Payroll accounting. What shows and how to calculate Account 70 in the accounting
Account 70 “Settlements with personnel for remuneration” is used by legal entities to display information about settlements made with employees of the organization in terms of payment for their labor activities.
Account 70 in accounting is intended to summarize information about settlements made with personnel in terms of remuneration for their labor. Displayed here:
- Amounts of accrued and paid wages, vacation pay, bonuses, one-time payments
- Accrued social benefits (for example, for temporary disability)
- Dividends paid to founders who are employees from their participation in the capital of the organization.
- Withholding taxes and other amounts (for example, alimony according to a writ of execution).
Account 70 is passive. The debit displays the amounts actually issued or transferred to the cards, and the credit displays the accrual.
Something to keep in mind! According to current legislation, an organization must make payments to employees at least every six months.
If the employee has not received wages within 3 designated days (for example, due to absence, illness, vacation), the amount accrued for payment is deposited, and the money is transferred to the organization’s servicing bank. The deposit is displayed in the debit of account 70 (in correspondence with account 76).
The Labor Code clearly regulates the procedure for settlements with personnel regarding payment for their labor, therefore, for an in-depth analysis of mutual settlements, movements in account 70 are displayed separately for each employee.
Something to keep in mind! SALT account 70 for employees of the organization must coincide with payslips; the amounts of transferred personal income tax are verified against the certificate of settlements with the Federal Tax Service.
Regulatory regulation
The use of account 70 to provide information on mutual settlements with employees of the organization in terms of wages, vacation pay, sick leave and other payments is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, the Labor Code of the Russian Federation and other legislative documents.
Account 70 - common entries in accounting
- Payroll
Dt20 Kt70 - employees of the main production
Dt23 Kt70 - auxiliary production
Dt26 Kt70 - employee of the administrative department
- Calculation of social benefits (for example, sick leave)
- Dividends accrued to the founders-employees of the company
- Accrual of vacation payments from the created vacation reserve
- Issuance of wages and other payments
Dt70 Kt50 - from the cash register according to payroll statements
Dt70 Kt51,52,55 - amounts transferred through current accounts
Attention! According to the law, payments to cards can be made both according to the general register of the salary project in a particular bank, and to cards of any other bank at the request of the employee.
- Holds
Dt70 Kt68 - personal income tax withheld, transferred to the Federal Tax Service by the tax agent organization
Dt70 Kt76 - withholding of alimony
- Depositing funds
Natalya Vasilyeva, 2017-03-28
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Reference materials on the topic
Account 70. Settlements with personnel for wages
Account 70 “Settlements with personnel for wages” is intended to summarize information about settlements with employees of the organization for wages, as well as for the payment of dividends and other income to them from participation in the authorized capital of the organization.
Accrued amounts of labor costs payable to employees are reflected in the debit of accounts 20 “Main production”, 23 “Auxiliary production”, 25 “General production costs”, 26 “General business expenses”, 28 “Defects in production” and other accounts and credit Account 70 "Settlements with personnel for wages."
Amounts of payment for employee vacations accrued from the reserve created in accordance with the established procedure for these purposes are reflected in the debit of account 96 “Reserves for future payments” and the credit of account 70 “Settlements with personnel for wages”.
Accrued benefits due to contributions to the Social Protection Fund are reflected in the debit of account 69 “Calculations for social insurance and security” and the credit of account 70 “Settlements with personnel for wages”.
Dividends accrued to employees and other income from participation in the authorized capital of the organization are reflected in the debit of account 84 “Retained earnings (uncovered loss)” and the credit of account 70 “Settlements with personnel for wages”.
Amounts of wages, benefits paid to employees through contributions to the Social Protection Fund, dividends and other income from participation in the authorized capital of the organization, etc. are reflected in the debit of account 70 "Settlements with personnel for wages" and the credit of accounts 50 "Cash", 51 "Settlement accounts" and other accounts.
The amounts of withheld taxes, payments under executive documents and other deductions are reflected in the debit of account 70 “Settlements with personnel for wages” and the credit of accounts 68 “Calculations for taxes and fees”, 69 “Calculations for social insurance and security”, 76 “Settlements with different debtors and creditors" and other accounts.
Amounts accrued but not paid to employees on time are reflected in the debit of account 70 “Settlements with personnel for wages” and the credit of account 76 “Settlements with various debtors and creditors” (subaccount 76-5 “Settlements for deposited amounts”).
Analytical accounting for account 70 “Settlements with personnel for wages” is maintained for each employee.
Account 70 “Settlements with personnel for wages” has the following subaccounts:
Account 70 “Settlements with personnel for wages” corresponds with the accounts:
Other Section 6 Accounts
Account 60. Settlements with suppliers and contractorsAccount 62. Settlements with buyers and customersAccount 63. Provisions for doubtful debtsAccount 65. Deferred tax liabilitiesAccount 66. Settlements for short-term loans and borrowingsAccount 67. Settlements for long-term loans and borrowingsAccount 68. Settlements for taxes and feesAccount 69 Settlements for social insurance and security Account 70. Settlements with personnel for wages Account 71. Settlements with accountable persons Account 73.
Settlements with personnel for other operationsAccount 75. Settlements with foundersAccount 76. Settlements with various debtors and creditorsAccount 77. Settlements for direct insurance and reinsuranceAccount 79. On-farm settlements
In accordance with Art. 137 of the Labor Code of the Russian Federation, deductions from wages can be made only in cases provided for by law. In this case, by order of the organization’s administration, the following deductions may be made.
Refund of amounts overpaid due to accounting errors.
In accounting, such deduction is recorded as follows:
It should be borne in mind that in the case where wages are overpaid to an employee as a result of not a counting error, but, for example, a semantic one or due to insufficient qualifications of an accounting employee, these amounts cannot be recovered from this employee.
In this situation, recovery, as a rule, is made from the employee who is guilty of making such a mistake.
At the same time, in accounting, the inclusion of overpaid amounts as shortfalls and their collection are carried out in the manner established for accounting for the amounts of damage caused to the organization.
Repayment of unspent and not timely returned advance payment issued for a business trip or transfer to another location, for business needs, unless the employee disputes the grounds and amount of the withholding.
In this case, the administration has the right to make an order to withhold no later than one month from the date of expiration of the period established for the return of the advance, repayment of the debt, or from the date of the incorrectly calculated payment.
For unworked vacation days when an employee is dismissed before the end of the working year for which he has already received vacation.
