PAYROLL

Assignment

Published by
Tally Solutions Pvt. Ltd.
Updated on
01 November 2022
Version 1.0

Shanmukha C G 1
1. INTRODUCTION............................................................................................... 2

1.1. BUSINESS SCENARIO I........................................................................................2

1.2. BUSINESS SCENARIO II.......................................................................................2
1.3. BUSINESS SCENARIO III.......................................................................................3

2. OUTCOME...................................................................................................... 3

2.1. BUSINESS SCENARIO I......................................................................................... 3

2.2. BUSINESS SCENARIO II........................................................................................4

2.3. BUSINESS SCENARIO III.......................................................................................5

Shanmukha C G
1. INTRODUCTION

Read the below-given business scenario for Payroll and implement it in Tally.ERP 9

1.1. BUSINESS SCENARIO I

Bharat Stones having a factory cutting granite into slabs and polishing them, selling them at the retail outlet. It
wants to calculate Employees pay as per company’s pay rules and adhere to laws pertaining to payroll. Set up
Tally for managing company’s payroll requirements.

Munir Khan is a factory employee working since 1 st April 2012. Given below is his salary structure from April
2019.

Pay Head Calculation Type Calculation criteria

Rs. 12,000/- Per Month, as per
Basic Salary On Attendance
calendar period
Conveyance Allowance Flat Rate Rs 1,500/- Per Month

House Rent Allowance As Computed 40% of Basic Salary

Telephone Allowance User Defined As per the bill value

Overtime Hourly(Production) Rs. 150/hour

Employee PF @ 12% As Computed As per statutory

Employee Contribution to ESI @ 1.75% As Computed As per statutory

Muneer Khan was present on all working days in April 2019 and worked overtime of 10 Hrs. Telephone bill
amounting to Rs. 354 has been submitted by him.

Generate payslip for Mr Muneer Khan for the month of April 2019

1.2. BUSINESS SCENARIO II

Second business scenario is continuation of Business Scenario I…

On 1st May 2019, the Company has approved and paid Mr Muneer Khan the Loan request amounting 30,000/-
for his personal emergency. From the following month, the company decides to deduct 3,000/- every month for
ten months.

Pay staff advance on 1st May 2019 and deduct the amount from salary from May 2019.

Muneer Khan was absent for 2 days in May 2019, salary needs to be deducted for absent days and worked
overtime of 15 Hrs. Telephone bill amounting to Rs. 380 has been submitted by him.

Generate payslip for Mr Muneer Khan for the month of May 2019

Shanmukha C G
1.3. BUSINESS SCENARIO III

Third business scenario is continuation of Business Scenario II…

On 1st June 2019, the company has decided to hike the salary of Mr Muneer Khan, see the table for revised
salary.

Pay Head Calculation Type Calculation criteria

Basic Salary On Attendance Rs. 13,000/- Per Month

Conveyance Allowance Flat Rate Rs 1,750/- Per Month

House Rent Allowance As Computed 40% of Basic Salary

Telephone Allowance User Defined As per the bill value

Overtime Hourly(Production) Rs. 175/hour

Employee PF @ 12% As Computed As per statutory

Employee Contribution to ESI @ 1.75% As Computed As per statutory

Muneer Khan was present on all working days in June 2019 and worked overtime of 5 Hrs . Telephone bill
amounting to Rs. 350 has been submitted by him.

Generate payslip for Mr Muneer Khan for the month of June 2019 and see the difference in salary as per
increment

2. OUTCOME

Below are the outcomes after setting up payroll as per business scenarios, this is for your reference
to ensure that you have done it properly.

2.1. BUSINESS SCENARIO I

Muneer Khan’s Pay Slip for the month of Apr 2019

Shanmukha C G
2.2. BUSINESS SCENARIO II

Muneer Khan’s Pay Slip for the month of May 2019 with absent days and salary advance deduction

Salary Advance report for checking balance receivable from Employee Muneer Khan

Shanmukha C G
2.3. BUSINESS SCENARIO III

Muneer Khan’s Pay Slip for the month of June 2019 with increment

Shanmukha C G