Completing salary and accounting salary compensations at onemember limited liability company for project exploitation Nhat Minh irrigation work

INTRODUCTION 1. Urgency of the subject In our country the appearance of a market economy has created opportunities for many companies. However, it also forces companies to want to develop stably in the market. In order to manage production and business, it is necessary to make maximum efforts. In this new trend, companies must mobilize on their own, must operate on their own production and business on the principle of revenue and expenditure and profitable business but not subsidies of the State as before. From there, the top target of the company is increasing profits within the prescribed legal framework. In the production process, three factors can not be shortage is living labor, private production materials and labor subjects. In three factor, living labour plays the most important role. Because without workers it is impossible make material wealth, want a product whether its a physical product or a production intellectual property is in addition to the cost of materials, the cost of fixed assets ... The company must also take into account labor costs (living costs). Expenses this fee is not small in the price of the product, it is also directly determined quality products. Because the employee is the one who directly decides to the quality of the companys products, which the company operates effectively whether or not there is competition in the market or not, it needs to be created the products are of good quality. For employees, salaries have an extremely important meaning because it is the main source of income to help them ensure their own life and family. Therefore salaries are the driving force for employees to pay attention labor time, labor productivity if they are paid according to the labor force they spend. On the contrary, it can also reduce labor productivity the production process slows down, ineffective if the salaries they receive not worth the labor they spend. On the whole economy, salaries are more specific of the process distribution of material wealth made by workers. Therefore, the construction of the salary scale, payroll, select the appropriate form of payment so that salary is the income for the employee to work better and be responsible more tasks than real work is needed. Recognizing that urgency, and passing time through practical research at Nhat Minh Business Management Consultant Limited Liability Company , continued I was exposed to the accounting work at my company that saw the importance of accounting salary and salary compensations should have been deeply studied and selected the theme for his graduation thesis is: “Completing salary and accounting salary compensations at onemember limited liability company for project exploitation Nhat Minh irrigation work

STUDENT: LE CHUNG KHANH LINHCQ54/21.04

INTERNSHIP REPORT THESIS – SALARY AND RELATED SALARY

Faculty: Accounting FacultyMajor: Business AccountingMajor code: 21

MY PLEDGE

I assure you that this is my research The data, the result and the researchresults stated in the thesis are honest and come from the real situation fact ofthe internship unit and has never been used in any thesis.

Lê Chung Khánh Linh

TABLE OF CONTENTS

MY PLEDGE i

TABLE OF CONTENTS ii

LIST OF ABBREVIATIONS v

THE LIST OF TABLES vi

THE LIST OF DIAGRAMS vii

THE LIST OF PICTURESINTRODUCTION viii

CHAPTER 1: GENERAL THEOPRY OF ACCOUNTING FOR SALARYAND SALARY COMPENSATION IN BUSINESS 5

1.1 Overview of salary and salary compensation 5

1.1.1 Labor concept, salary and salary compensation 5

1.1.2 Labor, salary, salary compensation 7

1.2 Forms of salary and salary compensation 10

1.2.1 The form of salary 10

1.2.2 The form of salary compensation 14

1.3 Accounting of salary and salary compensation 19

1.4 Salary accounting and salary compensation 23

1.4.1 Vouchers used in accounting for salary and salary compensation 23

1.4.2 Accounts used in salary accounting and salary compensation 24

1.4.3 Common transactions in salary and salary compensation 28

1.5 Accounting book used in salary accounting and salary compensation .291.6 Information about salary accounting and salary compensation 34

1.6 1 In the balance sheet 34

1.6.2 In the income statement 35

1.6.3 In the cash flow statement 35

1.6.4 On the notes to the financial statements 35

CHAPTER 2: ACCOUNTING FOR SALARY AND SALARYCOMPENSATION AT NHAT MINH BUSINESS MANAGEMENT

CONSULTANT LIMITED COMPANY 36

2.1 General information about Nhat Minh Business Management ConsultantLimited Liability Company 36

2.1.1 The information of internship company : 36

2.1.2 Internship company’s basic features and operating activities: 36

2.2 Company structure 38

2.2.1 Function of each department: 39

2.2.2 Organizational characteristics of the accounting apparatus at NhatMinh business management consultant co., ltd 45

2.2.2 Form of accounting applied at the company 48

2.2.3 Organizing the accounting reporting system: 51

2.3 Actual salary accounting and salary compensation at NHAT MINHBUSINESS MANAGEMENT CONSULTANT CO 52

2.3.1 Characteristics of salary, salary compensation at NHAT MINHBUSINESS MANAGEMENT CONSULTANT CO 52

2.3.2 Salary accounting at Nhat Minh Business Management ConsultantLimited Liability Company 56

2.3.3 Calculate salary and payables for employees 59

2.3.4 Accounting of salaries and salary compensations 73

2.4 Review the status of salary accounting and salary compensations at NhatMinh Business Management Consultant Limited Liability Company 91

