Accounting for salaries and salary deductions at Hoang Ha Construction Limited Company

single HMCT or program = plan - customer

the beneficiary of the outsourced project

Salary ratio according to the salary fund of the Company or HMCT

company plan =

Project or HMCT Output value of CT or HMCT Real wage fund Actual output value Current wage rate of project = Current of project x according to plan or HMCT or HMCT of project

Salary Fund Implementation Salary Fund Salary

rent

Unit of Benefit = Performance of - Out of Work

construction construction

Team salary fund Actual salary fund The amount of work divided in = current unit x presented or HMCT reporting period enjoyed in period 39

+ Rewards and discipline:

# Reward and discipline work in the company is carried out periodically. After evaluating and checking the performance of each individual and each department, the Board of Directors makes temporary rewards and disciplinary decisions.

# Disciplinary measures from warnings, salary deductions, and pre-internship reviews

from temporary suspension to termination of employment contract.

# Forms of rewards such as: praise in front of the whole company,

material reward

+ Allowance: is a supplement to salary under specific conditions, a

The types of salary allowances applied at the Company are as follows:

# Position allowance: for Director, chief accountant, head

administrative department to encourage these staff to be more active

in their management work.

# Overtime allowance: is the amount of money to compensate and encourage employees when the Company has a lot of work.

# Hazard allowance: for technical workers operating machines in noisy, hazardous environments. The allowance is 20% of the minimum wage.

minimum

In addition to salary and salary allowances, the Company also properly implements the following:

State regulations, social welfare allowances.

Every year, officers and employees are given a number of days off.

receive full salary. Depending on the length of service, employees have different number of days off. For employees with less than 5 years of service, the number of days off is 10 days/year and for every 5 years of service, the number of days off increases by one day.

2. Accounting content:

2.1. Labor accounting:

Specifically, the Company classifies its staff as follows:

Official staff of the Company: currently there are 33 people who were assigned to work at the Company by decision of the Company Director. 40

# Long-term contract staff: currently there are 40 people working regularly at the Company with labor contracts signed by the Company Director, paid salaries and guaranteed benefits according to State regulations.

Labor structure table

Contract Staffing Indicators

1.Total number of employees 33 40

Male 18 25

Female 15 15

2. Average age 40 30

Looking at the table, we can see that: The proportion of men in the payroll accounts for a larger proportion, which has a significant impact on the Company's operations. Because this is a construction company, the majority of the staff are male, and they are mainly long-term contract staff. On the other hand, the average age of the payroll staff is increasing, mainly those who have worked for many years in the old construction enterprise, so the selection, training and education of young staff on contract is completely reasonable. Harmoniously combining experience with knowledge of advanced science and technology will bring high efficiency, developing the professional qualifications and capacity of each person. In addition to calculating the quantity and quality of labor, it is necessary to calculate the working time to fully reflect the potential of the labor used. The document used to analyze the use of working time is the timesheet, which is made for each department, each division, in which each person is recorded daily according to the columns of time present, absent (details for each reason). At the end of the period, it is transferred to the administrative department for collection and transferred to the financial planning department for salary payment.

According to Decision No. 118/1999/QD-TTg dated September 17, 1999 on implementing the 40-hour work week regime, the number of working days is 22 days, which has been applied at the Company.

2.2. Accounting for salaries and salary deductions:

At Kim Thanh Construction Company to calculate accounting salary

Use account 334 "Payable to employees". Salary accounting procedure at the Company in December 2002.

Based on the salary distribution table, accounting records 41

+ Direct production department salary

Debit account 622: 119,964,595

Credit account 334: 119,964,595

+ Team management salary

Debit account 627: 25,867,205

Credit account 334: 25,867,205

+ Salary of business management department

Debit account 642: 34,734,743

Credit account 334: 34,734,743

+ At the end of the accounting period, the accountant transfers direct labor costs according to

each cost collection object

Debit account 154: 119,964,595

Credit account 622: 119,964,595

* Social insurance accounting

Accountants use account 3383 to reflect the amount of social insurance payable. Specifically, in December 2002, the Company paid social insurance of: 36,115,108.45

Of which 15% is accounted for in production and business costs.

