How to Create Salary Structure based on Gross Salary in Tally.erp 9

Configuring Salary Structure is very important in Payroll processing and in HR management

Tally offers configuring Salary Structure in a very easy way.Let’s learn how to configure Salary Structure based on Gross Salary

As I repeatedly told that Tally.erp 9 provides a complete in-built Payroll module free of cost which helps in Salary Structure , PF , Professional tax, Gratuity, ESI deduction andnow it even offers TDS deduction on Salary, Form No. 16a for employees, Employees complete Return preparation, declaration whatever you ask for payroll, it is available in Tally.

In Many company Salary structure is bifurcated into different pay heads where the Gross salary is defined by the management and then % of other pay-head is given to you so, How you will handle this situation in Tally. Let me explain you today how to handle this issue in Tally.

Suppose you were given the below table and asked to design a Salary structure :

	GrossSalary	Basic (60% of Gross)	HRA (20% of gross)	Conv (5% of Gross)	Medical (15% of Gross)	PT (As per Slab)	PF(12% of Basic)
Hitesh	17000	10200	3400	850	2550	200	1224
Savita	7500	4500	1500	375	1125	175	540

you do not need to feel confusion, here Tally.erp 9 Release comes to help you to design the best suitable Salary Structure. Follow the procedure explained here :

1. Create Gross Salary Pay Head
2. Create Other Pay Heads
3. Create/Alter Salary Details
4. Process Payroll

Step 1: Create Gross Salary Pay Head for Salary Structure

• Create a Pay Head called Gross Salary under Pay Head Type – Earnings of Employees
• Select Calculation Group in the Under field

Note: The Calculation Group is created so that the same can be Excluded using aVoucher Class during the Salary Processing

• The option Affect Net Salary should be set to No.

Step 2: Create Other Pay Head for Salary Structure

Create all the Pay Heads as computed Value with computation method as Sspecified Formula.

Pay Head creation for Basic Pay is shown below:

Step 3: Set /Alter Salary Details for Salary Structure

Specify employee wise salary structure in salary details including Gross Salary Pay Head as per the order shown below as all the Pay Heads depends on the Gross SalaryPay Head:

Step 4: Process Payroll

Process the Salary using the Voucher Class by after the steps given:

• Payroll Voucher > Press Ctrl + F4 > Select Pay Process in Voucher Class
• Press Alt + A for Payroll Auto Fill

Salary structure may be vary from business to business, organization to organisation and generally it is defined by the HR people of the company or the management

Release 3 is not available for every one. only the Tally users whose Tally.net Subscriptionis active can use the Release 3.

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