Process of accounting for salary at HBI company...44 3.4 ACCOUNTING SALARY DEDUCTIONS: SOCIAL INSURANCE, HEALTH INSURANCE, LABOR UNION FEE AND UNEMPLOYMENT INSURANCE....51 CHAPTER 4: DIS
INTRODUCTION
RATIONAL
The salary is the income of the employee on the basis of the quantity and quality of labor in performing the work of the workers themselves as committed between employers and employees For now, the wages are a cost of production The salaries accounted for enterprises to implement correctly and properly Salaries are paid on time for the fruits of labor will stimulate employees to work, increase efficiency for businesses, promote the spirit engrossed in work and creativity in labor process In addition to the wage that workers are entitled to the bonuses, allowances, social insurance, unemployment insurance, labor union fee is the social fund that workers are entitled to, it shows the interest of the society, the business to each member now in business.
Salaries are always a matter of social concern noted by the economic significance and its enormous social.
For production and business enterprises, salaries are a big part of the production costs If enterprises use reasonable wage regime will motivate labor productivity growth,
Salaries have effective role as economic leverage direct impact on workers For enterprise, labor costs account for a relatively large proportion of total production costs of enterprises So enterprises need to strengthen the management of labor, salary and salary deductions accounting need accurate and timely manner to ensure workers' rights and facilitate increased productivity labor, labor cost savings, boost production and lower product costs.
For workers, salary have a sense of utmost importance because it is the main source of income for their help to ensure the lives of themselves and their families. Therefore salaries can be motivated employees increase productivity if they are paid in accordance with their labor contribution, but also can reduce labor productivity makes the production process slowed , does not work efficiently if wages are paid less than the labor of workers spent In the entire range of the economy, wages are more specifically the process of distribution of material wealth by the workers make Therefore, the construction of months salary, choosing the appropriate form of payment so that wages are moderate income workers to ensure the needs both physically and mentally, and make wages become motivated workers work better,have more responsibilities with work is really needed jobs Salary policy be applied flexibly in every way enterprises dependent characteristics management organization, production and business organization and depends on the nature or type of business of each company Recognizing the importance of the issue , Ihave chose the practice theme "Accounting of salary and salary deductions at Hoa BinhInvestment and Development Corporation"
RESEARCH OBJECTIVES
Research the accounting situation of salaries and salary deductions in "Hoa Binh Investment and Development Corporation" in order to gain better understanding the theoretical and practical perspective on accounting salary and salary deductions.
Learn the theoretical concept of salary and salary deductions
Reflects actual accounting of salaries and salary deductions in business
Offer general comments and suggestion to complete and improve the work of accounting salary and salary deductions at the company
METHODOLOGY
- Research methods are mainly the data collected from the administrative office and finance accounting department of the company to find information about salary and salary deductions at HBI Company in 3 years : 2013, 2014 and 2015
- The data on this topic were collected from the room and administrative organizations Finance and accounting department of the company.
+ The Timesheet, Payment tableand allowances of employees of companies in three years 2013, 2014 and 2015
+ Table ofPayroll and social insurance, unemployment insurance, labor union fee + Plan the salary fund.
+ Table operation situation, balance sheet accounting.
+ Ledger and subsidiary ledger accounts 334, 338.
In addition, I also consulted the comment of some acountant in the accounting department of HBI company; reference books and materials related to the research topic.
* Methods of analysis of the data:
- Processing, analysis of the information sought by the method of synthesis and comparison method.
+ Absolute comparison method: is the difference of two indicators: indicators and mechanical analysis
Example: Comparison between performance results and the implementation of any plan or between this and the previous implementation
+ Relative comparison method: As a percentage of 2 indicators: Indicator analysis period compared to the original target for completing the degree in proportion to the number of absolute differences compared to the original target speak growth.
RESEARCH SCOPE
- Intern and Find out the actual situation of accounting of salaries and salary deductions at HBI Company
- Research Projects:” ACCOUNTING FOR PAYROLL-Salary and salary deduction at HBI Company
- The selected researching time was 2013, 2014 and 2015.
- The results of the study help ascertain payroll accounting of the company whether in line with the business situation of enterprises and in conformity with the provisions of the state or not.
- Helping companies makeforms of payroll suitable with the actual conditions in order to enhance productivity and labor efficiency.
- Also helps understand the different between fact and theory learned.in university of accounting of salaries and salary deduction
STRUCTURE OF THESIS
- Chapter 2: Theoretical framework of payroll accounting
- Chapter 3: Current situation for payroll accounting at HBI Company
- Chapter 4: Solutions to improve payroll acounting at Hoa Binh Investment and Development Corporation (Discussion and Recommendation)
THEORETICAL FRAMEWORK OF PAYROLL ACCOUNTING
THE CONCEPT OF SALARIES AND SALARY DEDUCTIONS
In the market economy, labor is seen as a special commodity, it can create value from the process of labor and production Consequently, salary is the price paid for thelabor;the money that the employers agreed to pay for workers according to market mechanisms as influenced by the development law such as labor law, labor contracts
There are many different definitions of salary, but the most generally and widely recognized is:
Salary is the price of labor that formed under an agreement between the employee and the employer in accordance with the relationship and the rules of the market economy.
In other words, the salary is the amount that the employee received from the employer which is equivalent to the quantity and quality of labor they had expended to create material goods or other helpful values.
2.1.2 The concept of the salary deductions
Along with the payment of salary, the employer must also deduct a certain amount of the salary calculated in percentage (%)to the fund formed under the regulations to ensure the interests of the labor That is the salary deductions, which shall be complied with the salary regime in our country, including:
- Social Insurance Fund (SI): state regulate that business must be set up this fund by deduct 26% the minimum salary and salary coefficients of the employees, of which 18% deduct from the cost of business units and 8% workers have to pay from their income Social insurance fund use to: replace salary during workers absent because of sickness, maternity, occupational accidents make worker cannot work at enterprises, pension expenses for retired workers on pension funds survivorship, allowances for employees of sickness, and occupational diseases.
