How to Create PF deduction Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter
Ø After reaching by follow above step, fill all details to create PF deduction Pay Heads like,
· Name–Enter the name of statutory deduction Pay Heads. like I Enter “Employee’s PF Deduction @12%”
· Pay head type – In this section different type of Pay heads are listed. Select “Employees’ Statutory Deductions” from list to create Statutory Deduction Pay heads.
· Statutory pay type – In this section different type of Employee Statutory Deduction are
listed. Select “PF Account (A/c No. 1)” from list to create Employee‘s PF Pay heads.
· Under – Select “Current Liabilities” because PF deduction is Current Liabilities for Employer.
· Affect Net Salary – Set to this option “Yes” because PF deduction Affect net Salary.
· Name to be displayed in payslip – Type name “Employee’s PF Deduction @12%” to
print in Pay slip
· Calculation Type – Automatic set “As Computed Value”.
· Calculation Period –Automatic set “Months”.
· Rounding Method – Select any rounding method to round off Decimal portion of PF
amount. Like I select “Normal Rounding”.
· Limit – Type Limit amount of rounding to round off according to limit. Like I type “1”.
· Compute – Select “On Specified Formula” Because we Calculate PF Percentage basis on (Basic Salary + DA).
After Selecting “On Specified formula” a new screen appear like that screenshot:
§ Add Pay Head – Select Basic Salary and then Dearness Allowance to calculate PF value on basis of percentage of (Basic salary + Dearness Allowance).
Add Pay heads like that following screenshot:
Note 1:- EPF, NPS & EPS will be calculated on (Basic Salary +DA)
· Effective from – Type Date from which you apply PF rate for employee in Tally prime.
Like I type “1/Jan/2021”.
· Slab Type – Select “Percentage” to Calculate PF value
· Value – Type Value of Percentage to calculate PF amount. Like I type “12%” if Salary up to 15000 and type Flat 1800 if Salary above 15000.
Ø Fill all Above details in Pay heads screen to create PF Deduction Pay heads like following screenshot:
Ø Press Enter or Ctrl+A to save this screen.
a. NPS Statutory Deduction Pay Heads