This document provides instructions for enabling payroll functionality in Tally accounting software. It describes how to activate the payroll module, set up statutory details, create employee masters, set up payroll pay heads like PF, ESI, and professional tax. It also explains how to process payroll including monthly statutory payments and generation of various payroll reports for PF, ESI, and professional tax.

1. ENABLING PAYROLL ON TALLY
Gateway of Tally > F11 Features > Accounting Features
Activate “Maintain Payroll”
Press “CTRL+A” for saving then go to “Statutory & Taxation”, two additional options would get activated as
shown below,
Set “Enable Payroll Statutory” to “Yes” and also “Set/Alter Payroll Statutory Details”, following screen will
pop up,
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2. Enter the details as applicable and press “CTRL+A” to accept
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3. Creation of Employee Master
You may create Employee master with or without grouping as required and enter the details.
You may also add ‘Statutory’, ‘Passport & Visa’ & ‘Contract’ details, to get these options, press F12 on the
above screen, you will get the following screen, enable the options as required
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4. The Date of Leaving option is made
available only in the Alteration mode.
CREATION OF PAYHEADS
PF PAY HEADS
Employee's Statutory Deductions
1) Provident Fund @ 12%
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5. 2) Employee Variable PF
Employer's Statutory Contributions
1) Provident Fund @ 8.33%
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6. 2) Provident Fund @ 3.67%
Employer's PF Admin Charges
1) Administrative Charges 1.1%
You may restrict by mentioning the slab
here as 6500, if nothing is mentioned, it
will calculate on Basic + DA value.
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7. 2) EDLI Contribution 0.5%
EDLI Administrative Charges 0.01%
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8. ESI PAY HEADS
Employee's Statutory Deductions
Employee ESI 1.75% - Deduction
Employer's Statutory Contributions
Employer ESI 4.75% - Contribution
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9. PROFESSIONAL TAX PAY HEAD
Employee's Statutory Deductions
PT- Karnataka : Deduction
PAYROLL PROCESS ENTRY
A) Salary Process
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10. B) PF Process
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11. C) ESI Process
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12. PF Admin Charges: Journal Auto Fill
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13. PF Monthly Challan Entry
If any Interest is to be paid, select the ledger manually
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14. Press Enter and select the ‘Payment type’
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15. Provide Details :- Yes and press enter
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16. Printing PF Payment voucher
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17. ESI Monthly Challan Entry
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18. Interest if applicable,
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19. 19

20. 20

21. Professional Tax : Payment Auto Fill
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22. PAYROLL REPORTS
GATEWAY OF TALLY > DISPLAY > PAYROLL REPORTS > STATUTORY REPORTS
COMPUTATION
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23. GATEWAY OF TALLY > DISPLAY > PAYROLL REPORTS > STATUTORY REPORTS
PROVIDENT FUND
FORM 5
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24. FORM 10
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25. FORM 12A
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26. PF MONTHLY STATEMENT
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27. FORM 3A
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28. Page no. 2
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29. FORM 6A
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30. Page no. 2
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31. ESI MONTHLY STATEMENT
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32. FORM 3 (HALF YEARLY)
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33. FORM 5
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34. Page no. 2
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35. FORM 6
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36. 36

37. 37

38. PROFESSIONAL TAX
COMPUTATION REPORT
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39. MONTHLY REPORT
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40. 40