CHAPTER 3: PERFECT SOLUTIONS OF ACCOUNTING WORK STATEAT NHAT MINH BUSINESS MANAGEMENT CONSULTANT LTD.CO 95

3.1 The need to improve salary accounting in the company 95

3.2 Requirements and principles of finalizing eel accounting at the company 973.2.1 Requirements of completing salary accounting and compensationsSalary at Nhat Minh Business Management Consultant Limited LiabilityCompany 973.2.2 Principle of finalizing salary and salary compensations at Nhat MinhBusiness Management Consultant Limited Liability Company 993.3 Some ideas to improve the organization of salary accounting in thecompany 993.4 Conditions for implementing salary accounting finishing solutions at thecompany 101CONCLUSION 103

THE LIST OF TABLES

Table 2.1: Timesheets in May of 2019 (excerpts) 58

TABLE 2.2: OF GENERAL SALARY SALES IN MAY OF 2019 (excerpt) 62

Tabe 2.3: Voucher for enjoying social insurance benefits 68

Tabe 2.4: Payment voucher of social insurance benefits 69

Table 2.5: Payment schedule of social insurance 70

Table 2.6: Salary and social insurance payment table in May of 2019 at NhatMinh Business Management Consultant Limited Liability Company 71

Table 2.7: Summary of salary compensations in May 2019 72

THE LIST OF DIAGRAMS

Diagram 1: Accounting for payroll 28

Diagram 2: Accounting for payroll related compensation 29

Diagram 3: Diagram showing salary accounting and salary compensation inthe form of general diary: 30

Diagram 4: Diagram showing salary accounting and salary compensationrecorded ledger in the form of ledger diary 31

Diagram 5: Diagram showing salary accounting and salary compensations inthe form of bookkeeping vouchers 32

Diagram 6: Diagram showing salary accounting and salary compensations inthe form of Journal – Document 33

Diagram 7 : Diagram showing salary accounting and salary compensations inthe form of machine accounting 34

Diagram 8: The structure of accounting sysytem 42

Diagram 9: Organizational characteristics of the accounting apparatus at 45

Diagram 10: Organization chart of bookkeeping system: 50

THE LIST OF PICTURES

Figure 1: List of accounts (extracted) 74

Figure 2: Interface for importing other business documents 75

Figure 3: List of accounts 338 76

Figure 4: Account list 642 78

Figure 5: Interface for importing other business documents 79

Figure 6: Interface for selecting working time 80

Figure 7: Salary accounting for employees in May 2019 81

Figure 8: Interface for accounting of account payables 83

Figure 9: Payroll accounting for employees 85

Figure 10: Accounting of payment of reduction insurance 86

Figure 11: Interface for performing an ledger view of an account 87

INTRODUCTION1 Urgency of the subject

In our country the appearance of a market economy has created opportunitiesfor many companies However, it also forces companies to want to developstably in the market In order to manage production and business, it isnecessary to make maximum efforts In this new trend, companies mustmobilize on their own, must operate on their own production and business onthe principle of revenue and expenditure and profitable business but notsubsidies of the State as before From there, the top target of the company isincreasing profits within the prescribed legal framework

In the production process, three factors can not be shortage is livinglabor, private production materials and labor subjects In three factor, livinglabour plays the most important role Because without workers it isimpossible make material wealth, want a product whether it's a physicalproduct or a production intellectual property is in addition to the cost ofmaterials, the cost of fixed assets The company must also take into accountlabor costs (living costs) Expenses this fee is not small in the price of theproduct, it is also directly determined quality products Because the employeeis the one who directly decides to the quality of the company's products,which the company operates effectively whether or not there is competition inthe market or not, it needs to be created the products are of good quality

For employees, salaries have an extremely important meaning because itis the main source of income to help them ensure their own life and family.Therefore salaries are the driving force for employees to pay attention labortime, labor productivity if they are paid according to the labor force they

spend On the contrary, it can also reduce labor productivity the productionprocess slows down, ineffective if the salaries they receive not worth the laborthey spend.

On the whole economy, salaries are more specific of the processdistribution of material wealth made by workers Therefore, the constructionof the salary scale, payroll, select the appropriate form of payment so thatsalary is the income for the employee to work better and be responsible moretasks than real work is needed.

