The process associated with payroll is laborious and painstaking. The accountant can cause a lot of small questions. For example, how wages should be accrued. The transaction reflecting this operation may also raise questions, contain any nuances that depend on the activities of the enterprise, the availability of its production. Therefore, you should study a number of information that can be understood by a novice accountant or explain something to an experienced and experienced professional.
What is salary?
If we turn to the legislation, then wages, in essence, are the payment to the employee for his work, remuneration for his specific services. That is, the employer actually acquires the time and strength of his employee. Of course, remuneration is regulated by law, in particular, the Labor Code of our country. This document affects all relationships between employees and the employer. This is one of the main acts that protects the rights of employees.
Article 129 of the above document says that the cost of a person’s labor is directly related to the complexity of the work he performs, as well as his qualifications and the time it takes to complete this type of work. Also, wages that are of a compensatory nature are traditionally attributed to wages. The legislation also provides for payment for time not worked by the employee.
Wage Options
There are two types of pay systems:
- Piecework. When using this option, wages can be charged for the amount of work that was performed by the employee.
- Time-based. In this case, the worker receives payment for the time spent on the work.
The first option is actively used in manufacturing enterprises. The second option is chosen by those organizations and for those professions in which it is difficult to determine the amount of work. For example, it is difficult to determine the volume of tasks performed by a lawyer or accountant.
Accountant steps. Calculation and calculation stages
The calculation of payment for the worked period at the enterprises engaged in accounting. More specifically, this obligation is assigned to a specialist whose job description spells out this action. The calculation of wages is carried out on the basis of time sheets in which time records are kept. This form is declared genus number T-12. Thanks to this document, it becomes clear how much time the specialist worked in the billing month.
After the direct calculation of the required types of payment, deductions must be made. The main ones, of course, include tax withholding. Its size is 13 percent of the tax base. In turn, the entire accrued salary of an employee can be reduced by the amount of tax deductions, upon presentation of the necessary package of documents.
It is also worth noting that there may be deductions on writ of execution. This is possible if the employee pays child support or fines. Other deductions under the organization’s collective agreement may also be present. For example, union dues at enterprises that have their own union committee may be withheld.
Accrued salary: posting and used accounts
To display transactions in accounting, postings are used that show the correspondence of accounts.When displaying how wages are accrued, the posting necessarily uses account 70. It also has the following name: “Payments with personnel for pay”. The name of this account speaks for itself. It really reflects operations related to wages. Namely:
- Accrued wages. Posting may vary, depending on what kind of production the employee represents.
- Deductions were made both for third parties and in the form of taxes.
- Accrued insurance premiums.
Settlements with staff. Account Features
Account 70 takes into account all types of accruals that are associated with the wages of workers. In this case, the account itself is passive. This means that credit accounts reflect an increase in the company's debt. That is, the calculation of wages. The debit of the set also reflects the reduction in debt, respectively, payments are made.
It is worth noting that the amounts that were accrued but not paid due to the employee’s failure to appear are taken into account on the debit of account 70. And account 76 is involved in correspondence.
Used accounts: types of production
How, after all, can basic salary be correctly charged? A posting can correspond to different accounts. It depends on what kind of production a particular employee represents. The accounting entry depends on this. Wages may be accrued directly to employees who participate in the following types of production:
- Primary production. It is displayed on the account twenty. It also takes into account the costs associated with the main production, respectively, the salary of workers in the main workshops is also displayed on this account.
- Support Services. This category includes workers involved in the manufacture of the main products, however, it is problematic to allocate the costs of their payment to a specific type of product. An example is transport workers serving warehouses, or programmers. Their work is related to the production of basic products, albeit indirectly. The designation “wages accrued to production workers” is also applied to this posting. The posting contains account 25 with the name "overhead costs".
- General staff. This group includes the management apparatus. Accounting, legal department, directors - everything is taken into account in this paragraph. In contrast to the operation “payroll by the main worker”, the posting includes account 26. It is also called “general business expenses.” Thus, this account replaces the twentieth.
Primary production. Wiring
How, nevertheless, wages can be correctly and quickly accrued to workers in the main production? Posting, as mentioned above, will consist of two accounts:
- 70 "Settlement with staff";
- 20 - an account with the name "Main Production".
What will the operation “payroll workers” look like? The wiring is compiled in a similar way:
Debit 20 - Credit 70
This posting shows the increase in the company's debt to the employee associated with the production of the main product.
Auxiliary production. Wiring
In a similar way, the operation “payroll to employees” is displayed. The posting will contain the following accounts, despite the fact that the employees of auxiliary production are meant:
- 70 "Settlement with staff";
- 25 or "General expenses".
There are 25 accounts in the debit entries, and 70 on the credit.
In this case, there is also an "accumulation" of debt on account 70, which shows the process of direct charging.
Administrative apparatus. Wiring
If it is necessary to display the payroll only to employees of the administrative apparatus of the enterprise, use the following accounts:
- 70 "Settlement with staff";
- 26, entitled "General expenses".
In the transaction, 26 accounts are debited, while 70 goes on credit.
The loan of the latter also shows an increase in debt to the enterprise management employee.
Trading enterprises. Display Features
For those enterprises that are engaged in trade, not production, they use account 44, which has the name "selling expenses". It reflects the costs associated directly with the sale of finished products, namely, delivery, storage and transportation, packaging and advertising companies.
In this case, the posting will look like this: account 44 is debited, account 70 is credited.
Assessment of contributions. Score 69.1
If the employee was on sick leave, or receives maternity benefits, payments are made to him at the expense of the Social Insurance Fund. Accordingly, the correct display of this operation is also necessary. The wiring will look like this:
Debit of account 69.1 - Credit 70
This operation reflects the increase in the liability of the insurance fund, in that it needs to compensate for this payment. It should be noted that a number of enterprises have already switched to a pilot project of this organization, in which payments are made directly by this organization. Accordingly, these postings are not applicable.
Withholding tax, as well as other withholdings
To withhold taxes, account 68 is used, which is called "Calculations for taxes and fees." Specifically, to account for tax withheld from wages, account 68.1 is used.
The wiring itself will take the following form:
Debit 70 - Credit 68.1
It displays the deduction of any part of the employee’s salary, due to an increase in his obligation to the state.
Deductions in favor of other persons under executive documents or according to the collective bargaining agreement of an organization are accounted for on account 76.
If the debit indicates account 70, and the loan - 76, then this posting displays the deduction from wages in favor of a third party.