day
Name to Used
SL without Calcula calculat
Pay Head appear for Calculation
No Name Under pay tion on ion
Type in Pay Gratui Type
. Period basis
slip ty
Earnings As per
Indirect On
1. Basic for Basic Yes Absent Month calendar
Expenses Attendance
Employees year
Earnings As Computed
Dearness for Indirect Value
2.
Allowance Employees Expenses
DA Yes N/A Month N/A
[ On Basic
50%]
Earnings As Computed
House Rent for Indirect Value
3. Employees HRA no Month N/A
Allowance Expenses [ On Basic + N/A
DA]*20%
Earnings
Conveyance Indirect Conveya
4. for No Flat Rate - Month N/A
Allowance Expenses nce
Employees
As Computed
Employees Current
Provident Value
5. Statutory Liabilitie PF - Month N/A
Fund [ On Basic -
Deduction s
12%]
As Computed - Month N/A
Value [Basic
Employer’s Employer’s upto 15000,
EPS Statutory Indirect
6. - 8.33% on basic
Contribution Contributio Expenses
@8.33% n otherwise Rs.
1250]

As Computed - Month N/A

Value
Employer’s Employer’s
[ (Employee’s
EPF Statutory Indirect PF@12.% -
7. - Employer’s
Contribution Contributio Expenses
@3.67% n EPS
Contribution@
8.33%) 100%
of that]
As Computed
Employees Current value (On
8. ESI Statutory Liabilitie ESI - Current - Month N/A
Deduction s Earnings Total
0.75%)
Employer’s As Computed -
Employer’s Statutory Value
Contributio Indirect
9. ESI - (On Current Month N/A
n Expenses
Contribution Earnings Total
3.25%)
2
 Earnings On Production
for Indirect [Production Hr of 60
10. Overtime Employees OT No N/A
Expenses type min
:Overtime]
As Computed
Employees Current value (On
*Professional Liabilities -
11. Statutory P.Tax - Current Month N/A
Tax
Deduction Earnings
Total)
Current
12. **Gratuity Gratuity Liabilities - - - - - -

Current
Salary Not Liabilities
13. - - - - - -
Payable Applicable
Current
Not Liabilities
14. PF Payable
Applicable
Current
Not Liabilities
15. ESI Payable
Applicable

*Slab rate for P.Tax is given below:-

Effective From From Amount Amount Upto Value Basis

01-04-2019 13333 0
13333 25000 125
25000 200
**Slab Rate details for Gratuity calculation
Gratuity Days of a Months : 26
Number of Months Eligibility days for gratuity calculation per year
From To
1 60 0
61 15
Create Employee groups
Go to Gateway of Tally> Payroll Info.> Employee Groups> Create
Category Name Under
Primary Cost Category Admin Primary
Primary Cost Category Sales Primary

Create Employees with the following details:

Category Primary Cost Category

Name Ashis Kapoor
Under Admin
Date of Joining 01-08-1998
Employee Number EM01
Designation Manager
Function Administration
Location Bhubaneswar
Gender Male
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Date of Birth 1-7-1976
Blood Group B+
Father / Mother Name Mr. Ajay Kapoor
Address 29/2, Christopher Road,
Kolkata -700 046
Contact Number 033-22873021
E-Mail ID Ash_125@yahoo.co.in
Bank Name SBI
Branch Bhubaneswar
Bank A/c Number 009560013
Employee I.T. PAN AANPI4541L
PF Account Number 356578901
ESI Number 440356987
Passport Number U103807
Country of Issue India
Passport Expiry Date 02-12-2022
Visa Number SQI602545
Visa Expiry Date 31-12-2020
Work Permit Number WPN35547
Contract Start Date 01-07-2005
Contract Expiry Date 31-07-2022
Category Primary Cost Category
Name Priya Sethi
Under Admin
Date of Joining 01-07-1999
Employee Number EM02
Designation Senior Executive
Function Executive
Location Bhubaneswar
Gender Female
Date of Birth 02-04-1982
Blood Group A+
Father / Mother Name Karan Sethi
Address P-48 C.I.T. Road
Kolkata-700 014.
Contact Number 033-22789524
E-Mail ID Ps_14@hotmail.com
Bank A/c Number 3329560016
Bank Name SBI
Branch Bhubaneswar
PF Account Number 356578312
ESI Number 440125698
Employee I.T. PAN BDFDPI4542L
Passport Number E10568799
Country of Issue India
Passport Expiry Date 02-07-2022
Visa Number HV34794
Visa Expiry Date 31-12-2022
Work Permit Number SE261112

