The accounting of wages and payroll taxes


When an enterprise employs one or more employees, it must account for payroll and payroll taxes each month. For best accountancy training Best school of accountancy In Lahore. These two operations are carried out separately, and it is essential to respect the accounting entry for payroll and payroll accounting. So how do we do that? We'll explain!
Accounting for payroll of a company's employees
The accounting for an employee's pay corresponds to the accounting record of the salary, but also the breakdown between the salary costs, the net salary to be paid, and the installments paid. There are also other elements that can be taken into account, such as possible premiums. To account for an employee's payroll, account 6411 Salaries and wages for the gross salary must be debited as well as account 6413 Premiums and bonuses for the gross amount of any premiums and finally account 6414 entitled Benefits and benefits For the gross amount of the ancillary expenses. Then, it is necessary to credit account 431 Social Security for the total amount of the wage costs to Urssaf and unemployment insurance, the account 437 Other social organizations for the amount of other wage costs such as retirement for example, the account 425 Personnel advances and advances for the amount of net wages, and finally the account 427 Staff oppositions.
Accounting for social security contributions
This is to record the employer's expenses that were not recorded at the time the payroll was recorded. Among the social security contributions are the employers' costs of the Urssaf: the account 6451 contributions to Urssaf must be debited and credit account 431 entitled Social Security. Then there are the employer charges related to unemployment insurance: debit account 6451 Contributions to Urssaf or account 6454 Assedic, and credit account 431 Social Security. Finally, for other employers' expenses related to, for example, retirement or the mutual, account 645 must be debited and credit account 437 credited.
The accounting of salaries and social charges is therefore a complex but compulsory accounting operation.

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