To record the facts of the economic activities of organizations, a chart of accounts is used. It helps to register and group transactions by their type and purpose. This article will tell you what accounting account 70 is intended for and how it can be used in the daily work of a company.

Every enterprise employs people who receive wages and other benefits for their work. In order to keep records of funds issued, on the basis of Order of the Ministry of Finance No. 94n dated October 31, 2000, all settlements with personnel for wages are attributed to account 70 in the accounting department. It also groups data on the payment of bonuses, compensation, benefits, dividends on shares, and income from securities.

Card

The credit balance on account 70 means the company's debt to employees. Therefore, at the end of the reporting period it is necessary to calculate it and include the amount in the liability item of the balance sheet.

Pay attention! It is possible to record not only by each employee, but also by type of transaction: payroll, benefits, compensation, deductions, etc.

Characteristics

To obtain reliable information about payments, analytical records are maintained for each employee of the enterprise. To see the total amount of accruals, you can create a balance sheet. It will show all payments made, deductions, as well as the company’s possible debt to employees. In addition, it is used for:

• formation of payment and settlement statements;
• creating a journal order;
• employee income cards;

Analysis of account 70 is used when preparing reports on personal income tax and insurance premiums.

To answer question 70, is the account active or passive, you need to look at how income and expenses are distributed over it. Debit 70 of the account shows expenses incurred: salaries paid, bonuses, benefits, as well as alimony, personal income tax, and fines withheld from employees. The loan is used to accrue amounts due to employees.

According to the characteristics of account 70, debit shows the debt of employees, credit shows accrued but unpaid amounts. Usually it has a credit balance, because salaries are accrued until the end of the current month and paid only in the next month. Thus, in accounting it is passive.

Important! For the convenience of accounting, an account card 70 is created. This register allows the accountant to avoid possible errors in accounting and timely track all transactions performed in terms of payroll to employees.

What are the subaccounts?

Each employee of the company creates his own sub-account, which will account for all accruals, payments and deductions for the entire period of his work in the organization. For ease of work, they are combined by department and divided into the following groups:

• payments to employees included in the company's staff;
• payments to employees with whom a contract has been concluded;
• payments to employees working part-time;
• payments to employees with a confirmed disability group.

Each organization itself has the right to create and approve the analytics it needs, but taking into account the requirements of Order of the Ministry of Finance No. 94n dated October 31, 2000.

The following subaccounts are most common at enterprises of different levels:

• 70.1 - used for payroll;
• 70.2 - serves to reflect deposited amounts;
• 70.3 - salary debts are reflected;
• 70.4 - shows the amounts to be issued;
• 70.5 - amounts transferred to deposits are entered;
• 70.6 - reflects the rounding amounts used when calculating wages.

How does account 70 correspond to other accounts?

Paying wages plays an important role in the life of a company. There is interaction with many accounting transactions on a daily basis. You can divide correspondence into debit and credit communications. An illustrative example is shown in the table:

Correspondence

How debits and credits are displayed

The debit includes paid amounts of bonuses, wages, benefits, accrued taxes, as well as deductions under writs of execution, income from participation in the capital of the company, and others. If the accrued amount is not paid to the employee on time, then it begins to be reflected in the debit of account 70 “Settlements with personnel for wages” and in the credit of account 76 “Settlements with various debtors and creditors.”

Debit

Corresponds by debit with the accounts:

• related to cash accounting;
• taking into account settlement transactions. These include 66-69, 73, 76 and 79;
• employees for the formation of financial results 90, 91, 93, 94.

All debit movements mean reducing the company's debt to employees or collecting amounts for taxes or fines.

The following amounts are included in the credit of account 70:

• Payments assigned to employees in correspondence with the accounts of production costs or sales expenses, depending on the activities of the organization.
• Remuneration generated from the reserve for vacation pay and remuneration for long service, if this is provided for at the enterprise. This payment is made once a year in correspondence with account 96 “Reserves for future expenses”.
• Social insurance benefits pensions and other similar amounts. Reflected in correspondence with account 69 “Calculations for social insurance and security”.
• Income from participation in the capital of the company. Accrued in correspondence with account 84 “Retained earnings”.

All entries in which account 70 is listed for the loan show the accrual of salaries to employees, the payment of bonuses and benefits. The loan corresponds with the accounts:

• taking into account production costs;
• keeping records of finished products and goods, 44;
• cash accounting, 50;
• social insurance contributions, which include 69, 76, 77, 79;
• reflecting financial results, 90, 91, 96, 97;
• capital accounting, 84.

Postings

Credit

Many facts of the company's activities are associated with account 70. Typical entries reflect transactions related to accruals, payments and deductions.

Accruals go on the loan and correspond with the debit of the cost accounts for the cost of products and services. All accruals are made by the accounting department no later than the last working day of the current month:

• all benefits, financial assistance provided at the expense of the Social Insurance Fund are accrued by posting: Dt.69.1 Kt.70;
• if salary payments are made from the reserve fund, then the posting will look like this: Dt.96 Kt.70;
• There are cases when salaries are paid from the reserve for future expenses: Dt.97 Kt.70.

Deductions include:

• The income tax that an employer must withhold from an employee's salary. The wiring will look like this: Dt.70 Kt.68.
• Payments under writs of execution, which include alimony. Wiring for them: Dt.70 Kt.76.
• The employer may recover from the employee the amounts not returned on time and taken into account: Dt.70 Kt.71.
• If an employee caused material damage, the wiring will be as follows: Dt.70 Kt.73.2.
• Return from the employee of the borrowed funds issued to him: Dt.70 Kt.73.1.

