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Payroll – FAQ

Get answers to all the frequently asked questions about Payroll.  

To print Pay Slip(s) with the company's logo, you need to:

  1. Enable Company Logo feature.
  2. Print Pay slips with Company logo

Enable Company Logo feature

  1. Press Alt+P (Print) > press Enter on Configuration.
  2. Set the option Include Company logo (applicable to Print/Export/Email) to Yes.
  3. Select the Image File Name and Image Path.
    Include Company Logo is set as Yes in Company Details configuration screen

Print Pay Slip

  1. Press Alt+G (Go To) > type Pay Slip > select Single or Multi Pay Slip, as required. The Pay Slip appears.
  2. Press Ctrl+P > press C (Configure).
  3. Ensure the option Show Company Logo is set to Yes.
    Show Company Logo is set as Yes in Print Configuration Screen in TallyPrime
  4. Press Esc to return to the Print
  5. Press I (Preview) to check the print preview > press P (Print) to print.
    Preview of Pay Slip of Employee in TallyPrime

 

 

Follow the steps given below to handle the distribution and recovery of Salary Advances given to the Employees:

  1. Create a Pay Head for Salary Advance.
  2. Make the Salary Advance payments using Payment Vouchers.
  3. Create/Alter Employees Salary Details to include the Salary Advance Pay Head.
  4. Process Payroll at the end of the month.
  5. View Pay Slip.
  6. View the report for remaining amount to be recovered from the employee.

Create a Pay Head - Advance to Employees

Create the Salary Advances Pay Head Advance to Employees as shown below:

  1. Gateway of Tally > Create > Pay Heads.
    Alternatively, press Alt+G (Go To) > Create Master > Pay Heads.

    While creating the Pay Head, select the required Calculation Type to recollect the Loan Amount. For example, you can select As User defined Value.

    Note: The Calculation Type can be set to Flat Rate, if a fixed EMI amount needs to be deducted from the employee's salary.

Salary Advance Payment to Employee 

Record a payment voucher for providing the salary advance to the employees.

  1. Gateway of Tally > Vouchers > press F5 (Payment).
    Enter the other details as shown below:
    The Accounting Voucher Creation for providing the salary advance to the employees

Create/alter salary details

Add the pay head for salary advance and specify the amount to be deducted from the employee’s salary.
Addition the pay head for salary advance in Salary Details Alteration screen in TallyPrime

Record Payroll Voucher for deduction towards Salary Advance

  1. Gateway of Tally > Vouchers > press F10 (Other Vouchers) > type or select Payroll.
    Alternatively, press Alt+G (Go To) > Create Voucher > press F10 (Other Vouchers) > type or select Payroll.

  2. Press Ctrl+F (Autofill) > select Payroll Autofill > select User Defined in the Process for field.
    Payroll Autofill screen with User Defined selected in the Process for field in TallyPrime

  3. Record the payroll voucher, by entering the deductions made from the employee’s salary
    The payroll voucher with the deductions made from the employee’s salary in TallyPrime
  4. Record another payroll voucher for making the salary payment.

View the Pay Slip

  1. Press Alt+G (Go To) > type Pay Slip > select Single Pay Slip > select the employee name > and press Enter.
    The Pay Slip for Employee in TallyPrime

View the balance Advance Salary amount to be recovered

  1. Press Alt+G (Go To) > type or select Employee Pay Head Breakup.

  2. Select Advance to Employees. The details appear as shown below:
    Selection of Advance to Employees option in Employee Pay Head Breakup screen in TallyPrime

Overtime allowance can be calculated based on basic pay per hour.

To calculate the Overtime Allowance based on the Per Hour Basic Pay (or Basic Pay and DA) received;

  1. Create/alter basic pay head.
  2. Create/alter overtime hours as a Production Type.
  3. Create/alter overtime allowance pay head.
  4. Define salary details.
  5. Record attendance and overtime details.
  6. Record a payroll voucher.

