Accounting entries for accounts 70. Payroll accounting

Balance sheet account 70 in accounting is intended to generate reliable data on various types of payments to employees of the enterprise. What exactly are the amounts reflected in this account? How are typical operations performed? Let's consider all the features of settlements with personnel - you will find the postings for account 70 below.

Characteristics of account 70

Synthetic account 70 is used in accounting to reflect transactions for all existing types of payments for the work of individuals - wages, benefits, bonuses, vacation pay, allowances, additional payments, one-time payments, financial assistance, alimony, etc. In addition, account 70 in accounting accumulates information about the distribution of income to founders/shareholders who are employees of the organization.

Therefore, count. 70 is passive, meaning it usually has a credit balance. In this case, the debit of account 70 means the debt of the employee, and the credit means the debt of the enterprise.

Typical transactions for account 70

Detailed postings for account 70 - table

Debit

Credit

Salary accrued - payroll = 505,000 rubles:

  • In the amount of 200,000 rubles. workers of the main production.
  • In the amount of 80,000 rubles. storekeepers.
  • In the amount of 120,000 rubles. administration.
  • In the amount of 60,000 rubles. to sellers.
  • In the amount of 45,000 rubles. employees involved in equipment installation.

Personal income tax is charged at a rate of 13% with payroll - 65,650 rubles.

Reflected deduction of alimony writ of execution

The accrual of benefits at the expense of the Social Insurance Fund is reflected

The accrual of financial assistance and dividends from the company’s retained earnings is reflected

Reflects the payment of wages (cash, non-cash)

Deduction of outstanding accountable amounts from salary is reflected

The payment of wages in kind is reflected (through the acquisition of inventory, finished products, services, etc.)

In case of incomplete settlements with staff, the deposit of the remaining amounts is reflected

Account card 70 – sample for 06/01/2017-06/30/2017

Document

Business operation

Initial balance

Write-off from account 000139 dated June 15, 2017

Payment of wages according to statement No. T000024

Salary accrued for June 2017

Calculation of salary 000006 from 06/30/2017

Personal income tax withheld for June 2017

Turnovers and balances for the period

Analysis of invoice 70 – sample for June 2017

We will not consider payroll calculations in detail, but will analyze the entries that are generated in accounting after the calculations are completed for each employee.

Stages of work on payroll accounting in an organization:

  • payment of personal income tax and contributions.

To record all transactions related to wages, account 70 “Settlements with personnel for wages” is used. The credit of this account reflects accruals, the debit - personal income tax, other deductions and salary payments. Postings for payroll, deductions, personal income tax and insurance contributions are usually made on the last day of the month for which wages are accrued. Postings for salary payments and personal income tax and contributions are made on the day of the actual transfer (issue) of funds.

Payroll

Wage expenses are written off against the cost of production or goods, therefore the following accounts correspond to account 70:

  • for a manufacturing enterprise - 20 account “Main production” or 23 account “Auxiliary production”, 25 “General production expenses”, 26 “General (administrative) expenses”, 29 “Servicing production and facilities”;
  • for a trading enterprise - account 44 “Sales expenses”.

The wiring looks like this:

D20 (44.26,…) K70

This posting is made for the total amount of accrued salary for the month, or for each employee, if accounting on account 70 is organized with analytics for employees.

Salary deductions

Deductions from salary reduce the amount of accruals and go through the debit of account 70. As a rule, all employees have one deduction - personal income tax. Here account 70 corresponds with account 68 “Calculations for taxes and fees”, posting:

D70 K68

In postings for other deductions, the credit account changes depending on where it goes. For example, when withholding under a writ of execution in favor of a third party, account 76 “Settlements with various debtors and creditors” is used, posting:

D70 K76

Calculation of insurance premiums

Account 70 is not included in postings for insurance premiums, because they are not accrued to employees and are not deducted from their salaries.

