https://help.tallysolutions.com/docs/te9rel64/Payroll/Employers_ESI_Contribution_Pay_Head.htm

Creating ESI Contribution Pay Head for Employers (Payroll)

In Tally.ERP 9, you can create a pay head to account for the employer’s contribution towards RSI.

To create Employer’s ESI Contribution pay head

1. Go to Gateway of Tally > Payroll Info. > Pay Heads > Create .

2. Enter the name of the Pay Head in the Name field.

3. Select Employer’s Statutory Contributions as the Pay Head Type , from the list of Pay Head Types .

4. Select Employee State Insurance 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 , if you 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 Add Pay Head from the List of Pay Heads to add pay head to be considered for ESI calculation.

Select End of List to return to Pay Head Creation .

10. In the Effective Date field, enter the date from when the ESI Deduction will be effective.

11. Enter the percentage in the Value Basis field.

Note: The amount is not specified in the Pay Head creation screen for ESI as the same will be taken from the Satutory Master file.

12. Press Enter to accept.

Note: ESI Contribution Pay Head should be added in salary details after Basic, HRA, Conveyance and Overtime, and Employee Deductions pay heads.