GRADUATION THESIS Topic Accounting for Payroll And Payroll Deductions At Thien Ung Services Training Company Limited

Graduation Thesis MINISTRY OF FINANCE ACADEMY OF FINANCE Student: NGUYỄN THỊ HOA Group: CQ54/51.02 GRADUATION THESIS Topic: Accounting for Payroll And Payroll Deductions At Thien Ung Services Training Company Limited Major: English for Finance and Accounting Student code: 165D2202010048 Supervisor: MSC Cao Phuong Thao Graduation Thesis Ha Noi - 2020 RESEARCH PROPOSAL DETAILED OUTLINE DECLARATION ABSTRACT ACKNOWLEDGMENTS LIST OF ABBREVIATIONS LIST OF FIGURES AND TABLES TABLE OF CONTENTS INTRODUCTION 1.Rationale of the study 2.Aims of the study 3.Scope of the study 4.Methodology of the study 5.Organization of the study CHAPTER 1: LITERATURE REVIEW 1.1 Overview of payroll and the payroll deduction 1.1.1 Definitions 1.1.1.1 Payroll 1.1.1.2 Payroll deduction 1.1.1.3 The roles, tasks and functions of accounting for payroll and payroll deductions 1.1.2 Payment methods 1.1.2.1 Job-based salary 1.1.2.2 Time-based salary 1.1.2.3 Other forms of payment 1.2 Accounting for payroll and payroll deductions 1.2.1 Definition and role of accounting for payroll and payroll deductions 1.2.2 Accounting for payroll Graduation Thesis 1.2.2.1 Vouchers used 1.2.2.2 Accounts used 1.2.3 Accounting for payroll deductions 1.2.3.1 Social insurance 1.2.3.2 Health insurance 1.2.3.3 Unemployment 1.2.3.4 Trade union 1.3 Accounting books used 1.3.1 General Journal 1.3.2 General Ledger 1.3.3 Journal voucher 1.3.4 General journal voucher 1.4 Factor influencing accounting for salary and salary deductions 1.4.1 Internal factors 1.4.2 External factor CHAPTER 2: THE STUDY 2.1 Overview of Thien Ung Service Traning Company Limited 2.1.1 Establishment and development of Thien Ung training service accounting company 2.1.2 The main activities and the organization of Thien Ung training service accounting company 2.1.3 The features of accounting system of Thien Ung training service accounting company 2.1.3.1 Organization of the accounting system 2.1.3.2 Accounting form, applied accounting policy and reporting system at the company 2.1.3.3 The feature in condition of using accounting software 2.2 The current situation of accounting for payroll and the payroll deductions at Thien Ung Service Traning Company Limited 2.2.1 The features of labor, payroll and payroll deductions at Thien Ung training service accounting company 2.2.2 Payment methods and salary calculating methods 2.2.3 Vouchers and accounts used Graduation Thesis 2.2.4 Accounting for salaries and bonuses 2.2.5 Accounting for payroll deductions 2.2.5.1 Social insurance 2.2.5.2 Health insurance 2.2.5.3 Unemployment insurance 2.2.5.4 Trade union fees CHAPTER 3: Recommendations 3.1 The evaluation of current situation of accounting for payroll and the payroll deductions at Thien Ung Service Traning Company Limited 3.1.1 Advantages 3.1.2 Disadvantages 3.1.3 Causes 3.2 Suggestions to improve accounting for salary and salary deductions at Thien Ung Service Traning Company Limited 3.3.1 Improving payroll management 3.3.2 Adjusting salary calculation form 3.3.3 Improving training of manager and workers 3.3.4 Improving salary policy 3.2.5 Using reasonable bonuses policy CONCLUSIONS REFERENCES APPENDIXES Graduation Thesis DECLARATION I guarantee that this thesis is my own work and it is my own experience in the training time The data and results described in the thesis are exact and it originate from the actual situation of the practice company Hanoi, 16th February, 2016 Hoa Nguyễn Thị Hoa Graduation Thesis ACKNOWLEDGEMENT Firstly, I would like to express sincere thanks to Academy of Finance (AOF) for giving me opportunity to study and research my into educational reality I not know how to express my appreciation to Ms Cao Phuong Thao, my supervisor, who gives valuable advice, perceptive comments as well as her enthusiasm supports and careful supervision I really appreciate all my lecturers at the Academy of Finance for their assistances, directions and encouragement, it is main factor for me to complete excellently the study of educational reality I have furthermore to thank for the help of THIEN UNG SERVICE TRAINING COMPANY LIMITED and people in the company who give me opportunity to practices in the company in the pastime Especially, my friends from Foreign Languages also supported me in my thesis, I would like to thank them for all their support and suggestion I also would like to give my thanks to my beloved