Insurance premiums are included in the cost of production, i.e. pass through the debit of accounts 20 (26,29,...) or 44 in correspondence with account 69 “Calculations for social insurance and security”. 69 accounts usually have subaccounts for each contribution. Wiring:

D20 (44, 26, …) K69

Payment of wages

After the salary is accrued on the credit of account 70, and personal income tax and other deductions are withheld on the debit of account 70, the remainder is paid to the employees. Payment can be made either from the cash register or through a bank (money is transferred to the accounts of employees from the organization’s current account), i.e. Account 70 corresponds with either account 50 “Cashier” or account 51 “Cash Account”, posting:

D70 K50(51)

Transfer of personal income tax and contributions

No later than the day following the day of salary payment, the organization is obliged to pay personal income tax. Insurance premiums, including insurance premiums, are paid by the 15th of the following month. Payment is made from the current account (account 51), the debt to the Federal Tax Service and funds is closed (accounts 68 and 69). Postings:

D68 K51 - personal income tax paid

D69 K51 – fees paid

Example of payroll with postings

Employees were paid salaries for March 2019, personal income tax was withheld, and insurance premiums were calculated. Accounting for account 70 is carried out without analytics for employees, for account 69 - with subaccounts for each contribution. Expenses for salaries and contributions are included in account 20.

04/10/2019 - salary paid, personal income tax paid,

04/15/2019 - insurance contributions to the Pension Fund, Federal Migration Service, and Social Insurance Fund were paid.

Contributions:

  • in the Pension Fund of Russia (22%) - 16,500 rubles
  • to the Federal Migration Service (5.1%) - 3,825 rubles
  • FSS (2.9%) - 2,175 rubles
  • FSS injuries (0.9%) - 675 rubles

Postings for all operations:

date Wiring Sum Contents of operation
31.03.2019 D20 K70 75 000 Salary accrued
D70 K68.NDFL 9 750 Personal income tax withheld
Insurance premiums charged:
D20 K69.pfr 16 500 - to the Pension Fund of Russia
D20 K69.fms 3 825 - to the FMS
D20 K69.fss1 2 175 - in the Social Insurance Fund (temporary disability)
D20 K69.fss2 675 - in the Social Insurance Fund (injuries)
10.04.2019 D68.NDFL K51 9 750 Personal income tax listed
D70 K50 65 250 Employees' salaries were paid from the cash register
15.04.2019 Insurance premiums listed:
D69.pfr K51 16 500 - to the Pension Fund of Russia
D69.fms K51 3 825 - to the FMS
D69.fss1 K51 2 175 - FSS (temporary disability)
D69.fss2 K51 675 - FSS (injuries)

Keeping accounting records in the online service Kontur.Accounting is convenient. Quick establishment of a primary account, automatic payroll calculation, collaboration with the director.

Account 70 is intended to summarize all data on employee remuneration. It takes into account various bonuses, benefits, reflects transactions for the issuance of pensions, as well as for the payment of profit from the company’s securities. In this publication, the reader will learn a lot of interesting information about the “Settlements with employees for wages” account, its correspondence, balance, and examples will help to master the material.

What does a score of 70 on a loan reflect?

Credit 70 of the “Settlements with employees for wages” account records the following transactions:

Account debit 70

70 debit account reflects funds paid, which may include benefits, bonuses, wages, as well as profit from investments in the capital of the enterprise. This takes into account taxes, payments under enforcement documentation and other deductions. Amounts of money accrued but not paid within a certain period of time due to the recipient’s failure to appear are recorded (D70/K76.3). Analytical accounting for the account in question is maintained for each employee of the organization.

Debit correspondence

Account 70 “Settlements with employees for wages” interacts by debit with the following accounts:

  • "Cash desk" (50);
  • "Calculated;
  • "Currency accounts" (52);
  • "Special bank accounts" (55);
  • "Calculations for taxes and fees" (68);
  • “Settlements with accountable persons” (71);
  • “Settlements with personnel for other operations” (73);
  • “Shortages and losses from damage to valuables” (94).

Example of business transactions

To better understand what transactions can be made using account 70, you should familiarize yourself with several examples.

Issuance of wages (in cash) to personnel in accordance with relevant documentation

Salaries are credited to employees' bank accounts (based on statements)

Transferring salaries from special bank accounts

Repayment of the cost of workwear by the employee according to the application

Issuance of branded clothing to staff

D70/K68 Personal income tax

Operation of income tax withholding from organization personnel

Free transfer of workwear to the company’s courier

Reflection of deductions from the salaries of guilty citizens

No arrears in wages and account closure

Loan correspondence

Account 70 interacts on the loan with the following accounts:

  • "Investments in non-current assets" (08);
  • "Main production" (20);
  • "General production expenses" (25);
  • (26);
  • "Service industries and farms" (29);
  • "Sales expenses" (44);
  • “Calculations for social insurance and security” (69);
  • “Settlements with various debtors and creditors” (76);
  • "Intra-economic calculations" (79);
  • "Defects in production" (28);
  • (uncovered loss)" (84);
  • "Other income and expenses" (91);
  • “Reserves for future expenses” (96);
  • "Prepaid expenses" (97);
  • "Profits and losses" (99).