Payments are made by debit of the account. Postings vary depending on the place of issue of funds:

• if money for wages is paid from the cash register, then the posting will be as follows: Dt.70 Kt.50;
• when the salary is transferred to a bank card, the posting changes: Dt.70 Kt.51;
• if the salary is paid with the company's products: Dt.70 Kt.90.

When an employee does not arrive on time to collect his salary, the accountant must create the following entry: Dt.70 Kt.76.4. You will need to give the money with this wiring: Dt.76.4 Kt.50.

Additional information! According to the current legislation of the Russian Federation, wages must be paid twice a month. Temporary disability benefits are paid on the day following the date of the bulletin, salary. Vacation money must be paid no later than three days before going on vacation. Payment upon dismissal is made on the employee's last working day.

Posting examples

Accountant counts salaries

All accruals of payments to employees can be reflected in the following entries, depending on the division in which they are registered:

• Dt.20 Kt.70 - wages accrued to employees of the main production.
• Dt.23 Kt.70 - wages accrued to employees of auxiliary production.
• Dt.29 Kt.70 - wages accrued to employees of service production.
• Dt.44 Kt.70 - salaries were accrued to employees of product sales departments.

Payment of funds will be reflected in other transactions:

• Dt.70 Kt.50 - wages were paid to employees through the company's cash desk.
• Dt.70 Kt.51 - salaries were transferred to the bank cards of employees.
• Dt.70 Kt.55 - salary was transferred from a special bank account.

Below, using an actual example, we consider how salaries are paid to the company's employees.

Metalloprokat LLC produces steel teapots. On July 31, 2019, the accounting department calculated salaries for its branch:

• shop workers - 312,500 rubles.
• employees of the economic department 154,300 rubles.

On August 5, 2019, the funds were transferred to the branch, and the accountant made the following entries in account 70:

After the money arrived, the branch economists made the following entries:

Dt	CT	Record	Amount, rub.
20	70	Salaries accrued to employees of the branch workshop	312500
26	70	Salaries accrued to employees of the economic department	154300
79.2	20	Expenses for paying wages to workshop employees are included in settlements with the head office	312500
79.2	20	Expenses for paying salaries to employees of the economic department are included in settlements with the head office	154300
51	79.2	Transferred funds from the head office are credited	466800
50	51	Funds withdrawn from current account	466800
70	50	Funds for salaries of employees were paid through the cash register	466800

Accounting account 70 is an important indicator of the presence of arrears in payments to employees; it helps to formulate deductions for mandatory payments to the budget. Therefore, you need to have an experienced accountant on staff who will professionally make all the calculations and help you avoid debts.

All employees of the enterprise are paid monthly wages. Taxes are withheld from her. In addition, employed persons can receive income in the form of interest from participation in capital. All these amounts in accounting are displayed in account 70 “Settlements with personnel for wages”.

Purpose

Account 70 is used to display information about settlements with employees for wages (for all types of salaries, bonuses, benefits, pensions, and other payments), as well as for income from securities. The amount of accruals is displayed for credit, and the amount of payments for debit.

At the enterprise, salary accounting is carried out according to the following algorithm:

• accrual;
• retention;
• calculation of insurance premiums;
• pay.

Let's look at each stage in more detail.

Payroll

Labor costs are included in the cost of production. Therefore, accounting account 70 is debited with the accounts “Main production” (20) and “Sales expenses” (44). The posting is made for the entire salary amount. For calculations, a time sheet (form T12, T13) and a statement (T51) are used.

Example

A production employee received a monthly salary of 25 thousand rubles. Personal income tax is withheld from it in the amount of: 25 x 0.13 = 3.25 thousand rubles. Total payable – 21.75 thousand rubles. Accounting entries (account 70):

• DT20 KT70 – 25 thousand rubles. – the employee’s salary is accrued;
• DT70 KT68 – 3.25 thousand rubles. – personal income tax withheld;
• DT70 KT50 – 21.75 thousand rubles. - salary was paid from the cash register.

Holds

Personal income tax is withheld monthly from the payment at a rate of 13%. The tax base can be reduced due to tax deductions (Articles 218, 219 of the Tax Code of the Russian Federation). Let's look at the most common of them:

• 3000 - deduction is provided to disabled people, veterans;
• 500 – deduction for WWII participants;
• 1400 - deduction for the first and second child to the parent (it is valid until the income level reaches 280,000);
• 3000 - deduction for the third and subsequent children (it is valid until the income level reaches 280,000).

In order for these benefits to be taken into account when calculating wages, the employee must write a statement. Deductions are made by posting: account 70 debit, account 68 credit.

Example

The organization accrued salaries to production employees in the amount of 30 thousand rubles, and to the management staff - 72 thousand rubles. The accountant goes on vacation in 4 days. She is entitled to 17.8 thousand rubles. vacation pay.

The accounts in the accounting system will immediately display the salary amounts excluding personal income tax:

• production workers: 30 – 30 x 0.13 = 26.1 thousand rubles;
• administration: 72 – 72 x 0.13 = 62.64 thousand rubles.
• vacation pay: 17.8 – 17.8 x 0.13 = 15.486 thousand rubles.