- The health insurance fund is used to pay medical, hospital fees, medicine to employees during sickness, childbirth The rate of deduction of 4.5% of the total basic salary, of which 3% at the expense of business, 1.5% deduction from the wages of workers.
- Funding for the union: to spend on union activities The rate of deduction is 2% of the total real salary, calculated on the cost of the entire business.
-Unemployment Insurance Fund: Unemployment insurance is deducted to allowance for workers who lost their jobs According to Article 81 of the Social Insurance Law, the unemployed are entitled to unemployment insurance when it satisfies the following conditions: Has paid Social Insurance 12 months and in24 months before become unemployment Stillcannot find a job after 15 days from day that register with Social Insurance Organizations According to the Article 82 of the Social Insurance Law, the monthly unemployment allowance equal to 60% of the average salary, remuneration on Unemployment Insurance contribution of 6 consecutive months before unemployment Source of Unemployment Insurance fund formed as follows: - Employees pay 1% of salary or remuneration on UI contribution - The employer shall pay 1% of the fund salaries or remuneration on
UI contribution of the workers participate in paid UI Every month, the State budget supports equal to 1% of salary fund, remuneration on UI contribution of the participants UI and moved once a year So set aside for unemployment insurance rate is 2% of the enterprises in which employees paid 1% and 1% now be included in the costs of production and business in the period.
Business has to deduct and paid theabove funds every quarter A portion of expenditures for the social insurance fund is now being authorized for the enterprise by management agency Based on the reasonable original documents, payment has to be settledevery quarter to the management agency These above expensesare used only to help workers case of sickness or occupational accident.
2.1.3 Economic Content of accounting salaries and salary deductions
Salary is the main income source of workers, businesses use salary as an economic leverage to encourage positive mental labor, which is the driving factor for increasing the labor’s productivity.
For enterprises, paying salary to employees is one of the factors that constitute the value of products and services created by the enterprise or in other words it is a factor of production to calculate costs of product Therefore, businesses must use effective labor to save labor costs in the unit price of product, service work and the movement of goods
Salary management activity is an important content in the management of production and business Well organized accounting of salary and labor will help the labor management of businesses become respectable, promote worker well observe labor discipline, labor productivity growth, and it is the basic of payroll calculating follow accordingly to the principle of labor division.
Buildinggood account salary off labor working part will help businesses manage the salary fund, ensure the payment of salaries and social insurance allowances correctly according to the regime, encourage workers to complete the task assigned, and create a basis for the allocation of labor costs into the prices of products.
Payroll Accounting duties include the following four basic tasks:
- Organize notes, reflect and synthesize data on the number of employees, results of labor time, payroll and salary deduction amounts and allocation of labor costs in accordance with the employer objects.
- Guide, check the accounting staff in production and business departments, the departments to fully implement the initial recording as long as the labor and salary regime, the correct method.
- Monitoring the payment of salaries, allowances, bonuses, allowances for employees.
- Prepare reports on labor, salary, salary deductions, conducting periodic analyzes the labor situation, the status of management and spending of the salary fund, providing information about salary for the management department timely.
It can be said that labor costs or salary and salary deductions are not only just the matter of business care, but also of theworkers because this is their rights.
FUNTIONS OF SALARIES AND SALARY FORMS
The function lever for production and business of enterprises.
The salary is attached to the interests of workers so it becomes the capacity to stimulate creativity, sense of labor, and boost labor productivity Therefore, thesalary, on one hand is attached to the practical benefits of the workers and on the other hand it confirms the position of the employee in the enterprise Thus,when receive a satisfactory, fair andreasonable amount of salary, they will be motivated which will result in the efficient production process and labor productivity, the product quality will also be improved accordingly Moreover, the revenue and profits of enterprises will continue to increase.
Implementing reasonable relationship of paymentis not only good for business but also brings benefits to employees, encouraging them to increase labor productivity.
When the profit of enterprises increases, the benefits of corporate resources will grow, which will add additional sources of labor income, create employment dynamics, enhance cohesion between the employees and the business.
Salary is the main income of the employee; the source of food for themselves and their families Salary income increases will ensure the material and culture life of workers and thus increase renewable energyfor social workers.
Proper implementation of salary regime for workers will help enterprises have a stable labor supply especially for labor professions that traditional nature for specialized areas such as long-term mining or plantation rubber, coal
The application of appropriate salary regime embodied in the principle of distribution according to labor aim to incorporating the general welfare of the society to the benefit of businesses and workers.
Classification according the form of salaries:
- Paid by time: is the form of payment of wages to employees based on the working time by rank, position, area allowance, allowances for area that have to pay more money (if any) under the provisions of the salary scale by the State.
- Payment by time is often applied to the management department does not directly manufacture products or provide services Due to certain limitations of this form of pay over time (the average nature, are not really tied to the results of production), so to remedy that somewhat limited, paid over time can combine processing bonuses to encourage employees to work enthusiastically.
- Paid by product: A form of payment according to the quantity and quality of the products they were making Form of payment under existing products are made in various ways depending on the characteristics and conditions of business production.
- Paid based on bonus products: apply to workers directly or indirectly for the purpose of encouraging workers to increase productivity of labor, raw material savings Completion bonus plans and product quality.
- Paid by progressive product: As wages paid under the direct products combined with progressive bonus interest on the extent of completion of the norm for the calculation for each person or group of workers Also paid in the form of the final product exchange.
