Employer's Contributions towards NPS can be computed using a Payroll voucher, similar to that of a Provident Fund. Employee's NPS deductions will be calculated and accounted for in the Payroll voucher recorded for Salary.
As explained earlier in the Employer's NPS Contribution topic, this pay head can be created either on the basis of a User Defined Value / Flat Rate / As Computed Value.
To understand how to process Employer's NPS Contributions with these Calculation Types, let us consider three scenarios.
To process Employer's contribution in a Payroll voucher, the option NPS Contribution has to be selected in the Process For field of the Payroll Auto fill sub-screen, irrespective of the Calculation Type.
To process Employer's NPS Contribution, where the pay head is created with the Calculation Type - As Computed Value,
Go to Gateway of Tally > Payroll Vouchers > Ctrl + F4: Payroll
Press F2 to change the Voucher Date
Click A: Payroll Auto Fill or press Alt+A
Select the NPS Contribution in Process for field
Enter the From and To date
Select the appropriate Employee Category
Select the Employee/Group from the List of Employees / Group
Select the appropriate Payroll Ledger from the List of Ledger Accounts
Press Enter to go to Payroll Voucher Creation screen
Accept to Save
To process Employer's NPS Contribution, where the pay head is created with the Calculation Type - User Defined Value,
Go to Gateway of Tally > Payroll Vouchers > Ctrl + F4: Payroll
Press F2 to change the Voucher Date
Click A: Payroll Auto Fill or press Alt+A
Select the NPS Contribution in Process for field
Enter the From and To date
Select the appropriate Employee Category
Select the Employee/Group from the List of Employees / Group
Select the appropriate Payroll Ledger from the List of Ledger Accounts
Press Enter to go to Payroll Voucher Creation screen
Enter the contribution amount against each employee
Accept to Save
To process Employer's NPS Contribution, where the pay head is created with the Calculation Type - Flat Rate,
Go to Gateway of Tally > Payroll Vouchers > Ctrl + F4: Payroll
Press F2 to change the Voucher Date
Click A: Payroll Auto Fill or press Alt+A
Select the NPS Contribution in Process for field
Enter the From and To date
Select the appropriate Employee Category
Select the Employee/Group from the List of Employees / Group
Select the appropriate Payroll Ledger from the List of Ledger Accounts
Press Enter to go to Payroll Voucher Creation screen
The Payroll Voucher Creation screen appears with the values pre-filled for employer's NPS Contribution as shown:
Note: Prior to recording a Payroll voucher for NPS Contribution with the Calculation Type - Flat Rate, ensure that the contribution amount is specified in the Salary Details of an employee as shown:
