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Payroll in Tally.ERP 9

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PAYROLL
Definition Payroll is one of a series of accounting transactions dealing with the process of paying employees for services rendered, after processing of the various requirements for withholding of money from the employee for payment of payroll taxes, insurance premiums, employee benefits, garnishments and other deductions.

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Features of Payroll
Instant Access to Employee Information Pay the right amount - on time Improve employee satisfaction manage Increments and Arrears On time recovery of loans and advances Meet all accounting and Regulatory norms instantly Payroll and Statutory Reports
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Steps to payroll
Payroll is a default feature available in Tally.ERP 9. Enabling Payroll is a two step simple process: Enabling Payroll Enabling Payroll Statutory (for India)

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Enable Payroll Feature in Tally.ERP 9, follow the steps given below: Go to Gateway of Tally > F11: Features > F1: Accounting Features Tab down to Cost/Profit Centres Management section Set Maintain Payroll to Yes You can set More than ONE Payroll / Cost Category to Yes to allocate Employee Cost, by creating separate Employee Categories
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Once the Payroll feature is enabled by the user, the Gateway of Tally screen will appear as shown:

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Enabling Payroll Statutory Features To use the Provident Fund, Employee State Insurance (ESI), Income Tax and Professional Tax features for Indian Payroll, its necessary to enable the Statutory Features for Payroll. To enable Payroll Statutory feature, Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

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Set Enable Payroll Statutory to Yes And Set/Alter Payroll Statutory Details to Yes

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In Payroll Statutory Details screen, Under the heading Provident Fund: Enter Company Code as allotted by the PF department Enter Company Account Group Code as specified by the PF department Enter Company Security Code as specified by the PF department

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Similarly, for ESI: Enter Company Code as allotted by the Employee State Insurance Corporation (ESIC) Enter the name of the ESI Branch Office Enter the number of days to be considered for the calculation of daily wages and monthly Gross amount for ESI benefits as Standard Working Days (per month).

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Under Income Tax: Tax Assessment Number: Specify the 10 digit TAN assigned to the Employer Income Tax Circle/Ward: Specify the name of the Income Tax Circle, to which the Employer is associated Deductor Type: Select Government for a company belonging to central or statement governments for all others select others.

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Name of Person Responsible: Enter the name of the person responsible for TDS deduction in the company. Son/Daughter of: Enter father's for the person responsible for TDS deduction in the company Designation: Specify the official designation of the person responsible for TDS deduction

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F12: Payroll Configuration

The other generic Payroll related Configurations can be set using the Payroll Configuration screen. To enable the options in the Payroll Configuration follow the steps given below: Gateway of Tally > F12: Configure > Payroll Configuration

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Pay Heads
The new enhanced Payroll in Tally requires minimal effort for accurate processing. Setting up Pay Heads, Employee Group, Employees, Salary Details and Attendance/Production Type is now a simple process with Tallys Four easy steps to generate a payslip. Create Pay Heads The components of structured salary are created under Pay Head Create the salary structure components in pay head.

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The Pay heads are basically of two types Earning Payheads Deduction Payheads Further the Pay head can be classified on Basis of its calculation and computability. We can compute the value of a pay head on basis of Attendance Production Based on calculation of some other pay head

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To Create a Pay head in tally follow the steps : Gateway of Tally > Payroll Info > Payhead > Create.

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The details of this screen are discussed below: Name: An appropriate name describing the nature of the ledger account. Alias: An alternative name or code for the Name. Pay Head Type A Pay Head may be used in Payroll, either as Earning, Deduction, or None. The Pay Head, which is marked as Earning or Deduction, would appear in the Payslip. These are shown in figure below:
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Examples: Earning: Basic Salary, HRA, Dearness Allowance etc. Deduction: Income Tax, Salary Advance, Provident Fund etc. Under: An accounting group, under which a ledger is defined. Normally it is Direct or Indirect Expenses or Current Liabilities or Assets. Affect Net Salary: If the head does not affect net salary set this to NO like Employers Contribution to PF or ESI etc. Otherwise set it to YES.
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Examples: Earning: Basic Salary, HRA, Dearness Allowance etc. Deduction: Income Tax, Salary Advance, Provident Fund etc. Under: An accounting group, under which a ledger is defined. Normally it is Direct or Indirect Expenses or Current Liabilities or Assets. Affect Net Salary: If the head does not affect net salary set this to NO like Employers Contribution to PF or ESI etc. Otherwise set it to YES.
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Name to Appear in Payslip: Use for Gratuity: Payroll Calculation Type :

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ADVANTAGES OF PAYROLL
Advantages of using payroll service bureau: The payroll company is on top of the most current laws and regulations. You do not have to sign all the checks. The employer taxation and employee taxation calculations are done for you - you don't have to have an accounting degree to figure that out. The service can pay your taxes for you. The payroll service will retain records for your payroll needs Advantages of processing payroll in house: you are in charge of when the business money will be debited from your account; you own the process; you do not pay fees to a payroll service.

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DISADVANTAGES OF PAYROLL
Disadvantage of using payroll service bureau: Some service bureaus will charge the employer each time they make a call, request a report, ask for a copy of a check etc Disadvantage of processing payroll in house: it takes time from you doing your own business; you have to be an expert in federal and state payroll laws; someone in your company has to process the payroll taxes on time, every time. You have to keep accurate and up to date records. You should have retained counsel in case of an employee suing you.

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PRESENTED BY
JISNA.C.D KAREN CHERYL BANGERA NAMRATA PANCHAL

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Thank you

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