What Is Payroll?

If you do business and if you have Employees, you’ll have to do Payroll. Your employees are very important and their basic pay is their right. You cannot avoid it, but first, What is Payroll?

Well, the definitions of Payroll are:

• Payroll refers to the employees you pay along with Employee Information.
• Payroll is the amount you pay to your Employees during each pay period.
• Payroll also refers to the process of actually Calculating and Distributing Wages and Taxes to the employees.

Initially, Payroll composes of Employee Information, Wages and Salaries, Deductions, Hours Worked, tax Paid, Bonus, Overtime, Fringe Benefits etc.

Why Payroll?

Payroll is a comprehensive solution,  fully integrated with accounts, and is also simplified if used in TallyPrime. Processing Payroll manually on our own takes time away from the essential tasks that go into managing the business. Payroll aids you in simplifying operations, generating reports efficiently, reducing errors, and most importantly Saving your Time. There is no need to invest for Payroll as it is inbuilt in TallyPrime.

If you want to use Payroll in TallyPrime, these are the details required:

• No of employees.
• Employee details.
• Salary calculation base (Present/Absent).
• Pay Heads applicable & Calculation basis.
• If leave applicable then, no of leaves applicable in a year & method of adjustment.
• If PF, ESI, TDS applicable then company statutory information.
• The calculation basis for the same.
• Computation of employees for Income Tax.
• If Logo/Signature is required on the pay slip. JPG image is required for both.

Features Of Payroll:

• The key features of the Payroll functionality in TallyPrime are as follows:
• It is fully integrated with accounts to give the benefits of simplified Payroll processing and accounting.
• It has user-defined classifications and sub-classifications for comprehensive reporting. This may be related to the employees, employee groups, pay components, departments, etc.
• It provides the facility to create user-defined Earnings and Deductions Pay Heads.
• It allows flexible and user-definable criteria for simple or complex calculations.
• It allows the unlimited grouping of Payroll Masters.
• It supports user-defined production units i.e., attendance/ production/time-based remuneration units.
• It provides a flexible payroll processing period.
• It provides a comprehensive cost center as well as employee-wise costing reports.
• It ensures an accurate & timely Salary processing, Employee Statutory Deductions & Employer Statutory Contributions with the help of predefined processes.
• It provides auto-fill facility to expedite the Attendance, Payroll & employer contributions processes.
• It facilitates an accurate computation and deduction of Income Tax, ESI, EPF, Professional Tax, Gratuity, etc.
• It helps in the generation of Statutory Forms & Challans for Income Tax, EPF & ESI, as prescribed.
• It allows the drill-down facility to voucher level for any kind of alteration.
• It facilitates the computation of arrears pertaining to prior period(s).
• It helps in tracking employee loan details.

How To Implement Payroll in TallyPrime?

1. Master Creation (Configuration)

• Employee Categories
• Employee Groups
• Employees
• Units (Work) – Hrs
• Attendance/Production Type- Present / Absent
• Pay Heads
• Salary details
• Income tax Details

1. Payable & Expense Ledgers Creation

• Salary Payable
• PF Payable
• ESI Payable
• PF Admin Expense

1. Payroll Entries

• Attendance Voucher – Leave, Attendance (Present / Absent), Overtime
• Payroll Voucher – User-Defined Values
• Payroll Voucher – Salary Payable
• PF Payable
• ESI Payable
• NPS Payable
• Journal – PF Admin Expense

1. Payment

• Salary
• PF
• ESI
• Profession Tax
• NPS

Reports generated through TallyPrime using Payroll.

• Pay Slip Report:

      1)    Single Pay Slip (with the Company Logo)

      2)    Multi-Pay Slip (with the Company Logo)

• Professional Tax report.
• Gratuity report.
• Payment advice report.
• Employee Report.

      1)    Single Employee report.

      2)    Group of Employees report.

     3)    Employees Head Count report.

      4)    Employees Pay head Breakup report.

      5)    Pay head Employee breakup report.

      6)    Attendance Sheet report.

• Provident Fund report.
• Income Tax report.
• Employee State Insurance report.
• E- Challan Report.

Live Case Study

Let us now study a Live Case of one of our Clients Mr. Parmar of Sia Chemicals Pvt. Ltd. His experience for this feature in TallyPrime was very positive. Mr. Parmar has 3 factories and 2 warehouses where all his chemical work takes place. Having many factories and warehouses is not enough, you need labor for the work to happen. There are 80 workers and 20 employees working for Sia Chemicals Pvt. Ltd. The number is enormous and so Mr. Parmar had difficulties while paying them Wages and Salaries by month-end. This was the time when Aimtech BSPL helped them and shared our knowledge about the remarkable feature called “PAYROLL” in TallyPrime. Mr. Parmar stated that this is something he was looking for, and he got one. He also added, how Payroll helps him in saving his time and energy. Mr. Parmar said, “through Payroll, I can give the pay to all my workers on time and very easily. The calculation and distribution of all my 100 workers are done 20-30 minutes.”

To learn how the working of Payroll takes place, please do connect us at sales@aimtechbs.in