Creating EDLI Admin Charges Pay Head (Payroll)

You can create EDLI Admin Charges pay head by selecting Employer’s Other Charges as the Pay head type during pay head creation.

To create EDLI Admin Charges 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 Other Charges as the Pay head type from the list of Pay Head Types.

4.    Select EDLI Admin Charges (A/c No. 22) as the Statutory Pay Type from the list of Employer's Other Charges.

5.    Set Minimum Rs 2/Employee to Yes if you want the EDLI Admin Charges to be minimum Rs. 2 for each Employee.

Note: When the option Minimum Rs 2/Employee is Yes, the EDLI Admin Charges for each employee is a minimum of Rs. 2.

When this option is set to No, the EDLI Admin Charges are calculated as per the specified formula.

6.    Select Current Liabilities from the List of Groups in the Under field.

7.    By default, Affect net salary is set to No.

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

9.    By Default, Rounding Method is set to Normal Rounding and Rounding Limit as 1.

10.  By default, the Compute field is set to On PF Gross.

Note: PF Gross refers to the value of pay heads used for A/c. No. 1 (Employee PF) pay head.

11.  Enter the desired date from when EDLI Admin Charges will be effective, in the Effective Date field.

12.  Enter the values in the From Amount and Amount Up to fields, if required.

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

14.  Enter the EDLI Admin Charges Percentage in the Value field.

15.  Press Enter to accept.

Note: This pay head is not included in the Salary Details for employees as this is an employer-related expense.