Chapter 4
Chapter 4
Chapter 4
Payroll Accounting
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4.1. Roles of payroll accounting
4.1.1. Payroll and roles of payroll accounting
Labor subject
-3 factor of manufacturing process Labor tools
Labor force
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4.1.1. Payroll and payroll related compensation
*Salary definition:
* Salary payment :
Salary is paid based on worked hours or labor result
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4.1.1. Payroll and importance of payroll and payroll
related compensation management
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4.1.2 Management requirement
Employee classification
Business Non-
department business Health
departm care
ent Children
Daycare
* Definition:
* Formula:
Time based salary = Actual working time x Rate of pay
Advantages
Disadvantages
* Comments:
Application conditions
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4.2.1. Type of payroll
b. Job based salary
* Definiton
• Formula:
Job based salary = Unit produced x Rate per unit
Advantage
Disadvantage
* Comments:
Application conditions
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4.2.2. Payroll system
Payroll system
- Salary paid for working hours (time based salary, job based
salary….
- Salary paid for non-working hours (training course, conference,
annual leave…)
•Over time salary and other bonus…
•Regular bonus (salary based bonues) ...
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4.2.3. Payroll related compensation
* Social insurance
By employers -> expenses
- Contribution
By employees – deduct from salary
* Unemployment insurance
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4.3.2. Salary and social insurance calculation
* Salary and social insurance calculation
- Monthly, salary and social insurance calculation are based on the
following documents
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4.3.2. Salary and social insurance payment
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4.4 . Accounting for payroll and payroll related
compensations
4.4.1 Source documents:
Timesheets
Timesheets for working overtime
Salary payment sheet
Bonus payment sheet
Confirmation for work completion
Overtime payment sheet
Salary and social insurance allocation table
Acc 338
•Social insurance payable to • Social insurance, health
employees insurance, trade union fee
• The compensations paid to deducted from expenses or
related authorities employees’ salary
• Expensed trade union fee • Overpaid salary related
compensations
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4.4.3 Common transactions
* Accounting for payroll Acc 622, 627, 641, 642
Acc 334
Acc 338 (2,3,4,6,8)
(1b) Calculate salary payables
(3) Payroll related compensation
deducted from employees’ salay
(8) Unpaid salary of absence Acc 353(1),622,627,641,642
employees
(2) Bonus payables
Acc 111,112,511(333)
(1a) Advance payment of the month Acc 338(3)
(7) Salary payment
(4a) Social insurance managed by
the enterprise
TK 141, 138
(5) Electricity/water expenses Acc 138(8)
deducted on employees’ salary
(4b) If the social insurance managed
TK 333(5) by related authorities
(6b) PIT
payment on (6a) Personal income tax
behalf of deducted from employees’
employees salary 27
* Accounting for payroll related compensation
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Items 23.5% deducted from 10,5% deducted from Total
expenses employees’ salary
Social 200.000 * 17,5% = 36.000 200.000* 8%= 16.000 52.000
insurance
Heath 200.000* 3% = 6.000 200.000*1,5% = 3.000 9.000
insurance
Unemployme 200.000*1% = 2.000 200.000* 1% = 2.000 4.000
nt insurance
Trade union 200.000*2% = 4.000 - 4.000
fee Nợ TK 622: 24.000
Nợ
Total TK 627 (1): 48.000
4.800 21.000 69.000