Statutory Compliance Reports (PF, ESI, etc.) in Tally Prime
Tally Prime provides users with the ability to generate statutory compliance reports for various statutory requirements such as Provident Fund (PF), Employee State Insurance (ESI), Professional Tax (PT), and other similar obligations. These reports help businesses stay compliant with government regulations. In this article, we will explain how to generate statutory compliance reports for PF, ESI, and other statutory contributions in Tally Prime with real-world examples.
1. Enable Statutory Features in Tally Prime
Before generating statutory compliance reports, ensure that the statutory features are enabled in Tally Prime. Follow the steps below:
Go to Gateway of Tally → F11: Features → Statutory & Taxation.
Set Enable Payroll to "Yes" and also enable PF/ESI under the "Statutory Compliance" section.
Press Enter to save the settings.
2. Configure Statutory Masters for PF, ESI, and Other Statutory Deductions
To generate the statutory reports, you need to first configure the statutory masters for Provident Fund (PF), Employee State Insurance (ESI), and other applicable deductions.
Go to Gateway of Tally → Payroll Info → Statutory Masters → Create.
Create the required statutory masters:
Provident Fund (PF): Enter the contribution percentage and other necessary details.
Employee State Insurance (ESI): Enter the applicable ESI contribution rates.
Press Enter to save the statutory masters.
Example: Creating PF and ESI Statutory Masters
PF Contribution (Employer): 12%
PF Contribution (Employee): 12%
ESI Contribution (Employer): 4.75%
ESI Contribution (Employee): 1.75%
3. Enter Salary Details with Statutory Deductions
To calculate the PF and ESI contributions, you must enter the salary details for employees. Here's how to enter the salary details including PF and ESI deductions:
Go to Gateway of Tally → Accounting Vouchers → Payroll Voucher.
Select the employee for whom the salary needs to be recorded.
Enter the salary details along with statutory deductions such as PF and ESI:
Basic Salary: $2,000
HRA: $500
PF Deduction (Employee): $240
ESI Deduction (Employee): $35
Press Enter to save the entry.
Example: Salary Entry with Statutory Deductions for John Doe
Employee Name: John Doe
Basic Salary: $2,000
HRA: $500
PF Deduction (Employee): $240
ESI Deduction (Employee): $35
Total Salary After Deductions: $2,225
4. Generating Statutory Compliance Reports
After entering the employee salary details, you can generate statutory compliance reports such as PF and ESI reports. Here's how to generate these reports in Tally Prime:
Go to Gateway of Tally → Display → Statutory Reports → PF/ESI.
Select the Period for which you need the report (e.g., monthly, quarterly).
The report will show a summary of employee contributions to PF, ESI, and other statutory deductions.
Example: PF and ESI Report for July 2024
Employee Name: John Doe
PF (Employee Contribution): $240
PF (Employer Contribution): $240
ESI (Employee Contribution): $35
ESI (Employer Contribution): $35
5. Viewing PF/ESI Registers
To view detailed records of Provident Fund and Employee State Insurance contributions, follow these steps:
Go to Gateway of Tally → Display → Statutory Reports → PF/ESI Register.
Select the Period for the register (monthly, quarterly, etc.).
The register will show a detailed list of all the PF and ESI contributions made by both employer and employee.
Example: PF/ESI Register for John Doe for July 2024
Employee Name: John Doe
PF Contributions: Employee: $240, Employer: $240
ESI Contributions: Employee: $35, Employer: $35
6. Generating Professional Tax (PT) and Other Statutory Reports
Tally Prime also allows the generation of other statutory reports such as Professional Tax (PT) and other required compliance reports. Here's how to generate them:
Go to Gateway of Tally → Display → Statutory Reports → Professional Tax.
Choose the Period for the report.
The report will display the professional tax deductions for employees as per the configured rates.
Example: Professional Tax Report for July 2024
Employee Name: John Doe
Professional Tax (Employee): $50
Professional Tax (Employer): $50
7. Conclusion
Statutory compliance is a crucial part of business operations, and Tally Prime simplifies the process of generating PF, ESI, PT, and other compliance reports. By following the steps outlined in this article, businesses can ensure timely and accurate compliance with statutory requirements.