In Tally.ERP 9, you can create a pay head to account for the employer’s contribution towards Employee Provident Fund (EPF).
1. Go to Gateway of Tally > Payroll Info . > Pay Heads > Create .
2. Enter pay head name in the Name field
3. Select Employer’s Statutory Contributions as the Pay Head Type from the list of Pay Head Types
4. Select PF Account (A/c No. 1) in the Statutory Pay Type field.
5. Select Indirect Expenses from the List of Groups , in the Under field.
6. By default, Affect Net Salary is set to No . Type Yes , to include this component in the pay slip.
7. The Calculation Type is set to As Computed Value , and Calculation Period is set as Months , by default.
8. Select Normal Rounding from the list of Rounding Methods , and type 1 as the rounding Limit .
9. In the Compute field, select On Specified Formula , from the Computation On list . The Compute sub-screen appears.
● Select Employee’s PF Deduction @ 12% from the List of Pay Heads , in the Pay Head column.
● Select Subtract Pay Head in the Function.
● Select End of List to return to Pay Head Creation .
10. In the Effective Date field, enter the date from when the EPF will be effective.
11. Select Slab Types from the List of Slabs , in the Slab Type .
12. Enter the percentage in the Value Basis field.
13. Press Enter to accept.
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