The Employee Master in Tally Prime stores complete information about employees. It is used for payroll processing, attendance tracking, salary calculation, payslip generation and payroll reports.
Lesson Objective
Learn how to create Employee Groups, Employee Masters, maintain employee details, assign salary structures and use employee records for payroll processing.
1. What is an Employee Master?
An Employee Master is a record that stores all important information about an employee for payroll management.
Information
Purpose
Employee Name
Identify the employee.
Department
Group employees.
Designation
Identify job role.
Date of Joining
Maintain employment history.
Salary Details
Process payroll.
2. Why are Employee Masters Important?
Maintain employee information.
Automate payroll processing.
Generate payslips.
Track attendance.
Maintain department-wise records.
Generate payroll reports.
Reduce manual errors.
Simplify employee management.
Accurate Employee Masters are essential for correct salary calculations and payroll reporting.
3. Information Stored in an Employee Master
Field
Example
Employee Name
Rahul Kumar
Employee Group
Accounts Department
Designation
Accountant
Date of Joining
01-Apr-2026
Mobile Number
9876543210
Email
rahul@email.com
Salary Structure
Monthly Salary
Employee details can be updated whenever there is a change in designation, salary or department.
4. Employee Group vs Employee Master
Employee Group
Employee Master
Department or Category
Individual Employee Record
Contains multiple employees.
Represents one employee.
Example: Accounts
Example: Rahul Kumar
Used for reporting.
Used for payroll processing.
Create Employee Groups first, then create Employee Masters under those groups.
5. Employee Management Workflow
Create Employee Group.
Create Employee Master.
Create Pay Heads.
Assign Salary Structure.
Record Attendance.
Create Payroll Voucher.
Generate Payslip.
Review Payroll Reports.
Following this workflow ensures smooth payroll management and accurate employee records.
6. Creating Employee Groups
Employee Groups help organize employees based on department, branch, designation or any other business category. Grouping employees makes payroll processing and reporting easier.
Steps to Create an Employee Group
Open Tally Prime.
Go to Create.
Select Employee Group.
Enter the Group Name.
Select the Parent Group (if required).
Press Ctrl + A to Save.
Example Employee Groups
Employee Group
Purpose
Accounts Department
Accountants and Finance Staff
Sales Department
Sales Executives
Production Department
Factory Workers
Human Resources
HR Staff
IT Department
Developers & Support Engineers
Creating Employee Groups before Employee Masters makes payroll reports more organized.
7. Creating Employee Masters (Step-by-Step)
An Employee Master contains complete information about an individual employee.
Steps
Go to Create → Employee.
Enter Employee Name.
Select Employee Group.
Enter Designation.
Enter Date of Joining.
Enter Date of Birth (optional).
Enter Contact Details.
Save using Ctrl + A.
Example
Field
Value
Employee Name
Rahul Kumar
Employee Group
Accounts Department
Designation
Senior Accountant
Date of Joining
01-Apr-2026
Mobile
9876543210
Email
rahul@email.com
Keep employee information updated whenever there is a change in designation, department or contact details.
8. Assigning Salary Details & Payroll Information
After creating an Employee Master, assign salary details using Salary Structures and Pay Heads.
Payroll Component
Purpose
Basic Salary
Main salary component.
HRA
House Rent Allowance.
Conveyance
Transport allowance.
Medical Allowance
Medical benefit.
Bonus
Performance incentive.
Professional Tax
Salary deduction (where applicable).
Example Salary Structure
Component
Amount
Basic Salary
₹25,000
HRA
₹8,000
Conveyance
₹2,000
Professional Tax
₹200
Net Salary
₹34,800
Salary Structures should be verified carefully before payroll processing.
9. Employee Reports & Verification
Employee reports help verify employee information and payroll records.
Report
Purpose
Employee List
View all employees.
Employee Profile
View employee details.
Attendance Register
Check attendance records.
Payroll Register
Review salary details.
Payslip
Employee-wise salary statement.
Verification Checklist
Employee Name is correct.
Employee Group is correct.
Designation is updated.
Salary Structure is assigned.
Attendance is complete.
Payroll reports are verified.
