What is the accounting treatment of heatstroke prevention and cooling expenses?

The heatstroke prevention and cooling fee refers to the welfare paid by enterprises to employees in summer in cash or in kind. So how to deal with the accounting of heatstroke prevention and cooling expenses?

Accounting entries of heatstroke prevention and cooling expenses

When "heatstroke prevention and cooling fee" is accrued:

Borrow: management expenses/production costs/manufacturing expenses, etc.

Loan: Payable salary-welfare expenses.

When actually paying the "heatstroke prevention and cooling fee":

Borrow: Payable staff salaries-welfare expenses

Loans: bank deposits

Difference between heatstroke prevention and cooling expenses and high temperature allowance

High temperature allowance is an allowance for workers under high temperature, which is part of their salary. You can only pay in cash, and you are not allowed to pay in kind under the pretext. Moreover, the high temperature allowance is only available to employees who are engaged in outdoor open-air operations in hot weather above 35℃, or employees whose workplace temperature is above 33℃, although they are indoors, not everyone can receive it.

The heatstroke prevention and cooling fee is a kind of welfare, with the purpose of "heatstroke prevention and cooling". There is no special requirement on whether the working environment is high temperature. You can pay in cash or in kind, such as drinks. As long as the employer is willing to provide this benefit, every staff member can get it without strict temperature requirements.

What is the manufacturing cost?

Manufacturing expenses refer to the indirect expenses incurred by enterprises for producing products and providing services.

What is the salary payable to employees?

This course accounts for all kinds of wages payable to employees by enterprises in accordance with relevant regulations.

This course should be based on wages, bonuses, allowances, subsidies, housing provident fund, employee welfare funds, employee education funds, social insurance premiums, trade union funds and non-monetary benefits for detailed accounting.