What is the accounting treatment of employee travel expenses?

The company organizes employees to travel for free, which can be included in the management fee-welfare fee accounting. How to keep accounts of travel expenses in practice?

How to calculate employee travel expenses?

Accrual:

Borrow: management fee-welfare fee

Loan: wages payable to employees.

When paying:

Debit: payable to employees.

Loan: bank deposit/cash on hand.

Management expenses refer to the expenses incurred by the administrative department of an enterprise for organizing and managing production and business activities. For example, company funds, trade union funds, directors' dues, consulting fees, legal fees, business entertainment expenses, office expenses, post and telecommunications expenses, and salary and welfare expenses of managers are all included in the management expenses. At the end of the period, the management expenses incurred by the borrower's registered enterprise shall be transferred to the "profit of this year" account by the lender, and there is no balance in this account after the transfer.

Tax-related treatment of tourism expenses

1. According to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Deduction of Wages and Salaries and Employee Welfare Expenses (Guo [2009] No.3), the employee welfare expenses that can be deducted before enterprise income tax do not include employee travel expenses.

2. According to the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China, the forms of personal income include cash, physical objects, securities and other forms of economic benefits. It is "other forms of economic benefits" for the company to let employees travel for free, and personal income tax should be paid according to the income from wages and salaries.