Create/Alter Basic Pay Head

Create/Alter the basic pay head with calculation period, for example, 30 days in each month.
The basic pay head with calculation period selected as 30 days in each month.

Similarly, create DA Pay Head, if required.

Create/alter overtime hours as a Production Type

Create the attendance/production type as shown below:

Similarly, create DA Pay Head, if required.

Create/Alter Overtime hours as a Production Type

Create the Attendance/Production Type as shown below:

Creation of Overtime hours as Attendance/Production Type in TallyPrime

Create/Alter Overtime Allowance Pay Head

Create the Overtime Allowance Pay Head as shown below:
Creation of Overtime Allowance Pay Head in TallyPrime

Note: If DA is not applicable, then the OT Allowance formula will have only basic pay component for the computation of OT.

 

The above pay head should not affect the net salary and hence the option is set to No. Basic salary divided by total present days will give per day salary. Assuming that there are 8 hrs in a day,

8 Hours = 100%

1 Hour = 12.50%

Note: In this case study, 8 hours is considered as working hours. In other cases, the following table can be used to compute the Per Hour OT amount.

 

Working Hours Percentage of Basic  Overtime Percentage
8 100 12.5
8 200 25
8 125 15.625
9 100 11.11
9 125 13.8888

Define Salary Details

Provide salary details as shown below:
The Salary Details of an employee in TallyPrime

Record Attendance and Overtime details

Create the attendance voucher as shown below:
Creation of Attendance Voucher with Overtime details of an employee in TallyPrime

Record payroll voucher as shown below:
The Payroll Voucher of an employee in TallyPrime

You can follow the solution given below to update the balances of loans and advances brought forward from previous year.

  1. Create a ledger for Loans & Advances
  2. Modify the Loans & Advances pay head
  3. Create/Alter salary details for employees
  4. View Trial Balance report
  5. Create a Journal Voucher for the adjustment entry
  6. Check Reports

Create a ledger for Loans & Advances

  1. Gateway of Tally > Create > Ledger.
    Alternatively, press Alt+G (Go To) > Create Master > Ledger.
  2. Set the option Use For Payroll to Yes.
    If you do not see this option, press F12 (Configure) and set the option Use Ledgers as Payheads in Payroll to Yes.
  3. Set the option Cost centres are applicable to Yes.
    Creation of Leader for Loans and Advances in TallyPrime
  4. Accept the ledger. As always, press Ctrl+A to save.

Modify the Loans & Advances Pay Head

  1. Gateway of Tally > Alter > type or select Loans & Advances pay head.
    Alternatively, press Alt+G (Go To) > Alter Maser > type or select Loans & Advances pay head.
  2. Set the option Affect net salary to Yes.
  3. Set the Calculation type as required. For example, you can select Flat Rate.
    Alteration of Loans and Advances Pay Head with Affect net salary is set as Yes and Calculation type is set as Flat Rate in TallyPrime
  4. Accept the pay head. As always, you can press Ctrl+A to save.

Create/Alter salary details for employees

While creating salary structure with Pay Heads for Basic Pay, Conveyance, ESI, and so on, include the pay head ‘Loans & Advances’. Manually specify the amount that needs to be deducted from the employees’ monthly salary.
Creation of Salary Details for employees with Pay Heads for Basic Pay, Conveyance, ESI, Loans & Advances in TallyPrime

View Trial Balance report

The Trial Balance will display the closing balance of Rs. 25,000/- for ‘Loans & Advances Adjustment’ account (ledger) which was used for maintaining employee loan account before implementing Payroll in TallyPrime. This must be transferred to the Loans & Advances ledger (Pay Head) by allocating the amount to the respective employees.

The Trial Balance report with closing balance displayed for Loans and Advances in TallyPrime

Create a Journal Voucher for adjustment entry

Now allocate the amount taken by Mr. Ajay by recording an adjustment entry in a journal voucher. This is to transfer the opening balance to Loans & Advances pay head of Mr. Ajay, from the Loans & Advances Adjustment ledger. 
Creation of Journal Voucher for adjustment entry in TallyPrime

The Trial Balance will now show a debit balance of Rs. 25,000 in the Loans & Advances account (Pay Head).