Examples of business transactions on a loan

In accounting practice, the 70 account is used in different cases. The table describes some of them.

The operation of calculating salaries for employees performing routine repair work

Write-off of costs for investments in non-current assets

Accounting for the enterprise's own expenses associated with the purchase of fixed assets

Cash accrued to employees involved in servicing production and various types of farms

Recognition of costs for restoration of fixed assets as future expenses

Funds were transferred to employees who ensure the sale of products

Funds have been accrued for the salaries of people involved in equipment dismantling

Implementation of labor costs

Account balance

In most cases, the account balance is 70 in credit and means the enterprise's debt to its staff. By structure, in the general case, the account is passive and is reflected in the appropriate section. However, in practice, there are situations when the advance payment turns out to be more than the accrued salary for the month. This may be the result of a combination of special circumstances or arithmetic errors (incorrect calculation and transfer of salaries), then the employee will have to return the money, and the balance of funds is recorded in debit.

Calculation of wages for personnel in the 1C system

You can correctly calculate your salary in the 1C: Salary and Personnel program if you follow a certain sequence of arrangement of all the required data in the information base. The results of the calculations are entered into Some organizations issue wages using cash receipts, which are issued for each worker. To avoid mistakes, users of the 1C system are recommended to calculate all the numbers in the payslip and issue money according to the required documents.

To draw up a payslip in the 1C program, you need to open the “Reports” menu and select the appropriate item. The document can be compiled for the enterprise as a whole or for a specific division, as well as for a group of employees. The procedure for reflecting data in the pay slip:

  1. The serial number of the entry is entered in column No. 1.
  2. Columns No. 2-5 contain information about the employee. It can be viewed from the “Directories” section (personnel number, last name and initials, position or profession, tariff rate or salary).
  3. Based on the working time sheet, data on the number of days actually worked in the period is entered in column No. 6, and data on the number of days worked on holidays and weekends is entered in Column No. 7.
  4. Information about accruals for the current month by type of payment is displayed (section No. 8-12), as well as the calculation of deductions from the amount.
  5. Column No. 13 indicates the amount of tax payable this month.
  6. Data is entered on other deductions from the worker’s salary (column No. 14): loan repayment, alimony, union membership dues, etc.
  7. Column 15 sums it up.
  8. Column No. 16 shows the company’s debt (employee’s debt) based on the results of previous calculations.
  9. If there is a difference between the totals of columns No. 12 and No. 15, it is shown in column No. 18 “Amount to be paid.”

The article examined in detail account 70 “Settlements with employees for wages”. Knowing its features, young professionals will be able to correctly perform the required financial transactions.

The purpose of account 70 when maintaining analytical accounting is to generalization of settlement transactions carried out for payment of wages employees of the enterprise and not only. When carrying out this operation, it is necessary to record the established cost of wages, as well as bonuses and other additional payments for the work done, into the account. The amount of pensions and benefits is also recorded in the account. The debit indicates the calculated amount for material damage.

In invoice 70 when making payments you must indicate the following amounts: wages, social security benefits, pensions, income from stocks and securities.

If the amount was accrued, but was not paid, then it is summarized in the debit of account 70.

Main characteristics and general structure

In order to initially get rid of all questions regarding whether the 70 count is active or passive, it is necessary analyze its general structure in detail. Loan debt is a direct source of cash generation.

In this case, wages (employee wages) is a short-term loan debt for any enterprise.

Since account 70 has a credit balance, it is passive synthetic account. Thus, if the account has a passive structure, then it must generalize the transaction of crediting funds as a credit transaction. In this case, the debit transaction will be considered a debit transaction.

At the end of the reporting period, the accountant must calculate financial turnover of money by credit and debit, and highlight the final balance. The organization's report will indicate the amount required to be paid for the labor of employees. Each employee of the organization must open a personal account to maintain analytical records.

