How to record the travel expenses of employees organized by the unit?

how to account for the travel expenses of employees organized by the company

Accounting:

Borrowing: management expenses-welfare expenses

Lending: salary payable to employees-welfare expenses

Lending: bank deposit

Taxation:

1. Personal income tax:

Legal provisions: According to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Personal Income Tax Policies for Enterprises to Offer Personal Rewards to Marketers by Free Travel (Caishui [24] No.11),

In accordance with the relevant provisions of China's current personal income tax laws and regulations, enterprises and units organize tourism activities in the name of training courses, seminars and work visits for people with outstanding marketing performance in commodity marketing activities. Marketing performance rewards (including physical objects and negotiable securities) for individuals by exempting travel expenses and travel expenses shall be fully included in the taxable income of marketers according to the expenses incurred, and personal income tax shall be levied according to law, which shall be withheld and remitted by enterprises and units that provide the above expenses.

Therefore, the total amount of travel expenses should be evenly distributed to individuals, included in the salary of the current month, and personal income tax should be paid according to "salary and salary". If it is a non-employee, the personal income tax shall be withheld and remitted according to "income from labor service" (i.e. 2% tax rate).

2. Corporate income tax:

Because employee travel has nothing to do with production and operation, expenses cannot be deducted before tax, and taxable income will be increased when final settlement is made. No matter how the enterprise accounts and how the accounting entries are made, the personal income tax must be calculated for employees' travel expenses, and it cannot be deducted before tax.

Employees' outing expenses can't be deducted before tax:

Travel expenses listed in "employee welfare expenses" can't be deducted. Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages, Salaries and Employees' Welfare Expenses (Guo Shui Han [29] No.3) defines the scope of deduction of employees' welfare expenses, including the following contents:

(1) The equipment, facilities and personnel expenses incurred by the welfare departments in enterprises that have not yet implemented separate social functions, including collective welfare such as staff canteens, staff bathrooms, barber shops, medical clinics, nurseries and sanatoriums.

(2) Various subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by enterprises to employees on business trips, medical expenses for employees in enterprises that have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, subsidies for employees' difficulties, relief funds, subsidies for employees' canteens, and transportation subsidies for employees, etc.

(3) other employee welfare expenses incurred in accordance with other regulations, including funeral subsidies, pension expenses, family expenses, family leave travel expenses, etc. Obviously, the travel expenses are not among them. Therefore, the cost of tourism shall not be included in the "employee welfare expenses".

With regard to the accounting treatment before 28, the tax authorities did not raise any objection during the inspection, because the original domestic-funded enterprise income tax stipulated that the taxpayer's employee welfare expenses were deducted according to 14% of the total taxable wages, while the "Regulations for the Implementation of the Enterprise Income Tax Law" stipulated that

employees' welfare expenses incurred by enterprises that did not exceed 14% of the total wages and salaries were allowed to be deducted. The main change is that the focus of tax management has changed from "calculation deduction" to "occurrence". Before 28, the tax authorities did not monitor the purpose of expenditure, and all expenses can be calculated and deducted, and there may be an unspent balance at the end of the year. The new income tax law requires strengthening the management of use, emphasizing "occurrence" within the specified scope, otherwise it may not be deducted.

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