Deduction for these days is not made if the employee is dismissed on the grounds specified in paragraphs 1, 2, subparagraph. "a" clause 3 and clause 4 of Art. 81, clauses 1, 2, 5, 6 and 7 art. 83 Labor Code of the Russian Federation. In accounting, such deductions are formalized similarly to deductions upon detection of a counting error.
Compensation for damage caused by the fault of an employee of the organization in an amount not exceeding his average monthly earnings (Article 241 of the Labor Code of the Russian Federation).
When making deductions, you should take into account the restrictions on the amount of deductions from wages established by Art. 138 Labor Code of the Russian Federation:
— for each payment of wages, the total amount of all deductions cannot exceed 20%,
and in cases specifically provided for by law - 50% of the wages due to the employee;
- when deducting from wages according to several executive documents, the employee in any case must be responsible 50% of earnings saved.
These restrictions do not apply to deductions from wages when:
- serving correctional labor,
- collection of alimony for minor children,
- compensation for harm caused by the employer to the health of the employee,
- compensation for damage to persons who suffered damage due to the death of the breadwinner,
- compensation for damage caused by the crime.
The amount of deductions from wages in these cases cannot exceed 70%.
Deductions from payments that are not subject to collection in accordance with federal law are not allowed.
Amounts withheld from wages on behalf of employees to pay insurance payments under voluntary insurance contracts through non-cash payments to insurance authorities.
In accounting, such deductions are reflected by the following entries:
Withholding insurance payments from employees' wages and transferring them to the accounts of insurance authorities are made on the basis of lists and instructions submitted to the organization's accounting department by the insurance agent.
Trade union membership fees in a non-cash payment system with trade union organizations.
Withholding of trade union dues is carried out in the presence of written applications from trade union members with a request to accept their trade union dues by bank transfer.
In accounting, the deduction and transfer of membership fees is reflected in the same manner as insurance payments.
In this case, an additional sub-account is opened to account 76.
Amounts under writs of execution - alimony for minor children
and compensation for damage caused to the organization.
When deducting amounts under writs of execution, the following records are made:
When compensating for damage caused to an organization, the following records are made:
E) Arrears in wages
f) Cash
h) Accounts receivable
3. Business transaction “tax debt to the budget has been repaid from the current bank account”:
a) Causes a decrease in cash in assets and debt in liabilities
b) Change in balance sheet asset
c) Causes a decrease in assets and liabilities
d) 3 type of change
e) 2 type of change
F ) 4 type of change
g) 1 type of change
h) Causes changes in the composition of the liabilities side of the balance sheet.
4. An account with only a credit balance
5. Financial reporting forms
a) Report on the movement of fixed assets and report on labor
b) Report on the movement of DS and report on labor
c) Balance sheet, profit and loss account
d) Explanatory note, tables and diagrams
e) Company performance report
F) Statement of changes in equity for the period, statement of cash flows
g) Cash flow statement and labor report, fixed asset flow report
H) Balance sheet, DS movement report, explanatory note.
6. Inventory
a) Provides grouping of assets, capital and liabilities
b) This is an information storage system
c) This is a reflection of business transactions
d) Provides calculation of product costs
E) Ensures the reliability of accounting data
f) Method of primary recording of business transactions
G) This is the identification of deviations from accounting data
H) This is confirmation of the actual existence of property
7. Organization of the Republic of Kazakhstan for storing money and carrying out non-cash accounts in banks is opened
a) Current bank accounts
b) Current accounts
c) Cards with sample signatures
d) Correspondent accounts
e) Budget accounts
f) Current accounts LORO and NOSTRO
G) Current accounts
h) Personal accounts
8. Accounts receivable from employees:
a) Raw materials, construction in progress, goods purchased
b) Employees' debt on advance received
c) Semi-finished products, construction in progress, purchased goods
d) Amounts owed by customers for goods and services sold during the normal course of business of the company
e) Receivables from customers for products sold
F) Employees' debt for travel expenses
g) Raw materials, work in progress, purchased goods
h) The employee’s debt for payments for preschool institutions
When materials are issued, correspondence invoices are drawn up
a) D 1310 K6010
b) D 8110 K 1310
c) D 7210 K 1310
d) D 7110 K 1310
e) D 1310 K 8110
f) D 1310 K 7710
g) D 1310 K 3310
h) D 1310 K 6280
10. INITIAL OS COST INCLUDES:
a) Cost of actual costs incurred upon completion or receipt of fixed assets
b) Cost of fixed assets minus accumulated depreciation amount
c) Cost of fixed assets at current market values as of the date of sale
d) Cost of fixed assets at current market prices on a certain date
e) The cost of fixed assets minus the amount of accumulated depreciation
F) The cost of actual costs incurred upon completion of production or construction or acquisition of fixed assets
g) The cost at which an exchange of fixed assets is possible between knowledgeable and independent parties ready to conduct a transaction
H) Cost of actual costs incurred for the construction or acquisition of fixed assets
When deducted from salary, the following is drawn up:
a) D 3220 K 3350
b) D 3350 K 1250
c) D 3350 K 3220
d) D 8110 K 3350
e) D 3350 K 7110
F) D 3350 K 3120
g) D 3210 K 3350
h) D 3350 K 7210
12. CAPITAL:
a) Deposits and shares
b) Bank loans
d) Retained earnings
e) Deferred expenses
F) Share premium
g) Income from sales of products
13. The purpose of F.O. is to provide information about:
a) Financial situation. Cash flows, changes in equity and assets
b) Results of company resource management
c) Financial position of the company
d) Financial position, cash flows, change in capital
e) Movement of DS capital
f) On environmental activities and their payments
g) On the state of economic resources
Accounting for wages and salaries
Accrual: salary is calculated based on:
The remuneration system used at the enterprise
Information on established tariffs, salaries, piece rates
Information about the actual time worked by employees or the volume of products produced.
According to labor legislation, wages are calculated and paid at least every half month. The accrual of the amount is recorded in the Payroll (form No. T-51) or in the Payroll Statement (form No. T-49)
The accrual of wages is reflected in credit account 70 “Settlements with personnel for wages” in correspondence with accounts for accounting for costs, depending on the nature of the work of a particular employee. Analytical accounting for account 70 is maintained for each employee. The amounts of employees' salaries are reflected in personal accounts opened for one calendar year.
