A balance of 70 means. Payroll accounting
And what transactions reflect the basic operations for remuneration - you will learn about this from our article.
Posting to 70 accounts
The account records the operations of all types of remuneration that the company carries out in favor of its employees, including:
- salaries, bonuses, bonuses;
- sick leave, allowances;
- pensions for working pensioners, etc.
Depending on the unit in which the employee is involved, payroll and other benefits may be reflected in the following entries:
Payments in favor of employees are recorded in the following records:
Branch payroll
30. .2015, the branch of LLC Metallurg accrued salaries to employees:
- metal rolling workshop workers - 412.500 rubles .;
- economists of the financial department - 194.300 rubles.
On October 3, 2015, the branch received funds from Metallurg LLC for making payments.
The accountant of the head office of Metallurg LLC made the following entries:
In the account of the branch of LLC Metallurg, salary payments are reflected in the postings:
Dt | Ct | Description | Amount | Document |
20 | Accrued salary to employees of the metal rolling shop of the branch | 412.500 rub. | Payroll | |
Accrued salary to employees of the financial department of the branch | 194.300 rub. | Payroll | ||
79.2 | 20 | The costs of paying salaries to the employees of the rolling mill are charged to the head office | 412.500 rub. | Payroll |
79.2 | Salary expenses to employees of the financial department are allocated to settlements with the head office | 194.300 rub. | Payroll | |
79.2 | Credited funds from the head office to pay salaries | 606.800 rub. | Bank statement | |
50 | Withdrawal of funds for payment of salary | 606.800 rub. | Bank statement, cash receipt order | |
50 | Salary paid to employees of the metal rolling shop and financial department through the cash desk | 606.800 rub. | Account cash warrant |
Payroll by employees of various departments
Needleworker LLC is engaged in the production of equipment for sewing workshops. Workers of LLC Needleworker are engaged in the construction of a building that is planned to be used as a warehouse. Employees of LLC Needlewoman have the opportunity to visit the pool, which is listed on the balance sheet of the enterprise, for free.
In August 2015, a fire broke out in one of the production shops of LLC Rukodelnitsa.
According to the results of August 2015, employees of LLC Rukodelnitsa accrued salaries:
- workers of production shops - 418.500 rubles .;
- sales staff - 212.300 rubles .;
- workers employed in the construction of a building for a warehouse -
Account 70 of accounting is a passive account “Settlements with personnel for remuneration of labor”, intended for accounting for settlements with employees on wages. The account is a balance sheet, synthetic, passive. Consider examples of operations and typical postings to 70 accounts.
The credit of the account reflects the accrual of salaries for all categories of employees. The debit of the account reflects deductions from the salary and its payment. The credit balance shows the balance of the company's debt to employees.
The account scheme 70 is shown in the figure below:
There are times when an employee’s salary is paid for a full month, and accrued according to a time sheet for an incomplete month. For example, at the end of the month, an employee took sick leave. In such cases, not the enterprise, but the employee is the debtor. The balance in such cases remains credit with a minus sign.
Postings to 70 payroll account
Distinguish between basic and additional pay. Depending on the type of remuneration, accounting entries are generated.
- Payroll to employees and allocation to production costs: time and piecework wages, etc.
Dt 20; 25; 26; 44 Ct 70
Let’s say that salaries were paid to employees of the main bakery production in the amount of 800,000 rubles, storekeepers in the amount of 30,000 rubles, sellers in the store for production in the amount of 40,000 rubles, and administrative and managerial personnel in the amount of 200,000 rubles.
The bakery accountant in accounting will make the following postings to 70 accounts:
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- Accrual of vacation pay from the previously created reserve: Dt 96 Kt 70 - the amount of vacation pay.
- The accrual of temporary disability benefits from the social insurance fund: Dt 69.1 Ct 70.
- Accrued material assistance from net (retained) profit: Dt 84 Kt 70.
- Accrued salaries to workers for the construction of the fixed asset and attributed to the costs of the implementation of the cap. Attachments: Dt 08 Kt 70.
- Accrued salaries to employees for the dismantling of fixed assets and attributed to other expenses: Dt 91 Kt 70.
Postings to 70 payroll deductions account
Accounting company not only conducts payroll, but also deductions and deductions from it. Consider the main types of deductions.
PIT - personal income tax
The object of taxation is the income received by the taxpayer. When determining the tax base, all taxpayer income received both in cash and in kind, as well as income in the form of mat. benefits. Posting Dt70 Kt 68 - withheld from salary NDFL for payment to the budget.
Suppose a salary of 30,000 rubles is accrued. The employee has two minor children.
