Account 70 in accounting: "Settlements with employees for remuneration"

Account 70 in accounting is designated for the reflection of settlement transactions with employees of the enterprise. The amount of the established salary (salary or piecework payment), as well as bonuses and other surcharges are recorded on the account. The deduction of material damage is reflected in the debit of the account.

general characteristics

In order to immediately exclude all questions about which score is 70, active or passive, we will analyze its structure. Remuneration of employees is the short-term payables of the enterprise, and any payables is the source of the formation of funds. Besides, score 70 the balance has only credit. Therefore, it is a passive synthetic score.

An account with a passive structure involves reflecting the crediting of funds on a loan, and write-offs - by debit. At the end of the reporting period, the accountant will calculate credit and debit turnover and highlight the final balance. The value of the amount of liabilities for wages will be reflected in the financial enterprise reporting.

Analytical accounting accounts are opened for each employee separately. For example, to reflect the remuneration for the worker's employee V.V. Sidorov will open a 70.1 account. Additionally, for each employee accountant is:

• individual income tax card;
• statement of accounts;
• document on settlements and payments;
• payroll.

Account 70 in accounting is used in the course of financial activity by each organization.

Debit operations 70

The 70th account corresponds to a debit with accounts:

• accounting for money;
• accounting for settlement operations (from 66 to 69 inclusive, 73, 76, 79);
• financial result (90, 91, 93, 94).

A debit operation will mean a reduction in the accounts payable of the enterprise to the employee or withholding taxes and fees, property damage.

Credit operations account 70

A posting indicating "credit score 70" characterizes the crediting of wages, vacation pay and social benefits. On credit, account 70 corresponds to accounts:

• accounting of production costs (section III of the chart of accounts);
• accounting for finished products and goods (44);
• money accounting (50);
• accounting for social insurance contributions (69) and accounts 76, 77, 79;
• the financial result of the enterprise (90, 91, 96.97);
• capital (84).

A posting indicating the credit of account 70 will always mean the accrual of funds to the employee, whether it is wages or incentive payments.

Accounting for deposited amounts

Funds not received on time by the employee from the cash desk of the enterprise are transferred to storage. The accountant carries out the account assignment Dt 70 Kt 76 (subch. "Depositors") indicating the deposited amount, after which the funds are transferred to the bank for storage. Additionally, the auditor writes out a cash document.

The deposited wages are kept for 3 years, after which they can be written off to the income of the organization (Dt 76 Kt 91).

Payment in kind

Some manufacturing enterprises may pay wages using goods of their own production. This takes into account the market value of the products, which include VAT and tax on excisable goods. The following entries are made: Dt 70, Kt 90, 91. Further, the accountant reflects the cost of goods issued as wages. Withholding of amounts of taxes and obligatory payments to the budget occurs in the same manner as with cash settlement.

Characterization of deductions from wages

The administration has the right to deduct from the monetary remuneration of the employee the amount of material damage or marriage that occurred through his fault. According to the agreement, a financially responsible individual shall pay the full or partial amount of the damage caused to the organization.

The full amount of expenses to be reimbursed in connection with the damage is charged to the employee if the liability agreement sets forth the obligation to fully repay the amount of material damage to the object deposited. In a particular case, the responsible persons are cashiers, manager. warehouse and storerooms, as well as all those who accept money from buyers and other persons without the participation of the cashier.

Partial repayment of the amount of material damage implies reimbursement of funds in a predetermined limit (for example, not higher than the average monthly salary). The amount is calculated based on the actual losses of the enterprise according to accounting data.

Reflection example of a retention process

Consider the situation in the organization with the onset of liability:

It was established that the employee had disabled the device with a book value of 7,000 p., The amount of accumulated depreciation - 1,600 p. It is necessary to reimburse 5400 p.

Amounts withheld from employee wages reflects account 70 (debit) and credit accounts 73.3. If the debt is repaid through the cash desk, account 70 is not used.

The accountant will record the transaction with the following entries:

1. Dt 73.3 Ct 94 - 5400 p. - the amount of material damage attributed to the employee of the organization.
2. Dt 70 Ct 73.3 - 5400 p. - the amount is deducted from the remuneration for the employee's labor.
3. Dt 94 Ct 91 - 5400 p. - the amount of loss is reimbursed.

If the employee has paid the debt through the cash register, instead of the second posting, a record is made: Dt 50 Kt 73.3.

Withholding amounts for marriage

Marriage, depending on the severity of the defects, is divided into correctable and incorrigible. Correctable marriage entails the costs of the enterprise for repair work, which will be reimbursed by the employee. If the marriage is incorrigible, the amount of damages is the sum of the costs of manufacturing defective products minus the benefits received after the liquidation.

Payment of expenses due to irreparable marriage shall be made on the basis of the difference between the debit and credit turnover of account 28. The revealed total amount of losses from the marriage shall be recorded in the debit account. 70.

Personal income tax

Personal income tax is a mandatory payment to the budget deducted from the amount of remuneration for the employee’s labor. The tax policy allows applying tax deductions for certain employee incomes:

• the amount of minimum income that is not taxed;
• deductions based on social status, charity;
• professional deductions;
• property deductions.

The tax rate for most taxpayers in 2016 remains the same - 13%. The accrual of personal income tax is reflected in the correspondence: Dt 70 "Payments with employees for remuneration" Kt 68 (subch. "PIT").

Postings

Account 70 in accounting characterizes many transactions. Consider the basic postings on account 70:

Account 70 in accounting combines many of the operations conducted by the company every month.At the end of the reporting period, the auditor calculates the credit balance and relates it to the line of the liability sheet. The balance shown on the account indicates the presence of the company payables to employees. It is important to keep a record of wage obligations, because account 70 in accounting also reflects the calculation of payments to the budget.