Recognizing that urgency, and passing time through practical research atNhat Minh Business Management Consultant Limited Liability Company ,continued

I was exposed to the accounting work at my company that saw theimportance of accounting salary and salary compensations should have beendeeply studied and selected the theme for his graduation thesis is:“Completing salary and accounting salary compensations at one-memberlimited liability company for project exploitation Nhat Minh irrigation work "

2 Object and research purpose

- Subject of research is: Salary and accounting Salary compensations oftrade companies, which go into depth form of salaries and salaries deductedfrom one member limited liability company exploitation of Nhat MinhBusiness Management Consultant Limited Liability Company

- Research purpose of the topic:

+ Present systematically and clarify the theoretical issues

The table applies to salary accounting and salary compensations atpublic places ty in general.

+ Study on the current situation of salary accounting and salarycompensations at Nhat Minh Business Management Consultant LimitedLiability Company

+ Based on theoretical and practical surveys at the Company to proposethese Proposals to improve salary accounting and salary compensations

3 Research scope

- Salary accounting research project and current salary compensations atNhat Minh Business Management Consultant Limited Liability Company Time was selected the research topic is January 2019 and 2018 figures

4 Research methodology

My research topic is based on the method of problem analysis theoreticaland practical problems in a scientific and logical way, combininginterpretation and interpretation inductive, between words and tables,preliminary illustration.

5 The structure of theoryNote 3 chapters:

Chapter 1: General theory of accounting for salary and salarycompensation in business.

Chapter 2: Accounting for salary and salary compensation at Nhat MinhBusiness Management Consultant Limited Liability Company

Chapter 3: Improvement to accounting for salary and salarycompensation at Nhat Minh Business Management Consultant LimitedLiability Company.

Due to the short internship at the Company, awareness of reality islimited so my thesis cannot avoid defects I look forward to it get input fromteachers and siblings in Nhat Minh Business Management Consultant LimitedLiability Company My essay is more complete

Finally, I would like to sincerely thank the Department of Planning andFinance, Management board and other functional departments in Nhat MinhBusiness Management Consultant Limited Liability Company exploited NhatMinh project was enthusiastically helpful, providing necessary data to helpme complete this thesis I would like to thank the teachers of the AccountingDepartment Special Academy of Finance is the teacher: MSc Nguyen ThiHong Van was dedicated to guide and help me complete this thesis.

Thank you sincerely!

Lê Chung Khánh Linh

CHAPTER 1: GENERAL THEOPRY OF ACCOUNTING FORSALARY AND SALARY COMPENSATION IN BUSINESS

1.1 Overview of salary and salary compensation

1.1.1 Labor concept, salary and salary compensation

* Labor: is the consumption of labor force in reality Labor is purposeful,conscious operation of people to create products for the needs of social life.Labor is the most special activity human creative activity.

* Employees are those who work for salaries and labor or the mind thatmakes physical or mental products for others.

* Salary: labor cost is formed by agreement between employee andemployer are in accordance with the relations and regulations laws in amarket economy.

In Vietnam during the period of central planning, salaries are understoodas a part of national income is used to offset the inevitable labor costs due tothe House water distributed to officials and employees in the form ofcurrency, in accordance with regulations labor distribution law Currentlyunder Article 55 - Vietnam Labor Code Regulations on salaries of employeesare agreed by the two parties in the labor contract and paid for by laborproductivity, quality and efficiency Salaries are part of the social productrepresented by paid money for employees based on the number and quality ofworkers of all users to offset labor costs of all users to offset labor costs this isa practical issue for employees properly regulated, is the strong stimulus ofproduction, it stimulates

like workers who strive to produce and work, improve skills and reformadvanced techniques to improve labor productivity.

Laborers after using their labor create products pay a certain amount ofsalaries In terms of phenomena, we see the labor force brought trade forsalary So it can be considered labor is a commodity special chemistry Andsalary is the prices of those special goods, the goods labor force Becausegoods of labor need to be traded in the market labor based on agreementbetween buyer and seller, is subject to impact of the law of value, the law ofsupply and demand Hence labor prices will vary According to the prices ofthe constituent factors as well as the supply-demand relation of labor, whensalary are considered the value of labor, this price will form on basis ofagreement between the employee and the employer Price labor dynamic orremuneration may increase or decrease depending on the supply and demandof goods labor So salary often fluctuates but it must rotate around the valueof labor as well as other common goods, it requires objectively ask for itscorrectness and validity Price on the other hand how salaries fluctuate mustensure a minimum standard of living the employee can stay and continueworking

Salary compensaction include: Social Insurance, Health Insurance, Tradeunion funds, unemployment insurance

Social insurance:

Under the current regime, social insurance is formed by appropriationThe rate of 25.5% of the total salary must be paid to employees in eachperiod math, where:

Employers must bear 17.5% of the total salary and salary included inoperating expenses.

The employee must bear 8% of the total salary by compensationinto their salaries.

Health Insurance:

- Health Insurance is a fund used to pay employees who contribute tothe fund in medical examination and treatment activities, formed by prorating

4.5% of the total salary payable to employees, of which: Employers mustbear 3% and be included in production costs business.