family crating motivation for me to complete my graduation thesis Finally, because of limitation of time and knowledge, my mistakes are unavoidable, so I wish to have more opportunities I also wish to receive more contribution and suggestion to get a better project Graduation Thesis ABSTRACT New In the current period, the trend of integration and globalization of the world economy takes place, enterprises in general are under pressure of competition by other country Therefore, in order to increase the integration process and improve the efficiency of the production and business activities, businesses need to find effective working methods The important goal of a business is to maximize profits The profit earned by a business depends on both objective and subjective factors Payroll regime is also an importance factors that company should focus on, so this thesis would make clear this issue This study is about the regime of wages and bonuses at THIEN UNG SERVICE TRAINING COMPANY LIMITED First, the main purposes are providing deep understanding about salaries, bonuses, insurances defines their theories and the important of paying salary for their employee and the necessary of the payroll accountant Next, it will consider the applications, the achievements and limitations of payroll regime at THIEN UNG SERVICE TRAINING COMPANY LIMITED, as an illustration for the academic background Finally, there are many proposals and solution for the company to improve their payroll accounting regime In conclusion, this study would have a part in improving the regime of payment of salaries, wage, bonuses and insurances at the company Hopefully, the adjustment could help company get a better payroll regime in the future, and it also would be a great reference for other company Graduation Thesis Part I: Introduction Rationale Labor is the most important input factors of every business Improving labor productivity is the basic way to improve business efficiency and create reputation of businesses in competitive market For enterprises, to survive and develop, they must find ways to improve production and business efficiency Therefore, the management of wages and salary deductions must be paid attention Other activities will not be effective, or even ineffective if this work will not be paid enough attention In today's market economy, labor and salary management organization is an important content in the business management of enterprises, it is one of the most important factors that determine quantity and quality of goods and products Payroll and payroll deductions for the employees always receive great concern because of its social-economic significance For the employees, these payments are important because they could be their sole incomes, to support their whole families’ lives For every business, it accumulates in the expense account that takes up a great proportion in total costs It can be the driving force behind the increase of labor productivity, if it is paid basing on employee's productivity Therefore, how to construct wage regime and how to select an appropriate payment form are very necessary Payroll issue is not new, however there are some deficiencies which are need to adjust to get an effective work of paying salary, wage, bonus and insurance in enterprises As the result, Enterprises could ensure that, their employee can get suitable salary, thus companies can save cost and increase profits Understanding the paramount importance of the payroll accounting work in enterprises so in the process of practice as well as completing the subject of graduation, with the enthusiastic advices of my teacher - Ms Cao Phuong Thao and the support of financial accounting department's personnel, I decide to choose the subject: "Accounting for payroll and payroll deduction at Thien Ung service training company limited " as graduation thesis topic Graduation Thesis 2.Aims of the study When studying “Accounting for payroll and payroll deduction”, there are three main objectives which I want to clarify First, providing basic information to understand the concept of salary, payroll deductions, bonus and insurance Second, the ways that enterprise use to made payment for their employee, taking the scenario at Thien Ung Service Training company limited as a case for study, and reviewing their advantages and disadvantages Finally, it is to suggest possible solutions to improve the payroll accounting and the payroll related to insurance at 3.Subjects and Scope of the