Accounting for payroll costs does not inherently differ in the case of both small enterprises and large firms. In order to summarize information on payroll calculations, account 70 is used, which is active-passive, therefore it can have both debit and credit balances.
In accounting, it is customary to use both synthetic and analytical accounting for payroll calculations. Let's look at both of these types.
The first type, in fact, is based on generalized information about the types of property, business transactions and liabilities maintained on special synthetic accounts created for this. Analytical accounting is a type of accounting maintained in personal accounts and other analytical accounting accounts, which grouped data on property, business transactions and liabilities within each of the synthetic accounts. The organization of both types of accounting is carried out in such a way that their indicators can control each other, and ultimately they must coincide, therefore, they should be recorded in parallel: on analytical accounts, records are made based on the same documents as records on synthetic accounts, but the details are noticeably greater.
Payroll accounting is performed using a special synthetic account 70, which takes into account all types of payments due to the employee:
- Salary. It is carried out in correspondence with accounts where production costs and other sources are taken into account. In this account, postings are made out in the amount of the basic salary and addition to it.
- Payment of benefits. This is done in correspondence with an account where settlements with extra-budgetary funds are taken into account.
- Payment of vacation pay and remuneration due for length of service.
Accounting for payroll calculations is carried out depending on which system is installed at a particular enterprise. The type of payment should be fixed in collective and labor contracts and others. As a basis for payroll may serve:
- The staffing table, which is approved by the director, is agreed with the trade union committee, if any. It contains a list of structured units, as well as positions, information on the number of staff units, allowances, official salaries, as well as on the monthly salary fund .
- Time sheet, which reflects the amount of time used by each employee to work. Compilation of this is done in one copy, and payroll is carried out on its basis.
- Regulation on remuneration. It must necessarily spell out forms of payment in the amount of material incentives used at the enterprise, cases of payment of material assistance, allowances and other things.
- Regulation on bonuses, which reflects the sources and types of payment of bonuses, which are systematic in nature: bonuses are carried out at the expense of net profit. This option is quite convenient.
The synthetic accounting of payroll calculations is implemented in exactly the same way, regardless of the method of its implementation.
By type of payment, it is customary to distinguish between primary and secondary. The main one is the one that is accrued to the employee for all the time worked, in this case, the basis is personnel orders or staffing. Additional salary consists of payments for time worked, which is provided for by labor legislation, or on the initiative of the company's management.
Now you have an idea of what accounting for payroll accounting is.