Correct accounting in the field of remuneration is assigned to the chief accountant of the enterprise and responsible executors. For this, a legally established methodology is applied. The accountant who is engaged in this work should study all the nuances of calculating funds for vacation pay. For this, a special reserve fund is being formed. As it is paid off, the corresponding amounts of funds are deducted from it during the entire reporting period. How is the formation of a reserve for vacation pay, will be discussed later.
General definition
The procedure for creating a reserve for vacation pay is faced by many accountants. In regulatory enactments, this fund is also called a valuation obligation. This process is regulated by PBU 8/2010.
According to this order, the reserve fund is recognized in the course of accounting in the following cases:
- The company determines the obligations that arose in previous reporting periods in the process of carrying out business activities. In this case, the organization cannot avoid their repayment. Even if the company has doubts about such obligations, but the probability of their existence exists, estimated obligations must be recognized.
- It is likely that there will be a decrease in the economic benefit of the company when paying off such debt.
- The amount of the reserve fund can be reasonably calculated.
All three conditions are fulfilled in relation to the formation of estimated obligations for the payment of future vacations. Therefore, this type of reserve is created by almost every organization. However, there are exceptions. So, accounting for the provision for vacation pay is not required for enterprises that use a simplified accounting system. These organizations include:
- small business entities;
- non-profit organizations;
- companies that have received the status of project participants, during which development and research are carried out in accordance with applicable law.
The listed entities may not keep records of the allowance for vacation pay, as they use a simplified form for the formation of financial statements. For other organizations, the creation of estimated liabilities is carried out according to a certain methodology. In the calculation process, not only the amount of accrued salary is applied, but also contributions to pension and insurance funds. It also takes into account the amount of funds that remains at the enterprise for unused vacation time of employees.
Creation frequency
Considering the procedure for the formation of a reserve for vacation pay, it should be noted that the legislation does not establish the frequency of filling this fund. The decision to carry out such work is made by the company on its own.
A provision should be made at the reporting date. Therefore, the reserve for the payment of holidays in accounting is created with a certain frequency established by the company independently. This process is regulated by the relevant internal documentation of the company. The following options exist for establishing the frequency of this process:
- once a month (on the last day of the period);
- once a quarter (last 3 months);
- once a year (December 31).
The relevant internal documentation records which accounting policy the organization will choose to comply with legal requirements.
Methods for calculating estimated liabilities
The formation of a reserve for future expenses for vacation pay is made in various ways. The procedure for conducting such operations is not established in accounting.
Therefore, each company is obliged to choose a methodology to fulfill the requirements of the law. The selected algorithm is recorded in the accounting policy. The methodology enshrined in the relevant documentation most often involves the following actions:
- the calculation is made of the average worker earnings per shift;
- the average daily earnings of a certain group of employees of the organization is taken into account;
- the calculation involves the sum of the results of the last reporting period.
The formation of a reserve for vacation pay is recorded in the relevant documentation of the organization. In this case, it is determined which employees belong to a particular category. This is important, since for each group, funds are accumulated in a special way. The following accounts may be involved:
- primary production workers - account 20;
- general production expenses - account 25;
- expenses of the general business group - account 26;
- expenses incurred in the course of the sale of goods or services - account 44;
- financing of fixed assets - account 08;
- other things.
Postings
The accountant must reflect in the relevant documentation a number of postings on the formation of a reserve for vacation pay. For this, they are guided by the Instructions for using the Chart of Accounts. To reflect the accumulated amount of the estimated liability, account 96 is used. It is specially created to form reserves for future expenses.
To make postings for the reserve for vacation pay in accordance with accounting standards, a suitable account is used in accordance with the category of employee. To understand the features of such a procedure, it should be considered as an example. To this end, funds will be transferred to pay leave to employees of the main production. In this case, account 20 is activated. If you need to perform this procedure for workers in other areas, accounts 25, 26, 44, etc. are applied.
The formation of the reserve for vacation pay is reflected in the entry:
Dt 20 Ct 96.
This allows you to reflect the creation of a reserve for payment in the future vacation period. On the date when the average earnings of employees will be calculated, deductions to the reserve fund are performed as follows:
Dt 96 Ct 70.
Such a posting reflects the effect when the amount of paid vacation pay is debited from the previously created fund.
Dt 96 Ct 69.
With this posting, you can write off contributions to extra-budgetary funds from the reserve.
The company may have a situation when the formed fund was insufficient to pay off vacation pay. In this case, the debt of the organization is reflected using the following record:
Dt 20 Ct 70.
This is the amount that is not enough for the company to repay its obligations to pay vacation pay and contributions to insurance funds.
At the end of the year, the amount of the accrued reserve fund and the actual expenses for the reporting period for the payment of vacation pay, contributions to insurance funds are compared. This action is called inventory.
I way
The formation of a reserve for vacation pay can be made in one of the three ways listed. In the first case, the company performs this procedure, given the average employee earnings per shift. In accounting policies, you must reflect the appropriate inscription in which the company expresses its desire to accrue to the fund in the presented way.
The accounting policy also details the algorithm for making the corresponding charges. At the reporting date, which the company also chooses independently, the accountant will have to make accruals for each group of employees, using the data of the required settlement accounts.
First, the number of days in the period that were not used by employees of each category for vacation is calculated. You also need to calculate the number of additional days for which the rights of employees of the organization have already arisen.
After that, the average earnings of each employee in the corresponding category are determined.The accountant must apply the usual method of determining average earnings, which is used when paying vacation pay and compensation in the presence of unused vacation days.
