How to Create EPS Contribution Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter
Ø After reaching by follow above step, fill all details to create EPS contribution Pay Heads like,
· Name–Enter the name of statutory Contribution Pay Heads. like I Enter “Employer’s EPS Contribution @8.33%”
· Pay head type – In this section different type of Pay heads are listed. Select “Employer’s Statutory Contributions” from list to create Statutory Contribution Pay heads.
· Statutory pay type – In this section different type of Employee Statutory Contribution are listed. Select “EPS Account (A/c No. 10)” from list to create Employer‘s EPS contribution Pay heads.
· Under – Select “Indirect Expenses” because NPS contribution is Indirect Expenses for Employer.
· Affect Net Salary – Set to this option “No” because EPS Contribution does not Affect net
Salary.
· Name to be displayed in payslip – leave the auto set name “Employer’s EPS Contribution @ 8.33%” to print in Pay slip
· Calculation Type – Select “As Computed Value” for Calculate EPS on Formula basis.
· Calculation Period –Automatic set “Months”.
· Rounding Method – Select any rounding method to round off Decimal portion of EPS
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 EPS Percentage basis on
(Basic Salary + DA).
Ø
After Selecting “On Specified formula” a new screen appear like that screenshot:
§ Add Pay Head – Select Basic Salary and then Dearness Allowance to calculate NPS value on basis of percentage of (Basic salary + Dearness Allowance).
Ø
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 EPS rate for employer in Tally prime.
Like I type “1/Jan/2021”.
· Slab Type – Select “Percentage” to Calculate EPS value
· Value – Type Value of Percentage to calculate PF amount. Like I type “8.33%” if Salary
up to 15000 and type Flat 1250 if Salary above 15000.
Ø Fill all Above details in Pay heads screen to create EPS Contribution Pay heads like following screenshot:
Ø Press Enter or Ctrl+A to save this screen.
EDLI Contribution Pay Heads
