Accounting for payroll tax calculations will begin to be considered with such a concept as wages.
According to Article 129 of the Labor Code of the Russian Federation , the term salary is interpreted as:
- remuneration for the work performed;
- compensation payments;
- incentive payments.
All of the above payments depend not only on the qualifications of the employee, but also on the complexity, quality and conditions of the work duties performed by him.
For the accounting of remuneration, not only unified documents are used, but also forms of documents that are developed by the enterprise itself, fixed in the accounting policy.
The primary documents on the accounting of the movement of personnel include a report card, payroll, personal accounts of employees, payslips, applications and orders for employment and dismissal, orders for leave, orders for incentive payments, sick leave and other documents affecting the amount of remuneration.
For each unit of working personnel in the accounting department, a card is created in the form of T-2 and a personal account is opened in the form of T-54 and T-54a. Throughout the year, information about various accruals and payments, deductions and deductions is entered on it, so that, if necessary, it is possible to calculate the average daily earnings for calculating vacation pay, sick leave, etc. Data in personal cards are entered on the basis of a timesheet, which is kept in form No. T-13, disability sheets, work orders, orders for deductions or premium accruals, etc.
Remuneration accounting consists of certain steps, such as:
- accrual of remuneration;
- calculation of taxes and contributions;
- issue of remuneration to employees;
- transfer of income tax and contributions;
- deductions from accrued remuneration;
- depositing of unpaid remuneration.
Payroll calculations: account 70
Accounting transactions for the calculation of wages are carried out on a passive account 70. It shows all the obligations of the company to reward employees. This account accumulates all payroll accruals. Accruals are recorded on the credit of this account, various deductions, income tax and payments are recorded on the debit.
The expenses of the enterprise for the payment of remuneration to employees are reflected in the debit of the account 20, 23, 25, 26…44.
The transaction when calculating remuneration is made up for the total monthly amount, or separately for each surname, when conducting analytical accounting for the 70th account.
Accounting transactions for the calculation of wages are as follows
|Debit||Credit||Name of the business transaction|
|Account 20 “Mainproduction”||Account 70 “Payroll settlements with personnel”||Remuneration accrued to employees of the main production|
|Account 23 “Auxiliary production”||Account 70 “Payroll settlements with personnel”||Accrued remuneration to employees of auxiliary production|
|Account 25 “General production expenses” (account 26 “General economic expenses”)||Account 70 “Payroll settlements with personnel”||Remuneration has been accrued to the staff of the administrative sector|
|Account 29 “Servicing production and economy”||Account 70 “Payroll settlements with personnel”||Remuneration has been accrued to the personnel of the maintenance production and economy|
|Account 44 “Selling expenses”||Account 70 “Payroll settlements with personnel”||Accrued remuneration to the staff of trade organizations|
Transactions for accrual of remuneration are created by the deadline day of the month for which the remuneration is calculated.
The accountant must be charged insurance premiums for remuneration, which are paid to the funds of the Russian Federation. The employer pays insurance premiums at the expense of the organization’s funds, until the fifteenth day, in the month that follows the month of calculation of contributions.
The amount of monthly contributions is 30.2 percent and is divided into:
- for pension insurance and is 22 percent;
- for compulsory medical insurance – 5.1 percent;
- for compulsory social insurance in case of illness and in connection with maternity – 2.9 percent;
- insurance against occupational injuries and occupational diseases from 0.2 percent to 8.5 percent, depending on the type of main activity.
The 70th account is not used in the transactions for calculating contributions, since contributions are not deducted from remuneration and, accordingly, are not credited to staff.
It is advisable to keep accounting records of insurance premiums separately for each fund. The actual calculated figures for insurance premiums are recorded by debit of accounts 20, 23, 25…, 29, 44 and the credit of account 69, which discloses to us data on payments and accruals of all types of insurance. The above account is divided into subaccounts:
- 69.1 – information on social insurance contributions;
- 69.2 – information on pension insurance contributions;
- 69.3 – information on health insurance contributions.
The subaccount 69.1, in turn, is detailed for additional accounts:
- 69.1.1 – insurance in case of illness and in connection with pregnancy and childbirth•
- 69.1.2 – insurance against injuries and occupational diseases.
The above grouping by accounts allows you to track all movements of funds for each of the funds.
The assessment of contributions is carried out by transactions:
Debit 20, 23, 25…, 29, 44 Credit 69 subaccount of contributions – assessed contributions.