study The study provides analysis and reviews the work of payroll accounting and payroll deduction at Thien Ung training service company limited Research scope: research scope limited in Thien Ung training service company limited Time study: metrics used mainly are February 2019 Methodology In order to finish graduation thesis, many methods are applied such as collecting and synthesizing data, analyzing by tables, diagrams and using mathematical Firstly, Methods for collecting and synthesizing data include many ways to collect information and data supporting graduation thesis For example, I work and contact the financial-accounting department of the Company to collect data about payroll accounting and payroll deduction in February 2019 of the Company Besides, using many tools to get information about the situation of payroll accounting and payroll deduction in Vietnam such as: Internet, newspaper, financial news and many colleagues or studying many graduation theses and many related topics Secondly, Comparison is another method This is method that used to compare the similarities and differences of an issue In reality, applying this method, I compare between theory and practices about payroll accounting and payroll deductions in the Thien Ung service training company limited, so finding out the deficiencies of the company Thirdly, using analysis by table and diagrams is an efficient method Finally, I use Mathematical method which using mathematical formulas to calculate the payments to the employees Graduation Thesis 5.Organization Chapter 1: Literature review Chapter 2: The current situation of accounting payroll and the payroll deduction to at Thien Ung service training company limited Chapter 3: Recommendations to improve payroll regime and payroll deduction at Thien Ung service training company limited 10 Graduation Thesis 05/02/20 BPB 05/02/ Transfer social insurance into 19 10/0 2019 expenses 641 2,585,000 642 8,483,500 05/02/20 BPB 05/02/ Pay 19 10/0 2019 social insurance to agency 111 15,072,000 05/02/20 BPB 05/02/ Payable trade union fees 19 10/0 2019 942,000 Arising amount 16,014,000 Closing balance Accumulated plus from the beginning of quarter - This book included pages, from page 01 to02 - Opening date of book: 01/02/2019 Preparer Chief accountant (Sign,name) (Sign,name) Director (Sign,name,stamp) 100 16,014,000 Graduation Thesis Table 2.16 Detail book account THIEN UNG SERVICE TRAINING COMPANY LIMITED Block B1,233 Xuan Thuy street, Thanh Xuan district, Hanoi B6:J57B6B6:J5 DETAIL BOOK OF ACCOUNT Year 2019 101 Graduation Thesis Object Account Trade union fee 3382 Vourcher Date A 1/7/1900 05/02/2019 05/02/2019 No Date B C 05/02/201 BPB19/0 05/02/201 BPB19/0 Description D Accrual balance Opening balance Accrual expense Closing balance Transfer trade union fee into expense Contra Number incured accoun Debit Credit t E (1) (2) X 102 (3) (4) X X 641 220,00 642 722,00 942,00 111 Chief accoun t Credit 220,00 471,00 471,00 - Accrued balance Preparer Debit X Pay payable trade union fee - Closing balance Balance x 471,00 x Director x 471,00 Graduation Thesis Table 2.16 Detail book account THIEN UNG SERVICE TRAINING COMPANY LIMITED Block B1,233 Xuan Thuy street, Thanh Xuan district, Hanoi B6:J57B6B6:J5 DETAIL BOOK OF ACCOUNT Year Object Account 2019 Social Insurance 3383 Vourcher Date A No Date B C Description D 103 Contra accoun t E Number incured Balance Debit Credit Debit Credit (1) (2) (3) (4) Graduation Thesis 1/7/1900 05/02/2019 05/02/201 BPB19/0 Accrual balance Opening balance Accrual expense Closing balance X X 05/02/201 BPB19/0 X 3,768,00 Deduct social insurance from salary 334 05/02/2019 Transfer insurance expense X social into 3,768,000 1,925,000 641 6,317,500 642 05/02/2019 05/02/201 BPB19/0 Pay social insurance to the agency 111 Total arising amount - Closing balance Preparer Chief account 104 x x 12,010,500 12,010,50 12,010,50 0 x x Director 12,010,50 x x Graduation Thesis Table 2.16 Detail book account THIEN UNG SERVICE TRAINING COMPANY LIMITED Block B1,233 Xuan Thuy street, Thanh Xuan district, Hanoi B6:J57B6B6:J5 DETAIL BOOK OF ACCOUNT Year Object Account 2019 Health Insurance 3384 Vourcher Date A No Date B C Description D Accrual balance 105 Contra accoun t E Number incured Balance Debit Credit Debit Credit (1) (2) (3) (4) Graduation Thesis 1/7/1900 05/02/2019 05/02/2019 05/02/2019 Opening balance Accrual expense Closing balance 05/02/201 BPB19/0 Deduct social insurance from salary 05/02/201 BPB19/0 Transfer