Payroll System in Tally.ERP 9 Software

All businesses with more than one employee must have a payroll system. It not only affects the morale of employees, but also reflects the financial stability of the company. It is also a requirement to comply with federal and state laws.

Although this is a complex process, having an effective system helps to streamline and centralize the payroll method.

Basically, the payroll management process refers to the management of an employee’s financial records, including salaries, wages, premiums, deductions and net payments.

No matter, what’s the size of the organization, managing the payroll system is crucial. Company with fewer employees can use the single writing system.

New business owners who are not knowledgeable in the process may find the procedure challenging because of the various laws requirements that must be complied with.

To succeed in a world with greater time demands and leaner profit margins, we must find alternatives to the way we do our business.

Tally.ERP 9 is packed with a secured, flexible & built-in Payroll management feature. This feature helps you manage simplify payroll accounting, salary processing, attendance management and payroll statutory forms.

Statutory compliance: All legal deductions, such as EPF, TDS, ESI, are deducted from the payroll. The company then remits the amount to the respective government agencies. The frequency can vary depending on the type of the payments.

In most cases, dues are paid through the challan. After all dues are paid return/report are filed. For example, ECR is generated and filed to fill the PF return.

Payroll accounting: Each organization maintains a record of all financial transactions. The paid salary is one of the important operating costs that must be reported in the books. As part of the payroll management, it is important to check that all salary and reimbursement data are properly fed into the accounting / ERP system.

Payment: You can pay salary by cash, cheque or bank transfer. Usually organizations offer employees a bank salary account. After completing the payroll, you must make sure that the bank account of the company has sufficient balance to pay the salary.

Then you must send a salary bank recommendation notice to the relevant branch. This statement is issued with particulars like employee ID, bank account number, salary amount, etc.

Reporting: When you complete the payslip for a certain month, the finance and high management team will ask of reports such as the cost of employees on a departmental basis, employee costs on a location basis, and so on. Get the necessary information and share the reports.

Payroll Management

The payroll feature in Tally.ERP 9 software is fully integrated with accounting to facilitate payroll processing.

Organizations can set up, apply and process payroll using simple and complex criteria. A collection of predefined processes in Tally.ERP 9 software provides error-free automation of payroll processing.

The payroll feature provides management information, legal forms and reports in the prescribed formats:

  • Payroll Statements, Attendance and Overtime Records.
  • Provident Fund (PF), Employee State Insurance (ESI), National Pension Scheme (NPS), Professional Tax (PT), Income Tax (IT) and Expat Reports.

Features of Payroll in Tally.ERP 9:

In Tally.ERP 9, the basic features of Payroll are described in this topic.

  • Full integration with accounts for simplified payroll transactions and accounting.
  • User-defined categories and sub-categories to comprehensively report on employees, employee groups, salary components or departments.
  • User-defined Earnings and Deductions Pay Heads support.
  • Flexible and user-defined criteria for simple or complex calculations.
  • Unlimited grouping of Payroll Masters.
  • Support for user-defined production units such as attendance, production, or time based remuneration units.
  • Flexible processing time for payroll.
  • Comprehensive reports on cost centers and staff costing.
  • Predefined processes for timely salary processing, legal deduction of employees and legal contributions of employers.
  • Payment process using the e-payments feature in Tally.ERP 9.
  • Automatic filling to accelerate participation, payroll and employer contribution processes.
  • Accurate calculation and deduction of payments such as Income Tax, ESI, EPF, NPS and Professional Tax.
  • Generate legal forms and slips for Income Tax, EPF and ESI as prescribed.
  • Possibility to drill-down to the voucher level for any alteration.
  • Calculating the debts of the previous period.
  • Keep track of employee credit information.
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