final report the actual situation of accounting for payrolls a case study ha nam textile co ltd

Accounting tasks of salary and deductions according to salary.. At this time, the major way of creating interest is salary, which reflects the quantity and quality of labor that the empl

THAI NGUYEN UNIVERSITY

INTERNATIONAL SCHOOL

FINAL REPORT

THE ACTUAL SITUATION OF ACCOUNTING FOR PAYROLLS

A CASE STUDY: HA NAM TEXTILE CO, LTD

NAME : TRAN THI HUYEN

LECTURER: TA THI NGUYET TRANG SUBJECT: METHODS OF RESEARCH CLASS: AFK8

Thai Nguyen 2021 –

CHAPTER 1: INTRODUCTION 1

1.1 Background of study 1

1.2 Statement of the problem 1

1.3 Research objectives, questions and hypothesis 2

1.4 Significance of the study 3

1.5 The scope and limitation of the study 3

1.6 Definition of terms 3

CHAPTER 2: LITERATURE REVIEW 5

2.1 Accounting 5

2.2 Salary 5

2.3 Accounting tasks of salary and deductions according to salary 6

CHAPTER 3: RESEARCH METHODOLOGY 8

3.1 Conceptual framework 8

3.2 Research design 8

3.3 Sample of study 9

3.4 Data collection 9

3.5 Data analysis 9

REFERENCES 10

This study evaluates the current status of salary accounting and salary deductions

of Ha Nam textile company This chapter presents the background of the study, problem statement, objectives, questions, research hypothesis, importance of the problem, scope and limitations of the study, and definitions of terms

1.1 Background of study

To succeed in today's market economy, a business must have a pattern of economic activity that adapts to changing environmental conditions Using effective labor-management practices, on the other hand, guarantees that staff are interested in high-productivity work and improves corporate results At this time, the major way of creating interest is salary, which reflects the quantity and quality of labor that the employee earns via action when the task of accounting for labor is done successfully and the right calculation of the employee's remuneration is done correctly

Employees' major source of income is salary, but they are also eligible to a variety

of other benefits such as subsidies, social insurance, bonuses, and so on For businesses, the cost of salaries is a component of the total cost of goods and services produced

1.2 Statement of the problem

Payroll accounting is an important aspect of every company When it comes to calculating corporate tax, the accounting and accounting of salaries, as well as the procedures that go along with it, are all tightly linked to deductible payroll expenses Salary is always a significant problem for employees in any firms, whether small

or large Employers must pay employees directly, in whole, and on time in order for employees to produce products that add the most value to the company In the event of force majeure, the company is allowed to pay salaries late up to 30 days Employees have the option of prepaying their monthly compensation in advance of the company

To carry out wage accounting job properly and scientifically, businesses must pay close attention to the new provisions of the law

It is critical to organize salary accounting and salary deductions at Ha Nam Textile Co., Ltd before taking on the tasks of salary accounting and salary deductions As a result, I did a topic study titled "Ha Nam Textile Co., Ltd salary accounting and salary deductions."

1.3 Research objectives, questions and hypothesis

1.3.1 Research question

1 What are the accounting tasks of salary and deductions according to salary?

2 What are the factors affecting wages and salary deductions?

3 How many forms of pay and how to classify salaries?

1.3.2 Research objectives

When conducting thematic research, thematics are oriented towards the goal

1 Find out and view the salaries of accounting firms and salary deductions at enterprises in general and Ha Nam Textile Co., Ltd

2 Learn the advantages and disadvantages of accounting From there, draw and give ideas to help the company manage payroll accounting well

1.3.3 Research hypothesis

H1: The recording has a positive relationship with payroll accounting and salary deductions

H2: The calculation has a positive relationship with payroll accounting and salary deductions

H3: Payment has a positive relationship with payroll accounting and salary deductions

H4: Reporting has a positive relationship with payroll accounting and salary deductions

H5: Enterprise has a positive relationship with payroll accounting and salary deductions

H6: Employees have a positive relationship with payroll accounting and salary deductions

H7: Salary classification has a positive relationship with payroll accounting and salary deductions

