ACCOUNTING FOR PAYROLL AND PAYROLL DEDUCTIONS AT THIEN UNG SERVICES TRAINING COMPANY LIMITEDACCOUNTING FOR PAYROLL AND PAYROLL DEDUCTIONS AT THIEN UNG SERVICES TRAINING COMPANY LIMITEDACCOUNTING FOR PAYROLL AND PAYROLL DEDUCTIONS AT THIEN UNG SERVICES TRAINING COMPANY LIMITEDACCOUNTING FOR PAYROLL AND PAYROLL DEDUCTIONS AT THIEN UNG SERVICES TRAINING COMPANY LIMITED
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 Ha Noi - 2020 Academy of Finance Thesis Graduation 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 Student Nguyễn Thị Hoa Student Nguyen Thi Hoa i Group: CQ54/51.02 Academy of Finance Thesis Graduation 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 Student Nguyen Thi Hoa ii Group: CQ54/51.02 Academy of Finance Thesis Graduation ACKNOWLEDGEMENTS 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 SERVICES 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 Student Nguyen Thi Hoa iii Group: CQ54/51.02 Academy of Finance Thesis Graduation LIST OF TABLES Table 2.1: The table about allowance rate at Thien Ung service training company 34 Table 2.2: Timesheets .41 Table 2.3 Bonus payment table .44 Table 2.4 Lunar new year bonus .45 Table 2.5 Payroll .47 Table 2.6: Distributing table of wages and social insurance 51 Table 2.8 Payroll receipt 54 Table 2.9 General Ledger 55 Table 2.10 General Journal .56 Table 2.11: General ledger 58 Table 2.12: The certificate of sick leave 61 Table 2.14 Social Insurance Payment .62 Table 2.13 The list of employees proposing to be entitled the regime of sickness 63 Table 2.15: Distributing table of wages and social insurance 67 Table 2.16 General journal 68 Table 2.17: General Ledger .69 Table2.18: General Ledger 70 Table 2.19: General Ledger .71 Table 2.20 Detail book account 73 Table 2.21 Detail book account 75 Table 2.22 Detail book account 77 Table 2.23 Detail book account 79 Student Nguyen Thi Hoa iv Group: CQ54/51.02 Academy of Finance Thesis Graduation TABLE OF DIAGRAMS Diagram 1.1: Diagram of accounting payroll and payroll deductions recorded in the general journal form 18 Diagram 1.2: Diagram of accounting for payroll and payroll deductions recorded in the Journal ledger form 19 Diagram 1.3: Diagram of accounting for payroll and payroll deductions recorded in the Journal voucher form 20 Diagram 1.4: Diagram of accounting for payroll and payroll deductions recorded in 21 Diagram 2.1: Diagram of general journal form 31 Student Nguyen Thi Hoa v Group: CQ54/51.02 Academy of Finance Thesis Graduation TABLE OF CHARTS Chart 2.1: The organization of Thien Ung Training Service Company 27 Chart 2.2: The chart of accounting system 29 Student Nguyen Thi Hoa vi Group: CQ54/51.02 Academy of Finance Thesis Graduation TABLE OF CONTENT DECLARATION i ABSTRACT ii ACKNOWLEDGEMENTS iii LIST OF TABLES .iv TABLE OF DIAGRAMS v TABLE OF CHARTS vi TABLE OF CONTENT vii REFERENCES .ix INTRODUCTION 1 Rationale of the study Aims of the study Scope of the study .2 Methodology of the study 5.Organization of the study .3 CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Payroll and Payroll deductions .4 1.1.1 Definitions 1.1.2 Payroll methods 1.2 Accounting for payroll and payroll deductions .11 1.2.1 Definition and role of accounting for payroll, payroll deductions .11 1.2.2 Accounting for payroll 11 1.2.3 Accounting for Payroll deductions .13 1.3 Accounting books used 17 1.3.1 General journal .17 1.3.2 Journal Ledger 18 1.3.3 Journal Voucher 19 Student Nguyen Thi Hoa vii Group: CQ54/51.02 Academy of Finance Thesis Graduation 1.3.4 General Journal Voucher 20 1.4 Factors influencing Salary and Salary deductions .22 1.4.1 Internal Factors .22 1.4.2 External Factors 22 CHAPTER THE STUDY 24 2.1 Overview of Thien Ung Service Training Company Limited 24 2.1.1 Establishment and development of Thien Ung Training Service Accounitng Company Limited 24 2.1.2 The main activities and the organizations of Thien Ung Training Service Accounting Company Limited 25 2.1.3 The features of accounting system of Thien Ung Service Training Company Limited 29 2.2 The current situation of accounting for payroll and the payroll deduction at Thien Ung Service Training Company Limited 33 2.2.1 The features of labor, payroll and payroll deduction at Thien Ung Service Training Company Limited 33 2.2.2 Payment methods and salary calculating methods .36 2.2.3 Vouchers and accounts used 38 2.3 Accounting for salaries and bonuses .38 2.3.1The policy of accounting for salaries and bonuses 38 2.3.3 Accounting procedures 40 2.3.4.Social insurance allowance for employees 59 2.5 Accounting for payroll deduction 64 2.5.1 Social Insurance 64 2.5.3 Unemployment Insurance .64 2.5.6 Trade Union 64 Student Nguyen Thi Hoa viii Group: CQ54/51.02 Academy of Finance Thesis Graduation CHAPTER RECOMMENDATIONS .81 3.1 The evaluation of current situation of accounting for payroll and the payroll deductions at Thien Ung Service Training Company Limited 81 3.1.1 Advantages 81 3.1.2 Disadvantages .82 3.1.3 Causes 82 3.2 Suggestions to improve accounting for salary and salary deductions at Thien Ung Service Training Company Limited 83 3.2.1 Improving a clear allowance and subsidy regime 83 3.2.2 Improving management policy 83 3.2.3 Improving training of manager and workers 83 CONCLUSION 85 REFERENCES Student Nguyen Thi Hoa ix Group: CQ54/51.02