The Trail Balance with a debit balance in the Loans & Advances account (Pay Head).

Now when you press Alt+G (Go To) > type or select Employee Pay Head Breakup > Loans & Advances, the debit balance of Rs. 25,000 will appear for the employee, as shown below.

Display of debit balance for the employee in the Employee Breakup of Pay Head screen in TallyPrime

While recording the payroll voucher for Mr. Ajay, you will notice the opening balance of Loans & Advances being reduced from Rs. 25,000 to Rs. 24,000. This is due to the monthly deduction of Rs. 1,000 which is defined in the salary details of Mr. Ajay.

Creation of Payment Voucher with monthly deduction defined in the Salary Details of employee in TallyPrime

Check Reports

Now when you check the Pay Slip for the month of ‘April’, it will show you the amount deducted from Mr. Ajay’s Salary.

The Pay Slip for employee with deducted amount in TallyPrime

The ‘Employee Pay Head Breakup’ will show you the report as shown below.

The Employee Breakup of Pay Head report in TallyPrime

Consider a scenario where an employee is repaying a loan by paying the Employer in cash. The receipt entry for the same in the Employer’s book will be as follows:

The Receipt Voucher entry in the Employer's book in TallyPrime

Now press Alt+G (Go To) > type or select Pay Head Employee Breakup, to view the balance amount due from Mr. Ajay.

Display of balance amount due from employee in Pay Head Employee Breakup in TallyPrime

Record a payroll voucher for the month of May. You can check the difference by following the steps given below:

  1. Press Alt+A (Alter Column) > enter the period as 01-04-2021 to 30-04-2021.
  2. Select the name as Mr. Ajay with the group, Loans & Advances (Asset)
    Column Details for employee with Name of Group set as Loans and Advances (Asset) in TallyPrime

    This will display the details of Loans & Advances of Mr. Ajay for the month of April.

    Display of details of Loans and Advances of employee for the month of April in the Employee Breakup screen in TallyPrime

  3. Press Alt+C (New Column) > enter the period as 01-05-2021 to 31-05-2021.The Column Details of employee for the month of May with Name of Group is set as Loans & Advances (Asset) in TallyPrime

    You will see the deductions of Rs. 1,000 made in the month of April and May in two different columns.

    Deduction of amount for employee in the month of April and May in two different columns in Employee Breakup screen in TallyPrime

Employee Details can be exported into Microsoft Excel using ODBC feature. To export the data:

  1. Enable ODBC server capability in TallyPrime.
  2. Open Microsoft Excel and perform the query for Tally database.
  3. Format the Microsoft Excel sheet as per requirement.

Enable ODBC Server Capability in TallyPrime

  1. Press F1 (Help) > About.
  2. Select the option Client/Server and ODBC Services and press Enter.
  3. Set Enable ODBC to Yes.
  4. In the Port field, specify the required ODBC port (for example, 9000).
    The Client/Server configuration with ODBC enabled and ODBC port number in TallyPrime

    Note: ODBC port number can be any number above 9000.
  5. The details will appear in the About page.
    Display of ODBC Port number in About screen in TallyPrime

Open Microsoft Excel and perform the query for Tally database

  1. Open a new Microsoft Excel Sheet.
  2. Click Data > Get Data > From Other Sources > From ODBC.
    The list of Data source name (DSN) displayed under 'From ODBC' screen in Microsoft Excel Sheet.
  3. In the Navigator, select the company name, and select Employees.
    Selection of company and employees from the Navigator screen in Microsoft Excel.
  4. Click Transform Data > Close and Load. The imported data in excel sheet will appear as shown below:
    The imported data in Microsoft Excel Sheet.

Format the Excel to organize data as per your requirement.

You can calculate the TDS (Tax Deducted at Source), on the interest paid on the unsecured loans.