D20-K70– accrued wages of employees of the main production,
D25-K70- salary for the administration of the production unit and workers servicing production,
D26-K70-salary of management personnel, health service workers,
D08-K70— salary to employees for operations related to the acquisition of fixed assets and intangible assets,
D15(10) -K70-salary for operations related to the acquisition of inventories,
D44-K70- salary, incl. included in selling or selling expenses ,
D91/2-K70- salary for operations related to rental, liquidation, sale of property,
D69-K70– accrual of temporary disability benefits at the expense of the Social Insurance Fund,
D84-K70– remuneration to employees at the expense of the organization’s profits.
In order to evenly include salary during vacations in the costs of the current period, organizations can create a reserve on the account. 96 “Reserves for future expenses.”
The formation of a reserve for vacation pay is reflected by entries in the debit of the current expenses accounts and the credit of the account. 96.: D20,25,26,44-K96.
Salary accrual during vacation: D96-K70.
Holds: Deductions are made from the amount of accrued salary, which can be divided into 3 types:
1.mandatory: personal income tax, deductions on enforcement documents in favor of other persons (alimony, court penalties)
2.at the initiative of the organization: deductions for loans received by the employee, return of amounts overpaid as a result of incorrect calculations, accrual of debt on accountable amounts, compensation by employees for material damage caused, etc.
3. at the initiative of the employee: for loan repayment, voluntary medical and pension insurance.
The total amount of all deductions for each payment cannot exceed 20%, and in cases provided for by federal laws - 50% of the salary due to the employee. When deducting from the salary according to several executive documents, the employee must retain 50% of the salary.
D70-K68– the amount of personal income tax is withheld,
D70-K76– withheld according to execution documents,
D70-K73– at the initiative of the organization
Pay: The salary can be paid to the employee: in cash, transferred by bank transfer to the employee’s bank account, issued in kind (products of the enterprise).
Funds for salary payment must be withdrawn from the account at the bank using a cash check, or, if provided for in the Cash Limit Calculation, DS from the organization’s revenue can be spent on salary payment.
Payment of salary is processed at the discretion of the organization by the Payroll (form No. T-53) or Payroll (form No. T-49). In the statement, employees sign for receipt of money.
If an employee does not receive a salary at the cash desk within the established time frame (3 days from the date of issue), then it is deposited - the salary not received on time is delivered to the bank. In this case, records of deposited amounts are kept in special registers or books of depositors. Payment of deposited amounts is carried out on the basis of a written application from the employee within the deadline for payment of the next salary.
Payment of salary by bank transfer. The transfer is carried out on the basis of a written application from the employee, with the obligatory indication of bank details. According to Art. 131 of the Labor Code of the Russian Federation, payment of salary in natural (non-monetary) form in value cannot exceed 20% of the amount of the accrued salary.
D70-K50.51- salary payment,
D70-K76/4- salary deposit
Accounting for production costs according to costing items. Accounting for production costs and calculating the cost of production (c/c) of work and services of auxiliary production. Methods for accounting for production costs and calculating production costs
The group of costs by costing items is used in the preparation of cost estimates (calculation of a unit of production), which allows one to determine how much a unit of each type of product, cost of individual types of work and services costs the enterprise. Determining costs by calculation as a way of grouping them relative to a specific unit of production allows you to track each component of agricultural products (works, services) at any level.
The basic provisions for planning, accounting and calculation of agricultural products establish a grouping of expenses by costing items:
1) Raw materials and materials;
2) Returnable waste (subtracted);
3) Purchased products, semi-finished products and production services of third-party enterprises and organizations;
4) Fuel and energy for technological purposes;
5) Wages of production workers;
6) Contributions for social needs;
7) Expenses for preparation and development of production;
10) Losses from marriage;
11) Other production costs;
12) Selling expenses.
The first 11 articles form the production. the cost of production, and the result of all articles is the full cost of production.
To account for costs, use account 20 “main production”, 23 “auxiliary production”, 25 “OPR”, 26 “OKhR” 28 “losses from defects”, 29 “servicing production and facilities” 97 “budget expenses .periods". According to D, expenses are taken into account, and according to K, they are written off.
At the end of the month, expenses from 25,26,28,97 are written off to 20,23,29.
From K 20,23,29 they write off the fact of s/s of released products.
The balance characterizes the amount of costs for work in progress.
Auxiliary production: - these are energy facilities that serve production with types of energy, transport facilities that serve production, repair shops, packaging shops, workshops for the production of tools, dies, spare parts, etc. The costs associated with the activities of auxiliary productions teach . on account 23 "auxiliary production". Direct costs are directly related to the activities of auxiliary production. They are written off to account 23 from the credit of accounts for inventory accounting, settlements with employees for wages, etc.
Indirect costs are associated with the management and maintenance of auxiliary production. They are written off to account 23 from accounts 25 "OPR" and 26 "OHR". Losses from defects are written off to agricultural products in the period of their discovery. The cost of irreparable defects is written off to account 23 “Auxiliary production” from the credit of account 28 “Defects in production”.
Auxiliary production is intended to perform work (provide services) for the needs of the main (or service) production or for third parties.
Costing is a set of methods for accounting for production costs and calculating the cost of production.
Currently time in Russia the following are used. main methods of cost accounting: incremental, custom, process-by-process (simple), normative.
Lateral: used in mass production with sequential processing of raw materials (metallurgy, chemical, textile industry, etc.), which are carried out in several stages (phases, processing stages).
Processing is a set of technological operations as a result of which raw materials are converted into semi-finished products or finished products.
Essence: Direct production costs are reflected in accounting not by type of product, but by redistribution. The output of each processing unit is calculated separately. Kosv. expenses are distributed in proportion to the established bases. The products obtained in each processing stage are semi-finished products of our own production.
Therefore, a distinction is made between semi-finished and non-semi-finished versions of s/s calculus.
The semi-finished method allows you to take into account the costs of each processing stage and the movement of semi-finished products from workshop to workshop. Semi-finished products are included in agricultural products as a separate item, i.e. The cost of production of each processing stage consists of the costs of the processing stage and the cost of the resulting semi-finished products.
The non-semi-finished method takes into account exclusively the costs of each process.
Custom: used in individual and small-scale production of complex products (shipbuilding, mechanical engineering). An order is a document. issued order to carry out production. order.
Essence: The object of calculation with/with is each individual order. The unit cost of products is determined by dividing the cost of the order by the number of products in the order.
Process-based (simple): used in industries with a limited range of products and where there is no or little work in progress (in the mining industry, power plants, etc.).