№	Operation	DT	CT	Amount, thousand rubles
1	Salaries of production workers have been accrued; administration.	20	70	26,1
2	Vacation pay accrued	26		15,486
4	Salary transferred from current account	70	51	104,226
5	Personal income tax withheld		68	15,574
6	Personal income tax is transferred to the budget	68	51

Calculation of insurance premiums

Contributions to the Pension Fund, Social Insurance Fund and Federal Compulsory Medical Insurance Fund are transferred from the salary. The general tariff in 2016 is 30%, of which:

• 22% - Pension Fund;
• 2.9% - Social Insurance Fund;
• 5.1% - FFOMS.

• 796 thousand rubles. – for the purpose of calculating Pension Fund contributions;
• 718 thousand rubles. - for the purpose of calculating FSS contributions.

If the salary exceeds the specified limits, only a contribution to the Pension Fund will be charged at a rate of 10%. There is no limit on the FFOMS for 2016. This means that contributions must be calculated on the entire payment amount at a rate of 5.1%, regardless of the amount of income. All these contributions are transferred to the cost of production by posting DT20 (44) KT69.

Example

The LLC constructs the building with its own resources. In February, employee salaries were accrued in the amount of 270 thousand rubles, including:

• main production – 180,000;
• management personnel – 50,000;
• sales department – ​​18,000;
• employed in construction – 22,000.

Current account 70 will contain the following entries:

Salary payment

After personal income tax accruals and deductions are completed, the remaining amount is paid to employees from the cash register or current account. This operation is formalized by posting DT70 KT50 (51).

The law provides for payment of income twice a month. For violating this norm, the enterprise faces a fine of 30 to 50 thousand rubles, and for officials - 5 thousand rubles. (Article 5.27 of the Code of Administrative Offenses of the Russian Federation).

Salary for unworked time

Vacation pay and temporary disability benefits refer to payments for time not worked. They are accrued based on average earnings to the same accounts as the main income. Payment of vacation pay is formalized by posting DT20 (23, 25, 29, 44) KT70, and benefits from the Social Insurance Fund - DT69-1 KT70.

Other payments and deductions

Account 70 reflects the accrual and payment of dividends: DT84 KT70. Deductions may occur from your salary when purchasing a health resort voucher. Part of the cost is paid by the employee, and the second by the organization: DT70 KT69-1. If an employee still has funds that he previously received an account for, but did not use, he must return them to the cashier. If the advance report is not provided by the specified deadline, these amounts are subject to deduction from wages: DT70 KT71. If the funds were not spent for intended needs, they are also subject to withholding: DT70 KT94.

Often during the inventory process, a shortage of inventory items is discovered. If its amount exceeds the norm, then it is reimbursed from the income of financially responsible persons: DT70 KT73-2. If a company enters into an insurance contract for employees, the source for transferring payments is wages: account 70 is debited from the account. 76-1. Deductions under writs of execution from income are documented by posting DT70 KT76-4.

Example

The LLC conducted an inventory of goods. According to the accounting department, there are 120 kg of semi-smoked sausage in the warehouse worth 11.4 thousand rubles. The inventory showed a shortage of product in the amount of 150 rubles. The rate of loss is 27.36 rubles. Reimbursement is 122.64 rubles. This amount will be compensated from the warehouse manager's salary.

• DT94 KT41 – 150 rub. – the shortage is written off;
• DT44 KT94 – 27.36 rubles. – the shortage is taken into account within the norm of loss;
• DT73-2 KT94 – 122.64 rub. – shortages in excess of the norm are attributed to the responsible person;
• DT70 KT73-2 - 122.64 rub. – deduction of shortfalls from wages.

Salary in kind

An enterprise can give employees its products, goods, and other valuables as income. This operation is formalized by wiring DT70 KT90-1. Income is accrued using standard posting: DT20 (23, 25, 26) KT70.

Example 1

The LLC accrued income to employees in the amount of 29.5 thousand rubles. Due to a lack of funds, management decided to issue products to pay off the debt. For this purpose, a batch of goods was selected whose market price was equal to the amount of debt. The cost of the batch is 22 thousand rubles. Products are subject to VAT (18%). To reflect these transactions in accounting, it is necessary to include the following entries in the statement of account 70:

• DT70 KT90-1 – 29.5 thousand rubles. – salary debt is written off;
• DT90-2 KT43 – 22 thousand rubles. – the cost of production is written off;
• DT90-3 KT68 – 4.5 thousand rubles. (29.5 x 0.18/1.18) – VAT added;
• DT90-9 KT99 -3 thousand rubles. (29.5 – 22 – 4.5) – profit is reflected.

If, during the payment of wages, a company was unable to withhold personal income tax, it must notify the tax office in writing no later than March 1 of the following year, indicating the amount of tax and the income from which it was not withheld. The issuance of wages in kind is formalized by posting DT70 KT91-1.

Example 2

Let's change the conditions of the previous problem. To repay the debt, management decided to give the employee materials for a similar amount. Let's reflect these operations in accounting:

• DT70 KT91-1 – 29.5 thousand rubles. – salary debt is written off;
• DT91-2 KT10 – 24 thousand rubles. – the cost of materials is taken into account;
• DT91-2 KT68 – 4.5 thousand rubles – VAT added;
• DT91-9 KT99 – 1 thousand rubles – profit from the sale of materials is reflected.

Unpaid income

Account 70 contains information about the deposited amounts. After receiving cash from the bank, the organization has 5 working days to pay employees. If the employee does not show up on time, the amount of unpaid funds is deposited: DT70 KT76. The delivery of the deposited amount to the bank is formalized by the following posting: DT51 KT50.

