2.2 The current situation of accounting for payroll and the payroll deduction at Thien Ung Service
2.2.1 The features of labor, payroll and payroll deduction at Thien Ung Service Training Company
The features of labor
Currently, the workforce of the company consists of two types: Employees in the list and employees outside the list (employees outsourced). The employees in the list is a small number, but all of them are the professional accounting experts or famous general
Graduation Thesis
49
accountants who have many years of experience. Currently, the main employees (not including temporary workers, internship ….) are 9 persons
- Female: 3 people - Male: 6 people Classifying employees by age
The age of employee ranges from 30 to 36 years old.
About knowledge 100% is already graduated from famous university such as Academy of Finance, Banking Academy and National Economics University
So far, the Company has arranged reasonable teaching plans and accounting services received so there is no redundant labor. In the field of labor management, the Company applies management by rules, checks the labor force everyday by fingerprinting and has a reasonable reward for employees who complete the work well
Payroll and payroll deduction features
In addition to the main salary, employees will receive the following allowance Allowance
Responsibility: base on position, the company will difference allowance rate
All official employees who signed labor contract for 3 months or more are entitled to the following allowance levels
Graduation Thesis
50
Table 2.1: The table about allowance rate at Thien Ung service training company
Position Allowance
Lunch Mobile Mileage
Director 1.500.000 1.000.000 500.000
Vice Director 1.300.000 800.000 400.000
Chief Accountant 1.200.000 600.000 300.000
Head of Sale
Department 1.200.000 800.000 800.000
Accountant
employee 1.000.000 200.000 300.000
Sale employee 1.000.000 200.000 300.000
Other employee 700.000 200.000 300.000
Warehouse
employee 700.000 200.000 300.000
Treasurer 700.000 200.000 300.000
The above allowance is calculated for 26 work days
People who sign a contract of more than 3 months will receive the benefits specified in the labor contract
Housing rental support: Workers who have to rent houses to stay.
Conditions to enjoy:
+ Laborers signed labor contracts for 6 months or more (excluding part-time workers).
+ Labors provide full rental contracts with their name or their wife/husband.
Graduation Thesis
51
A housing assistance ranges from 1,000,000 to 2,000,000 VNĐ per month according to the actual working day divided by 26 days.
Support for raising children:
For employees with children under 36 months of age or younger.
Conditions
+ Laborers signing labor contracts of 6 months or more (not including seasonal workers).
+ Provide birth certificate of children.
Raising child support ranges from 1,000,000 to 2,000,000 per month according to the actual number of working days divided by 26 days.
Other benefits:
Employees are organized to travel according to the decision of the company management.
Wedding/ obsequies
+ Employees: VND 1,000,000 / person / time + Family members VND 500,000 / person / time.
Laborer's birthday
+ Every month, the company organizes a birthday for employees with the same birthdays in the month
+ Organization cost: 300,000 / person.
International Children's Day:
+ On 1/6 of every year, the company will have gifts for employees with children aged 7 and under.
+ Expenditure: 200,000 / baby.
Graduation Thesis
52
Gifts for holidays and New Year:
Based on the annual business results, employees are given gifts with difference rate + International Women's Day - 8/3 and 20/10 for female employees signing labor contracts for 6 months or more: VND 100,000 / person.
+ Lunar New Year: for all employees working at the enterprise at the time of gift giving, the specific expense level will be based on the business results of each year.
Sick / maternity visit.
+ The employee himself must go to the hospital: VND 300,000 / person / time.
+ Female laborers give birth: 300,000 VND / child / time.
2.2.2 Payment methods and salary calculating methods
Payment methods
The payment method is mainly based on time and seniority rate. All benefits, wages, working time, overtime, deductions, advance payments are clearly shown in the payroll.
The company will explain clearly the participation of social insurance for employees through payrolls sent to employees monthly. The employee will be informed about the benefits for the employee, the procedures for enjoying social insurance, unemployment benefits, ... clearly in the labor contract.
Salary calculating methods
The company applies the basic wage according to Article 5 of Decree 90/2019 / ND-CP The regional minimum wage specified in Article 3 of Decree 90/2019 / ND-CP is the lowest level which is the basis for enterprises to pay wages and workers to agree to work. The salary paid to employees to work in normal working conditions, to ensure adequate working hours in the month and to fulfill the agreed labor or work norms must ensure:
Graduation Thesis
53
- The wage is not lower than the regional minimum wage for laborers doing the simplest jobs.
- The wage is at least 7% higher than the regional minimum wage for laborers requiring that they have undergone vocational training.
Currently, the minimum wage is 3.920.000 with laborers doing the simple jobs and the the minimum wage is 4.194.400 with the university degree or vocational training.
Total salary in a month = Basic salary + allowances + bonuses (if have) Net salary = Total salary in a month – salary deductions.
Example: Mr. Nguyen Duc Viet – Chief accountant (according to the payroll in Feb- ruary 2019 of accounting department)
Basic salary: 5.500.000
Lunch allowance: 1.200.000 VND Responsible allowance: 500.000 VND Mobile phone allowance: 300.000 VND Mileage allowance: 300.000 VND Housing allowance: 1.500.000 VND The working days: 18
Total Salary = 5.500.000+500.000+1.200.000+300.000+300.000+1.500.000
26 x 18
= 6.646.154
Salary to calculate insurance: 5.500.000+ 500.000 = 6000.000 Monthly
Basic salary =
Minimum wage + allowance
26 days x
Workdays In a month
Graduation Thesis
54
(in which 5.500.000 VND is basic salary and 500.000 is VND Responsibility, each person will have a difference salary to calculate insurance)
The Insurance that Mr. Nguyen Duc Viet has to pay is: 6000.000 x10.5%=630.000 VND Personal income tax: 77.538
The real salary that he is received is 6.646.154 – 630.000- 77,538= 5.938.615 2.2.3 Vouchers and accounts used
- Vouchers used:
Vouchers Sample
Timesheet Sample 01a-LDTL
Payroll Sample 02-LDTL
Table of bonuses payment Sample 03-LDTL Table of apportioning salaries and social
insurance
Sample11-LDTL
- Accounting accounts used:
Account 334 Payable to employees Account 338 Other payable amounts Account 335 Payable expenses - Accounting books:
• Form no S03a - DN: General journal
• Form no S03b - DN: General ledger
• Form no S38 - DN: Detailed account