Consider the following example: On 1-4-2021, ABC Company, took an unsecured loan of Rs. 5,00,000 from Kiran @ 10% rate of Interest. Interest is payable monthly after deducting TDS.

Prerequisites

Press F11 (Features) and set the following options to Yes.

  • Enable Bill-wise entry
  • Enable Interest Calculation

Create Ledgers

Ledger for Unsecured Loan

  1. Gateway of Tally > Create > Ledger.
    Alternatively, press Alt+G (Go To) > Create Master > Ledger.
  2. Enter the ledger Name, and group it under Unsecured Loans.
  3. Set the option Maintain balances bill-by-bill to Yes.
    If you do not see this option, press F12 (Configure) and set Maintain balance Bill-by-Bill and For Non-Trading Accounts also to Yes
  4. Specify interest parameters.
    1. Set Activate interest calculation to Yes.
    2. In Interest Parameters screen set the parameters as shown:
      If you do not see the option Override advanced parameters, press F12 (Configure) and set Use advance interest parameters to Yes.
  5. Enable the ledger to provide advance TDS details.
    1. Set the option Is TDS Deductable to Yes.
    2. Set Treat as TDS Expenses to No.
    3. Select the Deductee type.
    4. Set Deduct TDS in Same Voucher to Yes.
    5. Set Use Advanced TDS entries to Yes.
      If you do not see this option, press F12 (Configure) and set the option Allow advanced entries in TDS masters to Yes.
  6. Provide the advanced TDS details.
    1. Set the option Ignore Surcharge Exemption Limit to No.
    2. Set the option Ignore Income Tax Exemption Limit to Applicable.
    3. Select Interest Other Than Interest on Securities.
    4. Set the option Set/Alter Zero/Lower Deduction to No.
  7. Enter Mailing Details and Tax Registration Details.

Expenses Ledger

To account for the expense of interest on unsecured loan, create the ledger as shown below.

TDS Ledger

To account for the tax deducted from the interest payable on unsecured loan, create the ledger as shown below.

Record the receipt voucher for receipt of loan amount

  1. Debit the unsecured ledger and enter the loan amount received.
  2. Enter the bill-wise details, and accept the details displayed in the Interest Parameter screen.
  3. Credit the bank/cash ledger, as needed.

Create Voucher Class for Credit Note

  1. Gateway of Tally > Alter > Voucher Type > type or select Credit Note > and press Enter.
    Alternatively, press Alt+G (Go To) > Alter Master > Voucher Type > type or select Credit Note > and press Enter.
  2. Tab down to Name of Class field and enter the Name of Class. Press Enter to view Voucher Type Class
  3. Set the option Use Class for Interest Accounting to Yes.

Record the Credit Note to account for the interest payable on unsecured loan

  1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Credit Note.
    Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Credit Note.
  2. Select the voucher Class created for the credit note.
  3. Credit the unsecured loan ledger, and press Enter to view Interest Details.
  4. In Interest Details screen, in Name field select the bill reference, Loan - 001 and save the interest details screen.
    Note: Interest gets calculated as per the options set in the ledger master.
  5. Enter the bill-wise details.
  6. In Interest Parameter screen, specify ‘0’ in Rate field, as the interest is not being calculated on the accounted amount.
  7. Press Enter to confirm.
  8. Credit the Interest Payable ledger.
    Note: In Credit Note while accounting Interest Payable, there is no provision to deduct the TDS.
  9. Accept the voucher. As always, press Ctrl+A to save.

This voucher will appear as an exception under No link is available in booking and booking with deduction voucher of Form 26Q.

Resolve the exception by linking the booking voucher to deduction voucher

  1. Press Alt+G (Go To) > type or select Form 26Q.
  2. Select Uncertain Transactions and press Enter.
  3. Select No link is available in booking and booking with deduction voucher and press Enter.
  4. Press Alt+L (Link All) to create the reference for the voucher.

The voucher will now appear under the Deduction at Normal Rate of Form 26Q.

