How to Create Employees in Tally Payroll

After creating employee groups in Tally, you can create an employee master for each person on the payroll. An employee may be placed under an employee group, such as Administration or Sales, or maintained without a separate grouping when the payroll structure is simple.

In Tally.ERP 9, the employee master stores payroll-related information such as the employee name, date of joining, salary details, contact information, bank account details and statutory identifiers. Enter only the fields required by your organisation and applicable payroll rules.

Before Creating an Employee Master in Tally.ERP 9

  • Make sure Payroll is enabled for the company.
  • Create the required employee groups before assigning an employee to a department or category.
  • Create the necessary pay heads if you plan to define salary details while creating the employee.
  • Keep the employee’s joining date, bank information and applicable statutory numbers ready.

Path to Create a Single Employee in Tally

Path: Gateway of Tally > Payroll Info > Employees > Single Employee > Create.

Step 1: From Gateway of Tally, select Payroll Info.

Payroll info in tally

Step 2: Under Payroll Info, select Employees to open the employee master options.

Create employees in Tally

Step 3: Under Single Employee, select Create.

Create Single employee in Tally

Enter Employee Name, Group and Joining Date

Step 4: In the Employee Creation screen, enter the basic employee details.

  • Name: Enter the employee’s name as it should appear in payroll records and reports.
  • Display name in reports as: Enter an alternative reporting name when it should differ from the Name field.
  • Under: Select the relevant employee group.
  • Date of joining: Enter the employee’s actual joining date. This date can affect payroll processing for the joining period.
Create Employee Master Data in Tally

Define Salary Details for the Employee

Set Define salary details to Yes when salary components must be assigned while creating the employee. The Salary Details screen opens so that you can select the applicable pay heads and enter their effective values.

  • Add earnings such as basic pay and eligible allowances.
  • Add deductions or employer-related payroll components only when they apply to the employee.
  • Check the effective date and calculation basis of each salary component before continuing.
Employee salary details screen in Tally

After entering the employee’s salary details, press Enter to return to the employee master.

Complete Employee General Information

Step 5: Under General Information, enter the available employee details, such as employee number, designation, function, location, gender, date of birth, blood group, parent’s name, address and contact information.

Use a unique employee number when your organisation relies on employee codes. Consistent values for designation, function and location make payroll and employee reports easier to review.

Create employee general information in Tally

Add Employee Bank Account Details

Step 6: To record bank information, set Provide bank details to Yes. In the Bank Details screen, enter the account number, IFSC code, bank name, branch and transaction type as applicable.

Verify the account number and IFSC code against the employee’s bank document before saving. Incorrect bank information can cause salary payment files or transfer instructions to fail.

Employee bank account details in Tally

Record Employee Statutory Information

Step 7: Enter the statutory details that apply to the employee, such as PAN, Aadhaar number, Universal Account Number, PF account number and ESI number.

Do not enter placeholder values in statutory fields. Leave a field blank when it is not applicable or when verified information is not yet available, and update the employee master later.

Employee statutory details in Tally

Enter Passport, Visa and Contract Details

Step 8: When relevant, enter the employee’s passport number, country of issue, passport expiry date, visa number and visa expiry date.

Step 9: Enter applicable contract information, including the work permit number and contract start and end dates. These fields may be left blank for employees who do not require passport, visa, work permit or fixed-term contract records.

Employee passport details in Tally

Save the Employee Master in Tally.ERP 9

After entering the required details, press Enter through the remaining fields and choose Yes on the Accept prompt. You can also use the standard accept shortcut shown by Tally on the screen.

Create Employees in Tally Payroll

How to Alter an Existing Employee in Tally

To correct or update an employee master, go to Gateway of Tally > Payroll Info > Employees > Single Employee > Alter. Select the employee, change the required fields and accept the screen again. Review changes to joining dates, salary details and statutory numbers carefully because they may affect payroll reports.

Common Employee Creation Issues in Tally Payroll

  • Payroll Info is not visible: Check whether payroll features are enabled for the company.
  • Employee group is missing: Create the required employee group before assigning it in the Under field.
  • Salary details cannot be completed: Confirm that the necessary pay heads and payroll configuration already exist.
  • Duplicate employee records appear: Use a consistent employee name and a unique employee number, then search existing masters before creating another record.
  • Bank or statutory reports show incomplete data: Alter the employee master and enter only verified account and identification details.

Employee Master Review Checklist for Tally Payroll

  • Confirm that the employee name and display name are spelled correctly.
  • Verify the selected employee group and date of joining.
  • Check that salary components belong to the correct employee and effective period.
  • Validate the employee number, contact details, bank account number and IFSC code.
  • Confirm that PAN, UAN, PF and ESI details are entered only when applicable and verified.
  • Accept the employee master and reopen it through Alter to confirm that the record was saved correctly.

Questions About Creating Employees in Tally

Can an employee be created without an employee group in Tally?

Yes. An employee can be maintained without a separate departmental grouping when the payroll structure does not require one. Employee groups are useful when employees need to be classified for reporting or salary setup.

Can salary details be added after creating the employee?

Yes. Open the employee through the Alter option and update the salary details. Check the effective date of the change before processing payroll.

Why is Payroll Info not displayed in Gateway of Tally?

Payroll features may not be enabled for the company. Review the company features and enable payroll before trying to create employee masters.

Are passport and contract details mandatory for every employee?

No. Enter passport, visa, work permit and contract details only when they apply to the employee and are required for your records.