The salary components constituting an employee's pay structure are Pay Heads. A pay head may be a benefit or a deduction from the salary. The value of these pay heads could be fixed or variable for each payroll period.
For example, Basic Pay is a fixed pay component, whereas Variable Pay and Bonus are variable components.
A Pay Head Type is categorised as Earnings , Deductions or Reimbursements .
The default pay head types in Tally.ERP 9 are:
● Earnings for Employees
o Attendance based Earnings Pay Head
o Computation based Earnings Pay Head
o Flat Rate based Earnings Pay Head
o Production based Earnings Pay Head
o User Defined Earnings Pay Head
● Deductions from Employees
● Employees’ Statutory Deductions
o Professional Tax Deduction Pay Head
o Income Tax Deduction Pay Head
● Employer’s Statutory Contributions
● Employer’s Other Charges
● Reimbursements to Employees Pay Head
● Income Tax Details
o Income Tax P ay Head Configuration
o Override Income Tax Exemption Value
o Previous Employer Details for Income Tax
Note: For international customers, Employees' Statutory Deductions , Employer's Statutory Contribution and Employer's other Charges pay head types are not applicable.