How to set Payroll in Tally Prime?

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How to set Payroll in Tally Prime?
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Introduction
Setting up payroll in Tally Prime is essential
for businesses to manage employee salaries,
wages, bonuses, and deductions efficiently. Tally
Prime offers comprehensive payroll management
features that allow you to automate payroll
processing, maintain employee records, and
generate statutory reports. Here's a step-by-step
guide to setting up payroll in Tally Prime. Tally
Prime provides various tools that allow you to
implement and process payroll. The Payroll Info.
menu allows you to construct various payroll
masters required to compute employee earnings and
deductions.
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• Step 1 Enable Payroll Feature in Tally Prime
• Before you start setting up payroll, you need to
  enable the payroll feature in Tally Prime.
• Login to Gateway of Tally gt F11 Features gt F1
  Accounting Features.
• Under 'Maintain Payroll', select 'Yes'.
• Press 'Enter' to save the changes.
• Step 2 Create Payroll Masters
• Once the payroll feature is enabled, you need to
  create payroll masters, which include Employee
  Groups, Employee Masters, Pay Heads, and Salary
  Details.

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• 2.1. Create Employee Groups
• Employee Groups help in categorizing employees
  based on departments, roles, or any other
  criteria.
• Login to Gateway of Tally gt Masters gt Payroll
  Masters gt Employee Groups gt Create.
• Enter the Group Name, for example, 'Sales', 'HR',
  etc.
• Define the Under Group. If its the primary
  group, select 'Primary'.
• Press 'Enter' to save.
• 2.2. Create Employee Masters
• Employee Masters store individual employee
  details.
• Go to Employees gt Create under Masters gt Payroll
  Masters gt Employees gt Gateway of Tally.
• Enter the Employee Name, Employee Code, and
  select the Employee Group.
• Provide additional details like Date of Birth,
  Gender, and Date of Joining.
• Specify Statutory details if required (e.g., PF
  Account No., PAN, etc.).
• Press 'Enter' to save the employee details.

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• 2.3. Create Pay Heads
• Pay Heads define the various components of an
  employees salary, such as Basic Salary, HRA,
  Provident Fund, etc.
• Go to Masters gt Payroll Masters gt Pay Heads gt
  Create in the Gateway of Tally.
• Enter the Pay Head Name (e.g., Basic Salary, HRA,
  etc.).
• Specify whether its an 'Earnings for Employees'
  or a 'Deductions from Employees'.
• Define the Calculation Type (e.g., As Computed
  Value, On Attendance, etc.).
• Specify the Calculation Period (Monthly, Weekly,
  etc.) and Rounding method if needed.
• For statutory pay heads like PF, ESI, etc.,
  provide the relevant statutory details.
• Press 'Enter' to save the Pay Head.

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• Step 3 Define Salary Details
• Now that you have created the Payroll Masters,
  you need to define salary details for each
  employee.
• Login to Gateway of Tally gt Masters gt Payroll
  Masters gt Salary Details gt Create.
• Select the Employee Name.
• Define the Effective Date for the salary
  structure.
• Add the Pay Heads (e.g., Basic Salary, HRA, etc.)
  and specify the amounts or percentage values.
• If there are deductions, specify the deduction
  amounts.
• Press 'Enter' to save the salary structure.

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• Step 4 Process Payroll
• After setting up the payroll masters and salary
  details, you can process the payroll for
  employees.
• Login to Gateway of Tally gt Transactions gt
  Payroll Vouchers gt F2 Date.
• Select the Voucher Date.
• In the Payroll Voucher screen, select 'Payroll
  Auto Fill' from the right-hand side options.
• Choose the Payroll Auto Fill option based on your
  requirement (e.g., Salary Auto Fill).
• Select the Employee Category and other criteria
  like the month for which payroll is to be
  processed.
• The system will automatically fill in the salary
  details based on the predefined salary
  structures.
• Review the payroll details, and press 'Enter' to
  accept.
• Save the Payroll Voucher.

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• Step 5 Generate Payroll Reports
• Tally Prime allows you to generate various
  payroll-related reports, such as Pay Slips,
  Salary Statements, and Statutory Reports.
• Go to Display gt Payroll Reports in the Tally
  Gateway.
• Select the report you want to view, such as Pay
  Slip, Attendance Sheet, or Salary Register.
• Specify the period and other criteria.
• The report will be generated based on the payroll
  data processed.
• You can print or export the report as required.

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• Step 6 Statutory Compliance
• Tally Prime also helps with handling statutory
  payroll compliance, such as Provident Fund (PF),
  Employee State Insurance (ESI), and Professional
  Tax (PT). Ensure that all statutory Pay Heads are
  correctly configured, and the relevant details
  are entered in the employee masters.
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• To generate statutory reports, go to Gateway of
  Tally gt Display gt Payroll Reports gt Statutory
  Reports.
• Select the appropriate report like PF
  Contribution, ESI Contribution, etc.
• Ensure that all statutory deductions and
  contributions are accurate and up-to-date.
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