social insurance into expense 05/02/201 BPB19/0 Pay social insurance to the agency X X 706,500 Preparer Chief accoun t 106 706,500 334 330,000 641 330,000 642 1,083,00 111 Total arising amount - Closing balance X X x x 2,119,50 2,119,50 x 1,083,00 2,119,50 x Director 2,119,50 x x Graduation Thesis Table 2.16 Detail book account THIEN UNG SERVICE TRAINING COMPANY LIMITED Block B1,233 Xuan Thuy street, Thanh Xuan district, Hanoi 107 Graduation Thesis B6:J57B6B6:J5 DETAIL BOOK OF ACCOUNT Year 2019 Unemployment Insurance 3386 Object Account Vourcher Date A 1/7/1900 05/02/2019 05/02/2019 No Date B C Description D Accrual balance Opening balance Accrual expense Closing balance 05/02/201 BPB19/0 Deduct social insurance from salary BPB19/0 Transfer social insurance into expense 05/02/201 108 Contra accoun t E Number incured Balance Debit Credit Debit Credit (1) (2) (3) (4) X X X X 334 471,00 471,000 641 110,00 110,000 642 361,00 361,000 Graduation Thesis 05/02/2019 05/02/201 BPB19/0 Pay social insurance to the agency 111 Total arising amount - Closing balance Preparer x x Chief accoun t Then, the accountant will record it in general ledger of account 338 as follows: 109 942,000 x 942,00 x Director x x Graduation Thesis CHAPTER RECOMMENDATIONS Recently, the economic is developing rapidly, so the development of the accounting system is very necessary As an important part of accounting, accounting for payroll and payroll deduction should also be optimization to achieve the highest efficiency in business It is not only wages, bonuses and salary allowances, but it is also the rights of employees, which is a condition for them to feel secure in the work Therefore, I would like to have some comments and suggestions to f improve accounting for payroll and payroll deduction system in the company 3.1 The evaluation of current situation of accounting for payroll and the payroll deductions at Thien Ung Service Training Company Limited 3.1.1 Advantages The company's management system is compact, reasonable and effective All departments and offices are operated efficiently, which provides timely and accurate information for the Company's leadership The monitor system which used to control employee activities throughout the company are operated scenically and conforms to the characteristics of the Company to ensure management requirements The company always creates conditions for employees to have the opportunity to improve their qualifications and have the opportunity to learn new things in order to meet changes in their work Therefore, the company has always received good feedback from students and other companies This is also a great motivation for the company to make greater efforts in professional training for employees The accounting system of the company is placed under the leadership of the board of directors of the company and all accountants are placed under the leadership of the chief accountant The accounting system is organized logically, closely and appropriately with qualifications of each person, a team of accountants with professional qualifications, competence, enthusiasm and honesty for most employees Members with extensive experience in accounting work Accountants can apply theoretical regulations 110 Graduation Thesis to the Company's reality flexibly and creatively, moreover they always constantly improve their professional qualifications The accounting vouchers such as payment vouchers, receipts is organized according to the accounting regime suitable for the content form and method of making, but besides to suit the business conditions of the company The company has established a number of separate vouchers for accounting The application of the general journal accounting form also makes the accounting of the company easy, simple and convenient Employees practice accounting job via accounting software throughout the company to help capture information and work quickly In general, the accounting work is conducted scientifically, which ensures compliance with the current accounting regime, in accordance with the accounting conditions of the Company, meeting management requirements 3.1.2 Disadvantages Allowances and social welfare are important parts of employees' salaries, so good allowances and social welfare are the motivations to help employees fulfill their assigned tasks well Therefore, the company should consider providing clear information about the benefits for part-time employees and employee trial The number of employees' leave