Record a journal voucher to deduct tax at source using Autofill option

  1. Gateway of Tally > Vouchers > F7 (Journal).
    Alternatively, press Alt+G (Go To) > Create Voucher > F7 (Journal).
  2. Use autofill option to deduct TDS.
    1. Press Ctrl+F (Autofill).
    2. Select TDS Deduction as the Type of transaction.
    3. Enter the date until which the TDS transactions are to be considered for deduction.
    4. Select the party for whom the tax to be deducted in Party field.
    5. Select the nature of payment against which tax to be deducted in Nature of Payment field
      The TDS Deduction details appear in the voucher.
  3. In the Bill-wise Details screen, select Agst Ref with the reference provided in the credit note, C/N-001.
  4. Accept the journal voucher. As always, you can press Ctrl+A to save.

Consider the example given below, for the procedure to create salary structure for employees based on gross salary.

  Gross Salary Basic (60% of Gross) HRA (20% of gross)  Conv (5% of Gross) Medical (15% of Gross) PT (As per Slab) PF (12% of Basic)
Hitesh 17000 10200 3400 850 2550 200 1224
Savita 7500 4500 1500 375 1125 175 540

Create Gross Salary Pay Head

  1. Create a pay head for gross salary as Earnings of Employees.
  2. Select a user-defined group which can be excluded using voucher class while processing salary.
  3. Set the option Affects Net Salary to No.

Create Other Pay Heads

Create employee and define salary details

  1. Gateway of Tally > Create > Employee.
    Alternatively, press Alt+G (Go To) > Create Master > Employees.
  2. Enter the relevant details, and set Define salary details to Yes.
  3. Specify the salary structure by including the gross salary pay head as per the order shown below, as all the pay heads depends on the gross salary pay head.

Create Voucher Class

The voucher class should be created to exclude the gross salary pay value while processing the payroll voucher.

  1. Gateway of Tally > Alter > Voucher Type > Payroll.
    Alternatively, press Alt+G (Go To) > Alter Master > Voucher Type > Payroll.
  2. Enter the Name of Class.
  3. Exclude the user-defined group by selecting the same under Exclude these Groups (this group is used only for gross salary pay head).
  4. Accept the voucher type.

Process Payroll

  1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > Payroll > select the voucher class.
    Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > Payroll > select the voucher class.
  2. Press Ctrl+F (Autofill) > select Salary in the Process for field.

The salary will be processed as per the requirement. Similarly other pay components can also be processed.

Consider an example where basic salary is calculated on both present days and leave days (casual leave, sick leave, and so on). To create these pay heads, follow the steps given below:

Create Attendance Types

  1. Gateway of Tally > Create > Attendance/Production Type.
    Alternatively, press Alt+G (Go To) > Create Master > Attendance/Production Type.
  2. Enter the Name as Pay Days.
  3. Group it under Primary.
  4. Select Attendance/Leave with Pay in the Attendance Type field.
  5. Accept the screen. As always, you can press Ctrl+A to save.

Create an attendance type for Present, by grouping it under Pay Days, as shown below:

Create an attendance type for Casual Leave, by grouping it under Pay Days, as shown below:

Create an attendance type for Sick Leave, by grouping it under Pay Days, as shown below:

Create an attendance type for Paid Leave, by grouping it under Pay Days, as shown below:

Create Basic Pay as the pay head

  1. Gateway of Tally > Create > Pay Heads.
    Alternatively, press Alt+G (Go To) > Create Master > Pay Heads.
  2. Enter the Name as Basic Pay, as an Earnings for Employees.
  3. Set Affect Net Salary to Yes and specify the required name.
  4. Select the Calculation Type as Attendance, with Attendance/Leave with Pay set to Pay Days.
  5. Set the Calculation Period to Months of 30 Days.
  6. Accept the screen. As always, you can press Ctrl+A to save.

