Payroll in Tally Prime

1. Go to Gateway of Tally -> Masters -> Create -> Payroll Masters -> Employee Groups

2. Enter the Name of the Employee group.

Employees

1. Go to Gateway of Tally -> Masters -> Create -> Payroll Masters -> Employee
2. Enter the Name of the employee.
3. Select the Employee Group in the field Under.
4. Enter the Date of joining.
5. Set the Define salary details option to No , and press Enter

Attendance

Go to Gateway of Tally -> Masters -> Create -> Payroll Masters -> Attendance/Production Type

1. Enter the Name of the attendance
2. Select the Primary from the list for Under.
3. Select the Attendance type as Attendance/Leave with Pay.
4. Press Enter.

You can create the Attendance type Absent as Leave without Pay.

Units

Go to Gateway of Tally -> Masters -> Create -> Payroll Masters -> Units

1. Enter the Type of Simple
2. Enter the symbol of hrs
3. Enter the Formal name of Hours.
4. Enter the Unit Quantity code of Hrs-Hours.
5. Press Enter

1. Go to Gateway of Tally -> Masters -> Create -> Payroll Masters -> Attendance/Production Type
2. Enter the Name of the Over Time.
3. Select Primary from the list, for the field Under.
4. Select Production as the Attendance Type.
5. Select the Unit of hrs
6. Press Enter

Pay Head

1. Go to Gateway of Tally -> Masters -> Create -> Payroll Masters -> Pay Head

2. Enter the pay head name in the Name
3. Select Earnings for Employees from the List of Pay Head Types
4. Select Income type for the pay head as fixed
5. Select the Under field as Indirect Expenses from the List of Groups
6. Select Affect Net Salary to Yes
7. Select On Calculation type
8. Select the required Calculation period from the List of Calculation Periods.
9. Select the Rounding Method as Not applicable.
10.Press Enter

1. Select On Calculation type as Computed Value.
2. Select the Calculation period from the List of Calculation Periods
3. Select the Rounding Method as Normal Rounding.
4. Enter the desired rounding limit.
5. Select On Specified Formula from Compute field
6. Select Basic Pay from the List of Pay Heads column.
7. Select End of List to return to Pay Head Creation screen.
8. Enter the desired date in the Effective Date field.
9. Select Percentage.
10.Press Enter to accept and save.

11. You can Create other details

Define Salary

1. Go to Gateway of Tally -> Master -> Alter -> Payroll Masters -> Define Salary -> select field
2. Select the list enter the amount (or) percentage
3. Press Enter

Go to Gateway of Tally -> Transaction -> Voucher -> Autofill Click

1. Click Payroll Auto Fill
2. Select the Salary in Process for field.
3. Enter the date.
4. Select the employee, from the List of Employees/Group
5. Select the attendance/production type
6. Select the sorting option in the Sort by field.
7. Select the appropriate Payroll Ledger from the List of Ledger Accounts.

Payroll

Go to Gateway of Tally -> Transaction -> Voucher -> Other Voucher -> Payroll

1. Select the Payroll AutoFill.
2. Select the process
3. Enter the From and To date.
4. Select the employee, from the List of Employees/Group
5. Select the sorting option in the Sort by field.
6. Select the Payroll/Bank/Cash Ledger from the field
7. Include employee have for banking details as click yes
8. Press Enter

Payroll Creation and Calculation Sum

Employee Details
Name	S.Nishanth	P.Rathika
Department	Administrative	Sales
Designation	Manager	Sales Manager
Date of Join	1.8.1995	1.6.2000
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.35000	Basic pay	Rs.20000
DA	40% for Basic pay	DA	20% for Basic pay
TA	6% for Basic pay	TA	5% for Basic pay
Medical allowance	Rs.1000 per Month	Medical allowance	Rs.600 per Month
Advance	Rs.1500 per Month	Public provident fund	6.5% for Basic pay
Food allowance	Rs.1300 per Month	Food allowance	Rs.500 per Month
House Rent Allowance	15% for Basic pay	House Rent Allowance	8.5% for Basic pay
Provident Fund	10% for Basic pay + DA	Provident Fund	7% for Basic pay + DA
Income tax	15% for DA	Income tax	10% for DA
House loan	Rs.700 per Month	City compensatory allowance	15% for Basic pay
Over time	10hrs	Over time	8hrs