Creating EPS Contribution Pay Head for Employers (Payroll)

To create Pay Head for Employer’s Contribution towards Employee Pension Scheme (EPS)

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 EPS Account (A/c No. 10) 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 want this component to be included in the pay slip.

7.     By default, the Calculation type field is set to As Computed Value, and the Calculation teriod is set to Months.

8.     Select Normal Rounding from the list of Rounding Methods, and type 1 as the rounding Limit.

9.     Select On Specified Formula, in the Compute field, from the Methods of computation list. The Compute sub-screen appears.

o      Select Basic Pay, in the Pay Head column, from the List of Pay Heads.

10.  In the Effective Date field, enter the date from when the EPS deduction will be effective.

11.  Enter the appropriate values in the From Amount and Amount Up to fields.

12.  Select Slab Types from the List of Slabs, in the Slab Type.

13.  Enter the percentage in the Value field.

14.  Similarly, enter the From Amount, Amount Up to, Slab Type and Value details for the next slab.

15.  Press Enter to accept.