[Luận văn bằng tiếng anh - GRADUATION THESIS] ACCOUNTING FOR SALARY AND SALARY DEDUCTIONS AT HA NOI – HONG HA BEER JOINT STOCK COMPANY

GRADUATION THESIS ACCOUNTING FOR SALARY AND SALARY DEDUCTIONS AT HA NOI – HONG HA BEER JOINT STOCK COMPANYFor production and business enterprises, wages are a significant part of production costs. If enterprises apply a reasonable salary regime, it will create a driving force to increase labor productivity... Salary acts as an economic lever that directly affect employees. Labor costs account for a relatively large proportion of the total production costs of enterprises. Therefore, businesses need to strengthen labor management, accounting for salaries and deductions according to salary needs to be accurate and timely to ensure the interests of employees, creating conditions to increase labor productivity, save labor costs, promote production activities and lower product costs.For employees, salary is extremely important because this is the main source of income to help them ensure a living for themselves and their families. Therefore, wages can be a motivating force for employees to increase labor productivity if they are paid according to their contribution, but it can also reduce labor productivity, making the production process slow down, is inefficient if salary is lower than the labor power of employees. Therefore, the construction and selection of reasonable salary forms so that the salary is both an income for employees to meet their material and spiritual needs, and at the same time makes salary become the driving force for the development of employees and workers. Motivating employees to work better, with a sense of responsibility for their work is really a necessary job.

MINISTRY OF FINANCE

ACADEMY OF FINANCE

🙣🙣🙣 GRADUATION THESIS

ACCOUNTING FOR SALARY AND SALARY DEDUCTIONS

AT HA NOI – HONG HA BEER JOINT STOCK COMPANY

MENTOR: Ph.D Thai Ba Cong MSc Nguyen Ba Linh

Major: Corporate Accounting

Code: 21

HANOI – 2021

STATEMENT OF ORIGINAL AUTHORSHIP

I hereby declare that this is the subject of my personal research The digital material in the thesis is truthful and has a binding origin The result of the key has never been published in any other work

Ha Noi, February 22th 2022 Student

Table of Contents

LIST OF ABBREVIATIONS 7

LIST OF TABLES, DIAGRAMS AND IMAGES 8

PREFACE 10

1 The urgency of the topic: -10

2 The purposes of dissertation: -11

3 The object and scope of the dissertation: -11

4 Research method: -12

5 The structure of the dissertation: -12

CHAPTER 1: GENERAL THEORY ON SALARY AND SALARY DEDUCTIONS 13

1.1 General theory of salary and salary deductions: -13

1.1.1 Definition of salary and payroll related compensations: -13

1.1.2 State salary system: -18

1.1.3 Remuneration methods in enterprises: -19

1.1.4 Salary fund: -21

1.1.5 Factors affecting salary and salary deductions: -23

1.1.6 Principle of salary payment: -28

1.1.7 Duties of accounting for salary and salary deductions: -30

1.2 Salary deductions: -31

1.2.1 Social insurance: -31

1.2.2 Health insurance: -33

1.2.3 Umemployment insurance: -34

1.2.4 Trade union fee: -35

1.3 Accounting for salary and salary deductions: -35

1.3.1 Documents for labor accounting, salary calculation and social insurance

allowance: -35

1.3.2 Accounting accounts used: -36

1.3.3 Accounting entries for operations related to salary and salary deductions:- 38 1.4 Forms of bookkeeping applied in accounting of salary and salary deductions: -39

1.4.1 “General journal” form of bookkeeping: -39

1.4.2 “Journal – Ledger” form of bookkeeping: -42

1.4.3 “Bookkeepping vouchers” form of bookkeeping: -43

1.4.4 “Voucher Journal” form of bookkeeping: -44

1.5 Accounting of salary and salary deductions in terms of information technology application: -45

1.6 Presenting information of accounting for salary and salary deductions on financial statements: -46

CONCLUSION FOR CHAPTER 1 47

CHAPTER 2: ACTUAL SITUATION OF ACCOUNTING FOR SALARY AND SALARY DEDUCTIONS IN HA NOI – HONG HA BEER JOINT STOCK COMPANY 48

