Features of labour and payroll at Thanh Nam., JSC
Thanh Nam., JSC operates as a subcontractor in the construction industry, offering a diverse array of services for mixed-use commercial, residential, and educational projects The company emphasizes high standards for its workforce, including age, health, gender, technical skills, and experience, tailored to the unique demands of various construction projects Consequently, Thanh Nam., JSC maintains a specialized labor force consisting of both direct and indirect workers.
Direct workers in the construction industry typically engage in short-term contracts lasting under a year, which means they do not contribute to social, health, or unemployment insurance This group includes bricklayers, masons, welders, and plumbers who primarily work as manual laborers on-site Recruitment criteria focus on key factors such as candidates being at least 18 years old, meeting health requirements, and possessing practical experience, rather than formal certifications As a result, these direct laborers are generally young and in good health.
Indirect workers, such as management officers, quantity surveyors, and quality controllers, are employed under long-term contracts and are responsible for participating in social, health, and unemployment insurance Unlike direct labor, these office staff members typically possess specialized knowledge, often holding degrees from relevant colleges or universities They oversee the execution of plans and manage direct workers to ensure projects are completed as intended Consequently, office staff may work either at the company’s office or on construction sites alongside direct employees.
The company implements training programs for new employees, which include a two-month probationary period Senior staff and professionals are responsible for training new workers and ensuring they adhere to established procedures Additionally, apprentices receive thorough training and evaluation from experienced managers.
After the training period, individuals completing the scheme successfully would officially sign the labor contract.
Due to the unique features of the construction labor, the number of labor force at the company in the period from 2019 to 2021 is also interested and shown as below:
Table 1.1: Group of workforce at Thanh Nam., JSC
Over the years, Thanh Nam., JSC has experienced significant changes in its human resource numbers The indirect labor force saw minor fluctuations, primarily due to long-term contracts that demand high levels of commitment, motivation, loyalty, and job satisfaction Overall, the number of indirect staff has increased slightly by three individuals over the past three years.
From 2019 to 2021, the number of direct workers experienced significant fluctuations, with a notable decline from 329 employees in 2019.
426 workers in 2021 The major reason for this decline is that the Covid-19 situation in
In 2020, a significant surge in COVID-19 cases prompted a halt to all construction projects, resulting in a prolonged work stoppage for direct employees at construction sites However, by 2021, conditions improved, allowing for a resumption of work and a substantial increase in the number of direct laborers in the industry.
Direct labor in the construction industry is more volatile than indirect labor due to the unique characteristics of construction projects, which often lack long-term stability This "one-off nature" leads to a seasonal and migratory workforce, as workers are typically engaged on a piece-rate basis and often switch to agricultural work during certain times of the year As a result, their commitment to construction as a profession is limited, leading to low loyalty and motivation to improve their skills and knowledge in the trade.
Thanh Nam., JSC recognizes the significant differences between direct and indirect labor, leading to a strategic human resource management (HRM) approach aimed at developing and maintaining an effective workforce aligned with business needs Direct employees require strict and systematic management to prevent human resource shortages and ensure cost-effectiveness The human resource department collaborates seamlessly with the construction department to optimize the management of the direct workforce.
As a subcontractor, the company manages various construction contracts and projects simultaneously to foster business growth Therefore, implementing effective employee rotation plans is essential for maximizing the potential of its extensive workforce.
The form of payment for salaries and wages applied at Thanh Nam., JSC…
Payroll policies
Thanh Nam., JSC has established payroll policies to ensure a smooth payroll process and to provide employees with accurate and timely salary payments These salary policies play a crucial role in enhancing staff morale and maintaining financial stability within the business.
Principles for formulation of payroll
In compliance with Decree 49/2013/ND-CP, the firm also sets up some principles for formulation of payroll as below.
Pay scale is based on the region-based minimum wage announced by the
Government to adjust the salaries and wages of each job title to the finance of the company:
The minimum salary for entry-level positions must align with the regional minimum wage, ensuring compliance with local standards For roles that involve training or apprenticeship, the starting salary is set to exceed the regional minimum wage by at least 7%, reflecting the added value of skill development.
+ With the same job title, employees working in heavy and dangerous conditions will be paid at least 5% higher salary than workers working in normal conditions.
To comply with regulations, enterprises must ensure their salaries and wages meet or exceed the region-based minimum wage, which is expected to rise annually By maintaining salaries at or above this minimum, companies can save time and reduce costs associated with payroll adjustments.
The salary fund of the company is only used for salary payment to employees working at the company and not for other purposes.
The salaries and wages are paid in full for employees directly and timely, according to the productivity, quality and efficiency.
The salaries and wages paid to the direct labor must be in line with the amount of work and not be lower than the arm’s length price.
The salaries and wages paid to the indirect labor must be appropriate to qualifications, commitment, competencies; degree of responsibilities of every job titles.
Accountants determine payroll for indirect employees by utilizing specific working indexes tied to their roles, with particular indexes for the construction department outlined in the table below.