H8: Pay forms have a positive relationship with payroll accounting and salary

deductions

1.4 Significance of the study

Payroll accounting is one of the company's most critical management tools The basis for determining the demand for labor quantity and time, as well as determining labor results, is accurate labor cost computation In fact, because each company has its own production and labor characteristics, the process of calculating salaries and salary deductions varies Since then, there have been disparities in each company's output and financial success Each state-owned enterprise takes distinct decisions on wage payment and salary calculation regimes for employees based on its different

production and business performance

1.5 The scope and limitation of the study

Scope of the study: The topic focuses on salary work and salary deductions and solutions to improve salary and salary deductions at Ha Nam Textile Co., Ltd

Limitation of the study: There are many various techniques of calculating compensation and salary deductions used in manufacturing businesses, but in this article,

I will just look at two of them: by time, by product, and the method of accounting for salary and salary deductions

1.6 Definition of terms

The terms used in this study have been defined to make it easier for the readers to

understand the content of the article

Salary are a part of the social product expressed in money paid to workers based

on the quantity and quality of labor of all users to compensate for the loss of labor of all users to compensate for the waste of labor Their labor and it is a practical issue for officials and employees Salary are regulated properly, is a strong stimulating factor for

production, it stimulates workers to work hard for production and work, improve skills, improve techniques to improve labor productivity

The enterprise's salary fund is the entire salary of the enterprise paid to all types of

employees under the management and use of the enterprise The composition of the salary fund includes the main items of salary paid to employees during the actual working time (by time, by product, etc.) In relation to the production and business process, accountants classify the enterprise's salary fund into two basic types: main salary and extra salary

The deductions according to salary is the amount deducted directly from the salary

by the company before paying to the employee such as: Health Insurance, Social Insurance, Unemployment Insurance and Union funds

2.1 Accounting

Accounting is the process of collecting, processing, examining, analyzing and providing economic and financial information in the form of value, in kind and labor time Thereby monitoring the daily business activities of the enterprise and summarizing the results by accounting reports

Welsch and Anthony (1981) defined the term as <the measurement and reporting in monetary terms of the flows of resources into (inflows) and out of (out flows) an organization of the resources controlled by the organizations and the claims against those resources’’ In which Marshall (1993) attributed accounting to the process

of indentifying, measuring and communicating economic information about an organization for the purpose of making decisions and informed judgment According to the American accounting association (1966) defined accounting as the process of identifying, measuring and communicating economic information to permit informed judgments and decision by the users of the information

Managers can routinely check their firms' production and business activities, including the production process, market monitoring, and internal control, through the accounting department Following that, make suitable judgements and future business directions Accounting is a necessary component of any business The accounting department's data is critical for managers since it aids them in developing business plans and making choices As a result, if erroneous accounting information leads to poor management decisions, the company may find itself in a tough scenario

2.2 Salary

One of the most essential aspects for employees and enterprises is salary Salary has a significant impact on inspiring people to work in a stress-free environment According to Warren (2008: 489) on salary, he states: "In accounting, payroll refers to the amount of paid employees for services they provided during the period according to Mulyadi (2008) Prior research has shown that wage disparity reduces

worker effort and that overall income inequality erodes social capital (Elgar & Aitken, 2011) Tournament theory, however, proposes that pay disparity is a natural outcome of competition for promotion and wages (Connelly, Tihanyi, Cook, & Gangloff, 2014) Salary is now widely regarded as a crucial indicator of skill level and seniority in the workplace As a result, workers are proud of their high earnings and demand a raise, despite the fact that wages may only account for a small portion of their overall income Salary play four basic roles in both production and life The role of labor power reproduction: Salary are required to ensure reproduction and labor power, as well as social productive forces sufficient to feed the employees and their families Especially since a paycheck is a basic source of revenue The role of production stimulation is as follows: Salary strategy that promotes the human factor's power in achieving economic goals is a powerful motivator - the social order On the basis of executing the

compensation regime, the organization of wages and salaries supports and encourages employees to enhance productivity, quality, and efficiency of labor in order to ensure fairness and society Salary must be ensured: Encourage talented individuals; enhance employee cultural and professional capabilities The role of a measure of value: As a basis for adjusting prices accordingly Whenever prices fluctuate, including the price of labor

or, in other words, the wage is the price of labor power, which is a part of the newly created social product Salary must change in accordance with fluctuations in labor prices Accumulation role: Ensuring workers' wages maintain daily life and can also provide backup for long-term life when they are unable to work or have unforeseen problems