Accounting for settlements is kept in the book of deposited wages, opened for the year. A separate line is allocated for each depositor. It indicates the employee’s personnel number, his full name, the “frozen” amount, and notes on the disbursement of funds. Unpaid amounts are transferred to a new ledger. The subsequent payment of wages is reflected by the entry: DT76 KT50.

Analytical accounting of settlements is carried out using personal accounts, pay books, pay slips, etc.

Reserve

At seasonal enterprises, vacations are provided unevenly. Since the amount of income and all accruals to employees is included in the cost price, in order to distribute costs evenly, vacation pay is transferred to costs in equal shares throughout the year. This creates a reserve for vacation pay. The same payroll accounts are debited in accounting for this amount. As employees go on vacation, the money accrued to them is written off using the posting DT96 KT70.

Typical wiring

This section is best presented in table form.

Operation	DT	CT
Salaries accrued to employees: main (auxiliary) production; general production personnel; service personnel; administration; sales department; involved in the liquidation of OS; engaged in receiving other income; at the expense of the created reserve; engaged in work, the costs of which are taken into account in deferred expenses; involved in eliminating the consequences of emergencies.	20 (23)	70
Salary issued from cash register	70	50
Salary transferred to bank card		51
Shortage retained		73
Child support withheld		76
Personal income tax withheld		68
Damage for damage is withheld		94

Balance

Account 70 displays information about settlements with employees for wages. Credit balance means debt to personnel. In most cases, the account is passive and is reflected in the second part of the balance sheet. But there are situations when the advance payment exceeds the accrued salary for the month. This balance is recorded in debit. The employee must return the money to the cashier.

Additionally, the auditor issues an expense cash document. Deposited wages are stored for 3 years, after which they can be written off as income of the organization (Dt 76 Kt 91). Payment in Kind Some manufacturing enterprises may pay workers using goods they produce in-house. This takes into account the market value of the products, which includes VAT and excise tax. The following entries are made: Dt 70, Kt 90, 91. Next, the accountant reflects the cost of goods issued as wages. The deduction of amounts for taxes and obligatory payments to the budget occurs in the same manner as in cash payments. Characteristics of deductions from wages The administration has the right to deduct from the employee’s monetary remuneration the amount of material damage or defects that occurred through his fault.

Accounting 70 account. postings, credit and balance

At the end of the reporting period, the auditor calculates the credit balance and includes it in the liability item of the balance sheet. The balance reflected on the account indicates that the company has accounts payable to employees. It is important to correctly keep records of salary obligations, because account 70 in accounting also reflects the accrual of payments to the budget.

• 23.02.2016

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Account 70 in accounting: “settlements with employees for wages”

• 06/14/2012, 10:21 #2 a dispute arose with the chief accountant, and what is your position there? Reply with quotation Up ▲
• 06/14/2012, 10:25 #3 Message from Genuk, what is your position there? I’m just an accountant there, this is my first calculation of vacation pay, I’ve never dealt with personnel before, so I don’t quite understand what confuses the boss Reply with quotation Top ▲
• 06/14/2012, 10:32 #4 accounting is not parliament... since the GB said it, answer “Yes!” and do it.

Account 70 in accounting: settlements with personnel for wages

When paying wages for the month, the accounting entries are repeated, only the amount changes. Payment of wages in kind In this case, the following entries are generated:

• Dt 70 Kt 90 (91) – PO was paid for the amount of products, goods, materials issued in kind at sales prices, including VAT;
• Dt 90 (91) Kt 43 (41, 40) – reflects the sale of goods, products, etc. employees towards their salaries.

If it is impossible to pay wages on time If it is impossible to pay wages on time, it must be deposited, that is, deposited by posting Dt 70 Kt 76.4 - deposited salary. On the payroll, opposite the full name of those who did not receive wages, it is stamped or handwritten “deposited”.
The cashier closes the payroll with two amounts: rubles paid and rubles deposited.

Features of the balance sheet for account 70

Its meaning is to close the payroll compiled for a group of employees when paying wages in cash. Since currently most organizations use non-cash forms of payment to pay wages, the formation of a unified payroll is losing relevance. The balance can be anything: active, passive and active-passive.

Basically the balance of the account. 70 can be passive, this is due to the fact that wages are calculated on the last day of the reporting (worked) month, and are issued to the employee in the subsequent month. An active or active-passive balance can be when an excessive payment of wages to an employee exceeds their accrual, for example, when an erroneous transfer is made to a salary account. An example of filling out a statement of accounts. 70 you can look at on our website.
Download an example of filling out an account statement.

Account 70 debit balance

Analytical accounting accounts are opened for each employee separately. For example, to reflect the remuneration for the work of employee V.V. Sidorov will open a 70.1 account. Additionally, for each employee the accountant maintains:

• personal income tax card;
• pay slip;
• document on settlements and payments;
• pay slip.

Account 70 in accounting is used in the course of financial activities by each organization.
Account debit transactions 70 The 70th account corresponds by debit with the accounts:

• accounting for money;
• accounting of settlement transactions (from 66 to 69 inclusive, 73, 76, 79);
• financial result (90, 91, 93, 94).

A debit operation will mean reducing the company's accounts payable to the employee or deducting amounts for taxes and fees, material damage. Account credit transactions
Account 70 interacts on the loan with the following accounts:

• “Investments in non-current assets” (08);
• “Main production” (20);
• “General production expenses” (25);
• “General business expenses” (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);
• “Retained earnings (uncovered loss)” (84);
• “Other income and expenses” (91);
• “Reserves for future expenses” (96);
• “Future expenses” (97);
• "Profits and losses" (99).

