THESIS FOR ACCOUNTING SPECIALITY                                Do Kieu Oanh - 7a03                                                               

PART I

GENERAL THEORY ON ACCOUNTING FOR PAYROLL AND SALARY DEDUCTIONS

I - BASIC FEATURES OF PAYROLL AND SALARY DEDUCTIONS

1. Concept, features and the useful of accounting for payroll and salary deductions

1.1. Concept on salary

Money is not means of exchange but it is also means of measuring the value of men’s labour. In economic theory, ‘labor’ is any work undertaken in return for a fix payment. ’Payroll’ is the amount of the money the labor get in return as their result of work which is used to re - produce their work ability. Anyway, the salary they receive under the form of money is niminal wage, when wage is used to purchase specific goods on the market it is real wage. To caculate the niminal wage accurately it is necessary to base on real wage through the change of price on the market. This is very important because it relates to the salary unit price. Besides, the wage to ensure re - produce working ability also be accounted for production cost as an compulsory cost under the rule of GovernmentState, it includes these types:

1.2. Salary deductions

Along with salary, wage, allowances counted for entrprise’s production costs are:

1. 2. 1. Social insurance fund

This fund establisted as a source of capital, aids to the staff in these situations: ill, pregnancy, over the age in work, die, on - the - job accident, occupational disease, lose job, get in risk, lose strength, retire

Social insurance come along with labor’s life, it is objective, indispensable, it does not occurs steadily with the time. Social insur ance’s nature is social, economic as well as service. In according to current system, Decision No. 912 CP/ BHXH dated 07/ 11/ 2005   stipulates Social insurance regime, this fund is built by deducting 20% from the payroll fund and daily allowances of the labor in the fiscal year, in there 15% which the hirer paid is counted for production cost of the company and 5% is deducted directly from employees’ salary.

Social insurance fund is managed by the Ministry of Labour, WarInvalids and Social Affairs.

Monthly, at the enterprises, pays for the labor who get ill, pregnancy,…bases on that to make regular and legal vouchers (accounting clerk makes social insurance voucher pay for labor follow the form No.03-LTDL ,accounting voucher regulation). At the end of the month or the quarter the company must to strike a balance to the organization manages social insurance fund.

1. 2. 2. Health insurance fund

HA NoiUniversity OF BUSINESS & MANAGEMENT