- Paid under the Workload Stock: contracting wages are applicable to the workload or the work should be completed in a certain time When done this way of calculating wages, should pay attention to check the progress and quality of work completion and acceptance especially for the basic construction work because of the hidden part of the collection of works volume completed it will be difficult to detect.
According to this classification form, salaries are divided into two categories: basic salary and extra pay.
- The basic salary is the salary paid to the employee during time working directly including grade wages, bonuses and allowances
- Extra pay paid to workers in time that workerd don't work but still be paid such as vacation, meetings, studies, festivals,
Classified according to funtion of salary
According to this classification, salaries are classified into: direct salary and indirect salary
- Direct Salary is the salary paid to employees directly engaged in production or service provision.
- Indirect salary is the salary paid to employees participate indirectly in the process of production and business of enterprises.
Classified according to the object.
By this way of classification, salaries are divided into: Manufacturing salary, sales salary and management salary
- Manufacturing salary is the salary paid to the subjects performing the function sx.
- Sales salary is the salary paid to the subjects perform sales functions.
- Management salary is the salary paid to the subjects perform management functions.
Concept: As the paid by labor time (days) actual working and pay scale for workers The salary is determined based on the working time and the technical qualifications of workers.
This method is applied primarily for those working in administration office (office staff, management staff ) or production workers only applies in the mechanical parts, or the work can not proceed rigorously, it will not guarantee the quality of products
To pay salary by time, based on three factors:
- The actual working day of the employees
- Unit wage paid per workday
Method of caculate salary by time
Monthly Salary=minimum wage x( salary coefficient + allowancecoef ficient )
Salary pay per month= Minium Wage
Number of day working∈month × Actual working day Salary pay per month= Month salary
Number of day working∈month Salary pay per week= Monthly salary
Salary paid for working over time = Hourly Salary x 150% x hours working overtime x 200 % x 300 %
+ 150% rate applies to overtime during the working day.
+ 200% rate applies to overtime on a weekly day off.
+ 300% rate applies to overtime on holidays, paid holidays as prescribed.
+ Monthly salary is fixed salaries paid monthly on the basis of labor contracts. + Weekly salary: the salary paid for a working week, determined on the basis of monthly salary (x) for 12 months and divided (:) to 52 weeks.
+ Daily salary: the salary paid for a working day determined on the basis of the monthly salary divided by 26
+ Hourly salary: The salary paid for a working hour and is determined by dividing the daily salary divided by the standard number of hours stipulated by labor laws(no more than 8 hours / day)
A form of direct payment of salary to employees based on the quantity and quality of products and services that they completed.
SALARY DEDUCTIONS
Salary fund is the full amount of salary based on the number of employees by direct enterprise management and pay salary, including the following:
- The salary is based on Time.
- The salary is based on productivity.
- Salaries of-date, piece salary.
- Salaries paid to employees making the corrupt within the regulations.
- Salaries paid to employees in production downtime due to objective reasons.
- Salaries paid to employees during mobilization work, obligation to work within the regulations.
- Salaries paid to employees when on leave, to go to school under the regulations.
- Cash payment of royalties, lecture.
- Night-shift allowances, overtime, extra shifts
- Allowances for those working in science and technology talent.
- Mid-shift meal allowances of the employees.
Besides, salary fund also includes expenses for social insurance benefits to employees in time of sickness, maternity, labor accidents (SI salary payments)
In accounting and economic analysis, salary of employees in the enterprise is divided into two categories: basic salary and extra pay.
- The basic salary: the salary paid to the employee during the employee perform their main duties include salary paid by rank and salary allowances attached as responsibility allowances, allowances area, seniority allowance
- Extra pay parts: the salary paid to employees while employees perform tasks beyond their main task and the time employees are entitled to statutory salary as vacation, holiday because layoffs out, go to school, go to meetings
The division of the salaries into two part have significant meaning of the accounting work and analyze salary expense items in the product price In accounting work, basic salary of production workers normally charged directly to cost of production for each product category Extra salary allocated indirectly on the production costs of products.
Concept: social insurance fund is used to subsidize the fund for workers to contribute to the fund in the event they lose their working capacity as sickness, maternity, labor accidents, retirement, and loss of energy.
Source of fund formation: social insurance fund is formed by 26% as a proportion of the total basic payroll and allowances of the employees regularly practice in the accounting period.
The employer must pay 18% of the total payroll and charged to cost of production and business.
Submission of 8% on the total payroll directly by the employee contributions (deducted from their income).
The practical benefits for workers in businesses in the event of illness, occupational accident, maternity, calculated on the basis of their daily wage, absent time and rate of subsidy SI, when an employee is take table of social insurance accountant have make SI card for each person and make payment to pronoun and pay for social insurance funds.
Social insurance funds are managed centrally in the employee's account Businesses must pay social insurance fund deductions in the period into focus fund manage by social insurance funds.
Purpose use of funds: the fund is used to provide support for workers that(who) contribute funds.
Or according to the concept of the International Labor Organization (ILO) SI is understood that it is the protection of society with its members through a series of public measures to combat economic difficulties Assembly by lost or reduced income, illness caused loss of working capacity.
SI is a system of three levels:
Level 1: A base layer to apply to everyone, every individual in society The poor, although their contribution in society is low but when they have required, state still give allowance.
Level 2: A mandatory floor for those who have stable jobs.
Level 3: As the voluntary social insurance for those who want paid SI fee high.About the subject: In Before, social insurance applies only with state-owned enterprises Now, under Decree 45 / CP, social insurance policy applies to all employees in all economic sectors (2nd floor) For all members of society (Level 1) and for high-income people or people have condition to participate SI also assign the contribution provides for the duty to those who are entitled to preferential treatment The amount that the members contribute will of society members formed close social insurance fund.
