Tuesday, December 14, 2010

Payroll in Tally.ERP 9

The integrated Payroll solution available with Tally.ERP 9 simplifies the complex payroll processes and practices and handles them in the most simplified manner.
The salient features of payroll are listed below:
  • Create and maintain the Employee database viz- Name, Address, Contact Details, Personal Details like Blood Group etc., Family Details, Bank Account Details, Statutory Details like PAN, PF Account nos, ESI Account nos. etc.,  EXPAT Details like Passport VISA and Work permit details.
  • Employee group or department wise categorization.
  • Attendance, overtime, leave or production details can be recorded.
  • Multiple salary structures can be created for different group of employees. For example, department wise salary structures and salary processing.
  • Support Salary revision and arrear calculation both as prospective and retrospective change.
  • Tally.ERP 9 Payroll facilitates tracking of loans and advance paid to employees and allows defining multiple criteria for recovery of such advances. The loan / advances can be recovered in complete or a number of installments from Employee’s salary.
  • Complete support to implement Provident Fund and Employee Insurance schemes along with Professional Tax Calculation.
  • Supports Gratuity as per the specified criteria.
  • Above all, the Payroll feature is completely integrated with Accounts.
Benefits of using Tally.ERP 9 Payroll
  • Time spent on processing salaries, manual and paper work can be cut down to a great extent.
  • Accurate and timely salary processing.
  • Tracking and reviewing of employee’s absence and salary calculation as per the attendance is much easier.
  • Generate the Payment Advice to instruct the Bank for Salary payment.
  • Payslips can be printed, exported to Excel or Emailed to the respective email accounts of the employees.
  • All Payroll related reports can be generated with a click of a Button.
Payroll Reports in Tally.ERP 9
1. Payroll Reports
  • Statements of Payroll
o        Payslip
The Payslip option in Tally.ERP 9 facilitates the users to View the Payslip, Configure Content and Appearance based on the requirement and then Print, Export or Email the Payslip.
o        Pay Sheet
The default report contains all earnings and deduction details for a given month or period with a number of options to reconfigure the appearance of rows and columns. Format of the pay sheet report may be configured to serve as a Salary/Wage register as required by the organization. The selection of data can be filtered based on a given category or group of employees.
o        Payroll Statement
Payroll Statement report allows generating the report for a specific Pay Head/Ledger.
o        Payment Advice
The Payment Advice report is used to generate Payment Advice / Bank Transfer letters to transfer Salary Amount from a specific bank account to the respective bank accounts of the employees based on the Salary Payment voucher.
o        Payroll Register
Payroll register is a month-wise transaction summary report displaying Payroll vouchers, similar to Display Statistics in the accounting module. Though the register primarily displays Payroll vouchers, new columns for any other voucher type can also be added.
o        Employee Pay Head Break-up
This report is similar to a Payroll Statement for a selected Pay Head, with a difference that, in this report, opening balance, credit / debit transaction and closing balance for the selected period would be displayed as columns.

o        Pay Head Employee Break-up
This report displays a group wise summary of the transactions and Closing balance for the selected Employee. Drill down to specific ledger of the group, to the month wise summary and up to voucher, is available in this report.
  • Attendance Sheet
The Attendance Sheet report is similar to Pay Sheet report, and displays a pre-formatted report with columns, related to your Attendance/Production data.
  • Attendance Register
This report is similar to Payroll Register and displays the summary report of the Attendance vouchers. The configuration and button functionality are the same as in other Payroll Register report.
  • Expat Reports
The Expat reports provide comprehensive information about foreign nationals who are employed (regular or contract employees) on short/long work assignments. It displays separate reports on Passport/ Visa/ Contract Expiry dates along with the date of joining with respective Passport/ Visa numbers etc. both at an individual employee level as well as at the group level.

2. Statutory Reports
  • Provident Fund Reports
The Provident Fund reports are sub divided into the Monthly and Annual based on the period as listed below:
·         PF Combined Challan contains the details of the PF amount that needs to be deposited in the Bank during the given month.
·         PF Form 5 provides the details of the employees newly joining the Provident Fund scheme during the given month.
·         PF Form 10 provides the details of the employees exiting from the Provident Fund scheme during the given month.
·         PF Form 12A provides the details of the PF Payments made to the respective PF Accounts of the Employees during the given month.
·         PF Monthly Statement is an MIS report which provides the details of the Amounts contributed by the Employees and Employer towards the PF Accounts during the given month/period.
·         PF Form 3A is an Employee wise Annual report for the Amounts deducted/contributed by the Employee and the Employer towards the EPF, VPF and EPS Accounts.
·         PF Form 6A is the detailed Annual Statement of contribution towards the different PF Accounts for the given currency period.
  • Employee State Insurance Reports
The Employee State Insurance reports are sub divided into the Monthly and Half yearly on the period as listed below:
·         ESI Challan contains the details of the ESI amount that needs to be deposited in the Bank during the given month.
·         ESI Form 3 is a Return of Declaration form to be submitted during each month with the details of the Employees falling in the purview of ESI during the given month. Form 3 can be generated separately for Male and Female employees.
·         ESI Monthly Statement is an MIS report which provides the details of the Amounts contributed by Employees’ and Employer towards the ESI Account during the given month.
·         ESI Form 5 is a Return of Contribution form to be submitted half yearly with details of employee wise ESI contribution made on a monthly basis.
·         ESI Form 6 is Register of Employees falling under the purview of ESI with detailed monthly information on the worked days, wages received and Employees’ contribution towards the ESI.
  • Professional Tax Reports
·         Professional Tax (PT) Computation Report is monthly which provides the details of the PT amount that the employer is liable to pay to the professional Tax department during the given month.
·         Professional Tax (PT) Monthly Statement is MIS report showing the PT employee wise PT contribution details for the given month.
  • Gratuity Reports
·         The Gratuity summary report provides comprehensive information on the gratuity eligible salary and the total gratuity amount to be given to the employees for a given Period or Till Date.


  1. Many Thanks for Your Blog Post. Good Resource for All.

    Job Typing

  2. hi there,

    i would like to know whether we can delete the employee from payroll or not. if so, can u please tell me the steps to delete it?

  3. how can i disable pay roll from tally. Please let me know

  4. I am glad to be one of the visitors on this outstanding site (:, appreciate it for putting up. Outsourcing de Nomina


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