How to Create PF contribution Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter
Ø After reaching by follow above step, fill all details to create PF contribution Pay Heads like,
· Name–Enter the name of statutory deduction Pay Heads. like I Enter “Employer’s EPF contribution @3.67%”
· 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 Employer’s Statutory Contributions are listed. Select “PF Account (A/c No. 1)” from list to create Employer‘s PF contribution Pay heads.
· Under – Select “Indirect Expenses” because PF contribution is Indirect Expenses for Employer.
· Affect Net Salary – Set to this option “No” because PF Contribution does not Affect net Salary.
· Name to be displayed in payslip – Type name “Employer’s EPF Contribution @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).
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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).
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 PF rate for employee in Tally prime.
Like I type “1/Jan/2021”.
· Slab Type – Select “Percentage” to Calculate PF value
Ø Value – Type Value of Percentage to calculate PF amount. Like just type “3.67%”
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Fill all Above details in Pay heads screen to create PF Contribution Pay heads like following screenshot:
Ø Press Enter or Ctrl+A to save this screen.
NPS Contribution Pay Heads