Essence: Direct and indirect costs are taken into account according to cost items for the entire output of the state enterprise. The average unit of production is determined by dividing the sum of all costs for the reporting period by the quantity of GP produced in the period. If there is no work in progress at the end of the period, then the total amount of production. costs is the cost, otherwise costs are distributed between finished products and work in progress.
Regulatory: used. in manufacturing industries with mass and serial production of diverse and complex products (mechanical engineering, metalworking, clothing, footwear)
The norm is the minimum costs required to produce products of a given quality.
Standard - norm, character. estimated need in kind or value;
Standard costing is the amount of costs that an enterprise will spend per unit of output, taking into account norms and standards on an item-by-item basis.
Entity: Department. types of production costs are taken into account on a current basis.
standards provided for by standard calculations; keep separate records of actual deviations. costs from current standards, indicating the location of deviations, the causes and culprits of their formation; take into account changes made to current cost standards as a result of the implementation of organizational and technical measures, and determine the impact of these changes on agricultural products. Fact. s/s is calculated in one of the following ways:
· if the object of accounting is the department. types of products, then deviations from the norms and their changes are attributed to these types of products in a direct way. Fact. cost is determined by the formula:
Costs are factual. = Standard costs + Amount of deviations from norms + Amount of changes in norms.
· if the object of accounting is a group of homogeneous types of products, then fact. cost of each type is obtained by distributing deviations from norms and changes in norms in proportion to cost standards for the production of each type of product.
Types of deviations: deviation of costs of basic materials, deviation of direct labor costs, ODP. Each of the deviations can be caused by only two reasons: a change in the planned price of the resource and a change in the planned volume of resource consumption
It's no secret that the main motivation for staff in every company is decent remuneration for work. The responsibility of accounting staff falls on the importance of properly accounting for the remuneration of each employee of the enterprise. The following article will reveal the main aspects of such accounting, as well as the procedure for creating a special register - an account card.
Key Concepts
Let's consider the key concepts, the understanding of which is necessary when studying this article.
Personnel – the total number of full-time employees of the company.
Remuneration is the remuneration of company personnel for work performed. The amount of employees' wages is determined by their competence, qualifications, productivity, length of service, amount of work performed, degree of responsibility, complexity, tension and a number of other factors.
The totality of such remuneration includes the following components:
- Set salary;
- Incentive payments;
- Awards.
Salaries are calculated in the following forms:
- Time-based (its essence is that employees are paid based on the amount of time they work);
- Piecework (the essence of this form is that employees are paid for the amount of work actually performed by them).
Accounting for payroll calculations
To collect information and record wages in the system of accounts, there is a separate account 70 “Settlements with personnel for wages”. It is active-passive, that is, the balance at the end of the period can be reflected in both debit and credit. To calculate the balance of an active-liability account, you need to perform the following arithmetic operations:
- Sum up the initial balance and turnover separately for debit and separately for credit;
- Next, subtract the smaller part from the larger part;
- The result obtained is to write down the final balance in the part where the amount as a result of the first action turned out to be greater.
Accounting for this account is carried out in the following order:
- The debit records the process of paying employees, withholding taxes and other amounts, and depositing salaries;
- The loan takes into account the accrual of wages and disability benefits.
Account analytics is performed specifically for each employee of the company.
Payment of wages is carried out both in cash and by non-cash methods. In the first method, employees receive money from the company’s cash desk. In this case, a payroll sheet is drawn up for all employees, and each employee receives a payslip (a complete list of all accrued and withheld amounts relating to his personal earnings). In addition, the cashier creates an expense cash order for the entire amount of funds issued for payment. If the employee is unable to receive the money within a three-day period, it is deposited and returned to the bank account. Therefore, now, more and more often, companies are using another method of payment - non-cash, in which employees receive money on plastic cards. With this method, the accountant only needs to send a payment order and lists of employees to the bank using a computer program.
The procedure for forming a card
For the convenience of carrying out accounting functions and preparing reports, accounting employees who keep records of wages compile a variety of analytical registers:
- Back - balance sheet for the account;
- Settlement - pay slips;
- Journal - order and statement to it;
- Account card;
- Other registers.
Let's take a closer look at account card 70. This register is becoming increasingly popular among accounting employees; it allows you to track the following data:
- Account balance 70 at the beginning and end of the period;
- The date of each transaction;
- The primary document drawn up at the time of the transaction;
- Analytical data (structural unit, last name, first name, patronymic of the employee, etc.);
- Total turnover for the period;
- Account in correspondence;
- Transaction amount.
Let's give an example of a card for account 70 “Settlements with personnel for wages” in the table below:
To make work easier, it is more convenient to create an account card in special accounting programs, for example, 1C: Accounting. In such programs, this register is generated automatically, and the accountant can quickly study the information he needs.
This register - card for account 70 “Settlements with personnel for wages” helps the accountant to avoid accounting errors, to track all the facts of economic activity produced in the context of remuneration of an individual employee.
The table describes some of them. D23/K70 Payroll operation for employees performing routine repair work D08.3/K70 Write-off of costs for investments in non-current assets D08.4/K70 Accounting for the enterprise's own expenses associated with the purchase of fixed assets D29/K70 Cash accrued to employees involved in maintenance production and various types of farms D97/K70 Recognition of costs for the restoration of fixed assets as future expenses D44/K70 Transferred funds to employees who ensure the sale of products D91/K70 Accrued funds for the salaries of people involved in dismantling equipment D08.1/K70 Incurring costs for wages Account balance In most cases, the account balance is 70 credit and means the enterprise's debt to personnel.
Accounting 70 account. postings, credit and balance
Can passive accounts (70, 68, 69, etc.) have a debit balance? If not, then what should be done when recording the following situations: 1) An employee who has already been paid vacation pay is dismissed. 2) Vacation pay is paid, and in the next month the employee brings sick leave for this period. 3) This year, the basis for calculating average earnings for sick leave has changed, payments from the Social Insurance Fund have been recalculated since the beginning of the year, and an overpayment has appeared. This was reflected in the debit balance of account 70 for some employees.
4) If the personal income tax amount exceeds the limit, and the posting to Debit 70 Credit 68.01 is made for the full amount, then a balance will arise not only on account 70, but also on account 68.01. According to the Annotation on the application of the chart of accounts for accounting of financial and economic activities of organizations, approved.
by order of the Ministry of Finance of the Russian Federation dated October 3, 2000.
