Are you new to our payroll tutorial, then you may want to read the following lessons.
Lesson 1 How to activate payroll & manual payroll calculation
Lesson 2 Payroll master creation
Lesson3 Employee salary deduction payhead
In our last lesson we have learned about employee earning pay head creation. In this lesson we will discuss about employee salary deduction pay head. Salary advance Employees might have paid against his salary in the middle of the month. An accountant is responsible to deduct the salary advance from his salary at the end of the month. So here we need a salary advance pay head for deduction. Advance given is treated as current asset. Enter “As user define value” for calculation type as salary advance varies every month
EPF employee’s contribution@12% Employee’s EPF share is 12% on total of Basic+DA, Subject to a ceiling limit of Rs 6500/-.Most of the companies following this. So the maximum amount of deduction is to be restricted Rs 780/- how to do this. See the below picture for easy understanding. The formula tells tally if the total of Basic+DA is less than 6500/- deduction will be 12%. If total is greater than 6500/- deduction will be a fixed value ie, 780/-
ESI employee contribution@1.75% Employees share for esi is fixed @1.75% on gross salary. Employees whose salary is greater than 10000.00 will not be covered under esi scheme. Tally has already fixed the esi ceiling limit in Set /Alter Payroll Statutory Details under Gateway of tally»F11»Statutory & Taxation. So we don’t need to set the ceiling limit here. Just enter the percentage of deduction and pay heads that are covering ESI.
Professional Tax Professional tax is based on employee’s income slab basis. You can deduct a fixed amount monthly. professional tax slab varies states to states as it is the income source of state govt.
Ok let us conclude this lesson; the next lesson will be employer’s statutory contribution and other charges. You can subscribe our newsletter to stay updated with us.
Read complete Lesson in our Tally payroll tutorial
Lesson-1 How to process payroll in tally
Lesson-2 Payroll master creation
Lesson-3 Pay head creation
Lesson-4 Employees salary deduction pay head creation
Lesson-5 Employer statutory contributions and other charges pay head creation
Lesson-6 Defining Salary structurein tally for faster data entry
Lesson-7 creating payable ledger and attendance voucher entry
Lesson-8 Processing of Salary PF, ESI
Very good.
[Reply]
dear sir,
I have created deduction pay head from payroll info>Pay heads>create>naming, deduction from employee, under current liabilities,affect net salary. PF name appear to be pay in slip>currency of ledger tk>calculation type user defined value.
But in payslip the the pay head is shown.
Please advise
Thanks
[Reply]