Workers incur 1.5% by deducting from their salaries.Trade union fee:

Trade union funds are funding for trade union activities at all levels.According to current regulations Union funds are deducted at the rate of2% of the total amount salary must be paid for each accounting period andincluded in the business and production expenses, including 1% for thegrassroots trade union and 1% for the upper union.

Unemployment insurance:

Unemployment insurance is the amount of money businesses pay toworkers when they suffer lost a job According to current regulationsUnemployment insurance is deducted at a margin of 2% of the total salarymust be paid for each accounting period in which the employer pays 1% isincluded in the cost of production and business, the employee bears 1% howto deduct their salaries

Funds on enterprises must be established and fully collected and paidquarterly a part of the expenditures of the enterprise social insurance fund isagency management authorized households on the basis of originaldocuments, but must pay final settlement when submitting those fundsquarterly to the agencies that manage them the above expenses only supportat a minimum to help the laborers in sickness, labor accident.

1.1.2 Labor, salary, salary compensation

Labor is an indispensable factor in production and business activities.This is a decisive factor to the quantity and quality of products of a businessas well as decide on the business results of each enterprise Salary is closelylinked to the interests of workers It is the driving force like creative capacity,labor consciousness on the basis of which promote increased laborproductivity Therefore, salaries on the one hand are closely linked to people'spractical interests labor and on the other hand it confirms the position of theemployee in company Therefore, when receiving adequate salaries, the salarypayment of the business fair and equitable industry will motivate theproduction process and thus increase labor productivity will increase, productquality will be improved, thereby revenue and business profits are constantlyincreasing

Management requirements for labor, salary, salary compensation:

Salary is the main source of income for workers and businessesenterprises use salary as economic leverage to encourage the spirit ofaccumulation extreme labor, is a motivating factor to increase laborproductivity

For salary, businesses have to pay employees one elements thatconstitute the value of products or services created by businesses In otherwords, it is the factor of production cost to calculate the product cost.Therefore, businesses must use labor force effectively to save expenses laborcosts in the product unit, service work and goods flow

Salary management is an important content in the work production andbusiness management Well- organized labor and salary accounting for thelabor management of enterprises to go into order and motivate labor observeslabor discipline well, increases labor productivity, and at the same time it isbasis for calculating salary according to the labor distribution principle

Therefore, the correct calculation of labor remuneration both full andtimely payment for the employee is very necessary, it stimulates the employeeto be devoted to the labor work, improve labor quality On the other hand, thecalculation is correct and accurate labor costs also contribute to the correctpart of the cost of the business and calculation correct cost and product cost.

To do so , this work must be based on management and monitor theprocess of mobilizing and employing employees in production and businessactivities of enterprises The employer mobilization is considered reasonablywhen different types of labor require management measures and differentuses So the labor classification is very necessary for every business,depending on the different types of businesses and different laborclassification.

In short, the organization of the work of salary accounting andcompensations salary helps businesses manage salary fund well, ensure salarypayment and social insurance allowances are in principle, in accordance withthe regime, and stimulate employees to return into the assigned task, at thesame time creating a basis for the allocation of multiplication costs which dothe cost of the product to be accurate Enterprises must have policies aboutreasonable salaries to save labor costs for businesses but not so that reducesalaries of workers Well organized accounting work salary workers helpbusinesses manage salary fund well, ensure the payment salaries and socialinsurance allowances are in principle, in accordance with the regime andincentives the employee completes the assigned task, at the same time createsthe basis for the job accurately allocating labor costs to product prices.

Duties of salary accounting and salary compensationsSalary accounting tasks include the following basic tasks:

- Organize to record, reflect and synthesize data on the number ofemployees, time of labor results, salary calculation and compensation ofsalaries and allocations labor costs are in accordance with the subjects ofemployment.

- Instruct and check the accounting staff in the production and businessdepartments, the departments fully comply with the initial records labor,salaries in accordance with the regime and the right method.

- Organize to record, reflect and synthesize data on the number ofemployees, time of labor results, salary calculation and compensation ofsalaries and allocations labor costs are in accordance with the subjects ofemployment.

- Making reports on labor, salary and salary compensation periodicallyanalyzes labor situation, situation of management and spending of salary andsupply salary’s fund information to management in a timely manner.

- The cost of labor, salary and the salary compensation is not only amatter of business attention because it is an expense of businesses but also theworkers Especially, because this is the main is in their interest, workers usesalary to stabilize their lives goods, for their daily necessities.

- Organize to record, reflect and synthesize data on the number ofemployees, time of labor results, salary calculation and compensation ofsalaries and allocations labor costs are in accordance with the subjects ofemployment.