After the remuneration has been accrued, it is necessary to calculate income tax. An organization that pays remuneration for work to an individual is obliged to calculate, withhold and transfer personal income tax to the budget from accrued income. Such income includes salary, compensation, bonus, various allowances.
From all of the above income, minus deductions established by Articles 218, 219, 220 of the Tax Code of the Russian Federation, a tax of 13 percent for residents and 30 percent for non-residents of the Russian Federation is withheld monthly.
The tax is taken into account on account 68, sub-account 1 “Personal income tax”. On the credit of the account, the accrual and deduction of personal income tax are recorded, and on the debit – payment to the budget.
In the accounting registers, the fact of calculating personal income tax is reflected by posting:
Dt 70 Ct 68 – income tax is accrued, withheld.
Accounting for payroll and tax calculations, except for operations on accrual of amounts, must contain accounting entries for payroll calculations on hand.
Remuneration can be paid in cash from the company’s cash desk or it can be made without cash, by transferring funds from the company’s current account to the employees’ current account opened in the bank. Remuneration is recommended to be paid twice a month. This moment should be registered in the NPA of the enterprise.
Thus, the 70th account works with the 50th “Cash Register” account, or with the 51st “Settlement Account” account.
Taxes and other contributions from wages in accounting
The actual transfer of remuneration in the accounting registers is recorded by the following transactions:
Dt 70 Ct 50 – remuneration paid to the employee from the cash register;
Dt 70 Ct 51 – the employee’s remuneration has been transferred to a bank card.
After payment of remuneration, the organization is obliged to pay income tax and contributions to the budget.
Payment of income tax, according to paragraph 6 of Article 226 of the Tax Code of the Russian Federation, is made on the subsequent date after the payment of income to the employee. With sick leave and vacation payments, income tax is paid until the deadline of the month in which these payments were made.
Assessed contributions, according to paragraph 3 of Article 431 of the Tax Code of the Russian Federation, are transferred up to and including the fifteenth day of the following month.
Payment of contributions and personal income tax, which is carried out from the settlement account 51, the company repays the debt to the tax inspectorate and insurance funds. When transferring income tax and insurance premiums, transactions are made:
DEBIT 68 CREDIT 51 – income tax paid;
DEBIT 69 corresponding subaccount CREDIT 51 – payment of insurance premiums.
In addition to the personal income tax, deductions from salaries can also be considered:
- Deductions on writ of execution;
- Deductions for compensation to the employer for damage;
- Deductions at the request of the employee;
- Deduction of sub-reported and unconfirmed expenses.
The above deductions, according to paragraph 1 of Article 210 of the Tax Code of the Russian Federation and paragraph 1 of Article 99 of the Law “On Enforcement Proceedings” dated 02.10.2007 No. 229-FZ, can be made only after withholding income tax.
The amount of accrued remuneration is usually reduced by the amount of accrued deductions and is recorded by debit of the 70th account.
The credit account in the transactions for deductions from accrued remuneration varies depending on where this or that deduction is transferred.
Accrual and withholding of payments is made by transactions on the last day of the month for which the remuneration is accrued.
Deductions are recorded by the following transactions
|Name of the business operation:||Debit||Credit|
|Withheld from the employee’s remuneration the amount of the execution sheets||70||76|
|Union dues deducted from employee’s salary||70||76|
|The amount issued in the sub-report and unconfirmed by expenses was withheld from the remuneration||70||94|
|Withheld from the employee’s remuneration the payment for the form of the work book||70||73|
The term of payment of wages to employees is regulated by an employment contract.
Depositing in accounting
If, within the prescribed period, the employee, for one reason or another, could not receive the amount of wages accrued for issuance, his remuneration is deposited. In other words, the accounting department returns the unpaid amounts of monetary remuneration to the bank account, or places the amount of funds in the cash register of the organization for future payments.
The organization keeps the salary not received in a timely manner for 3 years, taking into account it as part of the 76th account “Settlements with debtors, creditors”, sub-account 4 “Settlements on deposited amounts”.
If the employee does not claim the salary that has not been received for three years, the amount of the deposit after the expiration of the above period is subject to write-off.
Transactions on deposited amounts may be as follows:
|Name of the business operation||Debit||Credit|
|Deposited amounts of money||70||76-4|
|Deposited funds have been paid to the employee||76-4||50-1|
|Return of deposited funds to the bank||51||50|
|Recognition of deposited funds as other income||76-4||91-1|
Payroll tax calculation is a very responsible and complex area in accounting. In order to reflect all accounting calculations in the registers, to calculate and withhold the necessary taxes, it is important to take into account the requirements of labor, civil and tax legislation.