Payroll Info

The Payroll Info. menu allows to create various payroll masters required for computing earnings and deductions for employees.

Go to Gateway of Tally > Payroll Info.

Note: The Employee Categories option will be available only when the More than one Payroll / Cost Category option is set to Yes in F11: Accounting Features screen.

Payroll Info:

Features of Payroll in Tally. ERP 9

The key features of the payroll functionality in Tally. ERP 9 are as follows:

  • It is fully integrated with accounts to give the benefits of simplified payroll processing and accounting

  • It has user-defined classifications and sub-classifications for comprehensive reporting. This may be related to employees, employee groups, pay components, departments etc.

  • It provides the facility to create user-defined Earnings and Deductions Pay Heads

  • It allows flexible and user-definable criteria for simple or complex calculations

  • It allows unlimited grouping of Payroll Masters

  • It supports user-defined production units i.e., attendance/ production/ time based remuneration units

  • It provides a flexible payroll processing period

  • It provides comprehensive cost Centre as well as employee-wise costing reports

  • It ensures an accurate & timely Salary processing, Employee Statutory Deductions & Employer Statutory Contributions with the help of predefined processes

  • It provides auto-fill facility to expedite the Attendance, Payroll & Employer’s Contribution processes.

  • It facilitates an accurate computation and deduction of Income Tax, Gratuity etc.

  • It helps in the generation of Statutory forms & challans for Income Tax, as prescribed.

  • It provides the facility to drill-down to the voucher level for any alteration

  • It facilitates computation of arrears pertaining to prior period(s)

  • It helps in tracking employee loan details

Enabling Payroll in Tally. ERP 9

Payroll is a default feature available in Tally. ERP 9. Enabling Payroll is a two step simple process:

  • Enabling Payroll

  • Enabling Payroll Statutory (for India)

To enable Payroll Feature in Tally. ERP 9, follow the steps given below:

  • Go to Gateway of Tally > F11: Features > F1: Accounting Features

  • Tab down to Cost/Profit Centers Management section

  • Set Maintain Payroll to Yes

  • You can set More than ONE Payroll / Cost Category to Yes to allocate Employee Cost, by creating separate Employee Categories

  • Press Enter to accept and save

Note: You can enable More Than ONE Payroll / Cost Category option to Yes, where parallel allocation of Employee Cost / Cost Centre is required.

Once the Payroll feature is enabled by the user, the Gateway of Tally screen will appear as shown:

Enabling Payroll Statutory Features

To use the Provident Fund, Employee  Insurance (EI), National Pension Scheme (NPS), Income Tax and Professional Tax features for Indian Payroll, it is necessary to enable Statutory Features for Payroll.

To enable Payroll Statutory feature,

Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

Note: The Payroll Statutory Features are available only for India. For all other Countries, this option is not available.

  • Set Enable Payroll Statutory to Yes

  • And Set/Alter Payroll Statutory Details to Yes

In Payroll Statutory Details screen,

  • Under the heading Provident Fund:

  • Enter Company Code as allotted by the PF department

NoteCompany Code format is

RegionCode    OfficeCode     EstCode           ExtensionCode

[DL]                 [FBD]        7digits            3digits

ExampleCompany PF Account Number to be entered as DLFBD0012345012.

  • Enter Company Account Group Code as specified by the PF department

  • Enter Company Security Code as specified by the PF department

  • Similarly, for ESI:

  • Enter Company Code as allotted by the Employee State Insurance Corporation (ESIC)

  • Enter the name of the ESI Branch Office

  • Enter the number of days to be considered for the calculation of daily wages and monthly Gross amount for ESI benefits as Standard Working Days (per month)

  • Corporate Registration Number: Specify the Corporate Registration Number as allotted by the Central Recordkeeping Agency (CRA) during registration

  • Corporate Branch Office Number:  Specify the Corporate Branch Office Number allotted by the Central Recordkeeping Agency (CRA) during registration

  • Under Income Tax:

  • Tax Deduction and Collection Account Number: Specify the 10 digit TAN assigned to the Employer

  • Income Tax Circle/Ward: Specify the name of the Income Tax Circle, to which the employer is associated

  • Dedicator Type: Select Government for Central or State Government companies. For all other companies, select Others

  • Name of Person Responsible: Enter the name of the person responsible for TDS deduction in the company

  • Son/Daughter of: Enter the responsible person’s father name

  • Designation: Specify the official designation of the responsible person

  • Under National Pension Scheme,

  • Press Enter to accept and save.

Note: The Standard Working Days (per month) is used to calculate the ESI gross Amount for a month. It is also used to calculate the per day wages. When this field is left blank, the Calendar Period will be taken as the basis for calculation.

Note: ESI Eligibility Amount will be as specified in the Stat file.

Payroll Configuration

The other generic payroll related configurations can be set using the Payroll Configuration screen. To view the Payroll Configuration screen,

Go to Gateway of Tally > F12: Configure > Payroll Configuration

In the above screen,

  • Set the option Add Notes for Employees to Yes to enter any additional information about the employee in the Employee Creation/Alteration screen.

  • Set the option Show Statutory Details (for India/ SAARC companies only) to Yes to enter the PF, ESI, NPS and Employee PAN details in the Employee Creation screen and print the same information in the Employee Pay Slip.

Note: For International Companies, the option Show Statutory Details will allow to capture only the Employee’s Income Tax Number in the Employee Creation screen.

  • Set the options, Show Passport & Visa Details and Show Contract Details, to Yes to capture the information regarding the Employee Passport Number, Passport Expiry date, Visa Number, Visa Expiry date, Contract Start and Expiry dates in the Employee Master and to display the same in the Expat Reports.

  • Set the option Show Resigned / Retired Employees to No, to avoid displaying the names of the resigned employees in the Attendance and Payroll Vouchers.

  • Set the option Show Employee Display Name to Yes, if a different name for an employee has to be printed in the payroll reports. This option is useful, if there are multiple employees in the company with the same name.

  • The other print related Configurations can be specified in the Payroll Print Configuration screen.