Table 1.2: Working index for job titles
The table illustrates a clear correlation between salary and position within the scalar chain of the organization, where higher-ranking roles receive higher salaries For instance, the director holds the highest salary index, while positions such as quantity surveyor (QS) and engineer have the lowest This salary disparity reflects the varying levels of authority and responsibility among top management Additionally, the differences in salary indices persist even among personnel at the same level, such as engineers and QSs, based on their tenure in the role For example, a new employee may start with an index of 1.0, which influences their pay scale according to their length of service.
A Quantity Surveyor (QS) or engineer with less than one year of experience in the industry can expect their working index to improve over time, reaching 1.1 within the next two years and advancing to 1.3 after at least three years of service.
Due to the attractive salary scales, the company also forms a list of conditions for promoting working index as well as salary level.
Ensuring the required time holding the salary level.
Completion of a training course with an authorised training employer to ensure the necessary profession and skills.
During the tenure, members are not in breach of regulations but from reprimand or higher.
In some special cases, the BOD will consider and make a decision to include in a list of payroll adjustment.
However, the staffs can be dropped by 1or 2 salary ranks if they do not respond the compulsory conditions set forth by the company.
The company perform the salary and wage schedule on 15th of every month for the indirect staffs and on the last day of the month for the direct workers.
Salaries and wages will be paid either in cash or via transfer to employees' personal bank accounts Employees have the option to select their preferred payment method and must notify the accounting department accordingly If the payment is made through bank transfer, the company will cover the associated transfer fees.
For the indirect labor, the company fixes the cash method to ensure the accuracy.
The enterprise operates on a regular schedule of 7 hours per day, with working hours established from 8:00 AM to 11:30 AM and 1:30 PM to 5:00 PM, Monday through Saturday.
As a result, the workers have two hours for breaks and lunches For the indirect staffs, the company has a policy to provide lunch money in accordance with the finance.
As of January 1, 2021, the Labor Code 2019 entitles employees to 11 public holidays annually, during which they receive their full basic salary or the salary specified in their labor contracts.
No Holidays Number of days off Salary
1 Calender New Year 01 (January 1 of solar calendar) Calculated on
05 days (1 day at the end of the year,
4 days of the following year)
01 day (April 30th of solar calendar)
01 day (May 1st of solar calendar)
02 day (September 2nd of solar calendar and the following day before or after )
01 day (March 10th in lunar calendar) the basic salary or the salary stated in the labor contract.
Table 1.3: Salary for public holidays Personal leave
Employees are eligible for fully paid personal leave under specific circumstances, provided they inform their employer in advance Failure to notify the employer ahead of time will result in the leave being classified as unpaid.
Marriage of biological child or
3 Father, Mother, Father-in-law,
Mother-in-law, spouse, or child
Calculated on the basic salary or the salary stated in the labor contracts. was death
Table 1.4: Salary for personal leave
Employees with indirect roles who have completed 12 months of service are entitled to 12 days of fully-paid annual leave, as specified in their employment contracts.
An indirect employee who has been working for an employer for less than
12 months will have a number of paid leave days proportional to the number of working months.
The annual leave of an indirect worker shall improve by 01 day for every
05 years of employment with the same employer.
The company adheres to state regulations regarding overtime for its construction site workforce, calculating overtime on a daily basis This approach allows direct workers to earn overtime pay for Sundays worked To prioritize employee interests, the company offers a salary that is double the standard daily wage for each day of overtime.
The policy outlines the mandatory salary and wage deductions that the company must legally withhold from the paychecks of its indirect workforce, including Social Insurance and Health Insurance contributions.
Unemployment Insurance, Employers’ Liability Insurance.
To enhance the engagement with the company, the following treatments are given by the Directors:
3 Father, Mother, Father-in-law, Mother-in-law, 1.000.000 VND spouse, or child was death
Note: The treatments for each events shall be changed every year at the discretion of the company.
The company offers a range of bonuses for employees during public holidays and personal leave, as outlined in Table 1.5 Additionally, a celebration will be organized for the staff to recognize successful project completions based on business performance.
All of following allowances are paid by the company and included in the administrative expenses of the business.
For the direct workers, the company has some allowances depended on the conditions of each construction project:
Housing allowances provide essential support for workers in securing rental accommodations, while site huts offer a comfortable space for them to rest between shifts Additionally, certificate allowances cover expenses related to training, coaching, and application processes, ensuring that workers have access to necessary professional development opportunities.
The forms of payment for salaries and wages
Thanh Nam., JSC employs two distinct payroll methods to accommodate its diverse workforce: piece-based salary and time-based salary The piece-based salary system rewards employees based on the quantity of work completed, ensuring that productivity is directly linked to compensation.
This mode of payroll method is applied for the direct labor who work directly at construction sites.
Salary in a month = Contract daily wage x Number of working days per month
Equation 1-1: Piece-based salary formular
The daily wage outlined in a labor contract is determined by job titles, such as trainee, apprentice, or skilled worker It is important to note that these fixed wages are frequently adjusted to align with the prevailing labor market conditions rather than being dictated by the specifics of any particular business.
The number of working days per month is determined by the monthly worker timesheet and varies due to the nature of piece-based salary payments, which depend on the quality and time required for each project Consequently, the total working days can fluctuate from month to month.
Employees required to work on Sundays will receive double their normal wage for overtime hours, as per company policy.
