Payroll & Employees

A practical TallyPrime guide from Sarvadnya Infotech LLP, Tally Certified Partner since 2008.

TallyPrime's payroll module is built in - it is just hidden until you switch it on:

  • Enable it: F11 (Company Features) > press F11 again to Show more features > Maintain Payroll = Yes
  • Employee Profiles: Create Master > Payroll Masters > Employee Group / Employee
  • Pay Structure: Salary Details inside the employee record - basic, HRA, PF, ESI and custom components
  • Attendance: Attendance voucher for the month, or attendance imported from a device
  • Auto PF/ESI: employer and employee shares calculated from the pay heads
  • Income Tax: TDS on salary computed from the pay heads and reported in the TDS reports
  • Payslips: print or email a payslip for each employee from inside TallyPrime
  • Monthly run: Payroll voucher (Ctrl+F4)

An HRMS is only needed for employee self-service, biometric attendance and HR workflows - not for calculating salary.

Common questions

Creating pay structure

Pay structure setup:

1. Create Master > Payroll Masters > Pay Head 2. Create the components: - Basic (earnings, the base for PF/ESI where applicable) - HRA (earnings) - PF Employee (deduction from the employee) - PF Employer (employer contribution) 3. Group the components under Salary Details in the employee record 4. Assign the salary details to each employee

TallyPrime calculates the earnings, deductions and statutory amounts from the pay head settings.

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