Examples of business transactions on a loan In accounting practice, 70 account is used in different cases.

Account 70 loan balance

N 94н, to summarize information about settlements with employees for wages (for all types of wages, bonuses, benefits, pensions for working pensioners and other payments), as well as for the payment of income on shares and other securities of this organization, is carried out on account 70 “Settlements with payroll staff." BY CREDIT accounts reflect accruals for wages, benefits from contributions to state social insurance, pensions and other similar amounts, as well as income from the role in the organization, and BY DEBIT - deductions from the accrued amount of wages and income, issuance of amounts due to employees and not wages and income paid on time. Analytical accounting for account 70 “Settlements with personnel for wages” is maintained for each employee of the organization.

Account 70 debit balance

The procedure for reflecting data in the payroll:

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 “Directory” 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.

• Good course on 1C Trade Management 11.

Dt Kt Posting contents Amount, rub Document-basis 20 70 Salaries accrued to bakery employees for main production 800,000 Salaries 25 70 Salaries accrued to storekeepers 30,000 Salaries 44 70 Salaries accrued to store sellers during production 40,000 Salaries 26 70 Salaries accrued A UP 200,000 Payroll

1. Accrual of vacation pay at the expense of the previously created reserve: Dt 96 Kt 70 – amount of vacation pay.

1. Calculation of temporary disability benefits from the social insurance fund: Dt 69.1 Kt 70.

1. Financial assistance was accrued from net (retained) profit: Dt 84 Kt 70.

1. Accrued to the salaries of employees for the construction of an OS facility and attributed to the costs of capital implementation.

And what kind of transactions reflect the main wage transactions - you will learn about this from our article.

Accounting for transactions on account 70

The account records transactions for all types of remuneration carried out by the enterprise in favor of its employees, including:

• salaries, bonuses, bonuses;
• sick leave, vacation pay, benefits;
• pensions for working pensioners, etc.

Depending on the department in which the employee is involved, wages and other payments may be reflected in the following records:

Payments to employees are recorded in the following records:

Payment of salaries to branch employees

On 30. .2015, the branch of Metallurg LLC paid salaries to employees:

• workers of the metal rolling shop - 412,500 rubles;
• economists of the financial department - 194,300 rubles.

On October 3, 2015, the branch received funds from Metallurg LLC to make payments.

The accountant of the head office of Metallurg LLC made the following entries in the accounting:

In the accounting of the branch of Metallurg LLC, salary payments are reflected by the following entries:

Dt	CT	Description	Sum	Document
20		Salaries accrued to employees of the branch's metal rolling shop	412,500 rub.	Payroll
		Salaries accrued to employees of the financial department of the branch	194,300 rub.	Payroll
79.2	20	Expenses for paying wages to employees of the metal rolling shop are included in settlements with the head office	412,500 rub.	Payroll
79.2		Expenses for paying salaries to employees of the financial department are included in settlements with the head office	194,300 rub.	Payroll
	79.2	Funds have been credited from the head office to pay salaries	RUB 606,800	Bank statement
50		Funds were withdrawn from the current account to pay salaries	RUB 606,800	Bank statement, cash receipt order
	50	Salaries were paid to employees of the metal rolling shop and financial department through the cash register	RUB 606,800	Expense cash order

Calculation of salaries for employees of various departments

LLC "Rukodelnitsa" is engaged in the production of equipment for sewing workshops. Workers of Rukodelnitsa LLC are busy constructing a building that is planned to be used as a warehouse. Employees of Rukodelnitsa LLC have the opportunity to visit the swimming pool for free, which is listed on the company’s balance sheet.

In August 2015, a fire occurred in one of the production workshops of Rukodelnitsa LLC.

Based on the results of August 2015, employees of Rukodelnitsa LLC received the following salaries:

• workers of production workshops – 418,500 rubles;
• sales department employees – 212,300 rubles;
• workers engaged in the construction of a building for a warehouse -

ACCOUNT 70 “PAYMENTS WITH STAFF FOR WAGES”

Account 70 “Settlements with personnel for remuneration” reflects information on settlements with employees of the organization for remuneration, including for all types of remuneration, bonuses, benefits and other payments, as well as for the payment of income on shares and other securities of this organizations (Table 2.6).

The following subaccounts can be opened to account 70 “Settlements with personnel for wages”:

• 70-01 “Accrued wages”;
• 70-03 “Wage debts”;
• 70-04 “Wages to be issued”;
• 70-05 “Salaries transferred to deposits”;
• 70-06 “Rounding amounts for wages.”

Subaccount 70-01 “Accrued wages” reflects information on the calculation of wages to employees and other accruals.

The credit of subaccount 70-01 “Accrued wages” reflects the following amounts:

• accrued wages and payments provided for by the collective agreement - in correspondence with the accounts of production costs (sales expenses);
• accrued wages and payments not provided for by the collective agreement - in correspondence with the accounts of the relevant sources of financing;
• accrued wages to employees during paid vacations falling on the current reporting period - in correspondence with cost accounts falling on the following reporting periods - in correspondence with account 97 “Deferred expenses”, subaccount 01 “Amounts of deferred vacations” ;
• accrued payment to employees during paid vacations, if the organization’s accounting policy provides for the creation of a reserve for the upcoming payment of employee vacations - in correspondence with account 96 “Reserves for future expenses”;
• accrued benefits for temporary disability, social benefits and other payments from the Social Insurance Fund - in correspondence with account 69 “Calculations for social insurance and security”, subaccount “Calculations for social insurance”; at the same time, the amounts of accrued benefits exceeding the amounts established by law are reflected in correspondence with cost accounts;
• accrued payments to employees from social insurance funds against industrial accidents and occupational diseases - in correspondence with account 69 “Calculations for social insurance and security”, subaccount “Calculations for compulsory social insurance against industrial accidents and occupational diseases”;
• accrued payments to employees made at the expense of trade union organizations - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with trade union organizations”.