Piece-based salary payments are ideal for seasonal direct labor, benefiting both employers and employees Construction firms often require a local workforce due to the diverse and scattered nature of their projects, leading workers to frequently shift jobs based on available opportunities This system allows workers to earn additional income based on their productivity without being tied to a single employer, while employers can effectively manage labor costs and productivity Consequently, businesses can align their budgeted labor expenditures with actual payments, optimizing financial efficiency.
The company calculates monthly salaries for its indirect workforce, including administrators, accountants, and engineers, using a time-based payment system These salaries are determined by daily accruals, actual working days, and the professional and technical skills of the staff throughout the month.
The construction firm sets up a salary formula in accordance with the characteristics of the indirect staffs as can be seen below.
Gross salary per month = Monthly basic salary level x () + Diligence bonus x
Equation 1-2: Time-based salary formular
As of December 2021, the minimum salary for skilled workers in region I must exceed the region-based minimum wage by at least 7%, in accordance with Decree 90/2019/ND-CP.
Working days are based on the employee timesheet.
The key aspect of this formula is the working index, which establishes a salary ranking The working index is determined by job titles and the duration of time spent in those roles, as illustrated in Table 1.2.
The diligence bonus shall depend on the business performance each year and will be multiplied with the working days to calculate the monthly gross salary for an office staffs.
Policies of payroll deduction applied at Thanh Nam., JSC
After signing the formal labor contract, the indirect labor of the company has been eligible to enroll in Social Insurance, Health Insurance, Unemployment
According to Decision No 595/QD-BHXH, Thanh Nam JSC does not deduct trade union fees from salaries, as the company has not established a trade union.
The following tables will show the salary deductions that the firm applies on the basis of Resolution 116/NQ-CP dated 24/09/2021 by the State:
Payroll Deduct to company’s Deduct to employee’s
Table 1.6: Percentage of payroll deductions (01/01/2021 – 30/06/2021)
Payroll Deduct to company’s Deduct to employee’s
Table 1.7: Percentage of payroll deductions (01/07/2021 – 30/09/2021)
Payroll Deduct to company’s Deduct to employee’s
Table 1.8: Percentage of payroll deductions (01/10/2021 – 30/06/2022)
Payroll Deduct to company’s Deduct to employee’s
Table 1.9: Percentage of payroll deductions (01/07/2022 – 30/09/2022)
Each month, the company deducts social insurance contributions from all staff at the prescribed rate At month-end, the firm consolidates the total contributions into the social insurance fund, which is then submitted to the social insurance authorities and deposited into the designated account at the state bank or treasury.
According to Resolution 116/NQ-CP issued on September 24, 2021, companies are required to deduct a social insurance fund at a rate of 25.5% of the total salary fund for their workforce, applicable to employees hired before June 30, 2021, with the company previously charging a lower rate of 17.5%.
(17% for the actual social insurance amount and the remaining 0.5% for insurance for occupational accidents) and the employee charged at 8% From July 1 st 2021 to
June 30 th 2022, due to the limited operation of the business under the impact of the
During the Covid-19 pandemic, the government implemented a tax exemption on insurance for occupational accidents, resulting in a reduction of the social insurance fund contributions made by companies to 17%.
The social insurance fund pays for the employee's leave to enjoy maternity benefits (including public holidays, New Year holidays, weekends).
Pregnant women are entitled to take up to five days of leave for antenatal care, with each visit allowing for one day off If the medical facility is far away or if the woman has a medical condition or abnormal pregnancy, she is entitled to two days off for each visit.
Health insurance premiums are a mandatory salary deduction for indirect workers, calculated at 4.5% of the total salary fund by the employer Employees benefit from this insurance by receiving coverage for medical examinations and treatment costs, as stipulated by regulations.
The health insurance fund at Thanh Nam., JSC is established through a proportional allocation of payments for employee health coverage Currently, the company deducts 4.5% from the total monthly salary fund, with 3% contributed by the company and 1.5% by employees This fund is designed to cover medical assessments and treatment costs for all participants.
The entire health insurance fund is currently submitted to specialized agencies to manage and subsidize employees through the health network.
Unemployment Insurance provides essential support to employees in the market economy by helping apprentices secure employment and facilitating their swift return to the workforce.
From October 1, 2021, to September 30, 2022, enterprises are required to withdraw 1% of the statutory pay rate for health insurance contributions, while prior to September 30, 2021, the withdrawal rate was 2% During the earlier period, the company covered 1% of the expenses, with insurance participants contributing an additional 1% However, in the latter period, companies are exempt from health insurance payments, resulting in a 0% contribution from employers, while employees continue to pay 1% deducted from their salaries.
Features of organization of labour and payroll at Thanh Nam., JSC
To instruct and lead the related units in strictly accordance with the regulation of labor, salary, income.
In order to fulfill the management strategy of the enterprise and the other legal requirements, the firm shall consider modifying, supplementing, amending the regulations throughout the implementation phase.
To ensure optimal efficiency in the workplace, it is essential to allocate labor effectively, allowing employees to fulfill their responsibilities to the best of their abilities This involves gradually increasing salaries and incomes, fostering skill development, and ultimately delivering superior results for businesses.