4
 Contract Start Date 01-04-2019
Contract Expiry Date 31-03-2020
Category Primary Cost Category
Name Rohan Agarwal
Under Sales
Date of Joining 1-09-1999
Employee Number EM03
Designation Jr. Executive
Function Sales
Location Mumbai
Gender Male
Date of Birth 01-05-1976
Blood Group A+
Father / Mother Name Ashok Agarwal
Address 45, Azgar Mistri lane
Kolkata -700 025
Contact Number 033-22569874
E-Mail ID rohan@hotmail.com
Bank A/c Number 3326587942
Bank Name SBI
Branch Mumbai
PF Account Number 346578905
ESI Number 44089756
Employee I.T. PAN SETPI4645L
Passport Number SE104907
Country of Issue India
Passport Expiry Date 02-12-2022
Visa Number TI15427
Visa Expiry Date 31-12-2022
Work Permit Number WI479201
Contract Start Date 01-07-2007
Contract Expiry Date 31-07-2022

1. Create Salary Details for an Employee Group:

Go to Gateway of Tally> Payroll Info.> Salary Details> Create
Select one by one
1. Admin
2. Sales

Admi Sales SALARY DETAILS

n
Effecti Rate Pay head type
Pay
ve Rate Per Calculation Type Computed On
Head
From
Earnings for
01-04-19 Basic 10000 8000 Month on Attendance
Employees
Earnings for
As Computed Value
DA Employees Basic Salary

5
 Earnings for
As Computed Value Basic Salary +
HRA Employees
DA
Conveyan Earnings for
800 1500 Month Employees Flat Rate
ce
Overtime Earnings for
80 60 Hr Employees On Production
Employees
Provident As Computed Value
Statutory Basic Salary
Fund Deduction
Employees
As Computed Value On Current
ESI Statutory
Deduction
Earning Total
Employees
Professio On Current
Statutory
nal Tax Deduction
Earning Total

10. Alter Salary Details for Employee:

Go to Gateway of Tally> Payroll Info.> Salary Details> Alter> Select the Employee from the List of
Employees/Group
a. Effective from 1/4/2019 >Select copy from Parent Value for all the employees except Priya Sethi.
b. Basic of Priya Sethi will be Rs.9000/-P.M & overtime rate is Rs.70/- per hour.

11. Attendance Voucher Entry –

Go to Gateway of Tally > Payroll Vouchers > CTRL+F5: Attendance
In the month of Dec’19 some employee has taken leave and some worked overtime. Pass the necessary
transaction with the following details given below.
a. Ashis Kapoor has taken a casual leave on 1st Dec’19 and worked 140 min as overtime on 31 st Dec’19.
b. Priya Sethi has taken a casual leave on 1st Dec, worked overtime on 2nd Dec’19 for 3 hrs and absent on
31st Dec’19.
c. Rohan Agarwal has worked overtime for 2 hour and 30 minutes on 1st and 2nd Dec’19.

12. Attendance Sheet / Attendance Register Report:

Check attendance sheet and attendance register report for the month of Dec ’19.
[Hint: GOT – Display – Payroll Report – Attendance Sheet / Attendance Register.]

13. Payroll voucher entry:

Generate the pay slip of the employee as on 31st Dec ’19
Record the PF payable entry on 31st Dec ’19
Record the ESI payable entry on 31st Dec ’19

14. Payment voucher entry:

On 31 st Dec 2019 salary payment is made through ICICI Bank
On 31 st Dec 2019 PF paid through ICICI Bank
On 31 st Dec 2019 ESI paid through ICICI Bank
On 31 st Dec 2019 P Tax paid through ICICI Bank

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15. Check the Following Payroll Report:-
a. Pay Slip
b. Payroll Statement.
c. Payment Advice
d. Gratuity and Expat Reports.

16. Ashis Kapoor’s pay structure has been revised with effect from 01-01-2020 and the details are as
follows.
Name Old Pay Structure New Pay Structure
Basic Rs.10000 Rs.11000
DA 50% on Basic 60% on Basic
HRA 20% on Basic+DA 25% on Basic+DA
Conveyance Rs.800 as monthly flat rate Rs.1200 as monthly flat
rate
Overtime Rs.80 Per Hour Rs.85 Per Hour

17. Priya Sethi has taken advance of Rs.10000 from the concern on 1st January, Rs.1000 is adjusted every
month from her salary.

18. During the month of January 2020, record the following employees leave taken and overtime worked.

Employee Name Casual Leave Absent Overtime

Ashis Kapoor 2 Days - 90 Min
Priya Sethi 1 Day 1 Day 2 Hours
19. Payroll Voucher Entry:
Generate the pay slip of the employee as on 31st January 2020.
Record the PF payable entry on 31st January 2020
Record the ESI payable entry on 31st January 2020

20. Payment Voucher Entry:

On 31st January’ 2011 Salary payment is made through ICICI Bank.
On 31 st January’ 2011 PF paid through ICICI Bank
On 31 st January’ 2011 paid through ICICI Bank
On 31 st January’ 2011 PTax paid through ICICI Bank

21. Check the following reports:-

a. Pay Slip
b. Payroll Register
c. Ledger Employee Breakup
d. Pay Sheet
e. Payment Advice for the month of January 2020.
f. Finally view Profit & Loss and Balance sheet.