Accounting for salary and salary deduction at hoa binh investment and development corporation

NATIONAL ECONOMICS UNIVERSITY CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS BACHERLOR'S THESIS Major:Accounting Topic: ACCOUNTING FOR SALARY AND SALARY DEDUCTION AT HOA BINH INVESTMENT AND DEVELOPMENT CORPORATION Student’s Name: Ta Yen Trang Class: Advanced Accounting A Intake: 54 Student ID: 11124231 Internship guide: Ms Nguyen Thi Huong Instructor: Assoc Prof Dr Pham Thi Bich Chi Hanoi, 2016 Table of Contents ACKNOWLEDGEMENTS ABBREVATION LIST OF TABLES LIST OF DIAGRAM EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION .1 1.1RATIONAL .1 1.2 RESEARCH OBJECTIVES 1.2.1 General objectives .2 1.2.2 Specific objectives 1.3 METHODOLOGY 1.4 RESEARCH SCOPE .3 1.4 STRUCTURE OF THESIS .3 CHAPTER 2: THEORETICAL FRAMEWORK OF PAYROLL ACCOUNTING 2.1 THE CONCEPT OF SALARIES AND SALARY DEDUCTIONS 2.1.1 The concept of salaries .4 2.1.2 The concept of the salary deductions 2.1.3 Economic Content of accounting salaries and salary deductions 2.1.4 Factors affecting salary .7 2.1.5 The basic principle in wages .7 2.2 FUNTIONS OF SALARIES AND SALARY FORMS 2.2.1 The function of salaries .7 2.2.2 Salary and workforms 2.3 SALARY DEDUCTIONS .15 2.3.1 Salary funds .15 2.3.2 Salary Deductions 16 2.4 ACCOUNTING SALARY 19 2.4.1 Functions of Payroll Accountant 19 2.4.2 Accounting for labor and labor time .19 2.4.3 Documents used 23 2.4.4 Account used 23 2.4.5 Generall acounting for salary 24 2.5 ACCOUNTING FOR SALARY DEDUCTIONS .26 2.5.1 Documents used 26 2.5.2 Account used 27 2.5.3 General Accounting for salary deduction .28 Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi CHAPTER 3: 30CURRENT SITUATION OF PAYROLL ACCOUNTING AT HBI COMPANY .30 3.1 OVERVIEW ABOUT HBI COMPANY .30 3.1.1 Establishment and development of the company 30 3.1.2 Product features .32 3.1.3 Characteristics of the Business Operation of HBI Company .32 3.1.4 Organizational structure of the company 34 3.1.5: Structure of labor force at HBI Company 36 3.2 STRUCTURE OFF ACCOUNTING SYSTEM ATT HBI COMPANY 38 3.2.1 Organization structure of accounting department at HBI Company .38 3.2.2 General knowledgement about accounting information system of the company 41 3.3 ACCOUNTING FOR SALARY AT HBI COMPANY 43 3.3.1 Form of salary at HBI Company 43 3.3.2 Process of accounting for salary at HBI company 44 3.4 ACCOUNTING SALARY DEDUCTIONS: SOCIAL INSURANCE, HEALTH INSURANCE, LABOR UNION FEE AND UNEMPLOYMENT INSURANCE 51 CHAPTER 4: DISCUSSION AND SOLUTION TO IMPROVE PAYROLL ACCOUNTING AT HBI COMPANY 69 4.1 Assessment of the status of the Payroll Accounting and salary deductions at the HBI Company .69 4.1.1 Advantages .70 4.1.2 Disadvantages 72 4.2 SOME SOLUTION TO IMPROVE PAYROLL ACCOUNTING AT HBI COMPANY 72 4.2.1 The neccesary to improve the accounting salary and salary deductions 72 4.2.2 Some solution in order to improve the accounting salaries and salary deductions 74 CHAPTER 5: CONCLUSION 78 REFERENCE 79 APPENDIX .80 Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi ACKNOWLEDGEMENTS Thanks to the support and assistance of many people, the internship and the thesis was completed successfully Firstly, I would like to express my gratitude to the Advanced Education Program (AEP), for their logical schedule and their responsible supervision which helpedme complete this internship program Next, I give the special thanks to my great supervisor,Assoc Prof Dr Pham Thi Bich Chi Having received the continuous guidance, important advices and great supports, the report was completed with the result beyond my expectation I also want to take the opportunity to express a gratitude to HBI Company, especially to my direct instructor, Ms Nguyen Thi Thu Huong, for the support, valuable information and guidance which help me finish this task Without them, I might not be able to finalize the report Last but not least, I really appreciate my teammates for the great coordination and teamwork Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Barchelor’s Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper Hanoi, ./ / 2016 Signature Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi ABBREVATION Acc CA CEO HI S UI Student: Ta Yen Trang : Account : Chief Accountant : Chief Executive Officer : Health Insurance : Social Insurance : Unemployment Insurance Instructor: Assoc Prof Dr Pham Thi Bich Chi LIST OF TABLES Table 2.1: Salary deduction Amount Table 3.1: Business Performance of HBI Company from Table 3.2: Scope of business of HBI Company Table 3.3: Labor Structure of HBI Company Table 3.4: Timesheet Table 3.5: Payment Table Table 3.6: Kinds of Bonus Table 3.7:Payment Bonus Table Table 3.8: Table of Allocation of Salary Table 3.9 : Allocated table of payment salary and salary deduction Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi LIST OF DIAGRAM Diagram2.1 Accounting 334 and corresponding accounts  Diagram2.2 Accounting 338 and corresponding accounts  Diagram 3.1: Business Process of HBI Company Diagram 3.2: Organization Structure of HBI Company Diagram 3.3: The management off Accounting Department Diagram (appendix) : Accounting cycle in HBI Company Diagram (appendix) : Recording process in accounting software Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi EXECUTIVE SUMMARY Production of material goods is the basis of the existence and development of human society To conduct the production, there must be three elements: Labor, Land, and Capital Without one of those elements, the production process will not take place Furthermore, the human labor plays an important role in the manufacturing process, material factors of production is important, but without the labor associated with human, the means of production does not promote work, salary is just full of human motivation in business production and a cost is made up in the cost of products, working tools, services, salary is a critical lever to improve the efficiency of production and business labor productivity growth, which acts to encourage employees in every business to actively participate in the labor and income for themselves and family When conducting production activities, the question for business managers is how much salary should be spent For the employer, the question is how to increasethe efficiency during the production process, hence laying out the production plan for the next period This is why the wage accounting is very important for enterprises The analysis about the assessment of the salary fund implementation plan which aim to provide the managers an overview of thesalary implementation for the entire enterprise Moreover, ithelps them see the advantages and disadvantages in managing business activities, as well as to researchthe policy regimes wage norms The bonuses act as a reward for the employee’s contributions and also to keep the workers Having obtained the meaning and importance of salary and salary deductions in business, along with the desire to apply theacademic knowledge in real-life cases, i have chosen to practice the theme: "Accounting of salary and salary deductions at Hoa Binh Investment and Development Corporation" However, due to a limited time, I just focused on the salary and salary deductions in 2013, 2014 and 2015 topoint out matters that are most common regarding the accounting of salary and propose solutions to resolve outstanding issues on salary at Hoa Binh Investment and Development Corporation Contents of my thesis consist of parts: - Chapter 1: Introduction - Chapter 2: Theoretical framework of payroll accounting - Chapter 3: Current situation for payroll accounting at HBI Company Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi - Chapter 4: Solutions to improve payroll acounting at Hoa Binh Investment and Development Corporation (Discussion and Recommendation) - Chapter 5: Conclusion Student: Ta Yen Trang Instructor: Assoc Prof Dr Pham Thi Bich Chi ... the theme: "Accounting of salary and salary deductions at Hoa Binh Investment and Development Corporation" However, due to a limited time, I just focused on the salary and salary deductions in... of salary and salary deductions at Hoa Binh Investment and Development Corporation" 1.2 RESEARCH OBJECTIVES 1.2.1 General objectives Research the accounting situation of salaries and salary deductions... 2014 and 2015 topoint out matters that are most common regarding the accounting of salary and propose solutions to resolve outstanding issues on salary at Hoa Binh Investment and Development Corporation