2.1 Overview of Ha Noi – Hong Ha Beer Joint Stock Company: -48

2.1.1 The process of formation and development of Ha Noi – Hong Ha Beer Joint Stock Company: -48

2.1.2 Characteristics of organization and production in Ha Noi – Hong Ha 50

Beer Joint Stock Company: -50

2.1.3 Characteristics and classification of employees in Ha Noi – Hong Ha Beer Joint Stock Company: -52

2.1.4 Characteristics of the management apparatus organization at Ha Noi – Hong Ha Beer Joint Stock Company: -55

GENERAL MEETING OF SHAREHOLDERS 56

Administrative Organization Department 56

Finished Product Factory 56

Electromechanical Workshop 56

2.1.5 Characteristics of accounting organization in Ha Noi – Hong Ha Beer Joint Stock Company: -59

2.2 Actual situation of accounting for salary and salary deductions in Ha Noi – Hong Ha Beer Joint Stock Company: -65

2.2.1 Remuneration method and salary caculation method at the company: 65

CN xuất hàng 82

2.2.2 Accounting for salary throughout Ha Noi – Hong Ha Beer Joint Stock Company: -86

2.2.3 Salary deductions: -102

2.2.4 Personal income tax: -118

2.2.4 Accounting for social insurance payments for employees: -118

2.3 General comments on the organization of accounting for salary and salary deductions at Ha Noi – Hong Ha Beer Joint Stock Company: -123

2.3.4 Advantages: -123

2.3.2 Disadvantages: -125

CONCLUSION FOR CHAPTER 2 127

CHAPTER 3: SOME SOLUTIONS TO IMPROVE ACCOUNTING FOR SALARY AND SALARY DEDUCTIONS AT HA NOI – HONG HA BEER JOINT STOCK COMPANY 128 3.1 Development orientation and principles, requirements for completing the accounting of salary and salary deductions in Ha Noi – Hong Ha Beer Joint Stock

3.1.1 Development orientation: -128

3.1.2 Principles and requirements for completing the accounting of salary and salary deductions in the company: -129

3.2 Some solutions to improve the accounting for salary and salary deductions in Ha Noi – Hong Ha Beer Joint Stock Company: -132

3.2.1 Complete facilities and use accounting software: -132

3.2.2 Complete in terms of structure and qualifications of the accounting team: 133 3.2.3 Complete the documents and accounting books: -133

3.2.4 Complete the accounting for salary and salary deductions: -134

CONCLUSION FOR CHAPTER 3 136

CONCLUSION 137

REFERENCE 139

LIST OF ABBREVIATIONS

LIST OF TABLES, DIAGRAMS AND IMAGES

Diagram 1.1 T-accounts of accounting for salary

Diagram 1.2 T-accounts of accounting for salary deductions

Diagram 1.3 The order of recording “General Journal” form of bookkeepingTable 1.1 A part of Balance Sheet in the Financial Statement

Table 2.1 Labor summary of Ha Noi - Hong Ha Beer Joint Stock Company in the period of 2018-2020

Table 2.2 Timesheet of Financial – Accounting Department

Table 2.3 Timesheet of Planning – Material Department

Table 2.4 Table of salary payment of Financial – Accounting Department

Table 2.5 Table of salary payment of Executive Board

Table 2.6 Table of salary payment of Planning – Material Department

Table 2.7: Fixed salary scale, performance bonus printed in Ha Noi – Hong Ha Beer Joint Stock Company regulations

Table 2.8 Table of salary payment of Ha Noi – Hong Ha Beer JSC

Table 2.9 General Journal of Ha Noi – Hong Ha Beer JSC

Table 2.10 Detailed book of Account 334 from 01/11/2020 to 31/12/2020

Table 2.11 Ledger of Account 334 from 01/11/2020 to 31/12/2020

Table 2.12 Detailed book of Account 338 from 01/11/2020 to 31/12/2020

Table 2.13 Ledger of Account 338 from 01/11/2020 to 31/12/2020

Diagram 2.1: Management structure of Ha Noi – Hong Ha Beer Joint Stock Company

Diagram 2.2: Structure of accounting apparatus in Ha Noi – Hong Ha Beer Joint Stock Company

Diagram 2.3 Process of recording salary and salary deductions

Image 2.1 Salary and salary deductions caculation on Microsoft Excel softwareImage 2.2 GREEN EFFECT accouting software interface

Image 2.3 List of accounts on EFFECT accounting software

Image 2.4 Accounting for salary payment on EFFECT accounting softwareImage 2.5 Salary performance on EFFECT accounting software

Image 2.6 Payment order

Image 2.7 Accounting for salary deductions on EFFECT accounting softwareImage 2.8 Cash received note

Image 2.9 Tax received note

Image 2.10 Accountanting for payment of sick and maternity benefits

1 The urgency of the topic:

For production and business enterprises, wages are a significant part of

production costs If enterprises apply a reasonable salary regime, it will create a driving force to increase labor productivity Salary acts as an economic lever that directly affect employees Labor costs account for a relatively large

proportion of the total production costs of enterprises Therefore, businesses need to strengthen labor management, accounting for salaries and deductions according to salary needs to be accurate and timely to ensure the interests of employees, creating conditions to increase labor productivity, save labor costs, promote production activities and lower product costs

