Tally Erp9 Lesson 6 Managing Payroll In Tally Erp9

 Module 6: Managing Payroll in Tally ERP9

Managing payroll in Tally ERP9 involves setting up, processing, and maintaining employee salary details, deductions, and allowances. This module covers all aspects of payroll management, from setting up the system to processing salaries.
1. Payroll Setup: Setting Up Payroll in Tally ERP9
To start managing payroll in Tally ERP9, you first need to enable the payroll feature and configure basic settings.
Step-by-Step Setup:
Enable Payroll Feature:
Go to Gateway of Tally > F11: Features > Accounting Features.
Set Maintain Payroll to Yes.
Set Maintain more than one payroll or cost category to Yes if required.
Accept the screen.
Define Pay Heads: Pay heads are components of an employee's salary such as Basic Pay, HRA, and other allowances.
Go to Gateway of Tally > Payroll Info > Pay Heads > Create.
Provide a name for the Pay Head (e.g., Basic Salary, HRA).
Select the appropriate type (Earnings for employees, Deductions from employees).
Specify the calculation type (As computed value, on Attendance, etc.).
Complete the creation and save it.
Create Employee Groups (Optional):
Go to Payroll Info > Employee Groups > Create.
Group employees according to their department, designation, or other criteria.
This helps organize and manage payroll efficiently.
Practical Example:
For a company managing employees across different departments (e.g., IT, HR, Sales), you can create employee groups for each department. Each group can have its pay heads (such as IT employees getting a technology allowance).
Lab Exercise:
Task: Set up payroll for a sample company with the following pay heads: Basic Salary, HRA, Travel Allowance, Provident Fund (PF).
Exercise Steps: Enable payroll, create these pay heads, and assign them to employee groups.
2. Employee Creation: Adding and Managing Employee Details
Once the payroll is set up, the next step is to create employee records and manage their details.
Step-by-Step Process:
Create Employees:
Go to Payroll Info > Employees > Create.
Enter the employee name and employee code (optional).
Select the appropriate employee group if applicable.
Define the designation and department.
Fill in other relevant details, such as date of joining, PAN, bank details, etc.
Save the employee details.
Manage Employee Details:
You can modify employee information at any time by going to Payroll Info > Employees > Alter.
Practical Example:
Suppose you're managing payroll for an IT company with 50 employees. You can create employee records for each staff member, linking them to the IT department and adding relevant pay details like allowances.
Lab Exercise:
Task: Create employee records for 5 new employees.
Exercise Steps: Input personal details, group them by department, and assign salary details (Basic Salary, HRA, and PF).
3. Salary Components and Pay Heads: Configuring Salary Structures, Deductions, and Allowances
The salary structure in Tally ERP9 consists of various components, such as earnings (basic salary, allowances) and deductions (PF, taxes).
Step-by-Step Process:
Define Salary Components (Pay Heads):
As done earlier in the setup, create pay heads for salary components such as Basic Pay, HRA, and Provident Fund.
Create Salary Structures:
Go to Payroll Info > Salary Details > Create.
Select the employee for whom you are defining the salary structure.
Specify the effective date.
Add pay heads and specify the calculation (fixed amount or percentage-based).
Deductions (PF, Taxes):
For deductions like Provident Fund, create a deduction pay head in a similar manner as earnings, but choose "Deductions" under the pay head type.
Specify the calculation method (e.g., percentage of Basic Pay).
Practical Example:
For an employee with a salary of ₹40,000, you may create the following salary components:
Basic Salary: ₹25,000
HRA: ₹10,000
Provident Fund (PF): 12% deduction on Basic Salary.
Lab Exercise:
Task: Configure salary components for two employees: one with fixed salary and another with percentage-based allowances and deductions.
Exercise Steps: Define pay heads for both employees, set up their salary structures, and include deductions such as PF.
4. Processing Payroll: Creating Payroll Vouchers and Processing Employee Salaries
Once everything is set up, you can process payroll and generate salary vouchers.
Step-by-Step Process:
Create Attendance/Production Type:
Go to Payroll Info > Attendance/Production Type > Create.
Define attendance types such as Present, Absent, Paid Leave, etc.
Enter Attendance Details:
Go to Payroll Vouchers > F4: Attendance.
Select the attendance type and enter attendance data for each employee.
Process Payroll:
Go to Payroll Vouchers > F4: Payroll.
Select the relevant period.
Enter the salary details or use the predefined salary structure for each employee.
Accept the voucher to process payroll.
Generate Payslip:
You can generate payslips for individual employees or for all employees in bulk.
Go to Payroll Reports > Pay Slip.
Practical Example:
Suppose you are processing payroll for the month of September. You can create an attendance voucher for each employee, enter their working days, and process payroll accordingly.
Lab Exercise:
Task: Process payroll for 3 employees for a specific month.
Exercise Steps: Record attendance, enter the payroll voucher, and generate the payslip.
Conclusion:
By the end of this module, students should be able to:
Set up payroll in Tally ERP9, configure salary structures, and process payroll.
Handle employee details, salary components, and generate payroll reports.
Practical Lab Task Summary:
Set up payroll for a sample company, including creating pay heads and employee groups.
Add employee details for 5 employees, managing their salary structures.
Process payroll for 3 employees and generate their payslips.
These exercises ensure that learners not only understand the theoretical concepts but also gain hands-on experience in managing payroll in Tally ERP9.
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