In Tally Prime, creating employee master records is an essential step for businesses to manage payroll, track employee information, and generate accurate salary reports. Employee records include personal details, salary components, attendance, and other essential information. This article will guide you through the process of creating employee master records in Tally Prime with real examples.
1. Enabling Payroll Features
Step 1: Enable Payroll Features in Tally Prime
Open Tally Prime and go to Gateway of Tally → F11: Features → Payroll Settings.
In the Payroll Settings screen, set Enable Payroll to "Yes".
After enabling payroll, additional payroll-related options, including Employee Masters, Salary Structures, and Attendance, will be available.
Press Ctrl + A to save the changes.
2. Creating Employee Master Records
Step 1: Create Employee Ledger
Employee Ledger records the financial transactions related to an individual employee. This ledger will track salary payments and any other monetary transactions.
Go to Gateway of Tally → Accounts Info → Ledgers → Create.
Enter the Ledger Name as the employee's name (e.g., "John Doe").
Under the Under field, select Payroll. This classification helps Tally manage payroll-related transactions.
Press Enter to save the ledger.
Step 2: Creating a New Employee Master
An employee master is a comprehensive record that contains all the personal, financial, and payroll information of the employee. This includes name, designation, salary structure, attendance, and other relevant details.
Go to Gateway of Tally → Payroll Info → Employees → Create.
Enter the Employee Name (e.g., "John Doe").
Fill in the Employee Details such as:
Designation: Specify the employee’s role, for example, "Software Developer".
Branch: If your business has multiple locations, select the relevant branch for the employee (e.g., "New York Branch").
Joining Date: Enter the employee's joining date (e.g., "01-01-2023").
In the Salary Details section, select the relevant salary structure (e.g., "Standard Salary Structure").
Assign any relevant Pay Heads such as Basic Salary, HRA, etc., to the employee.
Enter any applicable Statutory Details (e.g., PAN number, PF number) for tax or other legal requirements.
Press Enter to save the employee master record.
3. Assigning Salary Structure to Employee
Step 1: Create Salary Structure
A salary structure defines the components of an employee’s salary, such as basic pay, HRA, allowances, and deductions. Tally Prime allows you to define salary structures and assign them to employees.
Go to Gateway of Tally → Payroll Info → Salary Structures → Create.
Enter the Salary Structure Name (e.g., "Standard Salary Structure").
Define the salary components such as:
Basic Salary: Enter the basic salary, e.g., ₹25,000.
HRA: Specify any allowance, e.g., ₹5,000 as house rent allowance.
Deductions: Include any statutory deductions like PF or TDS.
Press Enter to save the salary structure.
Step 2: Assign Salary Structure to Employee
After creating the salary structure, you can assign it to the employee to calculate the salary based on the components defined.
Go to Gateway of Tally → Payroll Info → Employees → Alter.
Choose the employee (e.g., "John Doe") from the list.
In the Salary Details section, select the salary structure you created (e.g., "Standard Salary Structure").
Press Enter to save the details.
4. Recording Payroll Transactions
Step 1: Record Salary Payment
After creating employee records and salary structures, you can start recording salary payments for employees.
Go to Gateway of Tally → Accounting Vouchers → Payment.
In the Particulars section, select the bank or cash account through which the salary is paid (e.g., "Bank Account").
For each employee, select their salary components (Basic, HRA, etc.), and enter the respective amounts (e.g., ₹30,000 for Basic Salary, ₹5,000 for HRA).
For deductions like PF, select the relevant ledger and enter the amounts (e.g., ₹1,000 for PF).
Press Enter to complete the salary payment entry.
Step 2: View Payslips
Tally Prime enables you to generate payslips for employees, which includes a detailed breakdown of earnings and deductions.
Go to Gateway of Tally → Display → Payroll Reports → Pay Slip.
Choose the employee (e.g., "John Doe") and the period for which the payslip needs to be generated.
The payslip will display components such as Basic Salary, HRA, deductions like PF, and net pay.
You can print or export the payslip as needed.
5. Conclusion
Creating employee master records in Tally Prime is an essential process for managing payroll and employee details effectively. By following the steps outlined in this article, you can easily create employee records, assign salary structures, and record payroll transactions. This ensures accurate salary calculations and simplifies the overall payroll management process in your business.