1.2 Forms of salary and salary compensation

1.2.1 The form of salary

1.2.1.1 Pay salary by time:

Is a form of compensation for employees based on working time, salarylevel (position) and salary scale (salary coefficient) This form is mainlyapplicable for indirect workers, stable jobs or maybe for workers directlywithout product norms

In the enterprise, the salary form from time to time is applied to officestaff such as administrative administration, labor organization, statistics,accountancy-accounting Time-based payment is a form of compensation foremployees which depends on actual working time, industry and level ofsuccess professional proficiency, professional technical skills of theemployee

Depending on each job, the nature of the job is specific so that theenterprise uses different salaries Professional and technical proficiency indivision into several salary scales, each with a certain level of salary, that isthe square root for salaries, salaries over time can be divided

+ Daily salary:

Is the salary compensation for employees based on daily salary andnumber of days actual work for the month

Daily salary = + Monthly Salary:

As salary paid to employees by month, the salary level is calculated overtime is 1 month.

Monthly Salary = salary per day x the number of working days in amonth

+ Weekly Salary:

are salaries for employees based on weekly salary and number of dayswork for the month

An employee works overtime 5 hours

The time-based salary regime with a limited presence is neutral military,sometimes do not match the actual labor results of workers

Salary regimes over time: It is simple time salary

Salary based on bonus period

Simple form of time-based payment: It is the salaries received for eachworker, it depends on the high or low salary level, and the time their work ismore or less decided

Salary based on bonus period: It is the salary calculated according tosimple time plus the bonus they are entitled to

1.2.1.2 Form of salary by product:

Different from salary form over time, salary form the product performsthe payroll calculation for employees according to quantity and quality

number of completed work products

Total salary payment = Unit salary/Number x the number offinished good

Salary according to products:

Form of salary based on direct product:

Salary paid to employees is calculated directly based on quantitycompleting products in accordance with quality specifications and unit salaryspecified, not subject to any restrictions

For the Company, this salary is not applicable because it is publictrading company.

Total salary payables = Actual number of completed products * unitprice of salary

+ Indirect product salary:

Is salary paid to indirect workers in the production department, such asmaintenance machines and equipment, they do not directly create productsbut they indirectly affect to direct labor productivity so they are paid based onresults of direct labor to calculate salary for indirect labor.

In general, this form of compensation based on indirect products is notallowed exactly, there are many limitations, and not practical work.

+ Salary based on bonus products:

In this form, salary according to the direct product if labor is alsorewarded in production, bonuses for increasing labor productivity, materialsaving.

This salary-based salary form has the advantage of being a promotionencourage enthusiastic workers to work, increase labor productivity andbenefit businesses as well as employees' lives improved.

+ Salary according to accumulated products:

In addition to direct product pay, there is also a part of the bonuscalculated on the basis of an increase in unit salary rates at high productivitylevels This form of salary has advantages to stimulate advanced workerslabor productivity, maintaining labor intensity at the maximum level, to solve

However, this form of salary is also inevitable increase the cost of laborin the product cost of the business industry, so that only be used when it isnecessary to complete an order or pay workers at the most difficult stage toensure their stability sets for production.

In short, the form of salary over time has many limitations not attachingsalary to labor outcomes and quality, and lack of stimulation workers Toovercome, these limitations in addition to organizing by track and record fullworking time of employees, combined with the regime reasonable reward.

Compared to the salary form over time, the salary form follows theproduct has more advantages Fully understand the principle of salarypayment according to the quantity and quality of labor, closely link salaryincome with the result of production by workers

Stimulating labor productivity, encouraging workers to promotecreativity improves production techniques, so this form is used quite spacious.

1.2.2 The form of salary compensation

1.2.2.1 Salary fund

Salary fund is the entire amount payable to all types of laborers managedand used by enterprises, both inside and outside the enterprise According tothe proposal No 235 / ĐBT of September 19, 1985 of the Council ofMinisters (now the Government), salary fund includes the following:

- Monthly, daily salary based on the salary scale coefficient of the State.- Salary paid by product

- Daily remuneration for off-pay workers

- Salary paid to employees when making defective products inside rule.- Salary paid to employees during the work stoppage due to equipmentthe machine stopped working for objective reasons.

- Salary paid to employees during the time of work assignment or doingthe obligations of the State and society.

- Salary paid to employees taking periodical leave, vacation leave regimeof the State.

- Salary paid to people who go to school but still on the payroll.- Types of regular bonuses

- Allowances according to the prescribed regime and other allowancesare recorded in salaries

In terms of accounting, salaries for employees in the business productionindustry is divided into two types: main salary and extra salary Salary is thesalary paid to the employee in time employees perform their main task,meaning time is wasted really labor includes salary based on salaries andallowances attached (responsibility allowance, area allowance, overtimepay .) Extra salary is the salary paid to employees during the time ofperforming the duties cases other than their main tasks and the timeemployees are entitled to leave benefits (vacation, pay time off, go to school,go to meetings, take time off work .) Besides salary paid to workersproducing defective products within the prescribed regime It is also classifiedas extra salary.