Account 70 in accounting: “settlements with employees for wages”
Settlements for uniform (special) clothing"), amounts of the cost of uniform (special) clothing are withheld 70 76 "Settlements with various debtors and creditors" (sub-account "Settlements for goods sold on credit"), amounts are withheld to repay the cost of goods sold on credit 70 76 “Settlements with various debtors and creditors” (separate sub-account) withholds amounts directed at the employee’s personal application for the payment of trade union dues, alimony, etc. 70 91 “Other income and expenses” withholds interest for the use of borrowed funds accrued, but not paid on time (due to the failure of recipients) amounts (deposited amounts): Debit Credit 70 “Settlements with personnel for wages” 76 “Settlements with various debtors and creditors” (sub-account “Settlements for deposited amounts”) Account balance 70 “Settlements with personnel for wages” credit.
Account 70 in accounting: settlements with personnel for wages
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Features of the balance sheet for account 70
Let's do the calculation: (30,000 – (1400 *2))* 13% = 3,536 rubles. The posting will take the following form: Dt 70 Kt 68 amount 3,536 rubles.
Withholding of alimony based on writs of execution The basis for withholding alimony are writs of execution, as well as a written statement from the employee about 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%. Alimony is collected from all types of income and remuneration, both from the main and part-time work, as well as from dividends. A posting is generated: Dt 70 Kt 76 – withheld from salary according to writs of execution in favor of the claimant. Compensation for material damage is based on acts and decisions of judicial authorities.
D70/K76.3). Analytical accounting for the account in question is maintained for each employee of the organization. Correspondence by debit 70 account “Settlements with employees for wages” interacts by debit with the following accounts:
- "Cash desk" (50);
- “Current accounts” (51);
- “Currency accounts” (52);
- “Special bank accounts” (55);
- “Calculations for taxes and fees” (68);
- “Calculations for social insurance and security” (69);
- “Settlements with accountable persons” (71);
- “Settlements with personnel for other operations” (73);
- “Settlements with various debtors and creditors” (76);
- “Intra-economic calculations” (79);
- “Shortages and losses from damage to valuables” (94).
Example of business transactions To better understand what transactions can be made using account 70, you should familiarize yourself with several examples.
Account 70 debit balance
The debit of the account reflects deductions from wages and their payment. The credit balance shows the balance of the company's wages owed to employees.
The scheme of account 70 is presented below in the figure: There are cases when an employee’s salary is paid for a full month, but accrued according to the timesheet for an incomplete month. For example, at the end of the month an employee took sick leave. In such cases, it is not the enterprise, but the employee who becomes the debtor.
The balance in such cases remains a credit balance with a minus sign. Postings to account 70 for payroll. A distinction is made between basic and additional wages.
Depending on the type of remuneration, accounting entries are generated.
Labor Code of the Russian Federation) or usual (Part 3 of Article 157 of the Labor Code of the Russian Federation); - when an employee is dismissed before the end of the working year for which he has already received annual paid leave, for unworked vacation days. Deductions for these days are not made if the employee is dismissed on the grounds indicated in paragraphs 1, 2, subparagraph “a”, paragraphs 3 and 4 of Article 81, paragraphs 1, 2, 5, 6 and 7 of Article 83 of the Labor Code of the Russian Federation.
The employer makes a decision on withholding no later than 1 month from the date of expiration of the period established for the return of the advance, repayment of debt or incorrectly calculated payments, and provided that the employee does not dispute the grounds and amounts of the withholding. At this time, a debit balance appears on account 70.
Account 70 loan balance
Settlements with personnel for wages” is intended for accounting for settlements with employees for wages. The account is balance sheet, synthetic, passive. Let's look at examples of operations and typical postings for account 70.
- 1 Account 70 in accounting
- 2 Postings to account 70 for payroll
- 3 Postings to account 70 for salary deductions
- 3.1 Personal income tax – personal income tax
- 3.2 Withholding of alimony under writs of execution
- 3.3 Compensation for material damage
- 3.4 Repayment of debt on accountable amounts
- 3.5 Advance
- 3.6 Payment of wages in kind
- 3.7 If it is impossible to pay wages on time
Account 70 in accounting The credit of the account reflects the accrual of wages to all categories of employees.
Account 70 debit balance
It shows the enterprise’s debt to employees for accrued wages (i.e., the total amount payable according to the payroll or payroll at the end of the month). The debit balance of account 70 may occur in the event, for example, of paying an unscheduled advance against future earnings or when paying excess amounts (in case of overpayment).
Accounting for additional wages for vacation is carried out on passive account 89 “Reserves for upcoming expenses and payments” subaccount 1 “Reserve for vacation”. Debit account 89/1 Credit Initial balance - amount of reserve for vacation Accrual of salary for vacation (Kit 70) Accrual of reserve for vacation Formation of a reserve for vacation by monthly inclusion in the cost of production of the planned amount of the reserve for vacation. D-operating accounts (D-t 88/5) *Balance at the end of the year - salary for vacation of those who did not use it.
The posting indicating “credit account 70” characterizes the entry of wages, vacation pay and social benefits. For the loan, account 70 corresponds with the accounts:
- accounting for production costs (section III of the chart of accounts);
- accounting of finished products and goods (44);
- money accounting (50);
- accounting for social insurance contributions (69) and accounts 76, 77, 79;
- financial result of the enterprise (90, 91, 96.97);
- capital (84).
A posting indicating account 70 in the credit will always mean the accrual of funds to the employee, be it wages or incentive payments.
Accounting for deposited amounts Funds not received by the employee from the enterprise's cash desk on time are transferred to storage. The accountant carries out account assignment Dt 70 Kt 76 (subaccount.
“Depositors”) indicating the deposited amount, after which the funds are transferred for safekeeping to the bank.
Account 70 “Settlements with personnel for remuneration” is used by legal entities to display information about settlements made with employees of the organization in terms of payment for their labor activities.
Account 70 in accounting is intended to summarize information about settlements made with personnel in terms of remuneration for their labor. Displayed here:
- Amounts of accrued and paid wages, vacation pay, bonuses, one-time payments
- Accrued social benefits (for example, for temporary disability)
- Dividends paid to founders who are employees from their participation in the capital of the organization.
- Withholding taxes and other amounts (for example, alimony according to a writ of execution).
Account 70 is passive. The debit displays the amounts actually issued or transferred to the cards, and the credit displays the accrual.
Something to keep in mind! According to current legislation, an organization must make payments to employees at least every six months.
