How to Create Payroll Master?- Part 1

For Payroll Accounting all master records are created through Payroll Info. Select Payroll Info from Gateway of Tally. Payroll Info menu allows you to set up the employee details and standard payroll information, with common payroll fields. It is also used for calculating earning
and deductions.

Noe lets learn the utility and process of creating the payroll master records.

PAY HEADS
For creating all the compondnts, which form a part of the salary structure of the employees, Pay Head is used. The salary includes Basic, Dearness Allowance(DA), House Rent allowance(HRA), Conveyance, Provident Fund(PF) contribution, Professional tax and so on. These components and their amount may vary from employee to employee.

In order to create a pay head which is an earning to the employee. From the payroll info menu go to Pay Heads -> Create.
Then pay head creation screen will appear where you have to fill up the following informations.

Name : Here you have to give the name of the Earning Pay Head.

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

Pay Head Type : The following Pay Heads are provided by Tally-

• Deduction from Employees : If any amount of money is to be deducted from the salary of the employee.
• Earnings of the Employee : When there is Basic, DA, HRA, Conveyence and so on.
• Employee's Statutory Deduction : It is for the purpose of PF and professional tax, etc.
• Employer's Statutory Contribution : It is for the purpose of PF, ESI, etc.
• Gratuity : For Pay Heads which relate Gratuity.
• Loans and Advances : For employees who has Loans and Advances related to their Pay Heads.
• Reimbursements to Employees : In certain cases Employer provide the expense incurred by the Employee, like Traveling Expenses.
• Not Applicable : In case of 'Salary Payable' Pay Head this is to be selected. It will be used for recording processing of salary.