The division of salaries into main and supplementary salaries makessense to be important for accounting and salary analysis in production costsexport The main salary of production workers is associated with theproduction process These products are directly accounted for in theproduction costs of each type of product Salary of production workers are notassociated with each type of product, so indirect accounting shall beaccounted into production costs of each type of product according to a peppercertain attribution criteria Salary fund spending management must be inrelation to the implementation production and business plan of the unit inorder to both spend economically and reasonably salary funds have to ensurethe completion and exceed the production plan.

1.2.2.2 Social insurance fund

According to the concept of the International Labor Organization (ILO),social insurance is interpreted as fact protection of its member society,through a series of public measures plus to combat socio-economicdifficulties due to loss or reduction of revenues enter, caused by illness,disability, old age, illness, death

Social insurance is a system of 3 levels:

1st level: is the base floor to apply to everyone, every individual in thecommune festival In which the request is poor, despite the possibility ofsocial insurance contributions These people are very low, but when required,the State will still subsidize.

2nd level: A mandatory floor for people with stable jobs.

3rd level: Is voluntary for those who want to contribute high socialinsurance

In terms of subjects, social insurance previously applied only tobusinesses the state Currently, according to Decree No 45 / CP, the socialinsurance policy is applied for all economic sectors (2nd level) for allmembers of the Commune Association (1st level) and for everyone with highincome or conditions to participate social insurance to enjoy higher socialinsurance benefits At the same time, the social insurance regime still rulesdefine the obligation to contribute to those who are entitled to preferentialtreatment The amount that social members contribute to form the socialinsurance fund Pursuant to Decree

No 43 / CP of June 22, 1993 temporarily stipulating the regime socialinsurance of the Government, social insurance fund is formed mainly from thecontributions of employers, employees and a part of the State's support Tomanage and use of the social insurance fund must be consistent according tothe regime of the State and on the principle of independent accounting.According to current regulations: Every month, enterprises makecompensations social insurance fund at the prescribed rate is 25.5% Inside:

+ 17.5% belongs to the responsibility of enterprises' contribution bycompensation expenses of which: 3% to the maternity sickness fund, 1% tothe accident fund labor, occupational diseases, 14% contribute to the pensionand survivorship fund.

+ 8% is the employee's responsibility to contribute by salaries Fund ofsocial insurance is used to create funding sources for internal employees casesof illness, maternity and sum up expenditures to settle with the agencyresponsible.

1.2.2.3 Health Insurance Fund

Health insurance is actually a medical benefit for the insured insuranceto help them with some of the medical examination and treatment costs,hospital fees, money medicine month

In terms of subjects, health insurance applies to people who participatein health insurance through the purchase of insurance cards which are mostlyemployees According to the law of the current financial regime, the socialinsurance fund is formed from 2 sources:

+ 1.5% of the basic salary paid by the employee.

+ 3% of the basic salary fund is included in the production costs of userslabor bear.

Enterprises must pay 100% of the health insurance fund to the fundmanagement agency.

1.2.2.4 Union funds

The union is an organization of unions representing workers, said voicedthe common voice of the workers, stood out to fight for the rights andinterests of employees, also during Trade Union are direct instructors ofattitude of the employee with the job, with the employer.

Trade Union is formed by setting up and calculating the costs ofproduction and business the enterprise's turnover is monthly, at the rate of 2%of the total actual salary payables to employees during the period Inparticular, the enterprise must pay 50% of the trade union fee collected to theupper Trade Union, the remaining 50% is spent at the trade union.

1.2.2.5 Unemployment insurance

Every month, company pays to employees and deducts from monthly

salaries of employees to pay and social insurance fund with the contributionrate of 2% Inside:

Enterprises pay 1%

Employee 1% of monthly salary

The lowest monthly salary to pay UI is the regional minimum andThe maximum level is 20 times the regional minimum salary

Subjects participating in unemployment insurance include employeeswith a term of full 3 months in all agencies and units If the employee isreasonable with In many companies, the first company must be responsiblefor hiring UI Labor contracts with a term of 3 months or more before themonth 1/2015 that is valid in 2015 is not eligible for unemployment insuranceso enterprises must carry out procedures for compensation of unemploymentinsurance from January 2015.

