Salary Ledger in Payroll

For processing the salary a Salary Payable ledger is to be created as a Pay Head. In order to create Salary Payable Pay Head Go to Payroll Info -> Pay Heads -> Create from Gateway of Tally. Then the Pay Head Creation Screen Will appear. There you have to enter the following details :

Name : Here you have to enter the name of the pay head you want to create.

Alias : Here enter any other name of the Pay Head, if any.

Pay Head Types : In this field select Not Applicable from the list of pay heads types.

Under : Here select Current Liabilities from the given list.

Accept in order save the Pay Head.

When salary is disbursed, this account is to be debited and Cash or Bank account is to be credited.

How to create Deduction Pay Heads?

The first thing you need to do is go to Payroll Info -> Pay Heads -> Create. As you select and press enter on create the Pay Head Creation Screen will appear. In this screen you have to enter the relevant information. You have to fill up the following fields-Here It is shown for Earning Pay Head :

• Pay Head Type : Here select the option Employees Statutory Deductions as the amount will be deducted from the Gross pay of the employee as per statutory regulations.

• Under : Here in this field select Current Liability as the organisation is liable to pay the amount so deducted to the concerned government authorities.

• Calculation Type : Here select 'As Computed Value' from the options as the amount of this Pay Head is dependent on the value of other Pay heads like Basic, HRA, Conveyance, etc.

Computation Info : Here in this Part you have to give the necessary details for computation of Professional Tax. It is described below :

Compute : As the amount of profession tax is based on selected earning pay heads, select 'On Specified Formula'. After selection of the option select the Pay Heads involved and specify the formula and then specify the slab. Select 'Percentage' in slab type column if the amount is calculated on percentage basis. If the amount is a fixed value specify 'Value Basis' in the Slab Type Column.

After you are done with the selection Accept to save the Pay Head.

Other Pay Heads can also be Created in a similar way.