Exchange differences on wages in foreign currency associated with changes in the exchange rate of foreign currency in relation to the currency of the Russian Federation are reflected in subaccount 70-01 “Accrued wages” in correspondence with account 91 “Other income and expenses”, subaccount 01 “Other income " and 02 "Other expenses".

The debit of subaccount 70-01 “Accrued wages” reflects the following amounts:

• withheld personal income tax - in correspondence with subaccount 68 “Calculations for personal income tax”;
• withheld from accountable persons for accountable amounts not returned to the cash desk on time - in correspondence with account 71 “Settlements with accountable persons”;
• withheld from employees to repay the debt on the issued loan and interest - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements on loans provided”;
• withheld for compensation of material damage caused by an employee of the organization - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements for compensation of material damage”;
• withheld from employees to compensate for damage due to technological violations - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements for technological violations”;
• withheld from employees to pay off debts (in whole or in part) for vouchers to sanatorium and resort services - in correspondence with account 73 “Settlements with personnel for other operations”, subaccount “Settlements for vouchers”;
• deducted from employees under writs of execution - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements under writs of execution”;
• withheld from employees for housing and utilities - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with residents for housing and utilities”;
• trade union dues withheld from employees - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with trade union organizations”;
• insurance premiums for voluntary insurance withheld from wages for transfer to the insurance organization

tions - in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “Settlements for property

and personal insurance."

Amounts of wages minus all deductions can be written off to other relevant subaccounts of account 70 “Settlements with personnel for wages”.

Subaccount 70-03 “Wage debts” reflects the amount of wage arrears both to the enterprise’s employees and the debts of the enterprise’s employees.

Amounts of debt generated when calculating wages are reflected in the credit of subaccount 70-03 “Wage debts” in correspondence with the debit of subaccount 70-01 “Accrued wages”. Next month, these amounts are added to the salary distribution by reverse entry.

The employee’s debt to the organization is reflected in the debit of subaccount 70-03 “Wage debts”. Repayment of debt by an employee by depositing funds into the enterprise’s cash desk is reflected in the credit of subaccount 70-03 “Wage debts” and the debit of account 50 “Cash”. After the expiration of the limitation period, the outstanding debt is written off to the financial result of the organization in correspondence with the debit of subaccount 91-02 “Other expenses”.

Subaccount 70-04 “Wages for payment” reflects information about the amounts of wages intended for payment to the organization’s employees through its cash desk. The amount of wages to be paid is reflected in the credit of subaccount 70-04 “Wages to be paid” and the debit of subaccount 70-01 “Accrued wages”. The issuance of amounts to employees of the organization is reflected in the debit of subaccount 70-04 “Wages to be issued” in correspondence with subaccount 50-01 “Cash of the organization.”

Amounts of wages not received by employees within the period established for the issuance of wages (deposited wages) are reflected in the debit of subaccount 70-04 “Wages for issue” in correspondence with account 76 “Settlements with various debtors and creditors”, subaccount “ Calculations for deposited wages."

Analytical accounting for subaccount 70-04 “Wages to be paid” is maintained for each employee of the organization (personnel number).

Subaccount 70-05 “Wages transferred to deposits” reflects information about the amounts of wages intended to be transferred to the employee’s bank account.

The amount of wages to be transferred to employees’ bank accounts is reflected in the credit of subaccount 70-05 “Wages transferred to deposits” and the debit of subaccount 70-01 “Accrued wages”.

The transfer of funds from the organization's account to the accounts of employees is reflected in the debit of subaccount 70-05 “Wages transferred to deposits” and the credit of account 76 “Settlements with various debtors and creditors”, subaccount “Settlements with other debtors and creditors” or account 51 “ Current accounts." Analytical accounting for subaccount 70-05 “Salaries transferred to deposits” is maintained for each employee of the organization (personnel number).

Subaccount 70-06 “Rounding amounts for wages” reflects the rounding amounts if the enterprise decides to issue wages to employees in whole monetary units.

Account 70 “Settlements with personnel for wages” corresponds with the accounts

Table 2.6

By debit	By loan
	08 Investments in non-current assets
51 Current accounts	20 Main production
52 Currency accounts	23 Auxiliary productions
55 Special bank accounts	25 General production expenses
68 Calculations for taxes and duties	26 General expenses
	28 Defects in production
71 Settlements with accountable persons	29 Service industries and farms
73 Settlements with personnel for other operations	44 Selling expenses
	69 Calculations for social insurance and security
	76 Settlements with various debtors and creditors
94 Shortages and losses from damage to valuables	79 On-farm settlements
	84 Retained earnings (uncovered loss)
	91 Other income and expenses
	96 Reserves for future expenses
	97 Deferred expenses
	99 Profit and loss

Thus, payroll is reflected in the credit of account 70, and the account corresponding to it is selected based on

from the department in which the employee is employed, to whom wages are paid, and what work he performs. If you accrue wages to employees of the main (auxiliary, servicing) production, then the following entry is made: Debit 20 (23, 29) Credit 70 - wages were accrued to the employee of the main (auxiliary, servicing) production.

