What is Payroll Master in Tally Prime? How to Enable and Use It with Examples

Tally Prime is a powerful accounting software that helps businesses manage their financial transactions effectively. One of its important features is the Payroll Master, which allows businesses to handle employee salaries, attendance, and deductions systematically. In this blog, we will explain what Payroll Master is, how to enable it, and how to use it with examples.

What is Payroll Master in Tally Prime?

Payroll Master in Tally Prime is a feature used to manage employee details, salary structures, attendance records, and payroll processing. It helps businesses automate salary calculations, deductions (like PF and ESI), and payslip generation.

With Payroll Master, businesses can:

• Maintain employee records
• Define salary structures
• Track attendance and leaves
• Process salaries with deductions
• Generate payroll reports

How to Enable Payroll in Tally Prime?

By default, the payroll feature is not enabled in Tally Prime. Follow these steps to activate it:

Step 1: Open Tally Prime

Ensure that Tally Prime is installed on your system and open the software.

Step 2: Enable Payroll Feature

1. Go to Gateway of Tally > F11 (Features) > F1 (Accounting Features).
2. Under the section Maintain Payroll, set Yes.
3. Enable More Payroll Features if needed.
4. Press Ctrl + A to save the changes.

Now, the payroll feature is activated in Tally Prime.

How to Use Payroll Master in Tally Prime?

After enabling payroll, follow these steps to set up and use it:

Step 1: Create Employee Masters

1. Go to Gateway of Tally > Create > Employee Master.
2. Enter the employee’s name, designation, and other details.
3. Assign the employee to a department (if applicable).
4. Press Ctrl + A to save.

Step 2: Create Payroll Units (for Attendance)

1. Go to Gateway of Tally > Create > Payroll Units.
2. Define units like “Days” or “Hours” based on attendance tracking.
3. Save the settings.

Step 3: Define Salary Details

1. Go to Gateway of Tally > Create > Pay Heads.
2. Create different pay heads like Basic Salary, Allowances, Deductions.
3. Define calculations for each pay head.
4. Save the settings.

Step 4: Process Payroll

1. Go to Gateway of Tally > Payroll Vouchers.
2. Select Salary Payment.
3. Choose the month and employees.
4. Enter salary details and deductions.
5. Save and generate payslips.

Example of Payroll in Tally Prime

Let’s assume a company has an employee named Ravi Kumar, with the following salary details:

• Basic Salary: ₹20,000
• HRA: ₹5,000
• Provident Fund Deduction: ₹2,400

In Tally Prime, you would:

1. Create an Employee Master for Ravi Kumar.
2. Define Pay Heads for Basic Salary, HRA, and PF deduction.
3. Process his salary using Payroll Vouchers.
4. Generate payslip showing the net payable amount.

Conclusion

Payroll Master in Tally Prime makes salary management easy and automated. By enabling payroll, setting up employees, and defining salary structures, businesses can efficiently process payroll without errors.