For employees, salary is extremely important because this is the main source

of income to help them ensure a living for themselves and their families

Therefore, wages can be a motivating force for employees to increase labor productivity if they are paid according to their contribution, but it can also

reduce labor productivity, making the production process slow down, is

inefficient if salary is lower than the labor power of employees Therefore, the construction and selection of reasonable salary forms so that the salary is both anincome for employees to meet their material and spiritual needs, and at the same time makes salary become the driving force for the development of employees and workers Motivating employees to work better, with a sense of responsibilityfor their work is really a necessary job

Realizing the importance of the above issue, I chose the topic "Salary

accounting and payroll related compensations in Ha Noi - Hong Ha Beer Joint Stock Company" to study the theory of salary and payroll related compensations and practical application in Ha Noi - Hong Ha Beer Joint Stock Company

During my internship and graduation thesis at the company, I had the

opportunity and conditions to learn and research the theory of salary and payroll related compensations and the practical application of them in the Company It has helped me a lot in consolidating and expanding the knowledge learned in school that I have not had the opportunity to put into practice

2 The purposes of dissertation:

- Learn about the theoretical basis of salary and payroll related

compensations at the enterprise

- Research and analyze the current situation of salary and payroll related compensations in Ha Noi - Hong Ha Beer Joint Stock Company

- Proposing some measures to improve the accounting of salary and payroll related compensations Ha Noi - Hong Ha Beer Joint Stock Company

-3 The object and scope of the dissertation:

- Reasearch object: Accounting for salary and salary deductions at Ha Noi –Hong Ha Beer Joint Stock Company

- Research scope: Accounting for salary and salary deductions at Ha Noi – Hong Ha Beer Joint Stock Company from 18/10/2021 to 18/02/2022

4 Research method:

My thesis is researched based on the method of analyzing theoretical and practical problems in a scientific and logical manner, combining inference with induction, between text and tables and diagrams

5 The structure of the dissertation:

Chapter 1: General theory on salary and salary deductions in enterprises.Chapter 2: Actual situation of Accounting for salary and salary deductions at

Ha Noi – Hong Ha Beer Joint Stock Company

Chapter 3: Some solutions to improve accounting for salary and salary

deductions at Ha Noi – Hong Ha Beer Joint Stock Company

CHAPTER 1: GENERAL THEORY ON SALARY AND SALARY

DEDUCTIONS

1.1 General theory of salary and salary deductions:

1.1.1 Definition of salary and payroll related compensations:

1.1.1.1 Labour and the meaning of labour management:

 Definition of labour:

Labour is the use of physical or mental strength through labor tools to

improve nature for the spiritual purpose of serving people

It can be said that labour is the decisive factor for all economic activities Especially, high-productivity, quality and effectiveness of labor are the decisive factors for the development of the country, society, family and each worker

 Characteristics of labour:

Labour is the first and necessary factor for the development of a society Labour is a purposeful and conscious activity of people to create products to serve the needs of life Therefore, labor is the most characteristic and creative activity of human and only through labour can the society change in a positive direction

Labour is the decisive factor in the production process Labour creates

material products for human life It is not natural that everything is available for

us to use, but there is a labor process to create them

Labour is also a factor that determines the wealth of a society Each particularlabor creates a certain type of use-value The more specific types of labour, the

social division of labor Along with the development of science and technology, specific forms of labor are increasingly diversified and abundant, reflecting the development level of the social division of labour.

Labour is a legitimate source of income, helping to stabilize people's lives

 Meaning of labour management:

Labor management includes many issues, but mainly shown in the followingcontents:

- Management of the number of employees: is the management of the

number of employees in terms of gender, age, expertise

- Labor quality management: is to manage all aspects of the capacity of each group of workers in the production process to create products (such as laborpower, labor level, skill - technique, consciousness)

Therefore, only on the basis of a certain quantity and quality of labor will theorganization, arrangement and arrangement of labor be reasonable, making the production process of the enterprise go smoothly and effectively high On the contrary, not paying due attention to labor management will lead to stagnant and

inefficient production capacity of enterprises At the same time, good labor management is the basis for evaluating remuneration for each employee in a correct and fair manner The right and fair remuneration regime will stimulate allemployees in the enterprise to work creatively, improve technical skills, save raw materials, increase labor productivity, and contribute to increasing profits.

1.1.1.2 Definition, nature and meaning of salary and salary deduction:

 Salary:

Salary is remuneration or income that can be expressed in monetary terms and fixed by agreement between the employer and the employee, or by National Law or regulation by the employer that the salary has to be paid for the

employee under an employment contract for work performed or to be performed,

or services performed or to be performed

Salary is paid to employees on a regular basis, usually monthly Economic organizations, businesses and employers pay for workers according to the

quantity and quality of work they have contributed Salary will vary between different occupations because workers provide different values of labor power Salary also depends on where the worker is hired and the demand If the demand for labor is high, salary will tend to increase In contrast, salary will tend to decrease in areas where there is a surplus of labor The salary of workers in somecountries also differ if their gender and race are different Salary is typically determined by comparing market pay rates for people performing similar work

in similar industries in the same region Salary is also determined by leveling thepay rates and salary ranges established by an individual employer Salary is also

affected by the number of people available to perform the specific job in the employer's employment locale.