Review employee reports regularly to maintain accurate payroll records.
10. Common Employee Master Mistakes
Common Mistake
Correct Practice
Incorrect Employee Name.
Verify personal details carefully.
Wrong Employee Group.
Assign the correct department.
Missing Salary Structure.
Assign salary details before payroll processing.
Incorrect Joining Date.
Verify employment records.
Attendance Not Updated.
Record attendance before payroll.
Duplicate Employee Record.
Search before creating a new employee.
Incorrect Contact Details.
Update whenever changes occur.
Ignoring Employee Reports.
Review reports regularly.
Maintaining accurate Employee Masters ensures correct payroll calculations, reliable reports and better employee management.
11. Real Business Case Studies
Let's understand how Employee Masters are used in different organizations.
Organization
Employee Category
Purpose
School / College
Teachers & Office Staff
Manage salaries, attendance and payroll records.
Hospital
Doctors, Nurses & Support Staff
Maintain employee information and salary processing.
Manufacturing Company
Factory Workers & Supervisors
Track attendance, overtime and monthly payroll.
Retail Store
Sales Executives & Cashiers
Manage salaries, incentives and leave records.
IT Company
Developers & Project Managers
Maintain employee profiles and payroll details.
NGO / Trust
Administrative Staff
Maintain employee records and salary history.
Proper Employee Master management ensures accurate payroll, better HR administration and efficient reporting.
12. Complete Employee Management Checklist
Checklist
Status
Employee Group Created
✔
Employee Master Created
✔
Employee Details Verified
✔
Department Assigned
✔
Designation Updated
✔
Salary Structure Assigned
✔
Attendance Recorded
✔
Payroll Processed
✔
Payslip Generated
✔
Payroll Reports Reviewed
✔
Employee Records Updated
✔
Payroll Backup Taken
✔
Use this checklist before processing salaries to ensure complete and accurate employee records.
13. Professional Employee Management Tips
Create Employee Groups before creating Employee Masters.
Maintain complete employee personal and payroll details.
Update employee records whenever there is a promotion, transfer or salary revision.
Record attendance regularly.
Verify salary structures before processing payroll.
Review Employee Reports every month.
Maintain confidentiality of employee information.
Avoid duplicate employee records.
Keep supporting documents such as appointment letters and identity proofs safely.
Take regular backups of payroll and employee data.
Professional HR departments regularly audit employee records to ensure payroll accuracy and compliance with company policies.
14. Practical Exercise & Interview Questions
Practical Exercise
Create an Employee Group named Accounts Department.
Create three Employee Masters.
Assign each employee to the appropriate department.
Create Basic Salary, HRA and Conveyance Pay Heads.
Assign a Salary Structure to each employee.
Record attendance for one month.
Generate a Payslip.
Review the Payroll Register.
Interview Questions
What is an Employee Master in Tally Prime?
Why is an Employee Master important?
What is the difference between an Employee Group and an Employee Master?
How do you create an Employee Group?
How do you create an Employee Master?
Which information is stored in an Employee Master?
What is the purpose of Employee Groups?
What is a Salary Structure?
How are Pay Heads assigned to employees?
How is attendance linked to payroll?
Which reports are available for employees?
What is a Payslip?
How do you update employee information?
Why should duplicate Employee Masters be avoided?
How do Employee Masters simplify payroll?
Why should employee records be reviewed regularly?
What precautions should be taken before payroll processing?
Why is data backup important in payroll?
How does Tally Prime help manage employees?
Why is employee management important for accountants and HR professionals?
15. Lesson Summary
Learned the concept of Employee Masters.
Created Employee Groups and Employee Masters.
Maintained employee personal and payroll information.
Assigned Salary Structures.
Generated Employee Reports.
Verified employee records.
Studied practical business examples.
Completed practical exercises.
Prepared for payroll and HR interviews.
Built a strong foundation in employee management.
Congratulations!
You can now confidently create and manage Employee Masters in Tally Prime, organize employees by department, assign salary structures and maintain complete payroll records efficiently.
🧠 Quick Quiz
Which master stores the complete information of an individual employee in Tally Prime?