Concept: The health insurance fund is the fund used to subsidize those who have contributed funds in medical activities.
Businesses deduct health insurance fund as follows:
4.5% on total temporary calculation of income of workers, including:
[1.5% Due to the employees directly pay (deducted from their income), 3%from enterprise (Calculated on production and business expenses)]
Purpose use of funds: the health insurance fund by the health insurance agency management, and uniform allowance to employees through health networks, who have paid health insurance participation when they got o medical, and the payment will be paid through the insurance system which they have paid.
Concept: As funding for union activities at all levels.
Source of fund formation: labor union fee deducted at the rate of:
2% on the total wages paid to the workers, and businesses have to bear the whole (calculated on production and business expenses).
50% labor union fee paid to obtain superior trade unions, while 50% left to spend on trade union activities at the unit.
Unemployment insurance is deducted to allowance for workers who lost their jobs.According to Article 81 of the Social Insurance Law, the unemployed are entitled to unemployment insurance when it satisfies the following conditions: Has paid SocialInsurance 12 months and in24 months before become unemployment Stillcannot find a job after 15 days from day that register with Social Insurance Organizations.According to the Article 82 of the Social Insurance Law, the monthly unemployment allowance equal to 60% of the average salary, remuneration onUnemployment Insurance contribution of 6 consecutive months before unemployment Source of Unemployment Insurance fund formed as follows: -Employees pay 1% of salary or remuneration on UI contribution - The employer shall pay 1% of the fund salaries or remuneration on UI contribution of the workers participate in paid UI Every month, the State budget supports equal to 1% of salary fund, remuneration on UI contribution of the participants UI and moved once a year So set aside for unemployment insurance rate is 2% of the enterprises in which employees paid 1% and 1% now be included in the costs of production and business in the period.
Table 2.1: Salary deduction amount Salary Dedutions To Enteprise
To Emloyees (Deduct from there salary) (%)
NET SALARY= GROSS SALARY- DEDUCTIONS
GROSS SALARY= BASIC SALARY+ ALLOWANCES
The company calculates the insurance and fee deductions only based on basic salary
=>TAXABLE SALARY= (BASIC SALARY- INSURANCE AND FEE DEDUCTION)
Deductions consist of 2 types (according to circular no 111/2013/TT-BTC)
Mandatory: personal income tax, social insurance, health insurance, unemployment insurance…
Allowance NOT included: Meal shift (Maximum 680,000), mobile phone, outfit (maximum VND 5,000,000), business fee and overtime premium
If the employee only live alone (no debates), the PIT deduction level is 9 million VND
If he/she has debates, the government will deduct the PIT for 3.6 million VND/debate (maximum 5-6 debates)
If his/her salary after decreasing all the deductions is still positive, then we apply the PIT calculation hierarchy for taxable salary
-Level 1: < 5 million VND: tax rate 5%
-Level 2: 5-10 million VND: tax rate 10%
-Level 3: 10- 18 million VND: tax rate 15%
-Level 4: 18-32 million VND: tax rate 20%
- Level 5:32-52 million VND: tax rate 25%
-Level 6: 52-80 million VND: tax rate 30%
-Level 7: >80 million VND: tax rate 35%
ACCOUNTING SALARY
- Organize and plan to collect fully, correct the initial targets as required on labor management for each worker, each unit of labor To accomplish this task, the researchers need to use the original voucher system of the employees of state that suited with management activity requirements and payment for each employee in the enterprise.
- Calculate accurate, fully and timely salary and related items for each employee, each production teams, each contract terms, the state regime, in accordance with the rules of business management
- Calculate the exact allocation, reasonable salary amount of salary deductions, in accordance with the users involved.
- Regular and periodic analysis organization employers situation and salary fund index, providing necessary economic information for the department relating to labor and salary management.
2.4.2 Accounting for labor and labor time.
Accounting purposes of labor and labor time in the business, in addition to supporting the work of management labor administration also ensure calculate payroll for each employee exactly.
The content of the labor accounting including accounting number of employees, working time and labor quality.
2.5.2.1 Classification of employees in the enterprise:
In the industrial business, the first job practical work of the management and accounting of wage labor is labor classification.
Labor classification according to occupational groups, including:
+ Workers performing the function of the main production: As the people who work directly by hand or by machine, involved in the production process and the product directly.
+ Workers perform in subside of production: As the serve for the production process and auxiliary occupations such as direct catering workers directly or indirectly participate in the process of production.
+ Other labor: technical staff, marketing staff, circulation, staff, accountant, security staff.
+ Direct labor and indirect in many enterprises under wage salary, salary scale, normally direct workers have 7 salary grades 1 through 7.
+ Level 1 and 2: consists largely of unskilled workers are not in college any professional training.
+ Level 3 and Level 4: includes workers that through a training process.
+ Level 5 or higher: includes workers who have passed school with high technical expertise.
+ Indirect Labor also has many levels and divided into many part, (eg: as expert level 2).
+ The classification of labor under wage groups are essential for the arrange labor layout, staffing in the business.
Organization of labor and wage accounting and wage labor, is very essential that an indispensable part of the information system's general accounting.
- Financial Duties of this business factors are:
+ Organization accounted labor structure existing in the production structure and the recruitment business, fired, transferred in the internal labor relations units according to demand and supply of labor for the business.
+ To monitor the structure and use of workers in the workplace for information about the number of workers with quality jobs in the workplace layout.
+ Organization of accounting process of calculation salary and payment for workers.
+ To organize the division of labor within a reasonable accounting the accounting elements and labor wages.
+ General principles for the implementation of the above tasks organization of labor and wages are Selection and application in the process of implementing the business unit amounts vouchers, books (account) Information to be recorded on the books and accounting reporting system of labor reasonable and adequate salaries for management requirements, particularly internal management.