If you pay wages to employees serving the main (auxiliary) production, or to management personnel, reflect this as follows:

Debit 25 (26) Credit 70 - wages accrued to employees involved in the process of servicing the main or auxiliary production (managerial personnel).

Accrue wages to employees involved in the sale of finished products or goods in correspondence with account 44 “Sales expenses”:

Debit 44 Credit 70 - wages accrued to employees involved in the process of selling products (goods).

If an organization carries out construction for its own needs or reconstructs fixed assets, then reflect the wages of employees engaged in these works in correspondence with account 08 “Investments in non-current assets”:

Debit 08 Credit 70 - wages accrued to employees involved in the construction (reconstruction) of fixed assets.

Example 2.13.

Let's look at an example. Volt LLC is engaged in production and constructs the warehouse building on its own. In January 2012, wages were accrued to the organization’s employees in the amount of 270,000 rubles, including employees:

main production - 180,000 rubles; management personnel - 50,000 rubles; finished product sales department - 18,000 rubles; employees involved in warehouse construction - 22,000 rubles.

In this case, the accountant of Volt LLC must make the following entries:

Debit 20 Credit 70 - 180,000 rub. - wages accrued to workers of the main production;

Debit 26 Credit 70 - 50,000 rub. - wages accrued to management personnel;

Debit 44 Credit 70 -18,000 rub. - wages were accrued to employees of the finished product sales department;

Debit 08 Credit 70 - 22,000 rub. - wages were accrued to employees involved in the construction of the warehouse.

If the organization receives other income and this requires labor costs, then accrue wages to the employees who ensure the receipt of this income by posting:

Debit 91-2 Credit 70 - wages accrued to employees engaged in the process of receiving other income.

If an organization creates reserves for upcoming expenses for the performance of certain works, then pay wages to employees involved in their implementation, also at the expense of the created reserve:

Debit 96 Credit 70 - wages to employees were accrued from the previously created reserve.

If the organization’s employees perform work, the costs of which are taken into account as part of deferred expenses (for example, the introduction of a new type of product into production), then reflect their wages as follows:

Debit 97 Credit 70 - wages accrued to employees engaged in work, the costs of which are taken into account in future expenses.

If the organization suffered losses as a result of emergency events (fire, flood, etc.), then wages to employees liquidating the consequences of such events are included in other expenses:

Debit 91-2 Credit 70 - wages accrued to employees involved in eliminating the consequences of emergency events.

In some cases, the organization must pay employees certain amounts for unworked time. Such payments, in particular, include vacation pay and temporary disability benefits. In this case, vacation pay is calculated based on the employee’s average earnings. The procedure for calculating average earnings was approved by Decree of the Government of Russia dated December 24, 2007 No. 922.

Vacation pay is credited to the same accounts as employee salaries. In this case, the organization has the right to create a cash reserve to pay for vacations. In this case, vacation pay is accrued from the previously created reserve:

Debit 96 Credit 70 - vacation pay was accrued to the organization’s employees at the expense of the previously created reserve.

Benefits for temporary disability starting from the third day are paid from the funds of the Social Insurance Fund of Russia. When calculating such benefits, make an entry in your accounting:

Debit 69 Credit 70 - temporary disability benefits have been accrued at the expense of the Federal Social Insurance Fund of the Russian Federation.

Account 70 also reflects the accrual of dividends to employees who are shareholders (participants) of the organization. In this case, reflect the accrual of dividends to employees by posting:

Debit 84 Credit 70 - dividends accrued to the organization's employees.

Reflect the amount of personal income tax withheld from the employee’s salary by posting:

Debit 70 Credit 68 subaccount “Calculations for personal income tax” - personal income tax is withheld from employee wages.

Example 2.14.

Let's look at an example. An employee of the production department of Volt LLC received a salary in the amount of 25,000 rubles for a month of work. Personal income tax in the amount of 3,250 rubles was withheld from it. In total, 21,750 rubles are due for payment. In this case, the accountant of Volt LLC must make the following entries:

Debit 20 Credit 70 - 25,000 rub. - wages have been accrued to the employee of the organization;

Debit 70 Credit 68 subaccount “Calculations for personal income tax” - 3250 rubles. - personal income tax is withheld from the employee’s salary;

Debit 70 Credit 50 - 21,750 rub. - wages were paid to the employee from the organization’s cash desk.

To carry out current activities, a company can issue cash to its employees on account. If an employee has unspent funds that were previously issued to him on account, then he must return them to the organization’s cash desk. If, before the deadline for submitting the advance report, the amounts issued to the employee are offset against wages, make the entry: Debit 70 Credit 71 - accountable amounts issued to the employee are offset against wages.

If an employee unreasonably spent or did not return the accountable amount on time, then this amount should be withheld from his salary:

Debit 70 Credit 94 - unreturned (unreasonably spent) funds previously issued on account are withheld from the employee’s wages.

Often, during the inventory process, a shortage of inventories is discovered. If the amount of the shortage exceeds the norms of natural loss, then it is reimbursed at the expense of the financially responsible persons. The amount of the shortfall may be deducted from the employees' wages. For the amount to be withheld, make the following entry:

Debit 70 Credit 73 - amounts of material damage were withheld from the employee’s salary.