is quite large, this will affect the productivity and quality of teaching at the company Moreover, many employees take leave so that they affect the working environment of the company, creating a free-thinking thought about leave Finally, the form of salary payment to employees in cash takes a lot of time, the amount of money to be exchanged to pay employees is too much, which can lead to the situation of underpayment for workers Moreover, accountant will waste a lot of time to make payment 111 Graduation Thesis 3.1.3 Causes There are many reasons for the inadequacy of salary accounting, these reasons stem from both employees and the company's accounting policy Firstly, the company has not yet developed a truly clear and fair subsidy and allowance regime Besides that, employees should also claim their rights to gain clear benefits, it will help the company to recognize the shortcomings Secondly, the company has not yet set a number of holidays in the month, which makes the company's employee management policy lax Therefore, the company, especially the accounting department, needs to have more strict labor management policies to ensure the efficiency of the whole company Finally, the company has not had any new update on payment method Although the company's staff is not much, the company should switch to the card payment method to minimize loss and save time 3.2 Suggestions to improve accounting for salary and salary deductions at Thien Ung Service Training Company Limited 3.2.1 Improving a clear allowance and subsidy regime The company needs to provide clear information about the benefits and allowances for employees working in a short time Although part-time employees work in a short time, the company should also build allowances and bonuses frame for them It eliminates the gap between official employees and part-time employees Moreover, the company can promote employee performance, create motivation, and create an equal working environment 3.2.2 Improving management policy The company needs to develop a policy on the number of employees' leave days Rewarding employees who work for a specified number of days in a month and penalize those who have too many leave in a month This is also an effective way to help the company maintain a stable workforce and ensure the company's operations work as well as possible 3.2.3 Improving training of manager and workers To increase the efficiency in business as well as accounting, the company should regularly foster professional accounting skills for employees by many ways such as update to the latest accounting system, Join the forum about accounting 112 Graduation Thesis Although the company's accounting activities are quite good, there are still some disadvantages Therefore, the leadership team should also pay more attention to the activities of accounting department to avoid many small mistakes Besides, carefulness is essential, so employees also need to constantly improve their qualifications as well as improve their job prudence to avoid many small mistakes 113 Graduation Thesis CONCLUSION An effective accounting system is extremely necessary because it is one of the important factors determining the benefits of the business Along with the development of accounting, the development of the salary accounting system is essential in the current economic situation However, the creative application of accounting books which suits the actual conditions of the Company must ensure that it does not exceed the permissible limits of the current accounting regime During the internship period at Thien Ung service Training company I have tried to study the actual situation of the Company, this is a great opportunity to help me consolidate my knowledge, professional qualifications At the same time, the internship period at the company is also one of the most important factors to help me complete the graduation thesis " Payroll and payroll deductions" Moreover, I wrote this subject with the hope that my small study will contribute to improve the wage task at the Thien Ung service Training company Due to my own level and a short practice time, my graduation topic cannot avoid shortcomings, I am very glad to received lecturer's comments in order to improve my graduation thesis as good as possible I would like to express my sincere thanks to MA Cao Phuong Thao, along with all the members in the Company, who support me during the internship period to complete this graduation thesis Thank you sincerely! 114