Define salary details

  1. Gateway of Tally > Alter > Define Salary > select the employee > and press Enter.
    Alternatively, press Alt+G (Go To) > Alter Master > Define Salary > select the employee > and press Enter.
  2. Accept the screen. As always, you can press Ctrl+A to save.

Process Attendance to record presence and leave details

The attendance for Present and Leave can be captured using two separate Attendance Vouchers (using autofill) or single voucher (without using autofill). The attendance voucher recorded without using autofill appears as shown below.

Accept the screen. As always, you can press Ctrl+A to save.

Process Payroll

Record a payroll voucher using autofill option, as shown below:

In the Attendance Sheet, the details for different leaves (CL, SL and PL) along with the present days appear as shown below:

As per Section 192, TDS on salary is calculated for Payroll. For details on income tax, click here.

Only one Employee Category can be processed in a Single Autofill in the Payroll Voucher.

At present, it is not possible to import Attendance details from MS Excel to TallyPrime. This feature will be available in future releases of TallyPrime.

You cannot track the details of the pending leaves from the Payroll package. But you can manage the details of the leaves taken by Employees by creating different Leaves types.

Tracking of Leaves and option to enter the Leave Opening balance will be provided in the future releases of TallyPrime.

You can visit our website https://tallysolutions.com/ for the detailed product roadmap.

Yes, the Payroll module in TallyPrime is completely integrated with Accounts. As a result, the user does not need to pass separate accounting entries to record the details of the Expenses towards employees' salaries.

No. Only those salary or wages payment vouchers that were recorded by enabling the Payroll features will be displayed/considered in the Salary/Wages Payments report for auditing.

You cannot enter the Leave Opening Balance for all the employees when creating a new Company for Payroll.

This will be handled when the Leave Management module is provided as part of the payroll module in TallyPrime future releases.

The Payroll Autofill button is only available in Single Entry mode. In the Double Entry mode, the Autofill button is not available and hence you need to change the mode to Single Entry by pressing Ctrl+H (Change Mode) and selecting the option Double Entry from the List of Modes/Usages

The employees' signature can be taken on the Pay Sheet while making the payment to the Employee. TallyPrime provides the option to print a Pay Sheet with additional width.

You can also affix a revenue stamp and sign the Pay Sheet printed with additional width.

According to the Employee State Insurance (ESI) scheme, the contribution to Employee State Insurance Corporation comprises the employer's contribution and the employee's contribution at specified rates. Currently, the employee's contribution rate is 1.75% of the wages received and that of the employers is 4.75% of the wages paid or payable to the employees in a wage period.

Employees receiving a daily wage below Rs. 100/- (or monthly wage below Rs. 3000) are exempted from contribution to ESI. However, employers will contribute their share (that is, 4.75%) for these employees. On the other hand, employees receiving a monthly wage of more than Rs. 21,000 are not eligible for the ESI scheme.

ESI contributions from the employee and employer are automatically calculated in TallyPrime while processing salary and ESI payment transactions.

You cannot calculate the Leave encashment amount using the Payroll module. But you can handle the Leave encashment amount calculated outside of Payroll, and the related effects on PF, ESI, and PT are also managed in the Payroll module.

For more information, you can visit our website https://tallysolutions.com/ for the detailed product roadmap.

Form 16 displays the amount based on the Payroll vouchers processed (salary paid) till date, whereas the Income Tax Computation report displays the Yearly Projection.

Note: Both the reports will match by the end of the Financial Year.

You can export the Pay Slips for all Employees with the click of a button.

  1. To view the Multi Pay Slip
    1. Gateway of Tally > Display More Reports > Payroll Reports > Pay Slip.
      Alternatively, press Alt+G (Go To) > Multi-Employee Pay Slips.
    2. Select the required Name of Employee/Group and press Enter.
      The Multi Pay Slip screen appears.
  2. To export the Multi Pay Slip
    1. Click Alt+E (Export) from the Multi Pay Slip report > press Enter on Current.
      • Press C (Configure) to set the required details to export Pay Slip in the Export Configuration
    2. Press E (Send) to export the Pay Slip.