If the employee has not received wages within 3 designated days (for example, due to absence, illness, vacation), the amount accrued for payment is deposited, and the money is transferred to the organization’s servicing bank. The deposit is displayed in the debit of account 70 (in correspondence with account 76).
Analytical monitoring
The Labor Code clearly regulates the procedure for settlements with personnel regarding payment for their labor, therefore, for an in-depth analysis of mutual settlements, movements in account 70 are displayed separately for each employee.
Something to keep in mind! SALT account 70 for employees of the organization must coincide with payslips; the amounts of transferred personal income tax are verified against the certificate of settlements with the Federal Tax Service.
Regulatory regulation
The use of account 70 to provide information on mutual settlements with employees of the organization in terms of wages, vacation pay, sick leave and other payments is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, the Labor Code of the Russian Federation and other legislative documents.
Account 70 - common entries in accounting
- Payroll
Dt20 Kt70 - employees of the main production
Dt23 Kt70 - auxiliary production
Dt26 Kt70 - employee of the administrative department
- Calculation of social benefits (for example, sick leave)
- Dividends accrued to the founders-employees of the company
- Accrual of vacation payments from the created vacation reserve
- Issuance of wages and other payments
Dt70 Kt50 - from the cash register according to payroll statements
Dt70 Kt51,52,55 - amounts transferred through current accounts
Attention! According to the law, payments to cards can be made both according to the general register of the salary project in a particular bank, and to cards of any other bank at the request of the employee.
- Holds
Dt70 Kt68 - personal income tax withheld, transferred to the Federal Tax Service by the tax agent organization
Dt70 Kt76 - withholding of alimony
- Depositing funds
ACCOUNT 70 “PAYMENTS WITH STAFF FOR WAGES”
Account 70 “Settlements with personnel for remuneration” reflects information on settlements with employees of the organization for remuneration, including for all types of remuneration, bonuses, benefits and other payments, as well as for the payment of income on shares and other securities of this organizations (Table 2.6).
The following subaccounts can be opened to account 70 “Settlements with personnel for wages”:
- 70-01 “Accrued wages”;
- 70-03 “Wage debts”;
- 70-04 “Wages to be issued”;
- 70-05 “Salaries transferred to deposits”;
- 70-06 “Rounding amounts for wages.”
Subaccount 70-01 “Accrued wages” reflects information on the calculation of wages to employees and other accruals.
The credit of subaccount 70-01 “Accrued wages” reflects the following amounts:
- accrued wages and payments provided for by the collective agreement - in correspondence with the accounts of production costs (sales expenses);
- accrued wages and payments not provided for by the collective agreement - in correspondence with the accounts of the relevant sources of financing;
- accrued wages to employees during paid vacations falling on the current reporting period - in correspondence with cost accounts falling on the following reporting periods - in correspondence with account 97 “Deferred expenses”, subaccount 01 “Amounts of deferred vacations” ;
- accrued payment to employees during paid vacations, if the organization’s accounting policy provides for the creation of a reserve for the upcoming payment of employee vacations - in correspondence with account 96 “Reserves for future expenses”;
- accrued benefits for temporary disability, social benefits and other payments from the Social Insurance Fund - in correspondence with account 69 “Calculations for social insurance and security”, subaccount “Calculations for social insurance”; at the same time, the amounts of accrued benefits exceeding the amounts established by law are reflected in correspondence with cost accounts;
- accrued payments to employees from social insurance funds against industrial accidents and occupational diseases - in correspondence with account 69 “Calculations for social insurance and security”, subaccount “Calculations for compulsory social insurance against industrial accidents and occupational diseases”;
- accrued payments to employees made at the expense of trade union organizations - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with trade union organizations”.
Exchange differences on wages in foreign currency associated with changes in the exchange rate of foreign currency in relation to the currency of the Russian Federation are reflected in subaccount 70-01 “Accrued wages” in correspondence with account 91 “Other income and expenses”, subaccount 01 “Other income " and 02 "Other expenses".
The debit of subaccount 70-01 “Accrued wages” reflects the following amounts:
- withheld personal income tax - in correspondence with subaccount 68 “Calculations for personal income tax”;
- withheld from accountable persons for accountable amounts not returned to the cash desk on time - in correspondence with account 71 “Settlements with accountable persons”;
- withheld from employees to repay the debt on the issued loan and interest - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements on loans provided”;
- withheld to compensate for material damage caused by an employee of the organization - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements for compensation for material damage”;
- withheld from employees to compensate for damage due to technological violations - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements for technological violations”;
- withheld from employees to pay off debts (in whole or in part) for vouchers to sanatorium and resort services - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements for vouchers”;
- deducted from employees under writs of execution - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements under writs of execution”;
- deducted from employees for housing and utilities - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with residents for housing and utilities”;
- trade union dues withheld from employees - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with trade union organizations”;
- insurance premiums for voluntary insurance withheld from wages for transfer to the insurance organization
tions - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements for property
and personal insurance."
Amounts of wages minus all deductions can be written off to other relevant subaccounts of account 70 “Settlements with personnel for wages”.
Subaccount 70-03 “Wage debts” reflects the amount of wage arrears both to the enterprise’s employees and the debts of the enterprise’s employees.
Amounts of debt generated when calculating wages are reflected in the credit of subaccount 70-03 “Wage debts” in correspondence with the debit of subaccount 70-01 “Accrued wages”. Next month, these amounts are added to the salary distribution by reverse entry.
The employee's debt to the organization is reflected in the debit of subaccount 70-03 “Wage debts”. Repayment of debt by an employee by depositing funds into the enterprise’s cash desk is reflected in the credit of subaccount 70-03 “Wage debts” and the debit of account 50 “Cash”. After the expiration of the limitation period, the outstanding debt is written off to the financial result of the organization in correspondence with the debit of subaccount 91-02 “Other expenses”.
Subaccount 70-04 “Wages for payment” reflects information about the amounts of wages intended for payment to the organization’s employees through its cash desk. The amount of wages to be paid is reflected in the credit of subaccount 70-04 “Wages to be paid” and the debit of subaccount 70-01 “Accrued wages”. The issuance of amounts to employees of the organization is reflected in the debit of subaccount 70-04 “Wages to be issued” in correspondence with subaccount 50-01 “Cash of the organization.”
Amounts of wages not received by employees within the period established for the issuance of wages (deposited wages) are reflected in the debit of subaccount 70-04 “Wages for issue” in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “ Calculations for deposited wages."
