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Creating Salary Pay Head in Tally Payroll

Creating Attendance based earning pay head is the 1st step to manage payroll employee wise. In other words, Attendance based earning head create monthly salary on monthly attendance. 

To create an Attendance based pay head follow these steps:

Go to Gateway of Tally - Payroll Info - Pay Heads - Create

The Pay Head Creation screen appears as below"

How to Create Salary Head in Tally.ERP9
  1. Enter the pay head name in the Name Field.
  2. Select Earning for Employees from the list pay head type.
  3. Select Income Type Fixed for Total Gross salary (For Example Basic Pay), or Select Variable for Employee's Total Earning (For Example - Overtime wages).
  4. Select Indirect Expenses under the group (which is reflect in your profit and loss account).
  5. Affect Net Salary to yes, if you want the pay head to affect net salary.
  6. Enter the pay head name which you want to print on Pay Slips. 
  7. Set use for calculation of gratuity to yes, to consider this pay head for gratuity calculation other wise select no.
  8. Set/ Alter income tax details to yes.
  9.  Select the required component (For Example Basic Salary) in the income tax component field for deduct tax on Basic Salary.
  10. Select Tax Calculation basis on projected value. 
  11. Set yes to the option Deduct TDS Across period when Tax calculation basis is on projection. It can be set to no on actual value basis.
  12. Select Calculation type on Attendance 
  13. To deduct salary for the number of days an employees is absent (Leave without pay). Select not applicable for attendance/ leave with pay field. or Select absent in the field leave without pay field. 
  14. Select Present in the Attendance / leave with pay field the Present Attendance Type and follow the remaining steps.
  15. Select the required calculation period from the list of calculation period.
  16. Based on the Calculation period, you can select and enter the details for Per Day Calculation Basis as User Defined or Calender Period or User Defined Calender Type.
  17. Select the Rounding method, if applicable. Enter the desired rounding limit. Enter 2 if you want to round off all the transactions.

Basic Pay (Salary) head create successfully. In next tutorial we know about house rent allowance pay head.

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