Create Pay Heads and Define Income Tax Details in TallyPrime (Payroll)
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 TallyPrime are:
- Earnings for Employees
- Deductions from Employees
- Employees’ Statutory Deductions
- Employer’s Statutory Contributions
- Employer’s Other Charges
- Bonus Pay Head
- Gratuity Pay Head
- Loans and Advances Pay Head
- Reimbursements to Employees Pay Head
- Income Tax Details
Note: For international customers, Employees' Statutory Deductions, Employer's Statutory Contribution and Employer's other Charges pay head types are not applicable.