https://help.tallysolutions.com/docs/te9rel65/Payroll/Employers_EPF_Contribution_Pay_Head.htm

Creating EPF Contribution Pay Head (Payroll)

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.