Employees are reviewed and ranked on a monthly basis in line with the company's assessment methodology, which ensures the rights of employees and motivates them to complete their responsibilities successfully.
The Director of Thanh Nam., JSC serves as the company's legal representative and holds the utmost accountability for compliance with the law Additionally, the director is responsible for overseeing all business activities to ensure maximum economic efficiency.
Manage recruitment, allocation, and assessment of officials while overseeing compensation strategies and employee remuneration systems Additionally, provide monthly documentation to the accounting department to facilitate accurate salary and wage calculations, including employee timesheets and relevant personnel information.
Consult with the general director and vice directors overseeing finance to manage accounting, financial contract repayment, and the coordination of organizational accounting activities Implement financial strategies, policies, and bookkeeping practices while overseeing the company's expenses Gather supporting documentation from various departments for accurate accounting and prepare budget summaries and tax reports that reflect the company's financial status.
15 performance; Analysis of financial position, liabilities, etc of the firm and report to general director.
The human resources division efficiently updates company information on popular Vietnamese job search websites and official communication channels During management meetings, managers recommend additional personnel for departments as needed Once approved by the director, these requests are sent to the admin and HR division for further action.
The human resources department has a comprehensive hiring strategy that outlines the timeline for recruitment, the criteria for each vacancy, and the designated personnel responsible for the process.
The HR department employs various effective strategies to identify potential candidates, including job postings, searching resumes on recruitment websites, and partnering with brokerage firms, tailored to the job's requirements and candidate standards After collecting applications, the designated individual reviews and selects qualified candidates, forwarding the relevant documents to the director for further evaluation.
HR staff will contact applicants via email or phone to arrange interviews with the director, head of HR, and department head Qualified candidates will receive vocational training and a probation period with compensation of at least 85% of the full salary If the tasks are successfully completed within three months, the employee will continue their employment and sign an official labor contract with the company director The human resources department will manage and maintain employee records throughout this process.
Because of two different types of laborforce at Thanh Nam., JSC, there are some special differences between the indirect labor and the direct labor as below.
- Work as management officers, quantity surveyors, quality controllors, etc.
- Participate in the social insurance, health insurance, unemployment insurance, insurance for occupational accidents.
- Bachelor of economics/bachelor of social/engineering is recruited requiring high professional skills, with experience is an advantage.
- Work as bricklayers, masons, welders, plumbers etc, who incline to work as manual employees at the construction site completely.
- Must be at least 18 years of age according to Labor Code 2019.
- Not required to own any professional certificate but they should have practical experience.
The General Director decides the number of teams, individuals, and the level of reward or discipline depending on the suggestion of the head of department.
The General Director submits the adjustment of the minimum remuneration level to the Board of Directors for consideration.
Building and approving plans for payment to employee
Before making a formal announcement, the General Director must approve the draft of the salaries and wages plan, along with the estimates and budget provided by the Human Resources Department The HR department calculates monthly salaries and wages based on the timesheet and the company's payroll policies.
The General Director submits the adjustment of the minimum remuneration level to the Board of Directors for consideration.
The Office is responsible for evaluating and recommending to the General Director whether to increase allowances for positions based on the volume and unique nature of the business.
CURRENT SITUATION OF ACCOUNTING PROCEDURES
Accounting documents
In compliance with Circular 133/2016/TT-BTC issued by the Military of
Finance, the enterprise are complying a list of accounting vouchers related to accounting for payroll and payroll deductions as seen as below:
- Labor contract for every single employee in which terms, benefits, regime, remuneration, etc are stated clearly and signed by the director.
The Timesheet under Form No.01a – LĐTL serves as the essential documentation for salary and wage payments based on each employee's actual working days This timesheet is generated monthly by department and must be verified daily by an appointed individual to ensure accurate attendance records Examples of the construction department's timesheet for October 2021 and the workers’ timesheet for July 2021 are provided below.
The company has developed two distinct payroll sheets tailored for its office staff and construction site workers, implementing modifications to Form No.02 – LĐTL to align with the specific needs of each workforce type.
Each payroll sheet in each month shall be prepared 2 or 3 copies but written on paper once.
To ensure accurate payroll processing, it is essential to compile payroll sheets into clearly numbered books along with corresponding payment vouchers Each payroll sheet should be sequentially numbered for the accounting period, and must be meticulously completed and verified by the chief accountant before any funds are disbursed.
- Summary of payroll is establish by the accounting department at the end of the year to report to the director.
- Bonus payment sheet is used on the public holiday such as New Year, Independence Day, etc This sheet is included with the BOD's award decision.
- Pursuant to the Labor Code No 10/2012/QH2013 passed by the National Assembly of the Socialist Republic of Vietnam on June 18, 2012;
- Pursuant to the Government's Decree No 44/2013/ND-CP dated May 10, 2013 detailing and guiding the implementation of a number of articles of the Labor Code on labor contracts;
- Based on the needs and agreement of the two parties;
Today, date month , 2021, at Thanh Nam., JSC, we include:
Address TRADING JOINT STOCK COMPANY
Phone Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh
Cong ward, Hoang Mai district, Hanoi, Vietnam Business registration number
Legal Representative Mr To Van Phi Nationality: Vietnamese
(Here in after referred to as “Company” or “Employer”)
Party B Mr./Ms Nationality: Vietnamese
(Here in after referred to as “Company” or “Employee”)
The two parties agree to sign this Labor Contract (“Contract”) and abide by the following terms:
Article 1: Term and Contract Work.
