What are the accounts that I am supposed to have in order to be able to properly guide of wages entry in an accounting manner?
What is the correct accounting guidance for the wages component or what is the accounting wages entry to prove the wages expense?
What's the accounting treatment for workers sanctions? Will the employee's one - day absence somehow affect the financial statements?
When do we say that the workers ’housing rent is a wage expense and that the mobile phone bill is considered wages and is included in the wage entry?
Before we talk about wage expense and its components And the proper wage entry it is necessary to know what accounts are supposed to be in the accounts directory, whether you are working Manuel or on an accounting program so that I can direct properly the Wages entry
1-Wages and salaries expense account:
This can be is through both administrative and public expense If these wages are in the administration's wages or operating expenses, its concern the production, It can also be marketed without any problem, and some managers prefer to open more than one account on the basis of the administration, "Financial management fees, income management fees, and so on" through all These methods you expose the wage expense in the wages entry
We must know that the wage expense item is not limited only to the money that the employee receives every month, but the wage expense must include the items of in-kind benefits “such as mobile bills and workers’ accommodation, ”and also the company's share in social insurance
In other words, if I say I spend 10000 so-and-so wages, I conclude that this item is considered as monetary wages, his in-kind benefits, and the Company's insurance share .
In my opinion it is preferable to explore these items in the entry, separately, as if I say, for example
800,000 wages
10, 000 In-kind benefits.
10,000Company's insurance share
And open a separate account
2- Rewards account
In This account, which I throw any bonuses for my workers, it’s a part of the expenses, and appears as a debtor in the wage entry
.
3 -Advances account
This is an account that we open in current assets in the item of other debit balances, the account to which all the money of the advances that the employees are disposed to
And it closes at the end of the month with the monthly salary entry
When the employee's predecessor appears, we will prove it like this
From an -Advanced account
To the cache account
The employee's entries advances in the human resources management program
4- Social insurance current account
This is among the items of the current liabilities "other credit accounts" and every month with a salary entry that confirms the entitlement of a certain amount to the insurances and this amount is the company's share and the employee's share in the insurances.
5-Current account of the Tax Authority
This is the same as insurances within the current liability accounts and every month that a certain amount is due for work-earnings taxes, it is the taxes that are required to be deducted from the employee's salary and to be returned to the tax authority.
6- Sanctions account
This is the account, through which the employee will deduct a certain amount from his salary due to absence or breaking rules,
Legally, there must be an account called the Workers Sanctions "commitment", where we throw all the sanctions entry that we carry on employees and then send it back to the employment office by a certain percentage
Wage entry
The first stage
We prove net allocation to wages and salaries after deducting different discount through an entry similar to this
From the accounting wages, "cash wages + benefits in kind + the establishment's share in social insurance "".
From workers' bonuses account
To those mentioned:
Current account tax authority "in the amount of the salary tax that you deduct from the employee."
A current account of social security "in the amount of the employee's share of social insurance"
Account for employee advances if they have taken advances
Account of the sanctions, including sanctions, that I will apply to him when his absence without permission
Wages entitlements, net account
Wages entry to prove his entitlement after being approved in the human resources management program
Wages entries in the human resources management program
The second phase
It is that you prove the payment of wages "net after deductions" for the employees, pay taxes and insurances for them, and also prove the Sanctions that I took from the Workers
To those mentioned:
Current tax interest
Ongoing Insurance and Pensions Authority
To the cache account
Entry payment proof of insurances and taxes after proof of entitlement in the human resources management program
Wages entries in the human resources management program
And by confirming the payment of salary to employees in this manner
Wages entries in the human resources management program
The sanctions are also proven in this way in the event that I consider them to be other revenues
From the employee sanctions account
To account for other revenues
Let's consider that the employee was owed a certain amount and that I am giving him a lower amount due to his absence, and from here the savings that occurred, by considering it as new money that entered the company and dumped it at the expense of other revenues through the human resources management program, I can control the directives of wages entries in all its parties.
Important information
Now you know the effect of the absence of one day for an employee, with the application of the Sanctions that affects the financial statements
We will find it in the income statement and in the other income account, thus it will ultimately be reflected in the net profit of the company
You now know the effect of the absence of one day for an employee, with the application of the penalty that affects the financial statements
We will find it in the income statement and in the other income account, thus it will ultimately be reflected in the net profit of the company.
Thus, we will find that the employee’s absence for one day, from the HR’s point of view, is a disruption of the company's interests, while the financial manager thinks that he will make a profit, given that the savings in spending are equivalent to the real profits.
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