In addition, the accountant must additionally maintain information about each employee of the organization. following data:

  1. Tax accounting of personal income.
  2. Statements of payment transactions.
  3. A document indicating all payment and settlement transactions.
  4. Statements of settlement transactions.

Every organization that conducts financial activities is required to use account 70 in accounting.

By debit

Debit transactions in account 70 have following content:

  1. Payment from the cash register for benefits accrued to employees.
  2. Transfer of funds to personal bank accounts.
  3. Tax deduction amount.
  4. Subtraction of shortfalls and loans.
  5. Coverage for property damage.

When carrying out debit transactions, the organization's loan debt to employees is reduced. Debit transactions always indicate that the company has debt.

Credit transactions

Loan transactions can be characterized as the transfer of an amount to pay for the work done by employees. This operation has following content:

  1. Payroll for employees.
  2. Calculation of social benefits.
  3. Summary of salary arrears.
  4. Accrual of vacation pay.
  5. Accrual of bonuses.

Conducting credit transactions indicates that money was accrued to an employee of the enterprise. This could be a salary, bonuses or other payments.

Accounting for invested amounts

If the employees of the enterprise do not receive funds from the cash desk on time, they are subject to transfer to storage. The accountant is required to make an entry in the accounting journal or database that changes in the status of funds have occurred. He indicates in the record the deposited (invested) amount, and after that the funds must be transferred to the bank for further storage. It is worth noting that the invested salary amount can be stored for three years. If it is never paid, it can be written off as income of the enterprise.

When money is transferred to the bank, the accountant must write out a cash document indicating the expenses.

Payment in kind

Sometimes wages at some enterprises are paid with the help of goods that are produced there. Wherein it is necessary to take into account the market value of products including taxes. The accountant must create a quote and then summarize the cost of the products that were issued as payroll or in lieu of it. In this case, withheld taxes and mandatory payments in the budget are taken into account in the same manner as when making cash payments.

Structure of salary deductions

If due to the fault of an employee of the enterprise there was material damage, then the administration has every right to deduct the cost of damage from the salary. He pays the amount, like any responsible person from the material side, according to the terms of the concluded contract - either the full cost or partial. It all depends on the damage caused to the enterprise.

If the contract with an individual states that the individual is obliged repay completely the cost of damage caused to an object that was in storage, then the employee of the enterprise is obliged in this case to pay the full cost of the expenses. In this case, the following employees bear financial responsibility: cash registers, warehouse managers, as well as persons accepting money.

When partial repayment the cost of the damage caused, it is implied that the amount will be paid within the limit that was specified in advance in the contract. In this case, the cost should not exceed the average monthly salary. The amount is subtracted based on the losses received at the enterprise, in accordance with the analytical accounting data.

The defect may be correctable, or it may be irreparable. It all depends on the severity of the marriage. If the defect is correctable, then it may involve the organization in the costs of carrying out restoration work. They should, as a rule, compensate the employee of the enterprise.

In the case where the defect is irreparable, the cost of compensation for the damage caused consists of the expenses that were incurred for the manufacture of the defective product, excluding the benefits received upon completion of the seizure. The costs that are paid in connection with the resulting irreparable defect are based on the difference between debit and credit turnover. The established total cost of losses due to detected defects must be recorded in the debit of account 70.

One of the mandatory payments is personal income tax (NDFL), which is deducted from the amount of remuneration received for the work of an enterprise employee.

It is worth noting that tax is calculated in certain cases - such rules apply in tax policy. In this case, if these rules are taken into account, tax deductions apply for certain incomes. Such income may include following:

  1. The minimum value of income that is not subject to taxes.
  2. Deductions based on social status or charitable activities.
  3. Deductions based on skill.
  4. Deductions based on ownership of certain property.

For the majority of tax payers, the rate has not changed and is still equal to 13% .

As a conclusion, it is worth saying that in accounting (analytical) accounting, account 70 is capable of simultaneously combining several operations that are carried out at the enterprise every month. At the end of the reporting period, the accountant is required to calculate the balance and include it in the liability item of the account.

The remaining balance displayed indicates that the company has a loan debt to the company's employees. In this case, it remains important to keep records of salary payment obligations, because account 70 of the accounting also summarizes the accrual of settlements in the budget.

Keeping accounting records for wages is quite difficult, and the accountant must know about all the nuances. On account 70, settlements are made with employees, regardless of whether they are full-time or not. Any accountant should be aware that wages must include salaries or piecework earnings, bonuses, insurance payments, vacation pay, and so on.