The nature salaries is the price of labor power formed on the basis of the value of labor power through an agreement between the person with the labor capacity and the employer and adjusted by economic laws such as the law of supply and demand, the law of value, etc

According to the Marxist-Leninist point of view, salary is a part of national income expressed in money that workers receive to compensate for their labor, depending on the quantity and quality of the workers Thus, salary is a part of newly created value that is distributed to workers in order to reproduce their labor power because workers in the process of participating in production must consume the most amount of labor power determined and must then be offset by the means of consumption

Salary is the basic factor that determines the increase or decrease in income

of employees and the material standard of living of salaried employees in

enterprises Therefore, it is necessary to pay fair and accurate wages, ensure the interests of employees, to create stimulation and proper attention of employees tothe final results of the enterprise It can be said that accurate and correct salary accounting is an important economic lever that arouses positive factors in each person, promoting the talents, initiatives, sense of responsibility and enthusiasm

of employees… constitutes an important driving force of economic development

On the other hand, salary is one of the costs of the business, accounting for

a significant proportion The goal of the enterprise is to minimize costs and maximize profits, but besides that, it must also pay attention to the interests of

employees So how to both ensure the interests of employees and ensure the interests of businesses That is the dilemma of every business Therefore,

accounting for wages and salary deductions not only has the meaning of

promoting the positivity, initiative and creativity of employees, but also helps managers to effectively use the salary fund ie rationalizing costs to help

businesses become profitable Provide complete and accurate information about the salary of the enterprise so that the enterprise can make timely and reasonable adjustments for the next revenue periods

 Salary deductions:

Salary deductions are deductions according to salary and expenses that the

employee and the employer must jointly make to ensure the stability of the employee's life and maintain the activities in the enterprise Currently in

Vietnam, the most commonly applied salary deductions are:

- Social insurance: is the amount of money that enterprises and employees pay to compensate a part of income for employees in case of loss of working capacity such as sickness, accident, maternity

- Health insurance: The amount that the employer and the employee pay to the insurance agency to support the cost of medical examination and treatment when sick or ill

- Unemployment insurance: An amount of money that businesses and

employees pay to provide temporary financial support when losing their jobs but must meet all conditions as prescribed by law

- Trade union fee: is the money that only enterprises pay to achieve targets for the organization's activities

1.1.2 State salary system:

Accordingly, salaries, allowances and operation fees of cadres, civil

servants, public employees and employees shall comply with the provisions of Clauses 1, 2, 3, 4 and 7, Article 1 of Circular 04/2019/TT-BNV calculated

according to the current salary coefficient and allowances specified in the

documents of competent agencies of the Party and State on the salary regime for cadres, civil servants, public employees and the armed forces ., the base salary

is specified in Decree 38/2019/ND-CP dated May 9, 2019, specifically as

follows:

 How to calculate salary:

Salary in 2021 = Basic salary 1,490,000 VND / month x Current salary

coefficient

 How to calculate allowances:

- For allowances calculated according to base salary:

Allowance level in 2021 = Basic salary 1,490,000 VND / month x Current

allowance coefficient

- For allowances calculated according to % of current salary plus

allowances for leadership positions, over-frame allowances (if any):

Allowance level in 2021 = Salary in 2021 + Leadership allowance in 2021 (ifany) + Seniority allowance in 2021 (if any) x Percentage of allowances as

prescribed

- For allowances specified at a specific rate, they will remain the same according to current regulations

 How to calculate reserve difference factor (if any):

Amount of reserve margin in 2021 = Basic salary VND 1,490,000 / month x

Operating fee coefficient as prescribed

1.1.3 Remuneration methods in enterprises:

1.1.3.1 Time-based schemes:

Time-based scheme is a form of paying employees according to working time, salary level (title) and salary level (salary coefficient) This form is mainly applied to indirect labor, stable labor or direct labor without product norms

In enterprises, the form of time-based salary payment is applied to people doing office work such as administration, labor organization, statistics, finance - accounting Time-based payment is a form of salary payment to employees based on the actual working time, occupation, professional and technical

qualifications of the employee

Depending on the industry and the specific nature of the job, different

salaries apply Professional and technical qualifications are divided into many salary levels, each salary grade has a certain salary level, which is the basis for salary payment, which can be divided over time

Time salary is a way of calculating wages for employees according to the time worked It can be by month, by day, by hour

In fact, there are two ways to calculate salary in business:

 Method 1:

Monthly salary = Salary + (allowance (if any) / standard working days per

month) * actual number of working daysUnder this salary calculation, the monthly salary is usually a fixed number, which is reduced only when the employee takes unpaid leave

Monthly salary = Salary - (salary / standard working day in a month) * number

of days of unpaid leaveWith this form of payment, employees do not worry about monthly income Because the amount deducted for each day of unpaid work is fixed How many days off, how much money they deduct If there is no change in salary and vice versa, if working full days as prescribed, full salary will be paid

The standard working day in a month is the number of working days in the month according to regulations Holidays are not included

 Method 2:

Monthly salary = Salary + (Allowance / 26) * actual working days

(Businesses self-stipulate 26 or 24 working days)Under this salary calculation, the monthly salary is no longer a fixed

number because the standard working days are different each month Because there are months with 28, 30, 31 days

With this form of payment, when taking unpaid leave, employees need to consider which month to take leave To make their income less affected This may affect the production situation of enterprises when many workers choose to take leave in the months with large working days to minimize the deduction of wages.

productivity, contributing to increasing products

Salary = Quantity of product * Unit price of productMost businesses today use this method of payment to properly meet the capacity of employees

- Monthly salary, salary according to the coefficient in the State salary scale.

- Pay by product

- Daily salary for irregular employees

- Salary paid to workers when making damaged products in rule

- Salary paid to employees during work stoppage due to shutdown of

machinery and equipment for objective reasons

- Salary paid to employees during the time they are sent to work or perform obligations of the State and society

- Salary paid to employees when on leave, periodical leave according to the State's regime

- Salary paid to people who go to school but are still on the payroll

- The usual types of bonuses

- Allowances according to the prescribed regime and other allowances are recorded into the salary fund

In terms of accounting, salary for employees in manufacturing enterprises are divided into two categories: main salary and supplementary salary

Main salary is the salary paid to employees during the period of time

employees perform their main duties, that is, time with actual consumption of labor including salaries paid by rank and accompanying allowances

(responsibility allowance, regional allowance, overtime allowance )

Supplementary salary is the salary paid to employees during the time of performing tasks other than their main duties and the time when the employees are entitled to leave in accordance with the regime (leave, leave, go to school, go

to meetings, take time off due to stoppage of production) export ) In addition, the wages paid to workers who produce damaged products within the prescribed regime are also included in the supplementary salary.

The division of wages into main salary and supplementary salary has

important implications for the accounting and analysis of wages in production costs The main salary of production workers is attached to the product-making process and is directly accounted into the production cost of each product The supplementary of production workers are not attached to each type of product, sothey are indirectly accounted into the production cost of each product according

to a certain allocation standard

The management of salary fund expenditure must be in relationship with theimplementation of the production and business plan of the unit in order to both thriftily and rationally spend the salary fund while ensuring the completion and excess of the production plan enterprise output

1.1.5 Factors affecting salary and salary deductions:

Based on previous studies in combination with the reality of participating incompulsory insurance of enterprises in Vietnam, the author proposes factors affecting the sense of compliance with regulations on deduction of salary

payments for employees include:

- Policies on social insurance, health insurance and unemployment

insurance Current insurance-related regulations have a direct impact on

enterprises' compliance with salary deductions for employees Currently, most

businesses choose to pay insurance for employees above the minimum wage, or choose the lowest premium salary to minimize business costs This will

significantly reduce the rights of employees as well as social welfare

Therefore, the insurance policy needs to pay attention to whether the

compulsory insurance participation salary is appropriate or not The degree of impact of insurance policies on compliance with payment and payment of

insurance can be measured: (i) The relevance of policies on social insurance, health insurance and unemployment insurance; (ii) Frequency of propaganda anddissemination of social insurance, health insurance and unemployment insurancepolicies of social insurance agencies; (iii) Mandatory salary for deduction and payment according to current regulations

- Administrative procedures: The procedures related to the monthly

insurance deduction, if too cumbersome, complicated and confusing, will make

it difficult for businesses to monitor and pay insurance for employees This is one of the reasons leading to overdue payment of insurance to the social

insurance agency Therefore, the administrative procedure factor was also

included in the study to examine its impact on the sense of compliance with the provisions of the law related to the deduction and payment of insurance

contributions for employees

- Enterprise ownership form: Research by Gao and Rickne (2014) shows that there is a difference in compliance with the provisions of the State Social Insurance Law between privately owned enterprises and foreign-invested

enterprises foreign and state-invested enterprises Therefore, the factor of form

of enterprise ownership is not excluded when it is included in the study of its impact on salary deductions for employees.

