Creating Employer’s EPS Contribution Pay Head

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

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

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

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

3. Select EPS Account (A/c No. 10) in the Statutory Pay Type field

4. Select Indirect Expenses from the List of Groups in the Under field

5. By default, Affect Net Salary is set to No. Type Yes, if you want this component to be included in the Pay Slip

6. The Calculation Type field is pre-filled with As Computed Value and Calculation Period is pre-filled with Months by default

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

8. In the Compute field, select On Specified Formula from the Computation On list

9. In the Compute sub-screen, in the Pay Head column select Basic Pay from the List of Pay Heads.

10. In the Effective Date field, enter the desired date from which the EPS will come into effect.

11. Enter the required values in the From Amount and Amount Upto fields

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

13. Enter the Percentage in the Value Basis field

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

15. Press Enter to accept.