The monthly unemployment insurance allowance is equal to 60% of themonthly salary paid Unemployment insurance for the 6 consecutive monthsbefore being unemployed, but not more than 5 times base salary foremployees belonging to employees comply with the salary regime stipulatedby the state or no more than five times regional minimum salary asprescribed by the Labor Code for employees The implementation of salaryregime shall be stipulated by the enterprise so, the monthly unemploymentallowance is calculated according to the following formula:

Benefit allowance monthly unemployment = Average salary of 6consecutive months have paid UI before unemployment x 60%

1.3 Accounting of salary and salary compensation

The purpose of accounting labor in the enterprise to help labormanagement is also to ensure accurate salaries for each person labor Thecontent of labor accounting includes accounting of quantity of labor force,working time and quality.

Accounting of the number of employees:

To manage labor in terms of quantity, enterprises use "Books labor

monitoring of enterprises "is usually monitored by labor departments This

book accounting for the number of each type of labor by occupation, job andskill level (technical rank) of employees Labor Department possible make a

general register for the whole enterprise and set up a separate section for each

firm current situation of labor allocation and employment in the enterprise.Accounting of labor time:

Accounting of working time is the job to ensure timely recording exactlythe number of actual working days and working hours such as off days andstoppages jobs of each employee, each production department, eachdepartment enterprise On this basis, the salary must be paid to each person

The timesheet is the most important initial document for time accountinglabor in businesses Timesheets are used to record working time actual monthand absence of officials and employees in teams, teams, departments Thetimesheets must be made separately for each production group and eachdepartment and use for one month List of employees recorded in the laborbook of each part is listed in the timesheet, their data must match The leaderof the production team or the head of the departments is the one who directlyrecords the scoreboard based on the number of employees present, absent atthe beginning of the working day in their units In the timesheet of theholidays as prescribed Tet, Saturday, Sunday must be clearly stated.

The timesheet must leave a public place for employees supervise hisworking time At the end of the month, the leader and the gym leader use casesituation for the accountant in charge Next employee check math and confirmdaily on timesheets Then proceed to practice synthesize data and reports tothe labor room division The end of the month, the timesheet is transferred tothe salary accounting department to conduct calculations salary For cases ofleaving due to illness, labor accident, etc., it must be have sick leavecertificates issued by hospitals and health facilities As in case of stopping theday happened for any reason must be reflected in the record of jobtermination, clearly stating the cause of the suspension and the personresponsible, as a basis for salaries and settlement of damages out Thesedocuments are transferred to the accounting department as a basis forcalculating subsidies, after receiving the head of social insurance agency, thesocial insurance body shall base itself on the voucher to record it in thegrading table work according to the specified symbols.

Accounting of labor results

Accounting of labor results is an important content in the wholemanagement and labor accounting in manufacturing enterprises Work theprocess is to accurately record in time the quantity or quality of the producteither the completed work volume of each individual and collective serves asa basis pay and pay exactly.

Depending on the type and production characteristics of each enterprise,people use different initial documents to account labor results Initialdocuments are commonly used to record labor results and confirmation ofcompleted work products, contract Certification of completed workproducts is a digital confirmation finished product (work) of the employeeunit or individual This form is made by the assignor and must be signed bythe assignor jobs, recipients, product quality inspectors, and approvers.

Ballots are transferred to salary accounting for salary calculation appliedin the form salary paid by product.

The work contract is the original contract of assignment case ofcontracting work It is a contract between the employer and people contractedwith workload, working time, responsibilities and interests of each party indoing so This voucher is the basis for the bar pay labor to the contractor Thecase when checking and receiving If the product is damaged, the qualitycontrol officer and the person in charge of the department of making brokenreport forms to serve as a basis for making a handling record Quantity andquality completed and tested jobs are recorded in accounting vouchers laborresults that businesses use, and after it has been signed and approved movingto salaries accounting department as a basis for calculating salaries andsalaries multiply.

Payroll accounting with employees

Payroll accounting for employees based on evidence from labor timeaccounting (timesheets), labor results (lists workload completed, acceptancerecords ) and salary accounting conduct salary after checking the abovedocuments Salary work, bonus and other amounts payable to employees inthe form of payment salary is applied at the enterprise, salary laboraccounting tabulated salary payment (policy salary, product salary, extrapayments (benefits, benefits, insurance for each employee), bonus paymenttable.

Salary payment table is a document used as a basis for salary payment,allowances for employees in the form of salaries currently applied in theenterprise the salary and salary accounting system of the labor forceaccountant shall be prepared policies, product salaries, allowances, benefitsand insurance for each employee dynamic, bonus payment table.

Salary payment table is a document used as a basis for salary payment,allowances for laborers working in production and business units Salarypayment table is paid for each department corresponds to the timesheet In thepayroll table, each salary, employees are allowed to record a line based ontheir grade, salary and working time salary calculation for each person Then,payroll accounting to make a payment table general salary for the wholeenterprise, team, and department one sheet per month Salary payment tablefor the whole enterprise will switch to accounting heads and heads of unitssign the approval On that basis, revenue and expenditure accountants writepayment notes and pay salaries for each department

Salary payment for employees is usually divided into 2 periods inmonth:

+ Term 1: Advance

+ Term 2: Pay the rest after deducting deductible amounts deductingsalaries from laborers according to the prescribed regime

Salary is paid in the hands of an employee or a mass collective on behalfof the cashier, when receiving the income, the employee must sign salarypayment table.

