Payroll In TallyPrime: Overview, Elements, Procedure

What is Payroll in TallyPrime? This is a common doubt in the minds of students while they learn about this software. So, in this article, you will get a complete idea of how to make use of Payroll in TallyPrime.

Tally Prime offers several features that will help you to implement and process the Payroll. Additionally, you can make use of Payroll Info. You need to use the menu option to create different Payroll masters that are essential for computing earnings and for making deductions for employees.

To streamline the Payroll process TallyPrime is integrated with the accounting process. So, you must ensure that you know its proper use to meet your requirements.

What Is Payroll In TallyPrime?

Payroll in TallyPrime refers to the module developed to manage deductions, employee salaries, and other related aspects of employee remuneration. Thus it simplifies the process of Payroll to enable automated calculations. Therefore, it enables seamless integration, comprehensive reporting, and accounting.

Payroll features offer Management-related information and statutory reports in some prescribed formats. So, let’s explore some of the crucial documents in this regard.

• Attendance and overtime register, Payroll, and Payslip.
• National Pension Scheme, Gratuity, Provident fund, and Employee state insurance.
• Expat Reports.
• Income tax, and Professional Tax.

What Are The Benefits Of Payroll In TallyPrime?

There are numerous benefits Of TallyPrime that you must be well aware of. Some of the key factors that you should know here are as follows:-

1. Automation

The predefined process of Tally Prime can easily automate the Payroll process to reduce all the errors. This can boost the productivity level of your Payroll process. Additionally, it can make things work perfectly well for you.

2. Tax Management

Tally Prime offers complete tax management tools that include the ability to generate tax reports and e-file returns. It is one of the crucial facts that you must be well aware of. Without it, you cannot make your entries accurately.

3. Flexible Attendance & Production Type

TallyPrime allows all the users to create an attendance type such as all the paid and unpaid on the production process. Additionally, you need to take care of these facts while meeting your requirements with complete ease.

4. Salary Calculation

TallyPrime supports all the flexible salary calculations, this includes fixed pay and salary-based calculations. Along with it, percentage-based calculations are also there. This is one of the crucial facts that can boost your brand value to a greater level.

5. Data Security

Tally Prime offers all the security features to protect all the data of Payroll such as all the user-level access and data encryption. Additionally, you can maintain all the data security in perfect order. This can boost your brand value to a greater level.

6. Categorization

Tally Prime allows all the users to categorize all the employees based on their employees, departments, and more. Additionally, this can boost the scope of your brand value to a greater level.

7. Comprehensive Reports

TallyPrime offers all the comprehensive reports as well as cost center and employee reports. It will help you to get things done in perfect order. Proper reporting can make things work perfectly well in your own way.

8. E-Payments

The E-payments will make things easier for you in all possible manner. This can boost the scope of your Payroll system to build your brand image in a better manner. As it can make things work perfectly well in your favor.

Payroll Process Flowchart

How To Enable Payroll In TallyPrime?

There are several ways you need to develop or enable the Payroll in Tallyprime. Some of the key factors that you should be well aware of are as follows:-

1. Press F11( Features) > Set Maintain Payroll To Yes!!.
2. Set Show More Features to Yes.
3. The third step is to accept the Screen and press CTRL+A to save.
4. After that, you can witness Gateway of Tally on the screen.

How To Develop Statutory Features In Payroll?

To make use of the Provident Fund, Employee State Insurance, and National Pension scheme insurance. You should ensure that you should form a better employee state insurance. Let’s explore the steps one after the other.

• First press F11.
• Set Enable Payroll Statutory to Yes.

These are some simple processes you need to follow to enable Payroll in Tally Prime. Additionally, you have to follow the correct process from your endpoints. This can boost the chances of your TallyPrime.

How To Process Salary In Tally Prime?

TallyPrime can offer you the opportunity to process your salary easily. In TallyPrime you can easily process your salary for an employee using all the payroll vouchers. Thus selecting appropriate payroll ledger. All the salaries are calculated and defined for an employee.

The calculation of the salary is done based on the Income tax slab as well as the Tax regime. The tax regime of the employees is changed in the financial year as it is calculated based on the Tax regime. On the day of processing the salary all the tax regime information is referred to as tax regime history.

1. Click on the Gateway Of Tally > Vouchers > Press Ctrl+4
2. Click F2 to alter the date of the voucher.
3. You need to Click on Ctrl+F to select Autofill Payroll on the screen of autofill.
4. Type of Transaction you can select the Payroll Autofill and Type of autofill.
5. In the process field you have to select options in the Salary option.
6. From the option (blank for beginning): enter the From Dates.
7. Starting from To blank for the end: Enter to dates.
8. Select the employee group from the list of employee groups whose salary you want to process.
9. You must select the sorting option from sort by group.
10. Payroll bank or cash ledger: choose the correct Payroll Ledger from the list of ledger accounts.
11. Enter the User-defined values that are present in Payhead. As variable pay or salary advance deduction.
12. The last step is to enter the narration as the Payroll vouchers disclose the pay voucher in the narration field.
13. You can press Ctrl+ A to save by accepting the screen.

How To Create Employees In Tallyprime?

There are certain steps that you need to follow to create employees in Tallyprime. In this article, you have to follow certain steps that you must take care of while creating employees in Tallyprime. Some of the key aspects are as follows:-

• First of all, Go to The Gateway of Tally.
• You must select the Payroll Info.
• Select the Employee option.
• Create and select under single employee.
• Enter the employee’s name.
• Enter the Joining date of the employees.
• Set The Define Salary details option to Yes.
• Enter the Salary details of the employees.
• Enter the general information of the employees, Payment details, bank details, statutory details, Visa and Passport details, and Contact details.

