Accounting for payroll calculations

Accounting for labor costs is inherently not different in the case of both small businesses and large firms. In order to summarize the information on payroll calculations, an account 70 is active and passive, so it can have both a debit and a credit balance.

In accounting, it is customary to use both synthetic and analytical accounting for payroll calculations. Let's look at both of these kinds.

The first type, in fact, is the consideration of generalized information on types of property, business transactions and liabilities, conducted on special synthetic accounts created for this purpose. Analytical accounting is a type of accounting maintained in personal accounts and other analytical accounts of accounting, where the data on property, business transactions and liabilities within each of the synthetic accounts are grouped. Organization of both types of accounting is carried out in such a way that their indicators can control each other, and in the end they must coincide, therefore, they should be recorded in parallel: on analytical accounts, records are made based on the same documents as the entries for Accounts of synthetic accounting, but the details are much larger.

The calculation of payments for labor is made using a special synthetic account 70, which takes into account all types of payments due to the employee:

- Salary. It is produced in correspondence with the accounts, where the costs of production and other sources are taken into account. In this account, entries are made for the amount of the basic salary and the addition to it.

- Payment of benefits. This is done in correspondence with the account, where calculations are made with extrabudgetary funds.

- Payment of vacation pay and bonuses due for long service.

Accounting for payroll calculations is carried out depending on which system is installed in a particular enterprise. The type of payment must be recorded in collective and labor contracts and others. As the basis for the accrual of wages can serve as:

- The staff list approved by the director is agreed with the trade union committee, if any. It contains a list of structured units, as well as posts, information on the number of staff units, allowances, salaries, and on a monthly salary fund .

- Reporting table, which reflects the amount of time used by each employee to work. It is made in one copy, and the calculation of wages is carried out on its basis.

- Regulations on remuneration of labor. It must necessarily specify the forms of payment in the amount with the material incentives used in the enterprise, the cases of payment of material assistance, allowances and other.

- Provision on awarding, which reflects the sources and types of payment of bonuses, which are systematic: bonuses are paid for at the expense of net profit. This option is quite convenient.

Synthetic accounting for payroll calculations is implemented in exactly the same way, regardless of the way it is implemented.

By types of payment it is customary to distinguish between basic and additional. As the main one is the one that is accrued to the employee for all time worked, in this case the basis is staff orders or staffing. The additional salary consists of payments for worked time, which is stipulated by the labor legislation, or on the initiative of the company management.

Now you have an idea of what the accounting for payroll calculations is.