Analytical accounting for subaccount 70-04 “Wages to be paid” is maintained for each employee of the organization (personnel number).
Subaccount 70-05 “Wages transferred to deposits” reflects information about the amounts of wages intended to be transferred to the employee’s bank account.
The amount of wages to be transferred to employees’ bank accounts is reflected in the credit of subaccount 70-05 “Wages transferred to deposits” and the debit of subaccount 70-01 “Accrued wages”.
The transfer of funds from the organization's account to the accounts of employees is reflected in the debit of subaccount 70-05 “Wages transferred to deposits” and the credit of account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with other debtors and creditors” or account 51 “ Current accounts." Analytical accounting for subaccount 70-05 “Salaries transferred to deposits” is maintained for each employee of the organization (personnel number).
Subaccount 70-06 “Rounding amounts for wages” reflects the rounding amounts if the enterprise decides to issue wages to employees in whole monetary units.
Account 70 “Settlements with personnel for wages” corresponds with the accounts
Table 2.6
By debit |
By loan |
08 Investments in non-current assets |
|
51 Current accounts |
20 Main production |
52 Currency accounts |
23 Auxiliary productions |
55 Special bank accounts |
25 General production expenses |
68 Calculations for taxes and fees |
26 General expenses |
28 Defects in production |
|
71 Settlements with accountable persons |
29 Service industries and farms |
73 Settlements with personnel for other operations |
44 Selling expenses |
69 Calculations for social insurance and security |
|
76 Settlements with various debtors and creditors |
|
94 Shortages and losses from damage to valuables |
79 On-farm settlements |
84 Retained earnings (uncovered loss) |
|
91 Other income and expenses |
|
96 Reserves for future expenses |
|
97 Deferred expenses |
|
99 Profit and loss |
Thus, payroll is reflected in the credit of account 70, and the account corresponding to it is selected based on
from the department in which the employee is employed, to whom wages are paid, and what work he performs. If you accrue wages to employees of the main (auxiliary, servicing) production, then the following entry is made: Debit 20 (23, 29) Credit 70 - wages were accrued to the employee of the main (auxiliary, servicing) production.
If you pay wages to employees serving the main (auxiliary) production, or to management personnel, reflect this as follows:
Debit 25 (26) Credit 70 - wages accrued to employees involved in the process of servicing the main or auxiliary production (managerial personnel).
Accrue wages to employees involved in the sale of finished products or goods in correspondence with account 44 “Sales expenses”:
Debit 44 Credit 70 - wages accrued to employees involved in the process of selling products (goods).
If an organization carries out construction for its own needs or reconstructs fixed assets, then reflect the wages of employees engaged in these works in correspondence with account 08 “Investments in non-current assets”:
Debit 08 Credit 70 - wages accrued to employees involved in the construction (reconstruction) of fixed assets.
Example 2.13.
Let's look at an example. Volt LLC is engaged in production and constructs the warehouse building on its own. In January 2012, wages were accrued to the organization’s employees in the amount of 270,000 rubles, including employees:
main production - 180,000 rubles; management personnel - 50,000 rubles; finished product sales department - 18,000 rubles; employees involved in warehouse construction - 22,000 rubles.
In this case, the accountant of Volt LLC must make the following entries:
Debit 20 Credit 70 - 180,000 rub. - wages accrued to workers of the main production;
Debit 26 Credit 70 - 50,000 rub. - wages accrued to management personnel;
Debit 44 Credit 70 -18,000 rub. - wages were accrued to employees of the finished product sales department;
Debit 08 Credit 70 - 22,000 rub. - wages were accrued to employees involved in the construction of the warehouse.
If the organization receives other income and this requires labor costs, then accrue wages to the employees who ensure the receipt of this income by posting:
Debit 91-2 Credit 70 - wages accrued to employees engaged in the process of receiving other income.
If an organization creates reserves for upcoming expenses for the performance of certain works, then pay wages to employees involved in their implementation, also at the expense of the created reserve:
Debit 96 Credit 70 - wages to employees were accrued from the previously created reserve.
If the organization’s employees perform work, the costs of which are taken into account as part of deferred expenses (for example, the introduction of a new type of product into production), then reflect their wages as follows:
Debit 97 Credit 70 - wages accrued to employees engaged in work, the costs of which are taken into account in future expenses.
If the organization suffered losses as a result of emergency events (fire, flood, etc.), then wages to employees liquidating the consequences of such events are included in other expenses:
Debit 91-2 Credit 70 - wages accrued to employees involved in eliminating the consequences of emergency events.
In some cases, the organization must pay employees certain amounts for unworked time. Such payments, in particular, include vacation pay and temporary disability benefits. In this case, vacation pay is calculated based on the employee’s average earnings. The procedure for calculating average earnings was approved by Decree of the Government of Russia dated December 24, 2007 No. 922.
Vacation pay is credited to the same accounts as employee salaries. In this case, the organization has the right to create a cash reserve to pay for vacations. In this case, vacation pay is accrued from the previously created reserve:
Debit 96 Credit 70 - vacation pay was accrued to the organization’s employees at the expense of the previously created reserve.
Benefits for temporary disability starting from the third day are paid from the funds of the Social Insurance Fund of Russia. When calculating such benefits, make an entry in your accounting:
Debit 69 Credit 70 - temporary disability benefits have been accrued at the expense of the Federal Social Insurance Fund of the Russian Federation.
Account 70 also reflects the accrual of dividends to employees who are shareholders (participants) of the organization. In this case, reflect the accrual of dividends to employees by posting:
Debit 84 Credit 70 - dividends accrued to the organization's employees.
Reflect the amount of personal income tax withheld from the employee’s salary by posting:
Debit 70 Credit 68 subaccount “Calculations for personal income tax” - personal income tax is withheld from employee wages.
Example 2.14.
Let's look at an example. An employee of the production department of Volt LLC received a salary in the amount of 25,000 rubles for a month of work. Personal income tax in the amount of 3,250 rubles was withheld from it. In total, 21,750 rubles are due for payment. In this case, the accountant of Volt LLC must make the following entries:
Debit 20 Credit 70 - 25,000 rub. - wages have been accrued to the employee of the organization;
Debit 70 Credit 68 subaccount “Calculations for personal income tax” - 3250 rubles. - personal income tax is withheld from the employee’s salary;
Debit 70 Credit 50 - 21,750 rub. - wages were paid to the employee from the organization’s cash desk.