Features Of Payroll In Tally Prime

There are numerous features of Payroll in Tally Prime that you must know from your end. Some of the key features of it are as follows. Let’s find out the details one after the other to have a better idea of it.

• The payroll processing and accounting is quite simple due to its full integration with accounts.
• All the user-defined classifications and sub-classifications for comprehensive reporting on various aspects like employees, employee groups, and departments or pay components.
• User-defined and flexible criteria are present for simple and complex calculations.
• Payroll Masters will have unlimited grouping.
• Using the e-payments Capabilities in Tally Prime processing the payments becomes useful.
• Comprehensive reports will be from the cost center as well as employee-wise costing becomes easier.
• You will get pre-defined processes for accurate and timely salary processing.
• Employee Statutory deduction and timely salary processing make things work perfectly well in your favor.
• Using the E-payments category in Tally Prime payment processing can be done easily.
• Auto-fill facility will expedite Payroll, attendance, and employer’s contribution process.
• For statutory payments and accurate computation Income tax, EPF, NPF, professional tax, and gratuity can be set easily.
• Generate all the challans and statutory forms for income tax, EPF, and ESI.
• In case any alterations are required you will get the facility to drill down the voucher level.
• Compute previous period arrears.
• You can easily track the loan details of the employees.

What Things You Need To Create In Tallyprime?

There are several things you need to create in TallyPrime that you must be well aware of. Some of the key factors that you should be well aware of are as follows:-

1. Company Set Up

The first step is to create a company in Tally Prime and provide the basic details. Additionally, the basic information should include the company name, financial year start date, address, and currency. This is one of the crucial aspects that you should take care of while creating the Payroll in TallyPrime.

2. Accounting Masters

Creating the chart of accounts is essential while creating the primary structure of accounts. It includes the following process for creating the accounting Master. The process of it is as follows:-

• Groups
• • Assets, liabilities, Incomes, and expenses.

• Ledgers:
• There are certain specific accounts under each group. It comprises of following sets:
  • Bank Accounts
  • Sales
  • Purchase
  • Expenses like Rent, Utilities, and salaries

• Cost Center/ Profit Center
• • Define if you want all the expenses incomes, and the department or the projects.

3. Inventory Masters

• Stock groups: You need to classify all the inventory items, Electronics, and furniture.

• Categories Of Stock: Identify all the group items, by category for your detailed reporting.

• Stock Items: You need to define all the individual items with all the details like opening stock, rate, and unit of measure.

• Units Of Measure: Liters, kilograms, and pieces are the units of measure.

4. Tax & Compliance

You need to configure all the tax settings to make the accurate calculation of tax items in TallyPrime. There are certain factors that you need to be aware of in this regard. Some of them are as follows:-

• Configure all the tax details for Goods and Services using GST/ VAT settings.
• You should create specific ledgers in Tally Prime For GST, TCS, TDS, and VAT.
• Input all the relevant compliance information PAN/ TAN details.

5. Payroll

If applicable create all the Employee groups that comprise all the Management as well as the sales team. There are certain steps that you must be well aware of. Some of these core steps that you should be well aware of are as follows:-

• Employee groups will comprise the information of the sales and management team.
• Add all the employee details like the salary structure as well as bank details.
• The Payroll Heads will Define all the components like deduction, HRA, and basic pay.

6. Vouchers

For recording all the sales transactions make use of the sales vouchers. This is one of the fundamental aspects of Payroll in TallyPrime. You should create a better solution for it. Some of the core factors that you must consider here are as follows:-

• Sales Vouchers are essential for recording all sales transactions.
• For recording all the purchase transactions purchase vouchers are used.
• To track all the incoming and outgoing payments the payments and receipts vouchers are being used.
• For making all the adjustments of non-cash transactions journal vouchers are being used.

7. Bank & Cash Management

Link all the Bank accounts with Tally for reconciliation. You should define all the cheque that ranges if used for transactions. Track all the cash transactions for Petty cash or main cash. You must define all the checks that are used for transactions.

Track all the Petty Cash or the main Cash. This is one of the core aspects that you must be well aware of. Additionally, you should not make your choices on the incorrect end.

8. Budgets & Scenarios

You must be well aware of the budgets for all the income, expenses, and cost centers to monitor all your financial goals. It is essential to meet all the budgets as well as scenarios that can boost the scope of your brand value.

If you want to meet your financial goals in perfect order then proper budgeting of financial accounts can make things work perfectly. Here, perfect and proper planning holds the key. Additionally, it can boost the scope of your Payroll in TallyPrime.

9. Security & User Roles

You must assign specific roles for the data entry, administrative tasks, and reports. Assign specific permissions that can boost the scope of your brand value. Secure your data with the help of a user-specific password.

Without knowing the facts you cannot make things happen on the incorrect end. Here, proper application of the plans can develop your data management systems in perfect order. Try to make things happen in a better manner.

10. Customizations

You must customize the invoice, receipts, and purchase orders. Install all the additional modules and all the features like inventory and payroll. Here, you need to identify the best solution that can make things work perfectly well in your favor.

Advanced inventory Payroll can help you to customize all the Payroll in TallyPrime. It can help your business to grow at a faster pace. Here, proper planning holds the key. Try out the best options that can make things work perfectly well in your counterpart.

Final Take Away

Hence, if you want to know about the core concepts of Payroll in Tallyprime you should be well aware of them. These are some of the crucial factors that you should be well aware of about Payroll in TallyPrime that you must be well aware of.

You can share your views and comments in our comment box. This will help us to know your take on this matter. Once you follow the correct solution things will become easier for you in all possible manner.