Debit account 622: 17,994,698.25

Debit account 627: 3,881,430.75

Debit account 642: 5,210,211.45

Credit account 338: 27,086,331.45

+ Accounting for 5% deducted from the salary fund of officers and employees: Debit account 334: 9,028,777

Credit account 338: 9,028,777

+ When calculating social insurance, allowances must be paid to officers and employees. Debit account 3383: 1,845,200

Credit account 334: 1,845,200

*Health insurance accounting

To account for the form of health insurance payment, accountants use account 3384. At the end of the accounting period, based on the salary cost allocation table, calculate health insurance at a rate of 2% calculated according to production and business costs and 1% deducted from the salary of officers and employees.

Debit account 622: 2,399,292

Debit account 627: 517,524

Debit account 642: 694,695

Credit account 3384: 3,611,511 42

+ When calculating the health insurance amount deducted from the employee's salary, the accountant records

Debit account 334: 1,805,755.5

Credit account 3384: 1,805,755.5

+ When submitting health insurance to the health insurance registration agency, the accountant records

Debit account 3384: 5,417,266.5

Credit account 112: 5,417,266.5

*Accounting for Union Funds

To monitor the spending of KPCCĐ, accountants use account 3382.

+ When deducting KPCĐ into production and business costs at a rate of 2%, accounting

take note

Debit account 622: 2,399,292

Debit account 627: 517,524

Debit account 642: 694,695

Credit account 3382: 3,611,511

+ When deducting and paying KPCĐ to the superior agency's trade union, the accountant records

Debit account 3382: 1,805,755.5

Credit account 112: 1,805,755.5

+ When spending union funds at the grassroots union, the accountant records

Debit account 3382: 1,805,755.5

Credit account 111: 1,805,755.5

Voucher Journal No. 7

December 2002 unit: VND ST

…334 338 … …

…


6 TK622	119,964,595 7,197,875, 7
7 TK627	25,876,205 1,552,572, 3
8 …
9 TK642	34,734,743 2,084,084
10 …

Maybe you are interested!

Total: 180,575,543 10,834,532

Debit Accounts 43

Based on the total data of columns 334 and 338 of voucher journal No. 7 of December 2002, the accountant takes the data and records it in the total line of December 2002 of accounts 334 and 338.

Based on journal 1, journal 2, journal 7, voucher journal

No. 10 December 2002 accountant takes data to debit account 334, credit account 338

the accounts

Ledger

December 2002

Account 334

Unit: VND

January

February

Month

….


. December Account 111	156,820,000
TK141	21,910,343
TK338	1,845,200
Add the debt incurred		180,545,543
Total amount incurred Credit Ending balance debit Ending balance credit		180,575,543
Ledger December 2002 Account 338 Unit: VND
T1 T2 T3 .. .. December

Account 111 1,564,300

Account 112 9,270,232

End of month balance Credit 10,834,532 Accounts credit

Corresponding Debits of Accounts

This

Credit the corresponding accounts Debit these accounts 44

2.3. Accounting for expenditures from welfare funds:

+ When paying from the welfare fund, record

Debit account 4311: 13,240,900

Credit account 111: 13,240,900

+ Enterprises pay subsidies from welfare funds, accounting records

Debit account 4312: 3,611,510

Credit account 111: 3,611,510

*When deducting social insurance and health insurance, please note that the basic salary includes allowances. The Company has implemented some types of allowances such as: position allowance, toxic allowance, overtime allowance and special allowance, but when deducting social insurance and health insurance, only deduct the basic salary with position allowance.

Example: Calculate salary for company director

Director's working hours: 40 hours/week, 22 days/month. Salary coefficient: 4.47

Position allowance coefficient: 0.7 Special allowance coefficient: 30% Calculated as follows:

TL = {(4, 47+0, 7) x 210,000} +{30% x( 4, 47+0, 7) x 210,000} =

1,411,410

Salary deductions:

Social insurance = {(4, 47 + 0, 7) x 210,000} x 5% = 54,282 VND

Health insurance = {(4, 47+0, 7) x 210,000} x1% = 10,857 VND

So the director's actual salary is: TL - Social Insurance - Health Insurance

1,411,410 VND - 54,282 VND - 10,857 VND = 1,346,286 VND

*When paying social insurance for employees, there must be confirmation on the social insurance leave form:

Social insurance leave certificate Unit: Kim Thanh Construction Company