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).

To create pay head for Employer’s Contribution towards Employee Provident Fund (EPF)

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

The Pay Head Creation screen appears as shown below:

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.