While creating the Professional Tax Pay Heads, you can select the Computation Period as either Months or Period.

  • Months: For regular professional tax computation and payments with the frequency of deduction and payment as Monthly.
  • Period: For professional tax computation and payments on a periodic basis; for example, once in six months as in the case of Tamil Nadu.

For Employees more than 58 years the entire Employer Contribution goes into the PF A/c no. 1 as there is no contribution towards the EPS A/c.

In Tally.ERP 9, it was necessary to create a separate Employer PF Contribution Pay Head with 12% as slab. With TallyPrime, it is not required to create a separate Employer PF Pay Head for Employees more than 58 years.

Note: For Employees, more than 58 Years the EPS Pay Head should not be included in the Salary Details as the contribution towards EPS is zero for these employees.

The method of computing the total income has been changed in the budget for the current year by allowing a deduction under Section 80C. However, the present Form No. 24Q shows a column for rebate under Sections 88, 88B, 88C, and 88D.

In the process of filling up Form No. 24Q, the columns relevant to Sections 88, 88B, 88C, and 88D may be left blank. Regarding the deductions under Section 80C, the same can be shown in column 342 of 'Amount deductible under any other provision of Chapter VI-A'.

No, it is not required to create a Voucher Class for using PF, ESI and PT. TallyPrime provides the default processes for the processing of Employer’s PF Contribution, Employer’s ESI Contribution and Salary Computation. The payment processes for Salary, PF, ESI and PT are also available separately for a faster and accurate processing of the Payroll.

Yes. You can create the PF Pay Heads based on any of the formulae as required.

The number of employees in the A/c. No-1, A/c. No-10, A/c. No-21 is captured automatically in the PF combined Challan based on the following:

  • A/c. No 1 - based on the EPF number specified for the Employees in the Employee Master
  • A/c. No 10 - based on the EPS number specified for the Employees in the Employee Master
  • A/c. No 21 - based on the EPF number specified for the Employees in the Employee Master

The Challan will display the total count based on the number of employees for which the above numbers are specified in the Employee Master.

For new employees if the PF number is not known, you can mention Applied for and generate the Challan successfully.

Note: The print configuration screen provides the option to modify these numbers when printing the challan.

Yes, you can allow/disallow a particular Pay head/component from appearing in the Payslip while the salary components are being created.

You cannot alter the decimals or remove Pay Heads in Pay Sheet. However, you can alter the pay sheet’s format or value by exporting the Pay Sheet to Excel.

  1. To view the Pay Sheet
    1. Gateway of Tally > Display More Reports > Payroll Reports > Pay Sheet.
      Alternatively, press Alt+G (Go To) > type or select Salary Pay Sheet.
    2. Select the required Name of Employee/Group and press Enter.
      The Pay Sheet screen appears.
  2. To export the Pay Sheet
    1. Click Alt+E (Export) from the Pay Sheet report > press Enter on Current.
      • Press C (Configure) and select Excel (Spreadsheet) in the File Format field in the Export Configuration
    2. Press Backspace to return to the Export screen.
    3. Press E (Send) to export the Pay Sheet in Excel format.

In Excel, the decimal values can be altered, and the unwanted Pay Head columns can be deleted from the Pay Sheet.

Using the Payroll feature in TallyPrime, you can have different working days for each month. In addition, you can have a different number of working days for a Payroll Category or Employee Group for each employee.

You have to create a User-Defined Calendar Type and enter the required number of days before capturing attendance.    

No, you cannot take a printout of Salary Details for all the employees on a single sheet.

Alteration of the rounding method in PF Other Charges Pay Head is not allowed. The PF value will be automatically calculated with rounded value on the total value of other charges in Journal Voucher Autofill Calculation.

Yes. If the employees are located in different states, you may have to create separate Professional Tax Pay Heads for each state.

Yes, the statutory information for each employee can be recorded during Employee master Creation/Alteration.

