(Tiểu luận) accounting procedures for payroll and payroll deduction at binh minh joint stock company

NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ACCOUNTING AND AUDITING & BACHELOR THESIS Major: Accounting ACCOUNTING PROCEDURES FOR PAYROLL AND PAYROLL DEDUCTION AT BINH MINH JOINT STOCK COMPANY Student Specialty : Nguyen Thi Linh : Accounting Class : Accounting CFAB2 Student’s ID Supervisor : : 11182812 Assoc.Prof Thanh Hieu Thuy Nguyen HANOI 2022 ACKNOWLEDGEMENTS I would like to express my deepest thanks to my instructor, Assoc.Prof Nguyen Thanh Hieu Who supports and guides me enthusiastically She provided me a lot of useful knowledge about the topic of accounting for payroll, followed me step by step in the process of conducing this thesis She also carefully reviewed each part of the thesis and gave me a lot of high valuable advice In addition, I want to give my thanks to National Economics University and School of Accounting and Auditing With the knowledge I have learned, I had ability to complete the internship course As an accounting student, I have an opportunity to approach the reality in Binh Minh Joint Stock Company During the accounting Internship, I can apply the theory in practice to have a better understanding about the accounting work of enterprises in a specific business sector Finally, I would like to express my sincere thanks to the Board of Director and the accountant at Binh Minh Joint Stock Company for letting me as an internship in the company as well as guiding and supporting during my internship at the company Although, it is not a long period, I have chance to learn more about accounting for payroll, which helps me to develop my career ladder in the future i TABLE OF CONTENTS iv LIST OF DIAGRAMS v INTRODUCTION ACKNOWLEDGEMENTS i LIST OF TABLES CHAPTER I: FEATURE OF LABOR AND PAYROLL AND MANAGEMENT OF LABOR AND PAYROLL AT BINH MINH JOINT STOCK COMPANY 1.1 Features of labor and payroll at Binh Minh Joint Stock Company 1.1.2 Employee classification by age and gender 1.1.3 Employees classification by educational level 1.1.4 Employees classification by nature of work 1.1.1An overview of the company and company human resources 1.2 The forms of payment for salaries and wages applied in Binh Minh Joint Stock Company 1.2.2 Support fees 10 1.2.3 The days off with full salary 11 1.2.1 The form of salary payment 1.3 Policy of payroll deduction applied at Binh Minh Joint Stock Company 11 1.4 Feature of management of labor and payroll at Binh Minh Joint Stock Company 14 .14 1.4.2 Labor management organization at Binh Minh Joint Stock Company .16 1.4.1 Binh Minh Joint Stock Company organization structure CHAPTER II: CURRENT SITUATION OF ACCOUNTING PROCEDURES FOR PAYROLL AND PAYROLL DEDUCTIONS AT BINH MINH JOINT STOCK COMPANY 17 17 2.1.1 Accounting documents 17 2.1.2 Method applied for payroll calculation 29 2.1.3 Account used 33 2.1.4 Accounting procedure for Payroll at Binh Minh Joint Stock Company 33 2.1 Accounting for payroll at Binh Minh Joint Stock Company 2.2 Accounting for payroll deductions at Binh Minh Joint Stock Company .38 ii 2.2.1 Accounting documents: 38 2.2.2 Account applied: 42 2.2.3 Accounting procedure 42 2.2.4 General accounting of salary and payment situation with employees 45 2.2.5 Accounting for deductions for social insurance, health insurance, unemployment insurance, trade union fees 45 CHAPTER III: IMPROVEMENT OF ACCOUNTING PROCEDURES FOR PAYROLL AND PAUROLL DEDUCTIONS AT BINH MINH JOINT STOCK COMPANY 55 3.1 Assessing the current accounting procedures for payroll and payroll deductions at Binh Minh Joint Stock Company 55 3.1.1 Strength 55 3.1.2 Weakness 57 3.2 Suggestions to complete accounting procedures for payroll and payroll deductions at Binh Minh Joint Stock Company 58 3.2.1 Management of payroll and deductions 58 3.2.2 The organization of the accounting apparatus 59 3.2.3 The management of labor 59 3.2.4 Accounting documents and documents transfer 60 3.2.5 Accounts used 60 3.2.6 Conditions needed for implementing proposed solutions 60 CONCLUSION 62 REFERENCES 63 iii LIST OF TABLES Table1 1: Number of employees at Binh Minh Joint Stock Company Table1 2: Labor’s age and gender classification of BMJSC Table1 3: Employee’s educational level classification at BMJSC Table1 4: Employee’s classification by nature of work Table1 5: Salary scale by job title Table 1.6: The employee’s 13 th -month salary at BMJSC Table1 7: Proportion of salary deductions from 1/1/2021 to 30/6/2021 Table 1.8: Proportion of salary deductions from 01/07/2021 to 30/09/2021 Table 1.9: Proportion of salary deductions from 01/10/2021 to 30/6/2022 Table 1.10: Proportion of salary deductions from 01/07/2022 to 30/09/2022 Table 1.11: Labor contract of Binh Minh Joint Stock Company Table 1.12: Timesheet in December 2021 Table 1.13: Timesheet in October 2021 Table 1.14: Monthly overtime timesheet in October 2021 Table 1.15: The payroll sheet in October, 2021 Table 1.16: Statement of salary and salary deductions allocation in total Table 1.17: Bonus payment sheet for new year vacation Table 1.1.8: Salary slips in March 2022 Table 1.19: Detailed books of account number 334 Table 1.20: Certificate of sick leave Table 1.21: Social Insurance payment voucher Table 1.22: Social insurance sheet Table 1.23: Detailed book of account number 3382 Table 1.24: Detailed book of account number 3383 Table 1.25: Detailed book of account number 3384 Table 1.26: Detailed book of account number 3385 iv Table 1.27: Extract of General Journal for entry related to account number 338 Table 1.28: Ledger of account number 338 LIST OF DIAGRAMS Diagram 1: Labor’s age and gender classification of BMJSC Diagram 2: Employee’s classification by nature of work Diagram 3: Chart of firm organization Diagram 4: Procedure of salary calculation and payment Diagram 5: Accounting Procedure for payroll Format đề mục, chữ nghiêng nghiêng hết, giống Em đánh lại số cho Diagram Phải chữ số giống Table v INTRODUCTION In an economy, people are important factors, who are the main driving forces to create the productive forces People are also considered a decisive factor affecting the speed and sustainable development of the economy, bring a lot of value to the businesses One of the ways that the businesses commonly apply to attract and retain talents is to set a reasonable salary and regime, suitable to the capacity of employees For employees, salary is a factor that helps to maintain employee’s motivation to work, helps them to preserve and to work more effectively For businesses, accurately calculating and allocating wages and salary deductions to production costs will help businesses offer more reasonable product prices, thereby creating competition in the market Therefore, accounting for payroll and deductions play an important role in accounting practices in any businesses From these points of view, I realize the importance of the accounting for payroll and deductions I decided to choose the topic “Accounting procedures for payroll and payroll deductions at Binh Minh Joint Stock Company” for my thesis The thesis includes three main parts as following: Chapter 1: Features of labor, payroll and management of labor and payroll at Binh Minh Joint Stock Company Chapter 2: Current situation of accounting procedures for payroll and payroll deductions at Binh Minh Joint Stock Company Chapter 3: Improvement of accounting procedures for payroll and payroll deductions at Binh Minh Joint Stock Company CHAPTER I: FEATURE OF LABOR AND PAYROLL AND MANAGEMENT OF LABOR AND PAYROLL AT BINH MINH JOINT STOCK COMPANY 1.1 Features of labor and payroll at Binh Minh Joint Stock Company 1.1.1An overview of the company and company human resources Labor is an essential element in the process of production and business activities of enterprises If an enterprise doen’t take care of managing its labor which causes production and business activities inefficiently Binh Minh Joint Stock Company (Binh Minh JSC) was established on 14th June 2007 Binh Minh Joint Stock Company has its head office at the address: Group 8, Le Hong Phong ward - Phu Ly city - Ha Nam province, main business lines are: mining and processing stone under business license number 0700249761 was first registered on June 14, 2007, and changed for the 5th time on January 25, 2018, by the Department of Planning and Investment of Ha Nam Province Up to now, there are 40 employees divided into different departments suitable for each specialist Employees at Binh Minh Joint Stock Company are stable and work full-time in accordance with Vietnamese law Each labor contract between the company and the employee is required to last for at least one year, if there is any termination of the labor contract before the signed time between the two parties, the employee and the employer will have to pay compensation according to the terms of the contract The labor at the company is quite young and have good health The quarry manager must have a university degree or higher in the technical discipline: chemical, ammunition, chemical technology in propellants, explosives, engineering, mining, mining engineering, geology, construction Furthermore, miners must have worked in blasting service for at least months In general, workers and employees are eager to work, and comply with the regulations of the company In recent two years, the Covid-19 epidemic has affected the operation of the company Therefore, the revenue and the profit have slowed down significantly However, the firm also tried to pay and maintain the salary for employees The detail of employee numbers is represented as below: No Department Number Board of director General director Accounting department Production Department Safety committee Delivery department 10 Engineering 15 Total Table1 : Number of employees at Binh Minh Joint Stock Company 40 The classification of department plays an important role in operating and managing Each department will work more efficiently and make better use of human resources In addition, the division of specific department will help the board of directors to manage the business more effectively From table 1.1 above, we can see that the division of labor is based on the nature of the firm's operations The enterprise