How is the salary document recorded in accounting?
One of the detailed documents in accounting is the payroll document. I personally witnessed that the interviewer asked the accountant how to register this document as a question during the employment interview.
Before registering the payroll accounting document, payroll calculations must be done. The result of payroll calculations is used to register the document in the accounting software.
The salary document is an expense document, the main part of this document is related to the debtor registration of personnel expenses, and on the creditor side, we will have the current registration of employees of the insurance and tax organization.
Registration of the debtor of the salary document
Salary parameters are different based on each economic enterprise. These parameters include labor rights, housing rights, children’s rights, overtime, shift work, etc. These parameters are defined in accounting in a certain way under the heading of the total cost of salaries and wages. According to the accountant’s judgment, these parameters may be recorded as a combination of several parameters in a certain one.
Another part of the insurance salary cost is the employer’s share and unemployment insurance, which includes 23% of the salary covered by the insurance. So on the debtor side we have:
The cost of working wages, the cost of the mission of the worker, overtime… 23% of the employer’s share insurance
If the project company has a cost center, these costs will be recorded at a detailed level by cost centers. Separation of salary cost at the level of detail will help a lot to calculate the cost of projects.
Note: If you have a cost center, be sure to use cost centers at the salary cost detail level.
Registration of the creditor of the salary document
In the accounting document, the creditor’s salary and wages are current for employees and other creditors (non-commercial creditors).
When registering the document:
Current employees are credited for the amount of payable salaries. Non-commercial creditors – payroll tax are credited for the amount of tax deductions. Non-commercial creditors – social security organization are credited for the sum of 7% of insured contributions, 3% of unemployment insurance, 20% The employer’s share insurance is credited.
In general, the registration of the salary document is as follows.
As a result, it should be said:
Total salary cost = amount payable to employees + tax + insurance premium + supplementary insurance
The effect of crimes and damages in the salary document
In salary calculations, it is a part of deductions for crimes and damages caused by the performance of employees. These crimes are not paid by the employer, and as a result, they are not recorded as expenses. In order to record the crimes in the accounting document, they must be deducted from salary expenses or recorded as a creditor in a separate chapter.
How to register assistance or on account
A part of salary deductions is payable on account or on account. The payment of allowance or on account has no effect on the amount of salary expenses in the accounting record. This amount has already been paid by the employer and does not change the amount of the employer’s salary expenses, but it is deducted from the payable amount. To register it, you must be careful that the employee who received an allowance in If the amount of the allowance is deducted from the amount of the person’s credit, we have owed the person twice and the salary document will not be balanced.
As a result, the amount of employees’ current credit is the amount payable in addition to allowance or on account or other similar items.
The general equation of the salary document
According to the above, the general equation of the salary document is as follows.
The sum of salary costs – crimes = payable salaries + taxes + types of insurance premiums + assistance and on account
It should be noted that in each company and organization, the above items may be different in details.
This post is written by Hosein_taheri032