Article 3: Benefits, Rights and Obligations of employees.
Article 4 Rights and obligations of the Employer.
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of
Table 2.11: Timesheet of office staffs
Full Name Title o W T S T ng g Index ture
Fr Sa M T W Fr e h u … h days i t on us en i n us n us
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circula r 133/2016/ T T-BTC dated August
2016 of the Ministry Finance of )
Salary s Salary i Inc s deduction l om y e i
Total amount of money (in words): …
(Sign, Name) (Sign, Name) (Name, Seal)
Table 2.3: Payroll sheet of office staffs
Address: Number 5, alley 112/15/38 Dinh Cong
Thuong, Dinh Cong ward, Hoang Mai district, Hanoi,
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Table 2.4: Timesheet of workers at
M Tu W Fr g days on hu n on s en i s x x … x x x 33 x x … x x x 33 x x … x x x 33 x x … x x x 33
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward,
Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
N Work o Full name Title ing Price
Total amount of money (in words): …
( Sign, Name ) Accountant ( Name, Seal )
Table 2.12: Payroll sheet of workers at SOJO
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC - 0: Absent
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam - ẵ: Half
Division: Construction - L: Holiday not to work
Project: VINCITY OCEAN PARK B03 - N: Stop working
Detail: Plastering and finishing - Blank: Non-working day
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Table 2.6: Timesheet of workers at
Su M Tu W Fr g days e hu n hu i t n on s en i n s s x x x x x … x 26 x x x x x … x
THANH NAM INVESTMENT CONSTRUCTION AND
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Total Signa o Full name Title ing Price
Total amount of money (in words): …
( Sign, Name ) Accountant ( Name, Seal )
Table 2.7: Payroll sheet of workers at VINCITY
Address: Number 5, alley 112/15/38 DinhCong Thuong, DinhCong ward, HoangMai district, Hanoi,Vietnam m
Table 2.8: Timesheet of workers at PHUC DONG
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward,
Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Total Signa Title ing Price
Total amount of money (in words): …
( Sign, Name ) Accountant ( Name, Seal )
Table 2.9: Payroll sheet of workers at PHUC DONG
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC - x: Full
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam - 0: Absent
Project: DOI RONG - L: Holiday not to work
Detail: Plastering and finishing - N: Stop working
Table 2.10: Timesheet of workers at
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Fr Sa Su M M Tu W Fr g days e hu … hu n s i t n on on s en i s x x x x x x … x x 30 x x x x x x … x x 30
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward,
Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
2 Bế Thị Tâm Đặng Văn
Total Signa Title ing Price
Total amount of money (in words): …
( Sign, Name ) Accountant ( Name, Seal )
Table 2.11: Payroll sheet of workers at DOI RONG
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC - x: Full
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam - 0: Absent
Project: FLC - L: Holiday not to work
Detail: Plastering and finishing - N: Stop working
Table 2.12: Timesheet of workers at
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward,
Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Total Signa Title ing Price
Total amount of money (in words): …
( Sign, Name ) Accountant ( Name, Seal )
Table 2.13: Payroll sheet of workers at FLC
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of
Table 2.14: Timesheet of workers at
Fr Sa Su Su e hu … n i t n n s x x … x x x … x x x … x
CONSTRUCTION AND DEVELOPMENT TRADING JSC Address: Number 5, alley
112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
Division: Construction Project: GIAP BAT GELEXIMCO Detail: Plastering and finishing
(Issued under Circular 133/2016/T T-BTC dated August
2016 of the Ministry of Finance )
Full Ti ki Pric o Earni at name tle ng e ur
( Sign, Name ) ( Sign, Name ) ( Name, Seal )
Table 2.15: Payroll sheet of workers at GIAP
Address: Number 5, alley 112/15/38 Dinh Cong
Thuong, Dinh Cong ward, Hoang Mai district, Hanoi,
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the
BONUS PAYMENT SHEET FOR NEW YEAR
Total amount of money (in words): …
(Sign, Name) (Sign, Name) (Name, Seal)
Table 2.12.13: Bonus payment sheet for New Year
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of
Dear: Board of Director of Thanh Nam., JSC
Full name of the person requesting: Nguyen Thuy Duong
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC Address: Number 5, alley
112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued TT under Circular 133/2016/T T-BTC dated August
2016 of the Ministry of Finance)
Content billing: Payment salary for workers at Giap Bat
Account name: Cash on hand
Amount in words: one hundred and forty three million and forty thousand Dong (Attached … source document(s))
Preparer (Sign, Name) (Sign, Name)
No: 208 Dear: Board of Director of Thanh Nam., JSC
My name: To Van Giang Address: Construction department Subject: Application for advance the amount of salary in October
Form of payment: CashAccount number: 334Account name: 111
Amount in words: Five million Dong.