Therefore, under current law, an employee is entitled to standard tax deductions in the amount of 1,400 rubles. for 1 child. We perform the calculation: (30 000 - (1400 * 2)) * 13% \u003d 3 536 rubles.
The transaction will take the following form: Dt 70 Kt 68 amount 3 536 rub.
Withholding of support orders
The basis for the deduction of alimony is the writ of execution, as well as a written statement by the employee on the voluntary payment of alimony. The amount of alimony depends on the number of minor children: for one child - 25%, for two children - 33%, for three or more - 50%
The collection of alimony is made from all types of income and remuneration, both for the main and for combined work, as well as for dividends.
The transaction is formed: Dt 70 Kt 76 - withheld from salary on writ of execution in favor of the claimant.
Compensation for property damage
The basis is acts and decisions of the judiciary. For example, if an employee is found guilty of an accident and, by a court decision, is obliged to pay a certain amount of damage to the victim, then the following transaction is generated: Dt 70 Kt 73.2 - withheld from salary to compensate. damage.
Repayment of debt on accountable amounts
The basis is the advance reports and the data of railway No. 7. If the employee did not report for the amount previously issued to him under the report, then the accountant has the right to deduct it from the salary by posting Dt 70 Kt 71 - the balance of the accountable amount has been deducted from salary.
Prepaid expense
At some enterprises, in the middle of the current month, advance payments are made to employees. The advance amount should not exceed 50% of salary minus personal income tax. Advance payment is made from the cashier on the payroll, on the basis of which an expenditure cash warrant is drawn up. Reflected by wiring Dt 70 Kt 50 - issued s / n from the cash desk to employees. When paying salaries for a month, accounting entries are repeated, only the amount changes.
Payroll in kind
In this case, the following postings are generated:
- Dt 70 Kt 90 (91) - paid in the amount of issued products, goods, materials in kind at selling prices, including VAT;
- Dt 90 (91) Kt 43 (41, 40) - reflected the sale of goods, products, etc. employees on a paycheck.
If it is impossible to pay wages on time
If it is impossible to pay wages on time, it must be attributed to the depositor, that is, deposited by posting Dt 70 Kt 76.4 - deposited s / n.
In the payroll opposite the name and surname of those who did not receive wages, it is stamped or “deposited” by hand. The cashier closes the payroll in two amounts: rubles paid and rubles deposited. This record is certified by the signature of the cashier, after the payroll is transferred to the accounting department.
The accountant, checking it for the amount of the salary issued, writes out an expenditure cash order, its number is recorded in the payroll. And for the amount of the deposited salary, he writes out a register of unpaid wages. Then, from the registry, the data is transferred to the book of accounting for deposited amounts.
The enterprise must deposit the deposited salary to the current account indicating the purpose of the contribution “Deposit salary”.
In addition, the auditor writes out a cash document. The deposited wages are kept for 3 years, after which they can be written off to the organization’s income (Dt 76 Kt 91). Payment in kind Some manufacturing enterprises may pay by 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. Description of deductions from wages The administration has the right to deduct from the employee's monetary compensation the amount of material damage or marriage that occurred through his fault.
Accounting 70 account. postings, credit and balance
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 payable 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.
- 23.02.2016
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Account 70 in accounting: “calculations with employees for remuneration”
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Account 70 in accounting: payroll staff
When paying salaries for a month, accounting entries are repeated, only the amount changes. Payroll in kind In this case, the following transactions are generated:
- Dt 70 Kt 90 (91) - paid in the amount of issued products, goods, materials in kind at selling prices, including VAT;
- Dt 90 (91) Kt 43 (41, 40) - reflected the sale of goods, products, etc. employees on a paycheck.
If it is impossible to pay wages on time, if it is impossible to pay wages on time, it must be attributed to the depositor, that is, deposited by posting Dt 70 Kt 76.4 - deposited s / n. In the payroll opposite the name and surname of those who did not receive wages, it is stamped or “deposited” by hand.
The cashier closes the payroll in two amounts: rubles paid and rubles deposited.
Features of the balance sheet on account 70
Its meaning is to close the payroll compiled for a group of employees when paying wages in cash. Since at present most organizations use non-cash forms of payment to pay wages, the formation of a single payroll is no longer relevant. The balance can be anything: active, passive and active-passive.
Basically, the balance of the account. 70 happens passive, this is due to the fact that wages are accrued on the last day of the reporting (worked) month, and are issued to the employee in the next month. The active or active-passive balance may be in the case of excessive payment of wages to employees in excess of their accrual, for example, by mistaken transfer to a salary account. Example of filling out a statement on the account. 70 you can look at our website.
