How to Create Canteen Deduction Pay Heads in Tally Prime?

Step: GOT > Create > Pay Heads > Enter

Ø After reaching by follow above step, fill all details to create Canteen pay Heads like,

· Name–Enter the name of Deduction Pay Heads. like I Enter “Canteen Expense”

· Pay head type – In this section different type of Pay heads are listed. Select “Deduction from Employee” from list to create Deduction Pay heads of Canteen Expense.

· Under – Select “Indirect Expense” Canteen Expense is Indirect Expense for Employer.

· Affect Net Salary – Set to this option “Yes” because Canteen Expense Affect net Salary.

· Name to be displayed in payslip – Left it by Default name “Canteen Expense” to Print in

Pay Slip.

· Calculation Type – Select “As User Defined Value” from list for Canteen Expense

because it is decided Employer that how much he deduct Canteen amount of Employee.

Ø Fill all Above details in Pay heads screen to create Canteen Deduction Pay heads like following screenshot:

· Press Enter or Ctrl+A to save this screen.

Part 3: Create Statutory Deduction of Employee Pay heads

Statutory Deduction Pay Heads – All amount deducted by Employer to his employees as tax and fund for them. Like PF, ESI, NPS deduction etc.

Ø Deduction and Contribution rate of Fund for Employee and Employer

Account Head

Deduction & Contribution Rate

Employee’s PF Contribution – A/c No: 1

12.00%

Employer’s PF Contribution – A/c No: 1

3.67%

Employer’s EPS Contribution – A/c No: 10

8.33%

EDLI employer Contribution – A/c No: 21

0.50%

ESI employee’s contribution rate

0.75%

ESI employer’s contribution rate

3.25%

employer’s NPS contribution

10-14%

employee’s NPS contribution

10-14%

PF Statutory Deduction Pay Heads