TallyPrime takes care of the ESI Computation automatically when moving from one Contribution Period to another.

If PF (Provident Fund) is withdrawn before 5 years of continuous employment, then it is taxable.

Points to remember:

  • An individual has to pay tax on the withdrawal of PF accumulations if the same has been withdrawn from a recognized PF account without rendering continuous services for five years or more with the employer.
  • On the change in employment in the past, if the accumulated PF balance has been transferred to the PF account of the new employer, then the period of previous employment will be considered as part of continuous service, and accordingly, the five years is computed.
  • The aggregate of the employer’s contribution to PF and interest earned thereon will be taxable as a salary.
  • Deduction claimed will be under section 80C of the Income-Tax Act, 1961, on your own contribution to the recognized PF shall be taxed as salary.
  • Interest earned on own contribution to PF shall be taxed as “income from other sources”. The tax rate would depend on employees’ applicable income slab in each of the FY (s) during which the PF contributions were made.
  • You are entitled to avail relief under section 89.
  • Tax will be deducted at source at 10% if the taxable PF amount is more than Rs.30,000 and provided the Permanent Account Number (PAN) of the individual is available.

Yes, it is possible to print Form 16 and e-form and annexures from TallyPrime.

To print the forms:

  1. Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports.
    Alternatively, press Alt+G (Go To) > type or select TDS Reports.
  2. Select the required form and press Enter.
  3. Press Ctrl+P to the print the required form.
    Alternatively, press Alt+P (Print) > and press on Enter.

    1. Press I (Preview) to verify the details before printing the e-form.
    2. Press C (Configure) to set the required details to print in the Print Configuration screen.
    3. Press Backspace to return to the Print screen.
  4. Press P (Print) to print the required Form.

Yes. You can start using the payroll data for the current financial period and simultaneously update the old/historical payroll information too.

A certificate of lower deduction or no deduction of tax from salary is given by the Assessing Officer on the basis of an application made by the deductee. In cases where the Assessing Officer has issued such a certificate to an employee, the deductor has to only mention whether no tax has been deducted or tax has been deducted at a lower rate on the basis of such a certificate.

When an employee has worked with a deductor for part of the financial year only, the deductor should deduct tax at source from the employee's salary and report it in the quarterly Form No. 24Q of the respective quarter(s) up to the employee’s date of employment. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of that employee in Annexures II and III irrespective of the fact that the employee was not employed with the same company on the last day of the year.

Similarly, when an employee joins employment with the deductor during the financial year, the TDS particulars should be reported by the current deductor in Form No. 24Q of the relevant quarter. Further, while submitting Form No. 24Q for the last quarter, the deductor should include particulars of TDS for these employees for the actual period of employment in Annexures II and III.

Those employees whose estimated income for the entire year is above the threshold limit are required to provide their particulars from the first quarter onwards in Form No. 24Q.

  • In case the estimated income for the entire year of an employee after allowing a deduction for various savings like PPF, GPF, NSC, etc. falls below the taxable limit, the particulars need not be included in Form No. 24Q.
  • In case, due to some reason, the estimated annual income of an employee exceeds the exemption limit during the year, tax should be deducted in that quarter and the particulars reported in Form No. 24Q from that quarter onwards.

For Employees more than 58 Years the entire Employer Contribution goes into the PF A/c no. 1 as there is no contribution towards the EPS A/c. Employers' contributions to PF A/c no.1 have been accounted for by TallyPrime.

TallyPrime provides you with the flexibility of creating user-definable PF rates and slabs. Based on your company’s HR requirements, you can create the PF-related Pay Heads with uniform slabs (rates) for all the employees or with separate slabs (rates) for different employees.

The Total Number of employees should match the number of employees who contributed the PF for the current month. As the current month's resigned employees have also contributed towards PF for the current month, they cannot be excluded.

Hence, the Number of Subscribers left service (vide Form 10) shows the previous month left so that the total number of employees will match with the current month’s Net Total Number of Subscribers.

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