Creating Employer’s EPF Contribution Pay Head

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To create Pay Head for Employer’s Contribution towards Employee Provident Fund (EPF),

Go to Gateway of Tally > Payroll Info. > Pay Heads > Create

  1. Enter the name of the Pay Head in the Name field

  2. Select Employer’s Statutory Contributions as the Pay Head Type from the list of Pay Head Types

  3. Select PF Account (A/c No. 1) in the Statutory Pay Type field

  4. Select Indirect Expenses from the List of Groups in the Under field

  5. By default, Affect Net Salary is set to No. Type Yes, if you want this component to be included in the Pay Slip

  6. The Calculation Type field is pre-filled with As Computed Value and Calculation Period is pre-filled with Months by default

  7. Select Normal Rounding from the list of Rounding Methods and type 1 as the rounding Limit

  8. In the Compute field, select On Specified Formula from the Computation On list

  9. In the Compute sub-screen, for  Pay Head column select Employee’s PF Deduction @ 12% from the List of Pay Heads and select Subtract Pay Head in the Function and Select Employer’s EPF Contribution @ 8.33% in the Pay Head Column. Select End of List to return to Pay Head Creation

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  1. In the Effective Date field, enter the desired date from which the EPF will come into effect

  2. Select Slab Types from the List of Slabs in the Slab Type

  3. Enter the Percentage in the Value Basis field

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  1. Press Enter to accept.

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