2.3 Accounting tasks of salary and deductions according to salary

Accounting consists of three basic activities4it identifi es, records, and

communicates the economic events of an organization to interested users

The salary accountant must execute the following responsibilities in order to perform the accounting role in the operation and management of the company's activities: Recording, calculating, checking labor and using labor, checking payment Payroll calculation, salary-based items, general calculation, salary distribution, salary-based items, making reports on income, salary, and use of salary-based items

Recording procedure, that changes in records employee income should be reconciled with the employee's payroll and the amount of the salary seconded must be verified accuracy by the accounting function (2008) According Mulyadi (2003: 382) Accountants are in charge of recording payables that arise from the payment of employee salaries and wages Employee salary debt, tax debt, and pension fund debt are examples

of liabilities accrued

Employees are paid in a variety of ways in today's businesses Time-based pay is a type of compensation based on how many hours a person works As a result, unless the employee requests unpaid leave, this income is likely to be fixed Under this form of payment, employees do not worry about their monthly income, because the amount of salary deducted is fixed Product-based pay is a type of compensation linked to the quality, quantity, and efficiency of a product This form will encourage employees to work harder, increase productivity, and actively generate more items This type of salary can be used to workers who directly create finished products, as well as indirect workers who create products

Salary can be classified in a variety of ways, but for accounting purposes, they are divided into two categories: primary salary and supplementary salary Primary salary is the amount of money paid to an employee based on his or her real working time plus salary allowances Allowances such as toxic, dangerous, responsible, Extra pay is the money paid to an employee when he or she is not working but is doing so in accordance with a set of rules, such as vacations or Tet holidays This salary classification aids us in understanding the company's salary structure For enterprises, the leave salary of production workers may have to be deducted in advance if the workers leave are unstable and irregular between months of the year

3.1 Conceptual framework

Figure 1: Conceptual framework 3.2 Research design

The primary goal of this research is to look into the existing state of salary accounting and deductions in the Ha Nam textile firm Because it gathers and explains research topics, the quantitative research approach is deemed appropriate for this study Quantitative research allows for the generalization of data collecting reproducibility Kothari (2004) To reflect the study object in general, research methods allow you to collect data, summarize it, show it, calculate it, and describe it Furthermore, it calculates, analyzes, and forecasts the relationship between researched phenomena, as well as makes decisions based on data gathered from sample observation findings

Records

Calculate

Payment

Report

Pay forms

Enterprise

Employees

Types of salary

Salary and salary deduction

3.3 Sample of study

Those that can be reached are about 1,050 of the company's population In this study, the researcher used a sample size of 100 respondents because it was large enough for the study to obtain reliable information during data collection

Use feature of Yamane (1967)

n = 1 +�㕁�㕒^2�㕁

In which:

n = sample size number

N = number of total populations

e = sample limit error (±3%; ±5%; ±7%; ±10%)

95% confidence interval and statistically significant results p = 0.5 are assumed

3.4 Data collection

The researcher gathered data from primary and secondary data sources to better comprehend and explain the research problems Employees of the company were approached as responders and provided with primary data The questionnaire will be sent

to 100 respondents Those questions are rated as simple to comprehend and do not cause respondents to misunderstand the question's topic Secondary data sources supplement primary data sources with information that primary data sources cannot provide Books, journals (articles), and the internet are used to gather secondary data This information was utilized to create the theoretical framework and questionnaire

3.5 Data analysis

All relevant data has been coded, revised, and examined in order to guarantee that the data is accurate and consistent with the research article After being examined, all of the data will be loaded into a computer and run through the social science statistics package (SPSS) to generate descriptive data such as percentages and frequencies, which will be displayed in the form of tables and graphs based on the research objectives