- The premise necessary for the good organization of accounting information system by wage labor is:
+ To build a rational structure of production This is the premise for the scientific organization of labor at work to organize the initial recording of the employer. + Implementation of organized labor in the workplace, the reasonableness of the allocation of labor in the labor position in space and time lines, rank and specialization is a condition for employment accounted results correctly and on that basis calculate pay enough wages to laborers.
+ To build standard labor norms for each employee, each type of work and labor management system closely both nature personnel, disciplinary rules and labor regulations.
+ Must predetermined logical mode of payment and payment mechanism appropriate remuneration can stimulate physical laborers labor in general and accounting in particular.
That mean: It was quantified by real-time wages, by work, by the results of the work done within the framework of the common-mode current.
+ Must construction division remuneration principles when it is related to business activities, types of products made to calculate the cost of paying the price reasonable.
- Organization of accounting labor, labor time and labor results:
+ Accounting for the number of employees:
To manage in terms of number of employees, companies using labor track records of business usually managed by the Labor Office This book accounting in terms of the quantity of each type of labor by occupation, employment and skill levels (technical grade) of workers Labour Office can make a book for the whole enterprise, and made for each department to understand the allocation and use of existing workers in the enterprise.
Accounting is essentially the use of working time for each employee in each department within the enterprise Documents used here is timesheets to record working time and can use the direct synthesis in service in time for the management to use the mobilization of staff time to participate in the labor.
Timesheets be made separately for each group, factory, due to the head or heads of departments recorded daily End the end, month timesheets are used as the basis for calculating wages for salaried employees part-time.
The purpose of accounting is to track the results of the labor records of the employees represented by the amount (volume of work, finished products) of each person or each group, the labor group Accounting for the use of original documents varies according to the type and characteristics of each business production.
These documents are '' Product delivery slip, work completed '', '' Personal productivity table records, bills of quantities of work completed "
Accounting documents the results by setting up by worker, technician staff confirm, leader inspect This is the basis for calculating wages for laborers or wage labor department that take salary by product.
In summary, labor accounting is both to manage the mobilization of employers, should be correct as a basis to calculate the salary paid to the employee So labor accounted clear, and timely to be able to calculate exact and full salaries to employees in the enterprise.
- Accounting of salaries to workers:
+ Sequencing calculates absolute total employees in the period was paid To accomplish this content should have the following conditions:
Have to collect all the documents related to the quantity and quality of labor. Have to rely on the documents regulating the pay of salaries, bonuses and allowances of the state.
Must construct must pay the appropriate pay forms for each employee before entering into the calculation of salaries.
To choose a reasonable divided wages for each employee, for the kind of work is done by a different group of employees different work, rank and work performance. + Construction of payment vouchers and other payments related to employees as payroll and billing voucher This document was completed after the implementation of the pay for each employee and become the original documents to record general accounting book and social insurance.
+ Selection criteria appropriate to allocate salaries and social insurance for each subject production costs (based on indirect payroll) and through intermediaries’ allocation standards for wages subject to the final charge, recording vouchers for distributed data as a basis of the summary book of accounting in accordance with the principle.
+ Develop relations account book content and calculation of payment of wages allocated in line with requests for information about accounting subjects above.
- Form 01- LÐTL: "timesheets" This is the basis of vouchers of payment, according to the actual time worked by each employee The table is set monthly by and each a by unit time (production teams, departments)
- Form 06 - LÐTL: "Certification cards or work product completed.
- Form 07 - LÐTL: "Overtime working paper"
ACCOUNTING FOR SALARY DEDUCTIONS
- Form 03-LÐTL: Bonus payment table
Beside it also use some other documents such as:
- Form 08 - LÐTL: Labor contracts, the commitment
- Form 09 - LÐTL: Accident investigation report
- Some other relevant documents such as receipts, payment bills…
Acc 338: Payables and other payables:
Used to reflect in payables and liabilities for law enforcement department, for organizations, social organizations, the superior of trade union funding, security social insurance, health insurance, salary deductions in accordance with the decision of the court (child support when divorce, illegitimate child, court costs, ), value of surplus assets pending , temporary borrowing, receiving deposits and short-term The structure and content reflect of Acc 338
+ Reflects labor union fee spending, SI units.
+ Reflects the payment of social security funds, health insurance, labor union fee for superior management agencies.
+ Reflects the setting up of social security funds, health insurance, labor union fee.
+ Reflects part social insurance, labor union fee overruns are subsidized.
Debit balance: reflects the labor union fee, SI overruns have not been subsidized
Credit Balance : The social insurance fund, health insurance, labor union fee is not paid or not spending
ACC 338 are detailed account of the account level 2 as follows:
-Ac 3387: Revenue received in advance
Beside, acccountant also uses other relevant account during recorded as 111, 112,
2.5.3 General Accounting for salary deduction
When deduct SI, HI, UI, Union fee, accountant record:
When reflect SI give to employees, accountant record:
When reflect the use of union fee, accountant record:
When submitted SI, HI, UI, union fee, accountant record:
When some employees take subsidize from SI, accountant record:
When reflect the use of UI, accountant record:
If the money use for UI too much, record in cost of enterprise make enterprise be losse, this money can be allocate in some year ( max is in 3 years) Accountant record:
When allocate this money, accountant record:
Diagram2.2 Accounting 338 and corresponding accounts
Accounting salaries and salary deductions is an important array of accounting, the basis for businesses to rely on the application of appropriate calculation for their business.
Above is the common basis of the calculation of salary, based on that businesses find correct ways to suit their businesses to ensure fairness and the proper calculation of wages for workers, each business has a different methods To go into how the business has applied, we will find the answer in Part 3.
