Create Employees in TallyPrime (Payroll)

Published on: 16-02-2023

The employee master in TallyPrime can be used to record all the employee related information. Along with the general information consisting of basic details of the employees, you can also enter the Payment, Statutory, and Contract details. To enter statutory details in the employee master, enable the option Provide Statutory Details in the Payroll Configurations screen.

You can change the tax regime details of employees as per your requirement with revised applicable date as 01-Apr-2020 or later.

1. Gateway of Tally > Create > type or select Employee > and press Enter.
   Alternatively, press Alt+G (Go To) > Create Master > Employee > and press Enter.
   
2. Enter the Name of the employee. By default, the system displays the same value in the Display name in reports as.
3. Modify the Display name in reports as, if required.
4. Select the Employee Group in the field Under.
5. Enter the Date of joining.

   Note: The Date of resignation/retirement option is available only on the Employee Alteration screen. After you enter the Date of resignation/retirement, you can also select a Reason for leaving.

6. Set the Define salary details option to Yes, and press Enter to open Salary Details Creation screen.
7. In the Salary Details Creation screen, you can specify salary details of an employee.
   
   • The relevant Pay Heads from the List of Pay Heads in the Pay Head column, and enter values for the required pay heads.
   • Define the salary structure, and press Enter to navigate to the Employee Creation screen.
8. Enter remarks, if any, in the Notes field.

   Note: This option will be available only if the option Provide Notes for Employees is enabled in the Employee Configuration screen.

9. Enter the employee’s PAN in the Income Tax Number (PAN) column. When the PAN is not available, enter one of the terms given below, based on the corresponding reason:
   • PANAPPLIED – If the employee has given a declaration stating that he/she has applied for PAN, but are yet to receive the same.
   • PANINVALID – If the PAN format provided by the employee is incorrect.
   • PANNOTAVBL – If the employee has not given any declaration or PAN number.
10. Enter the employee General Information, employee’s Bank Details for salary processing, Payment Details, Statutory Details, Passport & Visa Details and Contract Details.

    Note:
    ? Date of Birth is the basis to determine if the Employee is a senior citizen while Gender is used to arrive at the correct Income Tax computation (based on the slab).
    ? If your bank master is enabled for e-payments, you can choose any of the e-payments options (e-fund transfer, e-cheque, or e-DD) during voucher creation for payroll payments.
    ? Starting from the financial year 2020-21, you can select Applicable Tax Regime for a employee. The new tax regime is based on the section 115BAC, with a new optional tax slab and no deductions and exemptions.
    In Statutory Details, you must select applicable tax regime and enter the Income Tax Number (PAN), Aadhaar Number, Universal Account Number (UAN), EPS Account Number, PF Account Number and ESI Number. This information is required for printing Employee Count (No. of Employees) in the PF & ESI Challans and other Statutory Reports.
    To update the Permanent Retirement Account Number (PRAN) of the employees covered under the National Pension Scheme (NPS), enable the Applicable for NPS option and specify the PRAN in the PR Account Number field.

    
11. Accept the screen. As always, you can press Ctrl+A to save.

    Note: For International Companies, only Income Tax Number option is available under Statutory Details. For UAE, only Labour Card Number, Emirates ID number and Emirates ID expiry date options is available under Statutory Details.

    You can configure the salary structure using the Salary Details screen.

Employee Configuration

Press F12 (Configure) to change the default display for the Employee Creation screen.

• Set the option Provide aliases for Name to Yes to add aliases for the employee.
• Set the option Provide language aliases for Name to Yes to add the aliases in other languages as selected (only while using Multilingual feature)
• Set the option Provide display name for Employee to Yes, to print a different name for an employee while printing reports. This option is useful when the same name is shared by two or more employees.
• Set the option Add Notes for Employees to Yes to add notes or remarks for an employee.
• Set the option Show Statutory Details to Yes to enter the PAN, PF, PR, EPS Account Number, the Date of Joining and Relieving.
• Set the option Provide Passport and Visa Details to Yes to enter the passport and visa details of the employee.
• Set the option Provide Contract Details to Yes, to enter contract details such as Work Permit Number, Contract Start Date and End Date.

Create Multiple Employees

1. Gateway of Tally > Charts of Accounts > type or select Employees.
2. Press Alt+H (Multi Masters) > select Multi Create and press Enter.
3. Select the employee group under which you want to create  all the employees, in the Under Employee Group field. If an independent employee is to be created, select All Items in this field.
4. Select the employee category in which you want to add the group, in the Category field. The default category Primary Cost Category appears selected in this field.
5. Specify the name of the employee in the Employee Name field. 
6. Select the employee group into which you want to add the employee in the Under field.
7. Select the Regular Tax Regime (old regime) or Tax Regime U/s 115BAC (new regime) in the Applicable Tax Regime column.
8. Enter the employee’s PAN in the Income Tax Number (PAN) column. When the PAN is not available, enter one of the terms given below, based on the corresponding reason:
   • PANAPPLIED – If the employee has given a declaration stating that he/she has applied for PAN, but are yet to receive the same.
   • PANINVALID – If the PAN format provided by the employee is incorrect.
   • PANNOTAVBL – If the employee has not given any declaration or PAN number.
9. Enter the joining date of the employees in the Date of Joining field.
   The Multi Employee Creation screen appears, as shown below, displaying the details of employees you added.
   
10. Press Ctrl+A to accept the changes.
    In the Multi Employee Alteration screen, there is an additional column provided to capture the effective from date for the tax regime selected. The Multi Employee Alteration screen appears as shown below:
    

    Note: In Multi Employee Creation and Multi Employee Alteration screens, you can disable tax regime details by setting the option Show Tax Regime to No under F12 (Configure). Further, you can enter date of leaving in the alteration screen by enabling Show Date of Leaving option.

Tax Regime History

With two different income tax slabs for the employees to choose from, the employee can change the tax regime in middle of a financial year. TallyPrime allows you to choose either tax regime at any point of time. You are prompted to enter the date of revision every time the tax regime is changed for an employee. Additionally, you can keep track of the all the tax regimes applied to the employee’s income using the Tax Regime History.

The button Alt+W (Tax Regime History) is provided in Employee Alteration and Multi Employee Alteration screens. Click the button to view Tax Regime History screen with details of the tax regime applied for different periods with applicable from date.