Creating Pay Heads for Employees in Tally.ERP9

Components of Salary constituting an Employee's Pay Structure. Pay head indicate benefit or deduction to the Employees from the Salary. Pay Heads variable could be fixed for each period/ month. 

For Example, Salary is a fixed component and whereas Variable pay and bonus are variable components.

The Default pay heads in Tally are as under:

1. Earnings for Employees
2. Deduction from Employees
3. Employees Statutory Deductions
4. Employees Statutory Contribution 
5. Employer's Other Charges
6. Bonus
7. Gratuity
8. Loans & Advances
9. Reimbursement to Employees

 Earning for Employees contains following types of earnings:

1. Attendance based earning 
2. Computation based earnings
3. Flat Rate based earnings
4. Production based earnings
5. User defined earning

Deduction from Employees Contains following types of deductions:

1. General Deduction (Such as Canteen Deduction)
2. Salary Advance Deduction
3. Income Tax Deduction

Employees Statutory Deductions contains following types of deduction:

1. Employees Provident Fund Deduction
2. Employees ESI Deduction
3. Professional Tax Deduction
4. Employees NPS Tax Deduction
5. Income Tax Deduction

Employers Statutory Contribution contains followings items:

1. Employees Provident Fund Deduction
2. Employees ESI Deduction
3. Professional Tax Deduction
4. Employees NPS Tax Deduction

Employer's Other Charges contains following items:

1. PF Admin Charges
2. EDLI Admin Charges
3. EDLI Contribution Charges

These are mandatory pay heads to configure payroll properly in Tally.ERP9. Basic payroll learning starts from this tutorial.