CHAPTER 3 CURRENT SITUATION OF PAYROLL
OVERVIEW ABOUT HBI COMPANY
3.1.1 Establishment and development of the company
Name of company written in Vietnamese is “HOABINH INVESTMENT AND DEVELOPMENT CORPORATION”, which can be translate into English as
“HOABINH INVESTMENT AND DEVELOPMENT CORPORATION” and abbreviated company name is Hoa Binh Co., Ltd At the present, company’s head office located at 203, Nguyen Huy Tuong Street, Thanh Xuan district, Ha Noi and trading office at 34, Hai Ba Trung Company was found in 2005 The main factories are in Km3, Khac Niem District, Bac Ninh With business registration number is 0104408749
The charter capital of company is 1.302 billion VND Now company work in some field of business as: Establishment, management and implementation of investment projects in construction: new urban, industrial, infrastructure, residential, Office, public services; Building works: residential, industrial, and urban infrastructure (plumbing, lighting), transport, postal, agricultural, irrigation, sport, culture, entertainment House purchase business, business hotels, cultural services, entertainment, sport; Advice on investments and housing construction; Consultancy, property management; The real estate business; Associating with organizations, individuals in and outside the country to business development In several activities above, the main activity of company is real estate business.
Comes from a company that specializes in printing and manufacturing of packaging, HBI has put out for themselves the appropriate route with long strides and strategic vision From the first steps, HBI has to concentrate all resources to build a foothold in the market in the field of printing and packaging production.With long-term investment goals, HBI has equipped itself with modern technology systems Advanced technology plus a staff rich in creativity, in just a short time,HBI has established for itself a foothold on the market From a field of about packaging, 2006, HBI has further expanded the investment into the field of plastic injection and printed on plastic The company's products quickly to meet the demand of domestic companies, especially companies in the manufacturing sector.
With the advantage of creating a flurry of diversity, professional design team, HBI has conquered the big customers in the country.
In 2008, was marking a transition of HBI The company was restructured and renamed the company to invest and develop Peace This is also the starting point for a new route With a registered capital of 1.302 billion, HBI officially invests in the financial sector and real estate A new trend has shown ambition of HBI in becoming a big powerful company diversified activities in the field. Founded by the major shareholders, has long experience in the market of financial investment helped HBI always have new opportunities, an effective business strategy, solid progress and breakthroughs With the motto "connecting to success", HBI has not stopped search, collaboration, sharing, with partners and clients to create a new value We are investing in the HBI project scale property, potential in Hanoi and Ho Chi Minh City, and is the majority shareholder of several companies operating on different fields
HBI always want to specify and create the most convenient for customers and partners when to HBI At HBI, teams of staff are always focusing on selection In addition to the professionalism, enthusiasm and creativity, each HBI employees always inspire, mounted to the same power and culture of HBI This will be the sure foundation for HBI developed strongly in the future.
Visibility of HBI aims to be is construction brand HBI become strong, dynamic, maximize business benefits, diversified development and improvement of products and services that best meet the needs of the market and customers
Company also want to promoting strategic cooperation, investment promotion trade with large corporations, multinational corporations, financial institutions trade domestic and international, bringing HBI become injured competitive effect on the area market and the world.
Table 3.1: Business Performance of HBI Company from 2013-2015
Year Asset Charter Capital Revenue Profit Before
Source: Financial Statement of HBI Company year 2015
Table 3.2.: Scope of business of HBI Company
No Scope of Business Business
1 Business real estate, land use rights owned, used or rental owners
Details: house purchase, lease, parking
3 Advisory and brokerage, real estate auctions, auction of land use rights
Details: real estate per hour Real estate services Real estate trading floors Valuation of real estate Property Consultants
(excluding legal advice) Property Management
4 Advisory and brokerage, real estate auctions, auction of land use rights
Details: real estate per hour Real estate services Real estate trading floors Valuation of real estate Property Consultants
(excluding legal advice) Property Management
5 Construction of other civil engineering
Visibility of HBI aims to be is construction brand HBI become strong, dynamic, maximize business benefits, diversified development and improvement of products and services that best meet the needs of the market and customers Company also want to promoting strategic cooperation, investment promotion trade with large corporations, multinational corporations, financial institutions trade domestic and international, bringing HBI become injured competitive effect on the area market and the world.
3.1.3 Characteristics of the Business Operation of HBI Company
The organization participated in the bidding or contracting
Diagram 3.1: Business Process at HBI Company
As a company specializing in the real estate, the company's main functions is to build housing projects, providing the best quality housing with best environment and quality for customer The company also provides financial consulting and real estate consulting HBI always geared to the needs, wishes and success of customers and partners; create highest benefits for customers, shareholders and employees; building corporate culture based on values: trust, commitment Count, the professional, the creation, modernization and innovation.
Responsibility of company is provides the suitable advice for customer who want buy the house, after that, make sure the best warranty service for the houses and projects that they have sold and built
Business Scope: Real estate, Financial investment, Print and design, Packaging manufacturer, Production palette, real estate per hour, Real estate services, Real estate trading floors, Valuation of real estate, Property Consultants (excluding legal advice), Property Management…
Business scope mainly: Real estate
The customer and market requirement: The Company’s customers are mostly people with average income The apartment project built consistent with both singles, which have families, and the families of many people There are also suitable to use as office In recent year, the real estate market has been “frozen”, customer require high quality project but with low price Moreover, company has to face with several strong competitors
The suppliers: HBI has tight relationships with suppliers at building materials such as Hoa Phat, at finance as VP Bank and other distribution in the country.
In order to attract more customers in the market with large number of competitors,the company has made the strategic combination of quality products and quality service Products of company (house) have competitive price, excellent quality and warranty service Furthermore marketing strategies discount promotions are also run regularly to attract customers.