Download an example of filling out the statement on the account.
Account 70 debit balance
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;
- settlement and payment document;
- payroll.
Account 70 in accounting is used in the financial activities of 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 of taxes and fees, property damage. Credit operations account
Account 70 interacts on credit with the following accounts:
- “Investments in non-current assets” (08);
- “Main production” (20);
- "General expenses" (25);
- "General expenses" (26);
- “Serving industries and farms” (29);
- “Costs to sell” (44);
- “Calculations on social insurance and security” (69);
- “Settlements with various debtors and creditors” (76);
- “On-house settlements” (79);
- “Marriage in production” (28);
- “Retained earnings (uncovered loss)” (84);
- “Other income and expenses” (91);
- “Reserves for future expenses” (96);
- “Deferred expenses” (97);
- “Profit and loss” (99).
Examples of business operations on a loan In accounting practice 70 account is used in different cases.
Account 70 credit balance
N 94н, to summarize information on settlements with employees on wages (for all types of salaries, bonuses, benefits, pensions for working retirees and other payments), also on the payment of income on shares and other securities of this organization, is carried out on account 70 “Settlements with payroll personnel. ” LOAN accounts reflect payroll accruals, allowances from deductions for state social insurance, pensions and other similar amounts, as well as income from a role in the organization, and DEBIT reflect deductions from the accrued amount of labor remuneration and income, issuance of amounts due to employees and not Amounts paid on time and income paid on time. Analytical accounting on account 70 “Payments with personnel for wages” is maintained for each employee of the organization.
Account 70 debit balance
The order of reflection of data in the payroll:
- Put the serial number of the entry in column No. 1.
- Columns No. 2-5 enter information about the employee. It can be viewed from the "Directories" section (personnel number, surname and initials, position or profession, tariff rate or salary).
- Based on the time sheet, column No. 6 contains data on the number of actually worked days in the period, and in No. 7, those worked during the holidays and weekends.
- Information is displayed on the charges for the current month by type of payment (section No. 8-12), as well as the calculation of deductions from the amount.
- Column No. 13 sets the amount of tax payable in the current month.
- Data on other deductions from the worker’s salary are recorded (column No. 14): repayment of a loan, alimony, union membership dues, etc.
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Dt Kt Contents of the transaction Amount, RUR Base document 20 70 Salary accrued for bakery employees in the main production 800 000 Salary list 25 70 Salary for storekeepers 30 000 Salary sheet 44 70 Salary for sellers in the store during production 40 000 Salary sheet 26 70 Salary for AUP accrued 200,000 payroll
- Accrual of vacation pay from the previously created reserve: Dt 96 Kt 70 - the amount of vacation pay.
- The accrual of temporary disability benefits from the social insurance fund: Dt 69.1 Ct 70.
- Accrued material assistance from net (retained) profit: Dt 84 Kt 70.
- Accrued salaries to workers for the construction of the fixed asset and attributed to the costs of the implementation of the cap.
The purpose of account 70 in conducting analytical accounting is to summarizing settlement operations for payroll employees of the enterprise and not only. When carrying out this operation, it is required to write down the established cost of wages, as well as bonuses and other surcharges for the work done. The amount of pensions and benefits is also recorded in the account. The debit shall indicate the calculated amount for property damage.
In account 70 when making payments, you must specify following amounts: remuneration, social insurance benefits, pensions, income from stocks and securities.
If the amount was accrued, but was not paid, then it is summarized in the debit of account 70.
Key Features and General Structure
In order to get rid of all the questions regarding whether account 70 is active or passive, it is necessary analyze in detail its general structure. Loan debt is a direct source of cash generation.
In this case, wages (salaries of employees) are short-term loan arrears for any enterprise.
Since account 70 has a credit balance, it is passive synthetic account. Thus, if the account has a passive structure, then it should generalize the operation of crediting funds as a credit operation. In this case, the write-off transaction will be considered a debit transaction.
At the end of the reporting period, the accountant must calculate the financial turnover of money on credit and debit, and highlight the final balance. The organization’s report will indicate the amount required to pay for employees. Each employee of the organization must open a personal account for conducting analytical accounting.
In addition, in addition to each employee of the organization, the accountant needs to keep following data:
- Personal income tax accounting.
- Statement of payment transactions.
- A document indicating all payment and settlement transactions.
- Sheets on settlement operations.
Each organization that conducts financial activities is required to use account 70 in accounting.
By debit
The debit transactions in account 70 have following content:
- Payment from the cash desk of benefits accrued to employees.