Preparer (Sign, Name) (Sign, Name)
Methods applied for payroll calculation
The mode of payroll method is applied for the workers who work directly at construction sites as following formular:
Salary in a month = Contract daily wage x Number of working days per month Therefore, the actual wage of a worker are computed with the following components:
Contract daily wage: would be fixed on the labor contract.
The number of working days in a month is determined by the monthly worker timesheet, as there are no fixed or standard workdays for piece-based salary payments due to the varying time quality of each project.
Number of days off with unpaid or paid wage.
Overtime: The direct employees often work overtime on Sunday with a double wage compared with a normal day.
For instance, Mr Bui Van Ha, as an employee of the firm, working at the Sojo
Hotel construction site will receive his salary in December 2021 as below.
+ The daily wage is 320,000 VND fixed on the labor contract.
+ The number of working days in December 2021 was 29 days in the period from 1 st to 29 th
+ Mr Tu worked overtime on every Sunday of the month (5 th , 12 th , 19 th , 26 th ) so his overtime days was 4 days.
Hence, Mr Ha received his actual salary in December as below:
The company use the time-based salary payment to compute the salary for the indirect workforce likes administrators, accountants, engineers etc.
This construction firm sets up the salary formula:
Gross salary per month = Monthly basic salary level x () + Diligence bonus x
Number of Working days The basic salary level shall be higher than 7% the region-based minimum wages for enterprises located in region I which is paid to a skilled worker.
Working days are based on the timesheet.
Working index which would create a salary rank is identified based on
The diligence bonus is contingent upon the company's annual performance For instance, Mr Dinh Tran Long, an engineer, received a gross monthly salary in December 2021, which is detailed in the calculations below.
+ He is a skilled employee as an engineer and the company is located in Region I (Hanoi), therefore, his monthly basic salary level is
+ In December, he had worked for 26 days out of a total 27 working days.
+ He had 1 day with unpaid leave.
+ The diligence bonus in this month is 50,000 VND per working day Hence, his gross salary in December is:
Gross salary per month = 4,729,400 x () + 50,000 x 26 = 12,002,457 VND
Furthermore, in this month, he also received the lunch allowance which costs
28,000 VND per meal With the total of 26 working days, the company gave him
728,000 VND for the allowance of lunch.
Accounts used
The company records employee salaries using Account 334, "Payable to Employees," in compliance with Circular 133/2016/TT-BTC issued by the Ministry of Finance This account features a two-side structure that effectively reflects the salary obligations to employees.
Salaries and wages, bonuses with the nature of salaries paid to employees.
Credit Opening balance: Salary payable to employees
- Salaries and bonuses of a salary nature to be paid to the employee.
- Insurances and other salary deductions payable to employees to the employee's salary.
Closing balance: Outstanding salaries, wages and bonuses, social insurance and other amounts payable to employees.
In payroll process, there are some other accounts oppose to account number 334 to record salary expenses and salary payment:
Account 154 “Work in progress”: Reflects labor costs for production and business activities incurred in the period and is detailed according to the location where labor costs are incurred.
Account 6422 “ General administration expenses”: Reflecting general administrative expenses of the enterprise (employee’s salary, bonus, allowances,…) incurred during the period and the transfer of administrative expenses to Account 911 – Income Summary.
Account 111 “Cash on hand” and account 112 “Cash at bank” to reflect the salary paid to employees Especially, the accountants also extend these accounts into a sub-account for convivence purpose:
- Sub-account 1111 named “VND”: reflecting salary payment to employees, balance in VND of the cash fund.
- Sub-account 11211 named “Cash at Sacombank”: reflecting salary payment to employees, bank account balance in VND.
Accounting procedures for payroll
In accordance with Circular 133/2016/TT-BTC regulations, the company maintains a compliant flow of accounting documents The recording methodology employed is the General Journal, as required by current standards.
Vietnamese accounting legislation and is provided by the accounting software.
All business and financial transactions of the company must be recorded in the General Journal in chronological order, reflecting the details of the source documents Subsequently, accountants transfer the data from the General Journal to the General Ledger for each transaction.
The daily timesheet is submitted by the responsible individual to the HR team, which also manages the payroll In addition to the timesheet, HR maintains various important documents, including applications for temporary leave, permanent resignation, bonus records, and labor contracts.
The salary accountant calculates payroll for all employees based on reconciled documents and records the resulting transactions in the General Journal at month-end Subsequently, these transactions are entered into General Ledger Account 334 and related accounts Finally, the accountant compiles the data from General Ledger Account 334 to prepare the Trial Balance.
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Account 334 – Payable to employees December 2021
Refund the salary of workers in Nov for the projects
Salary payment in Nov for Phuc Dong workers.
Salary payment in Nov for office staffs.
Salary payment in Nov for Sojo workers.
Salary payable in Dec to Sojo workers.
31/12 512 31/12 Salary payable in Dec to office staffs.
31/12 512 31/12 Salary payable in Dec to office staffs.
Salary payable in Dec to Phuc Dong workers.
Salary payable in Dec to Vincity workers.
Accoun Arising amount Amount t Dr Cr Debit Credit
Salary payable in Dec to Doi Rong workers.
Salary payable in Dec to Giap Bat workers.
Salary payable in Dec to FLC workers.