3.1.4 Organizational structure of the company
Diagram 3.2: Organization Structure of HBI Company
Shareholders Shareholders are the highest authority of the company.
Congress Annual General Meeting is held once a year Shareholders decide the matter in accordance with law and the charter of the company, particularly through the annual financial report and budget for the next fiscal year.
Control committee Board of Directors
Human ResourceDepartment(HR)Accounting andFinance
The rights of Shareholders include: The right to sell their shares, the right to vote on the directors nominated by the board, the right to nominate directors and propose shareholder resolutions, the right to dividends if they are declared, the right to purchase new shares issued by the company and the right to decide strategies, medium-term development plan and the annual business plan of the company.
The Board of Directors consists of the Director and the Deputy Director.
The Director is the person who has the right to the highest executive in the company legal representative for the company, responsible before the law about the company's operations.
STRUCTURE OFF ACCOUNTING SYSTEM ATT HBI COMPANY
3.2.1 Organization structure of accounting department at HBI Company
Organization chart of Accounting Department of the HBI Company
Accounting or Accountancy is the measurement, processing and communication of financial information about economic entities Accounting,which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators Practitioners of accounting are known as accountants.
Accounting can be divided into several fields including financial accounting, management accounting, auditing, and tax accounting An accounting department provides accounting services and financial support to the organization it belongs to. The department records accounts payable and receivable, inventory, payroll, fixed assets and all other financial elements The department's accountants review the records of each department to determine the company's financial position and any changes required to run the organization cost effectively
Diagram 3.3: The management of Accounting Department
The company's accounting department built in centralized accounting model According to this model, the company opened a ledger, held an accounting department performing in all stages of all accounting components Company Accounting Department performing all accounting works from collecting, recording and processing information to accounting The relationship between the chief accountant and other accountants in the accounting of the Company is "online relationships" This organizational structure of accounting fit with the company because company now is a unified unit independent and fully legal status; there is no diffusion of power in business management as well as financing activities.
Accountant of Cash and Bank Deposit (1)
Accounting department of the company include the chief accountant, general accounting and some main accounting cycle accountant All the staff in the accounting department of the Company have specifies the functions, powers, duties and in close relationship with each other in the course of performing their work.
- Chief Accountant as maids for company directors in directing and organizing the financial performance of the Company's accounting, by the Director, decided to transfer, dismissal appointment , reward and discipline as proposed by the Company's management
- Accountant General: is responsible for updating the general ledger Journal of consolidated accounts, management and reporting of financial statements in accordance with the fund, year and when requested Accountant General shall be responsible to contact the accountant, consider, and compare data gathered from the book section on general practice At the end you get the general accounting inventory report accounting of the share issue, other reports to establish financial statements and other management reports.
- Accountant of Tax: Direct work with tax authorities when they arise Check for comparison with a list of VAT invoices for input tax and output of each establishment Check reference table export declaration documents Monthly reporting output VAT synthesis of the entire enterprise, classified by the tax rate. Monthly report of input VAT synthesis of enterprise-rata allocation of the output to be deducted Monitoring report on the budget, the budget backlog, the business tax refund.
- Accounting for cash - bank deposits: responsible for monitoring help chief accountant cash accounting, income and expenditure accounting.
- Accounting for fixed assets: responsible management and monitoring of asset volatility in the Company, depreciation, reduced costs and increased residual value of fixed assets.
- Cashier: responsible for managing the Company's cash or cashier cash funds made under receipts, expenditure patterns established by the accounting payment after approval of the Chief Accountant.
The Accounting Department of HBI company has 6 accountant
-Chief Accountant: Nguyen Duy Hoang, born in 01/5/1976 and graduated from the National Economics University with accounting diploma As the overall responsibility for accounting work before the Director, the direct implementation of the accounting and accounts payable, cash accounting, established financial reporting and corporate governance requirements.
- General Accountant: Nguyen Ngoc Bich, born in 07.12.1979, graduated from the National Economics University with accounting diploma, has responsibility to aggregate production costs and product prices, aggregate revenue and costs across the company, set up the financial statements upon request.
- Tax Accountant: Nguyen Thi Nga, born in 20.06.1980, graduated from the National Economics University Has responsible for form operations to collect, handle, sort, store receipts, vouchers; declare what kind of tax reports monthly, quarterly; settlement of corporate income tax.
- Accounting for cash - bank deposits: Nguyen Van The, born in 02.15.1985, graduated from the University of National Economics The job is make accounting transactions in cash, bank deposits, and guarantee transactions are in compliance with the financial regulations of the company and Government.
- Fixed Assets Accounting: Nguyen Huy Thang, born in 30/30/1982, graduated from Vietnam University of Commerce Responsible for monitoring the use and depreciation of assets, the company's CCDC, ensure these assets are used for proper purposes and in compliance with the requirements of management of the company and the State.
- Cashier: Nguyen Thi Thu Huong, born on 20.02.1990, graduated from University of Economics Ho Chi Minh City who is responsible for managing the Company's cash or cashier cash.
3.2.2 General knowledgement about accounting information system of the company
Each company has a general accounting policies to apply and implement this policy must be consistent and comply with the general provisions of state accounting Policies designed to the accounting of all cycle correctly implemented in order to provide uniform reports, accuracy and legitimacy of the business situation of the company.
Basis for producing financial statements:
Financial statement is made for the fiscal year: From January 1 st to December 31 st yearly
Accounts in according to Circular No 200/2014 / TT-BTC dated 22/12/2014 by theMinistry of Finance
Accounting documentation system applicable: General Journal Diary
Accounting Software: HBI Company is using management software MISA
Inventories, mainly real estate acquired or is under construction for sale in normal business conditions, rather than holding aims rentals or for capital appreciation, are held as inventory and are recorded at the lower of the value and net value realizable
Inventories are carried at cost; the price of the delivered goods and inventories are pricing methods month weighted average, inventories are accounted for using the perpetual cannon.
