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