- Transfer funds to personal bank accounts.
- Amount of tax deduction.
- Subtraction of shortages and loans.
- Material damage coverage.
When conducting debit operations, the debt on the loan from the organization to employees decreases. Debit transactions always indicate that the company is in arrears.
Credit operations
Credit operations can be described as crediting the amount to pay for the work done by employees. This operation has following content:
- Payroll employees.
- Accrual of social benefits.
- Summarizing salary arrears.
- Accrual of vacation pay.
- Accrual of premiums.
Credit operations indicate that money was accrued to the employee of the enterprise. It can be either a salary, or bonuses or other payments.
Accounting for invested amounts
If the employees of the enterprise did not receive cash on time at the checkout, then they are subject to transfer to storage. The accountant is required to make an entry in the accounting journal or in the database that there have been changes in the state of cash. He indicates in the record the deposited (invested) amount, and after the funds should be transferred to the bank for further storage. It is worth noting that the invested salary amount can be stored for three years. If it will not be paid, then it can be written off in the income of the enterprise.
When the money is transferred to the bank, the accountant must write out a cash document indicating the costs.
Payment in kind
Sometimes the payment of salaries at some enterprises is carried out using the goods that are produced at it. Wherein it is necessary to take into account the market value of products, including taxes. The accountant must draw up a quotation, and then summarize the cost of production that was issued on account of or in lieu of salary. In this case, withheld taxes and making mandatory payments in the budget are taken into account in the same manner as in the cash settlement.
Salary deduction structure
If the fault of an employee of the enterprise material damage, then the administration has the full right to deduct the cost of damage from the salary. He pays the amount, like any responsible person on the material side, under the terms of the contract - either the full cost or partial. It all depends on the damage caused to the enterprise.
If the contract with an individual indicates that the individual is obligated pay off completely the cost of the damage caused to the object that was in storage, the employee of the enterprise is obliged in this case to pay off the full cost of expenses. In this case, the following employees are liable: cash desks, managers of the warehouse, as well as persons accepting money.
When partial repayment the cost of the damage inflicted, it means the payment of the amount in the limit that was previously specified in the contract. In this case, the cost should not exceed the average monthly earnings. The deduction of the amount is based on the losses received at the enterprise, in accordance with the data of analytical accounting.
The defect can be corrected, and it can also be incorrigible. It all depends on the severity of the marriage. If the marriage is recoverable, then it may attract the organization to the costs of the restoration work. Their and should, as a rule, reimburse the employee of the enterprise.
In the event that the marriage is incorrigible, the cost of compensation for the damage caused consists of those expenses that were received for the manufacture of the defective goods, excluding the benefits received at the end of the seizure. The costs that are paid in connection with a fatal defect received are based on the difference between debit and credit turnover. The established total cost of losses in connection with the revealed marriage must be recorded in the debit of account 70.
One of the mandatory payments is personal income tax (PIT), which is deducted from the amount of remuneration received for the work of an employee of the enterprise.
It is worth noting that tax is calculated in certain cases - such rules apply in tax policy. In this case, given these rules, tax deductions apply. on certain income. These incomes include the following:
- Minimum value of tax-free income.
- Deductions in accordance with social status or on the basis of charitable activities.
- Deductions based on professional skills.
- Deductions based on ownership of certain property.
For most tax payers, the rate has not changed and is still equal 13% .
As a conclusion, it is worth mentioning that in accounting (analytical) accounting, account 70 is able to combine several operations at the same time, which are carried out at the enterprise every month. At the end of the reporting period, the accountant is required to calculate the balance and include it in the account liability item.
The displayed residual balance indicates that the company has a loan debt to employees. In this case, it remains important to keep records of liabilities for payment of salaries, because in the account 70 of the accounting, the calculation of calculations in the budget is also generalized.
It is rather difficult to keep accounting records on wages, while an accountant must be aware of all the nuances. On account 70 there is a settlement with employees, regardless of whether they are full-time or not. Any accountant should be aware that salaries must include salaries or piecework earnings, bonuses, insurance payments, vacation pay, and so on.
Each employee undertakes to conclude an employment contract, the clauses of which he must familiarize himself with in detail, since all working conditions are indicated there. The contract indicates the tariffs for the volume of work performed. In addition, the employment contract determines the relationship between the employer and the employee. The contract also prescribes the duties of the employee in case of violation of labor activity or causing damage, in accordance with regulatory legal acts.
If the employee violates the terms of the contract, causing damage to the enterprise, he must pay an amount that will cover the costs of the enterprise. In accounting records are kept about all financial transactions. If damage has been caused, then the costs are deducted from the employee’s salary, and this is recorded in account 70.