For employees who are still on paid leave this salary It is also includedin production and business costs Unexpected leave exporting is not regularbetween months of the year, therefore it is necessary to carry outcompensations workers' salary and leave on the cost of each accountingperiod As such, it will not make the product price suddenly change.

In a nutshell, labor accounting is both about managing employermobilization this is the basis for calculating salaries to be paid to employees.It is clear, accurate, timely that labor costs can be calculated correctly andfully salaries for employees in the enterprise.

1.4 Salary accounting and salary compensation

1.4.1 Vouchers used in accounting for salary and salary compensation

Some accounting vouchers:

- Form No 01a- LĐTL: “Time Attendance Table” This is a voucherbasis

Salary based on the actual working time of each employee This table isSet up monthly by time department (production group, department)- Form No 01b-LDTL: Time table for overtime work

- Form No 02-LDTL: Salary payment table- Form No 03-LDTL: Bonus payment table- Form No 04-LDTL: Road travel paper

- Form No 05-LDTL: Confirmation of finished products or jobs- Form No 06-LDTL: Payment table for overtime pay

- Form No 07- LDTL: Payment table for outsourcing rent- Form No 08-LDTL: Contract of contracting

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

- Form No 10-LDTL: The list of compensation and payment of salary- Form No 11-LDTL: Table of distribution of salary and socialinsurance

This form is used to account working time of workers overtime staff areallowed to work overtime as a basis for salary calculation according to theallowance for overtime work according to the prescribed regime.

- Some other relevant documents such as receipts, payment slips, paperplease advance, deviation (paper way) invoice

1.4.2 Accounts used in salary accounting and salary compensation

To monitor the situation of payment of salaries and other amounts topeople labor, situation of setting up and using funds of SI, HT, UF and UIaccount using account 334 and account 338.

Account 334: "Payables to employees" This account is used to reflectaccounts payable and payment situation pay to employees of the enterprise onsalaries and salaries, social insurance and other payables belong to income ofworkers.

Account 334 - Payables to employees who have 2 second grade accounts - Account 3341 - Payables to employees: Reflecting payables and thesituation of payment of accounts payable to employees of the enterprisesalaries, bonuses, salaries, social insurance and other payments belong to theemployee's income.

- Account 3348 - Payables to other employees: records accountsreceivable

pay and the situation of payment of payables to workers other thanemployees of the enterprise on salaries and bonuses (if any) of naturesalary and other amounts of income of the employee.

Account 338: Other payables.

- Use to monitor the setting up and use of social insurance fund, healthinsurance fund, trade union fund, unemployment insurance fund,

Account 338 is classified into second-level accounts as follows:- Account 3382 (Trade union fee)

- Account 3383 (Social insurance)- Account 3384 (Health insurance)

- Account 3386 (Unemployment insurance)

Summary, distribution of salary, compensation of social insurance,health insurance and unemployment insurance Monthly, the accountants sumup the salaries payable in the period according to each subject (production,sales, services, .) and calculating social insurance compensations, healthinsurance, unemployment insurance, and internal health insurance accordingto regulations on the basis of general calculation of salaries The rates ofcompensation of social insurance, health insurance, trade union funds andunemployment insurance are made on the Allocation Table Salary and salarycompensation (Form No 01 / distribution table)

Content: Salary distribution table and social insurance compensationused to collect and actual salary distribution (main salary, extra salary andamounts other) Social insurance, health insurance, Trade Union Funds andunemployment insurance premiums must be paid monthly to the employmentrate (Credit in Accounts 334, 335, 3382, 3383, 3384 and 3386).

Other related accounts:Acc 335- Accrued expensesAcc 622- Direct labor cost

Acc 627- Manufacturing overhead cost

Acc 111,112, 138…

1.4.3 Common transactions in salary and salary compensation

Diagram 1: Accounting for payroll

Diagram 2: Accounting for payroll related compensation

1.5 Accounting book used in salary accounting and salary compensationIn order for salary accounting to be accurate and timely, provideinformation for managers, the book system and the recording process requireorganization scientific organization, reasonable, just to ensure accuracy, justreduce labor for people working in accounting

According to the current accounting regime, the organization of the booksystem is conducted by enterprises who build themselves based on 4 forms ofbooks prescribed by the Ministry of Finance and at the same time Based onthe characteristics and size of its production and business activities Nestingsalary accounting functions shall be conducted in the following forms:

General diary form