31/12 522 31/12 Bonus payable to staffs for New Year.
31/12 149 31/12 Bonus payment to staff for New Year.
Salary payment in Dec for office staffs in Dec.
31/12 527 31/12 Extract SI, HI, UI in Dec.
31/12 527 31/12 Extract SI, HI, UI in Dec.
31/12 527 31/12 Extract SI, HI, UI in Dec.
This book has 02 pages, numbered from page number 01 to page number 02.
(Sign, Seal) (Sign, Name) (Name, Seal)
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
13/12 485 13/12 Refund the salary of workers in Nov for the projects
15/12 138 15/12 Salary payment in Nov for Phuc Dong workers.
15/12 140 15/12 Salary payment in Nov for office staffs.
17/12 141 17/12 Salary payment in Nov for Sojo workers.
31/12 511 31/12 Salary payable in Dec to Sojo workers.
31/12 512 31/12 Salary payable in Dec to office staffs.
31/12 513 31/12 Salary payable in Dec to Phuc Dong workers.
31/12 515 31/12 Salary payable in Dec to Vincity workers.
31/12 516 31/12 Salary payable in Dec to Doi Rong workers.
Transferred Ref Account Amount to Ledger Debit Credit
31/12 518 31/12 Salary payable in Dec to Giap Bat workers.
31/12 521 31/12 Salary payable in Dec to FLC workers.
31/12 522 31/12 Bonus payable to staffs for New Year.
31/12 149 31/12 Bonus payment to staff for New Year.
31/12 151 31/12 Salary payment in Dec for office staffs in
31/12 527 31/12 Extract SI, HI, UI in Dec.
Amount carrying forward to next page
This book has 02 pages, numbered from page number 1 to page number 2.
(Sign, Name) (Sign, Name) (Name, Seal)
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Year: 2021 Account: Payable to employees Number: 334
Date Document Description General Journal Account Amount
No Date Page Column Debit Credit
13/1 48 13/1 Refund the salary of workers in Nov
15/1 13 15/1 Salary payment in Nov for Phuc Dong
Salary payment in Nov for office staffs 1111 179,333,434
17/1 14 17/1 Salary payment in Nov for Sojo
31/1 511 31/1 Salary payable in Dec to Sojo workers 154 580,800,000
Salary payable in Dec to office staffs 154 133,445,847
Salary payable in Dec to office staffs 6422 52,964,392
31/1 51 31/1 Salary payable in Dec to Phuc Dong
31/1 51 31/1 Salary payable in Dec to Vincity
31/1 51 31/1 Salary payable in Dec to Doi Rong 154 153,600,000
31/1 51 31/1 Salary payable in Dec to Giap Bat
/1 2 1 / 1 in Dec to FLC workers.
Bonus payable to staffs for New Year.
Bonus payment to staff for New Year.
31/1 15 31/1 Salary payment in Dec for office staffs
Extract SI, HI, UI in Dec.
Extract SI, HI, UI in Dec.
Extract SI, HI, UI in Dec.
This book has 02 pages, numbered from page number 1 to page number 2.
Accounting for payroll deductions at Thanh Nam., JSC
Social insurance, health insurance, and unemployment insurance are all examples of salary deductions.
The following documents are used to account salary deductions:
Certificate of sick leave with benefit of social insurance; Social insurance payment table;
Salary allocation and salary deductions table; Summary table of salary deductions.
The staffs of the Accounting Department calculate salary deductions and make a statement of salary deductions according to the monthly salary.
The deductions are made in accordance with the State regulations for December 2021 as mentioned in Table 1.8.
Deduct to employee’s salary (%) Total (%)
In December 2021, Thanh Nam., JSC implemented a 20% charge on the total salary fund for its workforce, while employees were charged 10.5% Notably, the company applied a 0% rate for Occupational Accident Insurance on the total salary fund, significantly reducing expenditures during the Covid-19 pandemic.
Thanh Nhan Hospital Form No.02 – C65
(Issued under Decision No 51/2007/QD-BTC
June 22, 2007 of the Ministry of Finance)
Book: 22 No: 38 Full name: Nguyen Thi Thuy Duong
Working place: THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JOINT
Reason for leaving: Dengue fever
Number of leaving day: 04 days
Confirmation of Company in Charge dated 1405/2021
Actual number of days off: 04 days
Number in Social Insurance book: …
1 Number of actual days off to receive social insurance
2 Accumulation from days off with the same leave mode : 0 days
3 Monthly salary paid for social insurance
5 Percentage of entitlement to social insurance
6 Amount of social insurance benefits: 04 x 420,000 x 75% = 1,260,000 VND.
Social insurance agency staff In charge of the unit's social insurance
53 THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT TRADING JSC Form No.02 – TT
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam (Issued under Circular 133/2016/TT-BTC dated August
26 th , 2016 of the Ministry of Finance)
Name of Receiver: Nguyen Thi Thuy Duong
Content billing: Social insurance payment in May 2021.
Amount in words: One thousand two hundred and sixty thousand Dong.
Received full amount (text): One thousand two hundred and sixty thousand Dong.
+ Foreign exchange rates (gold, gems):
(Outbound copies must be stamped)
Account 338 – “Other payables”: keep track of how money from social insurance, health insurance, and unemployment insurance.