The size of vacation pay should be determined taking into account insurance premiums. Their amount is determined at this stage of the calculation. For this, the formula is used:
OS = NDO * SDZ * (1 + T / 100%), where OS is vacation and pastry contributions, NDO is the number of vacation days that have not been used by employees, SDZ is the average employee earnings per day, T is the insurance premium rate for the employee .
The calculation of the reserve for vacation pay for the entire group of workers. Data is collected for all categories to obtain the total value of the estimated liability.
Example
The formation of a reserve for vacation pay by the presented method is formed quite simply. To understand how to apply this technique in practice, you need to consider it by example. So, for example, in a department in the state there are 2 employees. Employee A as of March 31 of the current year has the right to leave in the amount of 6.99 days. Employee B has a date of 4.66 days.
Next, the accountant must calculate the average daily earnings of employees A and B. As of March 31 of the current year, the first employee receives 752 rubles a day, and the second - 674 rubles. The company in which the represented employees work, makes deductions at a rate of 30%. As of the settlement date, neither the first nor the second employee had the right to be taxed at a reduced rate. Also, the accountant must make a deduction for injury insurance at a rate of 0.2%.
The general rate for insurance payments amounted to 30.2% for the represented employees. Now you can calculate the estimated liability. For employee A, he looks like this:
6.99 * 752 * (1 + 30.2% / 100%) = 5272.35 rubles.
The calculation for employee B is as follows:
4.66 * 675 * (1 + 30.2% / 100%) = 3154.99 rubles.
As a result, the total reserve fund for the sales department at the settlement date amounted to 8427.34 rubles.
II method
The formation of a reserve for vacation pay according to the second method is made somewhat differently. At the same time, daily average earnings for each group are taken into account. This method is simpler than the previous technique.
No need to calculate the average income of workers per day. The size of the reserve for each employee is also not required. The calculation will need to be performed for the group as a whole. Having indicated in the accounting policy that this method of accrual of estimated liabilities will be applied, the company should also prescribe the algorithm for the corresponding accruals.
The accountant carries out several sequential actions on the settlement date. First, the number of vacation days that employees (including additional ones) did not use for the whole group is calculated. The average earnings per shift is determined as a whole for the whole group. A simple formula is used for this:
SZG = SZG / D / KR, where SZG - average earnings per shift for the whole group, SZG - the amount of wages that were accrued to employees on the estimated date of the current period, D - the number of days in the period, KR - the number of employees that are part of this group.
After this, the amount of the reserve is determined, which is allocated for the subsequent payment of the vacation:
P = (SPG + SPG * T) * NDO.
Next, the results obtained for all groups of employees add up. This allows you to calculate the total amount of obligations.
Example
So, for example, there is a company in which 2 departments work. The first one is administrative (2 employees), and the second is the sales department (3 employees). In March, the first department received a salary of 75 thousand rubles, and the second - 70 thousand rubles.
The company pays insurance premiums at a rate of 30%, and there are no employees who are entitled to a reduced tariff. An injury insurance fee is also withheld. The total tax rate is 30.2%. In the administrative department, unused vacation days are 9.32, and in the sales department - 11.65.Next, you can calculate the average earnings for the day of each department. For the administration, this calculation looks like this:
75000/31/2 = 1209.68 rubles.
The calculation for the sales department looks like this:
70,000 / 31/3 = 752.69 rubles.
Next, you can calculate the amount of the reserve fund for the administrative department:
(1209.68 + 1209.68 * 30.2%) * 9.32 = 14697.09 rubles.
The sales department forms the following reserve fund:
(752.69 + 752.69 * 30.2%) * 11.65 = 11,417 rubles.
The total amount of the trust fund for the enterprise amounted to 36,096.09 rubles.
III method
The third way to calculate the reserve for the upcoming vacation payment involves applying the data of last year. The accountant in this case applies the deduction rate, which is determined as of December 31 of the previous period. It is calculated by the formula:
Н = СОО / РО, where Н is the normative indicator of deductions, СОО - the sum of the costs of paying funds for vacations and compensations, the RO is the sum of the costs of labor without contributions to insurance funds for the previous reporting period.
The standard will be unchanged throughout the current period. At the reporting date, the accountant calculates two indicators. Contributions for each group of employees to the reserve fund:
СО = (СЗт.п. + СС) * Н, where СО - the sum of deductions for the whole group in the current period, СЗт.п. - the amount of salary for a group of employees in the current period, SS - the amount of insurance premiums for a group of employees.
Next add up the results for all groups. This will be the amount of the reserve fund.
Tax accounting
The provision for vacation pay in tax accounting is also accrued by the enterprise according to the method established by it. It should be reflected in the relevant documentation. The taxpayer determines the maximum amount of deductions and the percentage for monthly transfers, which forms the estimated liability.
For this, a special estimate is drawn up, which reflects the amount of the monthly payment to the reserve fund. In this case, the estimated amount of contributions to the insurance fund is taken into account. Transfer of funds is carried out in the form of the ratio of this indicator to the estimated amount of costs for the remuneration of employees of the company. The company records in the accounting policy data on the method of creating estimated liabilities, the maximum number of deductions, the percentage of deductions for each month. The latter is calculated as follows:
PO = PROO / PROT, where PROO is the estimated amount of expenses for vacation pay in the billing period, PROT is the estimated amount of deductions for labor remuneration (including insurance fees).
In the tax accounting register, the accountant must display the amount of monthly income to the specified fund. Also shows the spent reserve during the payment of holidays, its balance on the date of the calculations.
At the end of the reporting period, the responsible employee conducts an inventory of the reserve for vacation pay. On December 31, the reserve is adjusted in the tax accounting of the organization.