The employee pays expenses to the company for the damage based on the difference between debit and credit turnover. If the total amount of losses from the damage caused is determined, then it shall be included in the debit. All this without certain knowledge will be very difficult to understand, therefore, if you are not involved in auditing and bookkeeping, then this topic will be difficult to parse.
We will not consider the calculation of salaries in detail, but we will analyze the postings that are formed in the accounting after performing the calculations for each employee.
Stages of work on payroll in the organization:
- payment of personal income tax and contributions.
To account for all operations related to remuneration, the 70th account “Settlements with personnel for remuneration of labor” is used. The credit of this account records the accruals, the debit - personal income tax, other deductions and salary payments. Postings on payroll, deductions, accrual of personal income tax and insurance contributions are usually made on the last day of the month for which the payroll is accrued. Postings on the payment of salary and payment of personal income tax and contributions - on the day of the actual transfer (issue) of funds.
Salary costs are written off to the cost of production or goods, therefore, with the 70 account, the following accounts are offset:
- for a manufacturing enterprise - 20 account “Main production” or 23 account “Auxiliary production”, 25 “General production expenses”, 26 “General (administrative) expenses”, 29 “Serving production and economy”;
- for the trading company - 44 account "Costs for sale".
The wiring is as follows:
D20 (44.26, ...) K70
This posting is done for the total amount of accrued salary per month, or for each employee, if the account on 70 accounts is organized with analytics for employees.
Payroll deductions
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Deductions from wages reduce the amount of accruals and go through a debit of 70 accounts. As a rule, all employees have one retention - this is personal income tax. Here 70 account corresponds with 68 account “Calculations on taxes and fees”, posting:
D70 K68
In the postings for other deductions, the credit account changes, depending on where it goes. For example, when withholding on the writ of execution in favor of a third party, the account 76 “Settlements with various debtors and creditors” is used, posting:
D70 K76
Assessment of premiums
A 70 account is not involved in postings on insurance premiums, as they are not charged to employees and are not deducted from their salary.
Insurance premiums are related to the cost of production, i.e. pass on the debit of accounts 20 (26.29, ...) or 44 in correspondence with account 69 “Settlements for social insurance and security”. 69 accounts usually have sub-accounts for each installment. Wiring:
D20 (44, 26, ...) K69
Payment of wages
After the salary is accrued on the credit of 70 accounts, and on debit 70 of the account withheld by personal income tax and other deductions, the remaining part is paid to employees. Payment can take place both from the cash desk and through the bank (money is transferred to the accounts of employees from the account of the organization), i.e. 70 account corresponds either to account 50 “Cashier” or to 51 account “Current account”, posting:
D70 K50 (51)
Transfer of personal income tax and contributions
No later than the day following the day of payment of salaries, the organization must pay personal income tax. Insurance premiums, including injuries, are paid by the 15th of the following month. Payment is made from the current account (account 51), the debt to IFTS and funds is closed (accounts 68 and 69). Postings:
D68 K51 - paid personal income tax
D69 K51 - contributions paid
Payroll example with postings
Employees were paid salaries for March 2019, withheld from personal income tax, insurance premiums were calculated. Accounting for 70 accounts is carried out without analytics for employees, for 69 accounts with sub-accounts for each contribution. Salary costs and contributions are charged to account 20.
04/10/2019 - salary paid, personal income tax paid,
April 15, 2019 - insurance premiums were paid to the PFR, FMS, FSS.
Contributions:
- in the FIU (22%) - 16 500 rubles
- in the FMS (5.1%) - 3,825 rubles
- FSS (2.9%) - 2 175 rubles
- FSS injuries (0.9%) - 675 rubles
Postings for all transactions:
the date Wiring Amount Contents of operation 31.03.2019 D20 K70 75 000 Accrued salary D70 K68.ndfl 9 750 Retained by personal income tax Accrued premiums: D20 K69.pfr 16 500 - in the FIU D20 K69.fms 3 825 - in the FMS D20 K69.fss1 2 175 - in the Social Insurance Fund (time disability) D20 K69.fss2 675 - in the FSS (injuries) 10.04.2019 D68.ndfl K51 9 750 Listed PIT D70 K50 65 250 Salary paid to employees from cash desk 15.04.2019 The insurance premiums are listed: D69.pfr K51 16 500 - in the FIU D69.fms K51 3 825 - in the FMS D69.fss1 K51 2 175 - FSS (temporary disability) D69.fss2 K51 675 - FSS (injury)
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