- Level of knowledge of employees: knowledge of employees is one of the important characteristics affecting the compliance behavior of enterprise

managers to the employees regulations on compulsory social insurance of the state When employees are knowledgeable about the social insurance regime, they will require the enterprise to properly perform their obligations (ie, the deductions and payments are paid in full to the social insurance agency) to

ensure their benefits

- Inspection and examination: Periodic inspection and supervision of the process of participating in compulsory insurance for employees also directly affects the progress of enterprises in paying social insurance, besides the

inspection and payment The inspection also solves outstanding debt problems and urges enterprises to soon fulfill their social insurance obligations to avoid paying interest and penalties due to overdue The work of inspection and

examination is the main responsibility of the social insurance agencies, its

effectiveness depends mainly on the professional qualifications and consulting skills of the staff in charge of collecting social insurance

- Sanctions: The provisions of the law, the sanctioning measures for

enterprises that intentionally violate the regulations on deductions for payment ofsocial insurance, health insurance and unemployment insurance premiums will directly affect the sense of compliance of users labor

 Group of factors in the labor market: Labor supply - demand directly affects salary

- When the supply of labor is greater than the demand for labor, salary tend

to decrease, when the supply of labor is smaller than the demand for labor, salarytends to increase, and when the supply of labor equals the demand for labor the labor market reaches equilibrium The salary is now the equilibrium salary, which is broken down when the factors affecting the supply and demand for labor change such as (marginal productivity of labor, prices of goods and

- In the market, there is always a difference in wages between the private sector, the State, joint ventures the difference between industries, between jobs with different attractive levels, requirements on labor qualifications also different Therefore, the State needs to have measures to regulate wages

reasonably

 Group of factors in the business environment:

- The policies of the enterprise: the policies of salary, allowance, cost are thoroughly and appropriately applied, which will promote labor to improve productivity, quality, efficiency, directly increase income for themselves

- The financial capacity of the enterprise strongly affects the salary With the enterprise with a large amount of capital, the ability to pay wages to

employees will be convenient and easy On the contrary, if the financial capacity

is not stable, the salary of workers will be very precarious

- Reasonable or unreasonable organizational structure also affects wages creativity in production of workers to increase efficiency and productivity,

contributing to increase in wages

 Group of factors belonging to employees themselves:

- Level of labor: With a high-skilled worker, a higher income will be

obtained than a lower-qualified worker because to achieve that level, the worker has to spend a relative amount of money on labor that training Long-term

training in schools can also be trained in enterprises In order to do jobs that require a high level of knowledge and qualifications to be able to perform and bring high economic efficiency to enterprises, a high salary is inevitable

- Working seniority and work experience often go hand in hand A person who has worked for many years will gain a lot of experience, limit the risks that may occur at work, improve his sense of responsibility in front of high-quality work, thus earning a profit Their income will increase

- How fast or slow the job completion, quality assurance or not all affect thesalary of employees

 Group of factors of work value:

- Job attractiveness: jobs with high attractiveness attract many employees, then enterprises will not be pressured to increase wages, in contrast to less

attractive jobs to attract enterprise workers measures must be taken to set higher wages

- The complexity of the job: The higher the complexity of the job, the

higher the salary level for that job The complexity of the job can be the

difficulty of technical level, the difficulty of working conditions, the level of danger to the performer, so that the salary will be higher than that of a simple job

- Working conditions: in order to perform the job, it is necessary to

determine the part of the work to be done, specific standards to perform the work, how to work with machines, difficult or easy implementation

environment determines the salary

- The requirements of the job for the performer are necessary, very

necessary or just desired, for which the enterprise has an appropriate salary regulation

 Other factors: Where there is discrimination in terms of skin color, sex, age, urban and rural areas, there is a huge difference in wages, which does not reflect the actual level of labor The reality of the laborers spent, does not

guarantee the principle of paying wages at all, but in fact still exists The

difference in the level of competition in the market also affects the wages of workers

1.1.6 Principle of salary payment:

 Principle of salary calculation: accurate in data, ensuring the time of salarypayment in accordance with regulations

- Base salary calculation: based on working time on the timesheet

Monthly salary = main salary + allowances, allowances (if any) / 26 X actual

working days

- Salary payment period: depends on the regulations of each company

- Hourly wages: specified in the Labor Code

- Employees who work overtime are paid according to the salary unit price

or the actual salary paid according to the work they are doing as follows:

+ On weekdays, at least equal to 150% of salary

+ On weekly holidays, at least equal to 200% of salary

+ On public holidays, New Year's Day, paid leave, at least equal to 300%, excluding the salary for holidays, New Year's Day, and paid leave for employees receiving daily salary

- Employees who work overtime at night, in addition to paying wages according to the regulations on overtime and working at night, employees are also paid an additional 20% of the salary calculated according to the salary unit price or salary according to the work performed during the day of a normal working day or of a weekly rest day or of a public holiday

- Holidays with full salary: public holidays, Tet; themselves get married, children get married, father and mother die (both husband and wife), spouse, children die, leave

 Increase salary regime:

