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