Each employee undertakes to enter into an employment contract, the clauses of which he must familiarize himself with in detail, since all working conditions are indicated there. The contract specifies tariffs for the volume of work performed. In addition, the employment contract defines the relationship between the employer and the employee. The contract also stipulates the employee’s responsibilities in the event of disruption of work activity or damage, in accordance with regulations.

If an employee violates the terms of the contract, causing damage to the enterprise, then he must pay an amount that will cover the expenses of the enterprise. Accounting records all financial transactions. If damage has been caused, then the expenses are deducted from the employee’s salary, and this is recorded in account 70 of the accounting.

The employee pays expenses to the company for the damage caused based on the difference between debit and credit turnovers. If the total amount of losses from the damage caused is determined, then it is entered into debit. All this will be very difficult to understand without certain knowledge, so if you are not involved in auditing or accounting, then this topic will be difficult to understand.

It's no secret that the main motivation for staff in every company is decent remuneration for work. The responsibility of accounting staff falls on the importance of properly accounting for the remuneration of each employee of the enterprise. The following article will reveal the main aspects of such accounting, as well as the procedure for creating a special register - an account card.

Key Concepts

Let's consider the key concepts, the understanding of which is necessary when studying this article.

Personnel – the total number of full-time employees of the company.

Remuneration is the remuneration of company personnel for work performed. The amount of employees' wages is determined by their competence, qualifications, productivity, length of service, amount of work performed, degree of responsibility, complexity, tension and a number of other factors.

The totality of such remuneration includes the following components:

  • Set salary;
  • Incentive payments;
  • Awards.

Salaries are calculated in the following forms:

  • Time-based (its essence is that employees are paid based on the amount of time they work);
  • Piecework (the essence of this form is that employees are paid for the amount of work actually performed by them).

Accounting for payroll calculations

To collect information and record wages in the system of accounts, there is a separate account 70 “Settlements with personnel for wages”. It is active-passive, that is, the balance at the end of the period can be reflected in both debit and credit. To calculate the balance of an active-liability account, you need to perform the following arithmetic operations:

  • Sum up the initial balance and turnover separately for debit and separately for credit;
  • Next, subtract the smaller part from the larger part;
  • The result obtained is to write down the final balance in the part where the amount as a result of the first action turned out to be greater.

Accounting for this account is carried out in the following order:

  • The debit records the process of paying employees, withholding taxes and other amounts, and depositing salaries;
  • The loan takes into account the accrual of wages and disability benefits.

Account analytics is performed specifically for each employee of the company.

Payment of wages is carried out both in cash and by non-cash methods. In the first method, employees receive money from the company’s cash desk. In this case, a payroll sheet is drawn up for all employees, and each employee receives a payslip (a complete list of all accrued and withheld amounts relating to his personal earnings). In addition, the cashier creates an expense cash order for the entire amount of funds issued for payment. If the employee is unable to receive the money within a three-day period, it is deposited and returned to the bank account. Therefore, now, more and more often, companies are using another method of payment - non-cash, in which employees receive money on plastic cards. With this method, the accountant only needs to send a payment order and lists of employees to the bank using a computer program.

The procedure for forming a card

For the convenience of carrying out accounting functions and preparing reports, accounting employees who keep records of wages compile a variety of analytical registers:

  • Back - balance sheet for the account;
  • Settlement - pay slips;
  • Journal - order and statement to it;
  • Account card;
  • Other registers.

Let's take a closer look at account card 70. This register is becoming increasingly popular among accounting employees; it allows you to track the following data:

  • Account balance 70 at the beginning and end of the period;
  • The date of each transaction;
  • The primary document drawn up at the time of the transaction;
  • Analytical data (structural unit, last name, first name, patronymic of the employee, etc.);
  • Total turnover for the period;
  • Account in correspondence;
  • Transaction amount.

Let's give an example of a card for account 70 “Settlements with personnel for wages” in the table below:

To make work easier, it is more convenient to create an account card in special accounting programs, for example, 1C: Accounting. In such programs, this register is generated automatically, and the accountant can quickly study the information he needs.

This register - card for account 70 “Settlements with personnel for wages” helps the accountant to avoid accounting errors, to track all the facts of economic activity produced in the context of remuneration of an individual employee.

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