To carry out current activities, a company can issue cash to its employees on account. If an employee has unspent funds that were previously issued to him on account, then he must return them to the organization’s cash desk. If, before the deadline for submitting the advance report, the amounts issued to the employee are offset against wages, make the entry: Debit 70 Credit 71 - accountable amounts issued to the employee are offset against wages.
If an employee unreasonably spent or did not return the accountable amount on time, then this amount should be withheld from his salary:
Debit 70 Credit 94 - unreturned (unreasonably spent) funds previously issued on account are withheld from the employee’s wages.
Often, during the inventory process, a shortage of inventories is discovered. If the amount of the shortage exceeds the norms of natural loss, then it is reimbursed at the expense of the financially responsible persons. The amount of the shortfall may be deducted from the employees' wages. For the amount to be withheld, make the following entry:
Debit 70 Credit 73 - amounts of material damage were withheld from the employee’s salary.
Example 2.15.
Let's look at an example. Alt LLC carried out an inventory of inventory in the warehouse. According to accounting data, there are 120 kg of sweets in the warehouse for a total amount of 11,400 rubles. As a result of the inventory, a shortage of 150 rubles was identified. The shortage within the limits of natural loss norms amounted to 50 rubles, above the norms - 100 rubles.
According to the manager’s order, storekeeper G.L. was held financially liable. Tubolev, with whom the organization has concluded an agreement on full financial liability. Tubolev admitted the claim. It was decided to withhold the amount of the shortfall from his salary. As a result, the accountant of Alt LLC must make the following entries:
Debit 94 Credit 41 - 150 rub. - the amount of the shortfall is written off;
Debit 44 Credit 94 - 50 rub. - the shortage within the limits of natural loss is taken into account in sales expenses;
Debit 73-2 Credit 94 - 100 rub. - the amount of shortfall in excess of the norms of natural loss is attributed to the guilty person;
Debit 70 Credit 73-2 - 100 rub. - the amount of the shortage is withheld from the storekeeper’s salary.
Please note that if a company enters into insurance contracts for its employees, the amounts of payments under such contracts may be deducted from their wages:
Debit 70 Credit 76-1 - personal insurance payments are withheld from the employee’s salary.
The organization must withhold from the wages of employees the amounts for writs of execution received by the organization (for example, alimony):
Debit 70 Credit 76 - funds were withheld from employees' wages based on writs of execution.
We emphasize that wages to employees can be paid both in cash and in kind. The legislation provides for the payment of wages twice a month; if a company does not comply with this condition, it can be fined in the amount of 30,000 to 50,000 rubles, and officials in the amount of up to 5,000 rubles. In this case, accrued funds due to employees on account of wages can be:
- pay in cash from the cash register;
- transfer non-cash to employees' accounts from a ruble or special bank account of your organization.
For the amount of wages paid, make an entry: Debit 70 Credit 50 (51, 55) - wages paid to the organization's employees from the cash desk (transferred from a current or special bank account).
In addition to wages, an employee may be accrued bonuses, benefits and income (dividends) from participation in the authorized capital of the organization. When paying these amounts, make the same entry:
Debit 70 Credit 50 (51, 55) - bonuses (benefits, income (dividends) from participation in the authorized capital of the organization) paid from the cash desk (transferred from a current or special bank account) to the employees of the organization.
The organization can also provide employees with the following wages: products of its own production, goods or other valuables. When issuing products of your own production (goods) to employees, make an entry in the accounting records:
Debit 70 Credit 90-1 - self-produced products (goods) were issued to employees of the organization to pay off arrears of wages.
If the products were issued to employees at preferential prices (which are more than 20% less than the prices at which the organization usually sells such products to third-party buyers), then under certain conditions the tax inspector can check the correctness of the prices for tax purposes.
Example 2.16.
Let's consider an example: Alt LLC paid employees wages in the amount of 29,500 rubles. Due to insufficient funds, it was decided to provide employees with products of the organization’s own production to pay off wage arrears. Usually Alt LLC sells the same batch of products to third-party buyers at the same price - 29,500 rubles. (including VAT). The cost of a batch of products is 22,000 rubles. Finished products are subject to VAT at a rate of 18%. As a result, the accountant of Alt LLC must make the following entries:
Debit 70 Credit 90-1 - 29,500 rub. - wages owed to employees have been written off;
Debit 90-2 Credit 43 - 22,000 rub. - the cost of finished products transferred to employees to pay off wage arrears is written off;
Debit 90-3 Credit 68 subaccount “Calculations for VAT” - 4500 rubles. (RUB 29,500 x 18%: 118%) - VAT added.
At the end of the month, the accountant will make the following entry:
Debit 90-9 Credit 99 - 3000 rub. (29,500 - 22,000 - 4500) - profit from the sale of products is reflected.
If, by paying wages in kind, a company cannot withhold income tax, it must report this to the tax office. Such a message should be sent within one month from the moment the company became obligated to withhold and pay tax.
When issuing other property (fixed assets, materials, etc.) to employees as wages, make an entry in the accounting records: Debit 70 Credit 91-1 - material assets were issued to employees of the organization to pay off arrears of wages.
Example 2.17.
Let's analyze an example. Alt LLC paid employees wages in the amount of 29,500 rubles. Due to insufficient funds, it was decided to provide workers with materials intended for use in production to pay off wage arrears. The market price of materials is 29,500 rubles. (including VAT), cost - 24,000 rubles. In this case, the accountant of Alt LLC must make the following entries:
Debit 70 Credit 91-1 - 29,500 rub. - wages owed to employees have been written off;
Debit 91-2 Credit 10 - 24,000 rub. - the cost of materials transferred to employees to pay off wage arrears is written off;
Debit 91-2 Credit 68 subaccount “Calculations for VAT” - 4500 rubles. (RUB 29,500 x 18%: 118%) - VAT added.
At the end of the month, the accountant will make the following entry:
Debit 91-9 Credit 99 - 1000 rub. (29,500 - 24,000 - 4500) - profit from the sale of materials is reflected.
Note that after receiving funds from the bank to pay wages, the organization, as a rule, is obliged to issue it to employees within three days. If the employee does not show up to receive wages, the amount of unpaid funds is deposited. Reflect the amount of deposited wages by posting:
Debit 70 Credit 76 subaccount “Calculations for deposited amounts” - wages not received by employees are deposited.
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- Notifications about opening an account are no longer submitted to the tax office. Notifications about opening an account to the tax office.
- What shows and how to calculate Account 70 in the accounting
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