- Salary increase regime: the time of salary increase in the year depends on each company

- Term and object of salary increase: the employees have successfully

- Procedure for considering salary increase: Must be cooperated and

censored by the company's leadership

- Increase the salary at each salary level: from 10-20% of the current salary

 Bonus mode:

- Year-end bonus (Lunar New Year): The specific bonus level depends on the individual's work quality and the company's profit that year

- Seniority bonus: Employees who have been with the company for at least

3 years or more will be approved for annual bonus levels

- Holidays April 30 & May 1, National Day, New Year's Day: Depends on the quality of work and each individual's contribution to the company

- Revenue bonus: if the revenue set by the Board of Directors is achieved, they will be rewarded with a percentage of monthly revenue If the revenue will

be enjoyed according to the actual profit of the company

1.1.7 Duties of accounting for salary and salary deductions:

Salary accounting duties include the following basic tasks:

- Organization of recording, reflecting and synthesizing data on the number

of employees, time, labor results, calculating salary and deducting amounts according to salary, allocating labor costs according to the right employer

- Guide and inspect the accounting staff in the production-business

departments, the departments to fully perform all the steps from the initial record

of labor and salary according to the correct regime and method

- Monitor the payment of salaries, bonuses, allowances and allowances for employees.

- Make reports on labor, salary, salary deductions, periodically analyze the labor situation, management and expenditure of salary fund, provide information

on labor and salary for the ministry management in a timely manner

It can be said that salary and payroll related compensation are not only an issue that businesses pay attention to because this is an expense of the business, but also pay special attention to employees because this is their right Workers use wages to stabilize their lives, serving their daily necessities

1.2 Salary deductions:

1.2.1 Social insurance:

According to the definition of the International Labor Organization (ILO), social insurance is understood as the protection of the society of its members, through a series of public measures to combat economic hardship - due to loss orreduction of income, caused by illness, loss of working capacity, old age, illness,death

Social insurance is a system consisting of 3 layers:

Level 1: is the basic floor to apply to everyone, every individual in society In which the request is the poor Although the ability of these people to contribute

to social insurance is very low, the State still subsidizes when required

Level 2: is a mandatory floor for people with stable jobs

Level 3: It is voluntary for those who want to have high social insurance

contributions

Regarding the subjects, before that social insurance was only applied to enterprises Currently, according to Decree No 45/CP, the social insurance policy is applied to all economic sectors (2nd tier), to all members of society (1sttier), and to everyone with high income or high income conditions for

participation in social insurance to enjoy higher social insurance benefits At the same time, the social insurance regime also stipulates the obligation to contribute

to those who enjoy the preferential regime The amount of money that members

of the society contribute to form the social insurance fund

According to Decree No 43/CP of June 22, 1993, provisionally stipulating the Social insurance of the Government, social insurance fund is formed mainly from the contributions of employers, employees and a part of the State's support The management and use of the social insurance fund must comply with the State's regime and the principle of independent accounting

According to current regulations: monthly, enterprises make deductionsfund according to the prescribed rate of 25.5% In there:

+ 17.5% under the responsibility of the business contribution by subtractingExpenses of which: 3% to the maternity sickness fund, 1% to the accident fundlabor and occupational diseases 14% shall be paid to the retirement and

survivorship fund

+ 8% under the responsibility of the employee's contribution by deduction of salary The social insurance fund is used to create financial resources for

employees in cases of sickness, maternity and summarizing the settlement withthe agency responsible

1.2.2 Health insurance:

Health insurance is actually a medical subsidy for the insured in order to support them a part of medical examination and treatment costs, hospital fees, and medicines

Regarding the subjects, health insurance applies to people paying health insurance through the purchase of insurance cards

According to the current financial regime, the health insurance fund is formed from two sources:

+ 1.5% basic salary paid by employees

+ 3% of the basic salary fund calculated into production costs borne by the

employer

Enterprises must pay 100% of the health insurance fund to the fund

management agency

1.2.3 Umemployment insurance:

Every month, the company pays the employee's salary and deducts from theemployee's monthly salary to contribute to the unemployment insurance fund at the rate of 2%, of which:

+ Enterprises pay 1%

+ Employees 1% monthly salary

The lowest monthly salary on which unemployment insurance premiums are based is the regional minimum and the maximum is 20 times the regional minimum wage

Subjects participating in unemployment insurance include employees with aterm of 3 months or more in all agencies and units If the employee has a

contract with many companies, the first company must be responsible for payingunemployment insurance for the employee

The monthly unemployment insurance allowance is equal to 60% of the monthly salary

Unemployment insurance of the 6 consecutive months before

unemployment but not exceeding 5 times the base salary for employees applyingthe salary regime prescribed by the State or not exceeding 5 times the regional minimum salary according to regulations provisions of the Labor Code for employees Activities are carried out according to the salary regime prescribed

by the Enterprise So the monthly unemployment benefit is calculated according

to the formula:

Monthly unemployment benefit = Average salary of 6 consecutive months of UI

payment before unemployment X 60%

1.2.4 Trade union fee:

Trade union is an organization of a trade union representing workers, in general, workers, standing up to fight for the rights of workers, and at the same time, the trade union is also the person who directly guides employees' attitudes employees for the job and the employer

The Commune People's Committee is formed by formulating and

calculating the monthly production and business expenses of the enterprise, at the rate of 2% of the total actual salary payable to employees in the period In which, enterprises must pay 50% of the collected trade union fees to the superiortrade union, the remaining 50% to the grassroots trade union

1.3 Accounting for salary and salary deductions:

1.3.1 Documents for labor accounting, salary calculation and social insurance allowance:

- Form No 01a- LDTL: “Timesheet” This is a proof of salary payment according to the actual working time of each employee This table is set up monthly by department time (production team, department)

- Form No 01b- LDTL: Overtime timesheet

- Form No 02- LDTL: Salary payment table

- Form No 03- LDTL: Bonus payment table

- Form No 04- LDTL: Road permit

- Form No 05-LDTL: Certificate of completion of products and work

- Form No 06- LDTL: Overtime payment table

- Form No 07- LDTL: Outsourced payment table

- Form No 08- LDTL: job assignment contract

- Form No 09- LDTL: Minutes of liquidation (acceptance) of the contract

- Form No 10- LDTL: List of deductions according to salary

- Form No 11-LDTL: Table of salary distribution and social insuranceThis form is used to record the overtime working time of the employee assigned to work overtime as a basis for calculating the salary based on the overtime allowance according to the prescribed regime

Some other related documents such as receipts, payment slips, advance slips, blank invoices (travel papers)

1.3.2 Accounting accounts used:

To monitor the payment of wages and other payments to employees, the setting up and use of social insurance, health insurance, unemployment

insurance, occupational accident and occupational disease insurance funds, accounts 334 and 338 are used by accountants

 Account 334: “Payments to employees”

This account is used to record payables and payables to employees of the enterprise in terms of salaries, wages, bonuses, social insurance and other

payables according to turnover worker input

Account 334 - Payables to employees with 2 tier 2 accounts

- Account 3341 - Payables to employees: Reflecting payables and payment

of payables to employees in terms of salary, salary bonus, social insurance and other allowances and benefits Other payables belong to the employee's income

- Account 3348 - Other payables: Reflects the payables and the payment of payables to employees of the enterprise in terms of wages and bonuses (if any) the nature of the employee's wages and other earnings

 Account 338: Other payables and payables

Used to monitor the setting up, setting up and use of social insurance, healthinsurance, commune-level People's Committees, unemployment insurance funds.Account 338 is detailed into level 2 accounts as follows:

- Account 3382 (union fee)

- Account 3383 (social insurance)

- Account 3384 (health insurance)

- Account 3386 (umemployment insurance)

1.3.3 Accounting entries for operations related to salary and salary deductions:

Diagram 1.1 T-accounts of accounting for salary

Diagram 1.2 T-accounts of accounting for salary deductions

1.4 Forms of bookkeeping applied in accounting of salary and salary

deductions:

1.4.1 “General journal” form of bookkeeping:

The basic characteristics of the General Journal accounting form are: All arising economic and financial transactions must be recorded in the Journal, withthe focus being on the General Journal, according to the chronological order of occurrence and according to the economic content (accounting terms) of that transaction Then take data on the Journals to record in the Ledger according to each arising transaction

The form of accounting books - The general journal includes the following types of books:

- General journal;

- Ledgers;

- Detailed accounting books and cards;

- Order of transfer of documents

+ Every day, based on the checked documents as a basis for bookkeeping, recordarising transactions in the General Journal, then based on the data recorded in theGeneral Journal to record in the Journal shared general signs Follow the

appropriate accounting accounts In case the unit opens the detailed accounting books and cards concurrently with the general journal entries, the arising

transactions shall be recorded in the relevant detailed accounting books and cards

+ In case the unit opens a special diary, every day, based on the vouchers as the basis for book entry, arising transactions are recorded in the relevant special diary Periodically (3, 5, 10 days) or at the end of the month, depending on thevolume of transactions arising, sum it up in a specialized journal, take data to record into appropriate accounts on the Ledger, exclude duplicates due to a transaction recorded in multiple special journals (if applicable)

+ At the end of the month, at the end of the quarter, at the end of the year, add the data on the Ledger and make a balance sheet of arising numbers After

checking and comparing accurately, the data recorded in the Ledger and the detailed summary sheet (made from detailed accounting books and cards) are used to prepare financial statements In principle, the total incurred debt must be equal to the total incurred on the General Journal