Example 2.15.

Let's look at an example. Alt LLC carried out an inventory of inventory in the warehouse. According to accounting data, there are 120 kg of sweets in the warehouse for a total amount of 11,400 rubles. As a result of the inventory, a shortage of 150 rubles was identified. The shortage within the limits of natural loss norms amounted to 50 rubles, above the norms - 100 rubles.

According to the manager’s order, storekeeper G.L. was held financially liable. Tubolev, with whom the organization has concluded an agreement on full financial liability. Tubolev admitted the claim. It was decided to withhold the amount of the shortfall from his salary. As a result, the accountant of Alt LLC must make the following entries:

Debit 94 Credit 41 - 150 rub. - the amount of the shortfall is written off;

Debit 44 Credit 94 - 50 rub. - the shortage within the limits of natural loss is taken into account in sales expenses;

Debit 73-2 Credit 94 - 100 rub. - the amount of shortfall in excess of the norms of natural loss is attributed to the guilty person;

Debit 70 Credit 73-2 - 100 rub. - the amount of the shortage is withheld from the storekeeper’s salary.

Please note that if a company enters into insurance contracts for its employees, the amounts of payments under such contracts may be deducted from their wages:

Debit 70 Credit 76-1 - personal insurance payments are withheld from the employee’s salary.

The organization must withhold from the wages of employees the amounts for writs of execution received by the organization (for example, alimony):

Debit 70 Credit 76 - funds were withheld from employees' wages based on writs of execution.

We emphasize that wages to employees can be paid both in cash and in kind. The legislation provides for the payment of wages twice a month; if a company does not comply with this condition, it can be fined in the amount of 30,000 to 50,000 rubles, and officials in the amount of up to 5,000 rubles. In this case, accrued funds due to employees on account of wages can be:

• pay in cash from the cash register;
• transfer by bank transfer to employees' accounts from a ruble or special bank account of your organization.

For the amount of wages paid, make an entry: Debit 70 Credit 50 (51, 55) - wages paid to the organization's employees from the cash desk (transferred from a current or special bank account).

In addition to wages, an employee may be accrued bonuses, benefits and income (dividends) from participation in the authorized capital of the organization. When paying these amounts, make the same entry:

Debit 70 Credit 50 (51, 55) - bonuses (benefits, income (dividends) from participation in the authorized capital of the organization) paid from the cash desk (transferred from a current or special bank account) to the employees of the organization.

The organization can also provide employees with the following wages: products of its own production, goods or other valuables. When issuing products of your own production (goods) to employees, make an entry in the accounting records:

Debit 70 Credit 90-1 - self-produced products (goods) were issued to employees of the organization to pay off arrears of wages.

If the products were issued to employees at preferential prices (which are more than 20% less than the prices at which the organization usually sells such products to third-party buyers), then under certain conditions the tax inspector can check the correctness of the prices for tax purposes.

Example 2.16.

Let's consider an example: Alt LLC paid employees wages in the amount of 29,500 rubles. Due to insufficient funds, it was decided to provide employees with products of the organization’s own production to pay off wage arrears. Usually Alt LLC sells the same batch of products to third-party buyers at the same price - 29,500 rubles. (including VAT). The cost of a batch of products is 22,000 rubles. Finished products are subject to VAT at a rate of 18%. As a result, the accountant of Alt LLC must make the following entries:

Debit 70 Credit 90-1 - 29,500 rub. - wages owed to employees have been written off;

Debit 90-2 Credit 43 - 22,000 rub. - the cost of finished products transferred to employees to pay off wage arrears is written off;

Debit 90-3 Credit 68 subaccount “VAT calculations” - 4500 rubles. (RUB 29,500 x 18%: 118%) - VAT added.

At the end of the month, the accountant will make the following entry:

Debit 90-9 Credit 99 - 3000 rub. (29,500 - 22,000 - 4500) - profit from the sale of products is reflected.

If, by paying wages in kind, a company cannot withhold income tax, it must report this to the tax office. Such a message should be sent within one month from the moment the company became obligated to withhold and pay tax.

When issuing other property (fixed assets, materials, etc.) to employees as wages, make an entry in the accounting records: Debit 70 Credit 91-1 - material assets were issued to employees of the organization to pay off arrears of wages.

Example 2.17.

Let's analyze an example. Alt LLC paid employees wages in the amount of 29,500 rubles. Due to insufficient funds, it was decided to provide workers with materials intended for use in production to pay off wage arrears. The market price of materials is 29,500 rubles. (including VAT), cost - 24,000 rubles. In this case, the accountant of Alt LLC must make the following entries:

Debit 70 Credit 91-1 - 29,500 rub. - wages owed to employees have been written off;

Debit 91-2 Credit 10 - 24,000 rub. - the cost of materials transferred to employees to pay off wage arrears is written off;

Debit 91-2 Credit 68 subaccount “Calculations for VAT” - 4500 rubles. (RUB 29,500 x 18%: 118%) - VAT added.

At the end of the month, the accountant will make the following entry:

Debit 91-9 Credit 99 - 1000 rub. (29,500 - 24,000 - 4500) - profit from the sale of materials is reflected.

Note that after receiving funds from the bank to pay wages, the organization, as a rule, is obliged to issue it to employees within three days. If the employee does not show up to receive wages, the amount of unpaid funds is deposited. Reflect the amount of deposited wages by posting:

Debit 70 Credit 76 subaccount “Calculations for deposited amounts” - wages not received by employees are deposited.