What does the employee compensation system include?

Employee compensation refers to various forms of remuneration and other related expenditures given by enterprises for the services provided by employees. The term "employee" here is relatively broad. It includes three categories of personnel: first, all personnel who have entered into a labor contract with the enterprise, including full-time, part-time and temporary employees; second, corporate governance and management personnel who have not entered into a labor contract with the enterprise but are formally appointed by the enterprise, such as board members , members of the board of supervisors, etc.; third, persons who, under the planning and control of the enterprise, have not concluded a labor contract with the enterprise or have not been formally appointed by it but provide services similar to those of employees.

Employee remuneration includes:

(1) Employee wages, bonuses, allowances and subsidies;

(2) Employee welfare fees;

(3) Social insurance premiums such as medical insurance premiums, pension insurance premiums, unemployment insurance premiums, work-related injury insurance premiums and maternity insurance premiums;

(4) Housing provident fund;

(5 ) Union funds and employee education funds;

(6) Non-monetary benefits;

(7) Compensation for terminating the labor relationship with employees;

(8) Other expenses related to obtaining services provided by employees.

1. This account accounts for the various salaries payable to employees by enterprises in accordance with relevant regulations.

Employee incentives and welfare funds withdrawn from net profits by foreign-invested enterprises in accordance with regulations are also accounted for in this account.

2. This subject should be based on "salaries", "employee benefits", "social insurance premiums", "housing provident fund", "trade union funds", "employee education funds", "compensation for termination of employee labor relations" ” and other payable employee compensation items for detailed accounting.

3. Main accounting treatment of employee compensation payable

(1) The enterprise pays wages, bonuses, allowances, etc. to employees in accordance with relevant regulations, debiting this account and crediting "Bank" Accounts such as "Deposit" and "Cash".

For various amounts deducted by the enterprise from employee salaries payable (such as medical expenses for family members, personal income tax, etc.), this account will be debited and "other receivables" and "tax payable" will be credited. Fees--Personal income tax payable" and other subjects.

When an enterprise pays employee welfare fees to employees, this account is debited and the "bank deposit" and "cash" accounts are credited. The enterprise pays labor union funds and employee education funds for labor union operations and employee training, debiting this account and crediting "bank deposits" and other accounts. The enterprise pays social insurance premiums and housing provident funds in accordance with relevant national regulations, debiting this account and crediting the "bank deposit" account. The compensation provided by the enterprise to employees due to the termination of the labor relationship with employees will be debited to this account and credited to "bank deposits", "cash" and other accounts.

(2) The enterprise shall handle the employee salaries incurred as follows according to the beneficiaries of the services provided by employees: employee salaries of production department personnel shall be debited to "production cost", "manufacturing expenses", The "labor cost" account is credited to this account. Fenghuo Liepin's senior consultant believes that the employee compensation of management department personnel should be debited to the "management expenses" account and credited to this account. The employee compensation of sales staff is debited to the "Sales Expenses" account and credited to this account. Employee salaries that should be borne by construction in progress and R&D expenditures are debited to the "construction in progress" and "R&D expenditures" accounts and credited to this account.

Compensation given for terminating the labor relationship with employees is debited to the "administrative expenses" account and credited to this account. For employee incentives and welfare funds withdrawn from net profits by foreign-invested enterprises in accordance with regulations, the "Profit Distribution-Extracted Employee Incentives and Welfare Funds" account will be debited and this account will be credited.

4. The ending credit balance of this account reflects the balance of the enterprise’s employee compensation payable.

As long as you pay a small amount of union funds every year, you can deduct all of them from income tax.

When raising your salary every month, you should simultaneously add 14% of welfare fees, 2.5% of education funds, and 2% of your income tax. Union funds are withdrawn together

So, when an employee incurs education expenses, they are directly listed in: Employee compensation payable-employee education funds, and there is no need to enter the expenses again.

Which subject should be used to pay the appraisal fee for applying for the professional guidance examination?

1: When withdrawing: Borrow: Management expenses-staff education funds When employees come to reimburse: Borrow: Staff salaries payable-staff education funds

Debit: Staff salaries payable-staff education funds Loan: Bank or cash

2: When withdrawing: Debit: Management expenses - employee education funds

Loan: Employees' salaries payable, When employees reimburse: Debit: Employees' salaries payable Loan: Cash

Employee compensation includes all monetary compensation and non-monetary benefits provided by the enterprise to employees during their employment and after their resignation. Benefits provided to employees’ spouses, children or other dependents are also employee benefits.

Share-based payments to employees regulated by the "Accounting Standards for Business Enterprises No. 11 - Share-based Payment" are also employee remuneration.

For the plan to terminate the labor relationship with employees that exists on the first implementation date and meets the estimated liability recognition conditions of "Accounting Standards for Business Enterprises No. 9 - Employee Compensation", the compensation due to the termination of the labor relationship with employees should be recognized liabilities incurred to compensate and adjust retained earnings.