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22 Payroll For UAE PDF
22 Payroll For UAE PDF
UAE
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Introduction
Salient Features of Tally.ERP 9’s Payroll ............................................................................................... 1
i
Introduction
The term Payroll refers to a series of accounting transactions involved in the process of paying
employees for the services rendered after taking all the statutory and non-statutory deductions
into account, in conformance with the terms of employment, company policy and the law of the
land i.e., payment of payroll taxes, insurance premiums, employee benefits and other deductions.
An efficient payroll system facilitates an error-free, accurate and timely employee payment while
ensuring that the employment is well within the valid work permit.
Payroll in Tally.ERP 9 is easy to use and can handle all the functional, accounting and statutory
requirements of the payroll department.
1
Lesson 1: Enabling Payroll in Tally.ERP 9
Before Enabling the Payroll, you have to create a Company as per the process shown below:
2
Enabling Payroll in Tally.ERP 9
The option More than ONE Payroll / Cost Category is set to Yes, when separate
cost categories are created to allocate Employee cost. In cases, where only one
cost category i.e., primary cost category is used to allocate multiple cost centres,
this option may be set to No.
3
Enabling Payroll in Tally.ERP 9
The Employer Unique ID specified will be used to generate the Salary Information
File (SIF).
Once Payroll feature is available, the Payroll info. and Payroll Vouchers options are available in
Gateway of Tally screen.
4
Lesson 2: Creation of Payroll Masters
The following masters should be created for successful Payroll implementation in Tally.ERP 9:
Create Employee Masters
Create Payroll Units (for Overtime etc.)
Create Attendance/Production Types
Create Pay Heads
Create Payable Ledgers and Bank Ledger
Create Salary Details
5
Creation of Payroll Masters
The option to create the Employee Categories is available only in Release 1.8
onwards. For earlier releases, you can create the Cost Category from Accounts
Info. menu.
By default Primary Cost Category is provided.
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Creation of Payroll Masters
7
Creation of Payroll Masters
8
Creation of Payroll Masters
Its necessary to capture the Leave without Pay Days to compute and generate the
SIF file. Hence, the Absent Attendance Type should be created to record the Attend-
ance.
9
Creation of Payroll Masters
10
Creation of Payroll Masters
If the Attendance Based Pay Heads (e.g. Basic) is created on present (Leave
with Pay) then its necessary to record the Attendance before processing the
Payroll. If the Basic Pay Head is created with Absent (Leave without Pay), then you
have to record the Attendance only when the Employees are absent.
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Creation of Payroll Masters
The completed Food Allowance Pay Head Creation screen is displayed as shown:
12
Creation of Payroll Masters
13
Creation of Payroll Masters
14
Creation of Payroll Masters
v. Gratuity
In the Pay Head creation screen,
Enter the Name of the Pay Head
Select Gratuity from the List of Pay Head Types
Enter the Slab Rate details for Gratuity Calculation in the sub-screen as shown:
Select Provisions as Group from the List of Groups in the field Under.
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Creation of Payroll Masters
16
Creation of Payroll Masters
17
Creation of Payroll Masters
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Creation of Payroll Masters
Similarly, Pay Structure for all other Employees can also be created.
Tally.ERP 9 also provides the flexibility to create the Salary Details for an
Employee Group and copy the same to the individual Employees.
19
Lesson 3: Processing Payroll in Tally.ERP 9
Payment of Salaries
Payment of Salaries
Specify the required number of days in the Default Value to Fill (this will be pre-filled
for all Employees)
20
Processing Payroll in Tally.ERP 9
By default 0 days will be pre-filled for all Employees in the Attendance Voucher.
The completed Attendance Voucher Creation for Present Attendance is displayed as shown:
21
Processing Payroll in Tally.ERP 9
22
Processing Payroll in Tally.ERP 9
23
Processing Payroll in Tally.ERP 9
24
Processing Payroll in Tally.ERP 9
25
Processing Payroll in Tally.ERP 9
4. Press Enter and the employee payroll details will appear by default.
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Processing Payroll in Tally.ERP 9
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Processing Payroll in Tally.ERP 9
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Lesson 4: Payroll Reports
Statements of Payroll
Pay Slip
PaySheet
Payroll Statement
Payment Advice
Payroll Register
Employee Profile
Attendance Sheet
Attendance Register
Expat Reports
Gratuity
SIF Records
The process to generate some of the important reports is explained in the coming sections.
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Payroll Reports
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Payroll Reports
In the Printing Pay Slip screen, press backspace and enable the required option as
required and press Enter to print
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Payroll Reports
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Payroll Reports
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Payroll Reports
Go to Gateway of Tally > Display > Payroll Reports > SIF Reports > press Enter to view
Exporting SIF Records screen.
Format: In this field select the Format - SDF (Fixed Width) to export the SIF file
Export Location: This field displays the Tally.ERP 9 installation path. You can specify the
path to export the file.
Output File Name: Tally.ERP 9 displays 25 digit Output File Name. File Name Format is
- Employer Unique ID (13 Digits) Year Month Date Hour Minutes Seconds.SIF
Example: 0001234567891120221180600.SIF
Open Exported Folder: set this option to Yes to open the exported folder.
Payment Period - From & To: In this field mention the salary payment period in From and
To field. Based on this Date the Actual Salary paid is captured in EDR line.
Employee Category: In this field select the Employee Category.
Employee/Group: In this field select the Employee or the Employee Group to generate the
SIF Records.
Bank Ledger: Select the Bank ledger through which the payment is processed.
In Payroll Bank Ledgers list, Tally.ERP 9 will list only those ledgers which are used
for salary payment during the payment period.
Payroll Period: In this field mention the Payroll Period i.e. the period for which salary is
paid in Form & To field. Example: If salary for the month of January is being processed
then mention 1-1-2012 & 31-1-2012 in From & To field. Based on this Date the Total Sal-
ary for the month is captured in SCR line.
Employer Reference: In this field you can mention Remarks, if any. The remarks men-
tioned in this field will be captured in Salary Information File (SIF)
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Payroll Reports
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Payroll Reports
The SIF Records exported using Excel (Spreadsheet) format appears as shown:
For all other Payroll details refer the Tally.ERP 9 Reference Manual (Help file) available with the
Product.
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