The account is broken down into the following 3 sub-accounts:
- Account 3383 "Social insurance": reflects the situation of deduction and payment of social insurance at the unit.
- Account 3384 "Health insurance": reflects the deduction and payment of health insurance as prescribed.
- Account 3385 "Unemployment insurance": Reflecting the situation of deduction and payment of unemployment insurance at the unit.
Structure of account number 338 is described as below:
Social insurance, health insurance and unemployment insurance are paid by both employees and employer.
Credit Opening balance: Payable to the insurance agency.
- Social insurance, health insurance, insurance for occupation of accidents and unemployment insurance are deducted into production and business expense or from employee’s salary.
- Social insurances paid by the Social insurance Agency.
Closing balance: Payable to the insurance agency.
Sub-account 11211 named “Cash at Sacombank” by the company’s accountants to reflect the salary deductions payments for the employees.
2.2.3 Accounting for procedures for payroll deductions
At the end of each month, payroll accountants will input data from source documents into three sub-ledgers of account 338, which include a detailed table of social insurance and health insurance payments, as well as slips for social insurance allowances when applicable The firm maintains comprehensive records for each account.
- Sub-ledger of Account 3383 "Social insurance"
- Sub-ledger of Account 3384 "Health insurance"
- Sub-ledger of account 3385 "Unemployment insurance"
At the end of each month, departments submit salary and related documents to the accounting department, which consolidates data from detailed book of account 338 The accountant calculates employees' social and health insurance benefits, computes salaries for each team based on the received vouchers, and records the salary transactions into the computer system.
3TSOFT accounting software automates the processing of accounting data from the beginning of the period, including the declaration of distribution and carryover entries It efficiently generates various detailed books, allowing accountants to review and print essential records such as the detailed books for accounts 3383, 3384, and 3385.
After receiving accounting vouchers, accountants record social insurance cases in the payment table for the month The company can disburse funds to employees once the director approves the social insurance payment sheet The accountant prepares payment slips in duplicate, which require signatures from the preparer, chief accountant, department head, and cashier before funds are released Upon receiving the full amount, the recipient must sign and provide their full name, while the treasurer also signs the payment sheet after disbursement.
The first copy is kept at the polling place.
The treasurer uses the second copy to record the cash register, which is subsequently transferred to the accountant along with the original vouchers for input into the accounting books.
The third copy (if any) is sent to the receiver as an original document to be used in preparing the receiver's receipts and fund entries.
THANH NAM INVESTMENT CONSTRUCTION AND DEVELOPMENT
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August 26 th , 2016 of the Ministry of Finance)
Da Docu m Description Acco Arising amount Amount te ent unt
N Dat Dr Cr Deb Credit oe it
This book has 01 pages, numbered from page number 1.
Direct er Accou or ntant
DEVELOPMENT TRADING JSC (Issued under Circular
Address: Number 5, alley 112/15/38 Dinh Cong Thuong, Dinh
26 th , 2016 of the Ministry of ward, Hoang Mai district, Hanoi, Vietnam Finance)
Da Docu m Description Acc Arising amount Amount te ent ount
N Dat Dr Cr Deb Credit o e it
This book has 01 pages, numbered from page number 1.
Prepar Chief Direct er Accou or ntant
Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
DETAILED BOOK Account 3385 – Unemployment Insurance
D D Descriptio A Arisi Am a oc n c ng ou te ument count amount nt
N Da Dr Cr De Cred o te bit it
This book has 01 pages, numbered from page number 1.
(Sign, Seal) (Sign, Seal) (Sign, Seal)
Thanh Nam Investment Construction and Development Trading JSC, located at Number 5, Alley 112/15/38 Dinh Cong Thuong, Dinh Cong Ward, Hoang Mai District, Hanoi, Vietnam, operates under Form No S03a – DNN as per Circular 133/2016/TT-BTC issued in August.
26 th , 2016 of the Ministry of Finance)
Date Document Description Transferred to Ref Account
27/12 497 27/12 Payment of SI, HI, UI in Dec X 3383
31/12 527 31/12 Extract SI, HI, UI in Dec X 334
Amount carrying forward to next page
This book has 01 pages, numbered from page number 1.
Table 2.24: General Journal (Payroll deductions)
THANH NAM INVESTMENT CONSTRUCTIONAND DEVELOPMENT TRADING JSC
Cong Thuong, Dinh Cong ward, Hoang Mai district, Hanoi, Vietnam
(Issued under Circular 133/2016/TT-BTC dated August
Form No.S03b – DNN 26 th , 2016 of the Ministry of Finance)
Year: 2021 Account: Other Payables Number: 338
Date Document Description General Journal Account Amount
No Date Page Column Debit Credit
21/06 201 21/06 Paying SI, HI, UI in June 11211 13,620,672
30/06 249 30/06 Extract SI, HI, UI in June 334 4,469,283
30/06 249 30/06 Extract SI, HI, UI in June 6422 9,151,389
This book has 01 pages, numbered from page number 1.
(Sign, Seal) (Sign, Seal) (Sign, Seal)
Table 2.30: General Ledger (Payroll deductions)