Prices of inventories include costs directly main raw materials, direct labor costs, general manufacturing costs to get the inventory in the characteristics and current status.
Method of depreciation of fixed assets:
Fixed assets of the company include amortization of tangible and intangible fixed assets Fixed assets are stated at cost and accumulated depreciation. Depreciation and amortization calculated on a straight line basis.
Tangible fixed assets and depreciation:
ACCOUNTING FOR SALARY AT HBI COMPANY
3.3.1 Form of salary at HBI Company
The company is applying two forms of payment are paid by product and by time
3.3.1.1 Salary by time for office department employees:
26 days xnumber of actualworking days+ Job Allowance +Work Allowance Example:
Nguyen Thi Nga in the accounting department has a minimum wage 3.500.000d.
The actual number of working days is: 26 days
So salary for the month 4/2015of Ms.Nga is:
3.3.1.2 Salary by product for direct worker
Monthly salary= complete workload volume xunit price
Example: Salary by product paid for employee who can sell the house belong to the project For each house, employee will receive 10,000,000 VND
Mss Le Thi Minh Thu is sale employee of company In March, 2015, she sell 3 house
=> Salary by product for Mss.Thu is: 3 x 10,000,0000,000,000 VND
- Package payment to workers serve as security and cleaner…
3.3.2 Process of accounting for salary at HBI company
Vouchers for payroll accounting used include:
- Form 01a-LÐTL - Timesheets: timesheets by production teams or departments established, to provide details of the number of days each employee work per month.
- Form 01b-LÐTL: Timesheets of overtime working
- Form 03-LÐTL: Bonus payment table
- Form 05-LÐTL: Product certification cards or work completed
- Form 06-LÐTL: Overtime working payment table
- Form 07-LÐTL: Outsourced payment table
- Form 09-LÐTL: Liquidation reports of package contracts
- Form 10-LÐTL: Salary deduction Table
- Form 11-LÐTL: Allocate of salaries and social insurance Table
For labor accounting The Company uses the following documents:
+ The decision on hired of fired employment
+ The decision to retire to enjoy the social insurance
+ Table of Payment of salaries and social insurance
Based on the above documents, based on the annual plan company can gain or reduce the quality of labor and also changed Accounting department of labor and salary accounting have tasked to monitor the situation and reflect changes in the register of labor rises and falls of the Company per the decision of recruitment and severance.
The labor contract is the contract signed between the Company with direct workers, used as a basis for calculating the number of employees in the direct department at the company.
Accounts used : To conduct the accounting of salary and salary deductions accountants use some of the following accounts:
Acc 334 - Payable to employees This account is used to reflect salary and social allowance payments, bonuses and other payments related to the income of the employee.
The management of labor working time in the company is very important, it works to raise awareness of the organizationdiscipline of labor, as the basis for calculating salaries, bonus calculation bonus salary, to determine the function labor productivity Thus labor accounting haveto ensure reflect an actual number of hours worked of each employee in the month and in the quarter.
Timesheet : Accounting document used to caculate working time is timesheets.
Accounting workingresults: accounting working results reflect the results of the of employees working directly produced, as indicated by the volume of work completed Labor accounting results apply only to the form of payment by volume finished product, salary in the construction enterprises, and production of the Company.
Some of the accounting salary profession that company application for the office block timesheets is based to classified employees The salary of the office department employees is indirectly calculated using the formula 1.
Pursuant to fill in timesheets is the actual number of days worked by official’s employees Timesheets help accountants based on to account salary payment of their employees of its units Based on the timesheet, leader classified into A B C frade,to approve the bonus for staff
Is a payment document present the payment of salary and allowance for employees. Payment Table is made monthly, according to each department corresponding with the timesheet.
For the office department employees salary is used to be basic to classify, not the basic to calculating salary, because the salary of the office department employees is indirectly, calculated by using formula 1.
Mr Hoang Tu Hung, Vice President of company, In January, 2015, President of company, have:
Salary Coefficient: 4,5 Reak Working Day: 26 days Minimum Wages: 3,500,000 đ
So in January, His salary is:
Accounting of salaries and bonuses paid to workers for indirect employees
Items of direct labor costs include direct salary, allowances for direct workers, salary and allowances for control serving workers in the construction and salary of workers hired from outside.
Form of payment of company is salary by product, direct labor costs are collected directly for each project, work item The salary paid by product (volume of work completed) based on the exchange contract due to technical planning department of the branch, based on the design of project and being paid by independent way
Based on the volume of work to be allocated to each of the production (according to exchange contracts), the production teams organize the volumes assigned to ensure schedule and technical requirements at the same time, monitor working days of each worker in the organization as a basis for their payroll.
The volume of work completed and handed over; the technical supervision and the leader test the quality of work that completed and then confirmed the volume of work completed that insure quality Then transfer the "certification cards finished product", "exchange contract" and "timesheets" to accounting department Company to calculate salary.
The payment of salaries and allowances of employees of company and outsourced workers was divided into2 different document is a basis for making the record of salary funds.
Accounting of payroll in Enterprise after receive the all document in accordance with the prescribed forms, accountant start calculate and pay salary
Accountant use ACC 622 to record direct labor costs.
Based on the timesheets, leader classified into A B C grade, to approve the bonus for staff The bonus is caculated as follow:
Account use to record salaries and bonuses paid to employees and situation of payment ,used acc 334 The money was transferred to the leader of department or treasure accountant Accountants record transaction: