How to account for the expenses of employee travel organized by the company? Can it be deducted before tax?

Companies generally organize employee travel activities to enhance cohesion among employees and help employees appropriately reduce stress. So do you know how to account for the expenses of company-organized employee travel? Can it be deducted before tax? Come and find out with Deep Space Network!

How to account for the expenses of company-organized employee travel?

1. Tourism organized by the company is directly recorded in "administrative expenses - other non/welfare expenses"

Debit: administrative expenses - welfare expenses

Credit: employee salary payable

When paid

Debit: employee salary payable

Credit: bank deposit/cash on hand

2. If If the company organizes employee travel in the name of "trade union", then it can directly offset the "union funds" accrued by the company

Debit: management expenses - union fees

Credit: bank deposits /Cash on hand

Can travel expenses be deducted before tax?

Answer: Except for travel expenses to support trade union activities or party activities, other travel expenses will be incurred under special projects. None are deductible before tax.

For collective activities such as corporate employee travel, most companies include the expenditures in employee welfare calculations when doing accounting. Can it be deducted before tax? According to the "State Administration of Taxation on Enterprise Wages, Salaries and Employees" According to Article 3 of the "Notice on the Deduction of Welfare Expenses" (Guo Shui Han [2009] No. 3) and Article 40 of the "Implementation Regulations", travel expenses cannot be deducted as employee welfare expenses.

In addition, there are similar provisions in the document "Suzhou Local Taxation Bureau's Notice on Completing the Final Settlement and Settlement of Corporate Income Tax in 2009" (Suzhou Local Taxation Han [2009] No. 278).

So, before the State Administration of Taxation officially issues a document to clarify the expenses incurred by the company in organizing employee travel, the company can temporarily include it in the management of employee welfare fees and deduct it in accordance with tax regulations.

How to make accounting entries when the company pays for employees to travel?

Debit: non-operating expenses - employee travel expenses

Credit: bank deposits/inventory Cash

Which account is included in employee travel?

1. If the company pays for a trip organized by all employees, it should be accounted for as employee welfare expenses.

2. If the company pays expenses for organizing travel for personnel with outstanding marketing performance or other personnel, it should be accounted for as sales expenses.

Knowledge expansion: Accountants must be clear about the issue of pre-tax deductions for employee welfare expenses!