Employee payroll

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Salary is a reward for an employee's work. In the process of its implementation, a person must be sure of monetary compensation for the time spent and his physical resources. At the same time, the salary cannot be less than the subsistence level, which the Constitution of Russia guarantees to citizens.

When applying for a job, you should familiarize yourself with all the details related to this topic in advance. This is necessary in order not to be deceived and to receive everything that the employee is en titled to under the law.

Any accountant should know how to correctly calculate the salary. Laws are constantly changing, so consider the regulations and standards that exist today.

Concept

Wages in Russia are regulated by a number of laws and regulations:

• Constitution of Russia;
• Russian Labor Code;
• acts adopted separately.

The legal framework on this topic allows you to determine the minimum wage, the timing of its payment, a system of financial incentives and fines, punitive measures for the implementation by the employer of his own obligations to pay compensation to staff, etc.e.

Functions

Salary has the following functions:

1. Motivational. This function is the main one for the employee, since wages allow him to satisfy his necessary needs for food, nutrition, etc. Without material reward, a person would not spend time on work.
2. Reproductive. This function is closely related to motivation, but serves for the profitability of the company itself: the employee must eat well, be in good physical shape. Adequate remuneration can improve the efficiency of the workforce and ensure the continuity of the company.
3. Stimulating. This function boils down to the fact that the employee must work with the awareness that the salary depends, first of all, on the productivity of his work. To do this, the employer must provide the person with work instructions, designate certain merits and encourage the employee to overfulfill, for example, with a bonus;
4. Status function. It provides wages in accordance with the level of qualification of the employee, his knowledge and experience. The amount of remuneration is an indicator of his place in a certain social group.
5. Regulating. Helps organize interaction between employees and subordinates.

Elements

Salary consists of three main parts:

• fixed part;
• variable part;
• additional payments.

The variable part varies depending on the actionsa specific employee, type of company, even geographic location.

For example, the inhabitants of the northern regions receive an award for difficult living conditions. In this case, the variable part of each month is a certain share of wages, depending on a certain region: from 15 to 100 percent.

Additional payments may be related to the features and characteristics of production, seasonality of work.

For example, employees of some companies receive separate supplements for meals. Travel expenses to the holiday destination may also be covered.

What counts in payroll?

Let's consider the basic concepts. First, there are tax deductions based on wages. Secondly, in the case of overtime, the appropriate salary increments are calculated. You can also withhold various monetary pen alties for damage to company property.

What the worker gets in his hands is wages. It can be an amount higher or lower than the regular salary.

Wages are clearly regulated by the legal acts of Russia. The amount of remuneration for work must be specified when preparing an employment contract with an employee and is a mandatory part. Also, it certainly has a system for calculating and changing it. All these actions are regulated by laws.

Wages can be calculated depending on the wage system.

She happens:

• tariff (when the employer is able to evaluate the results of the employee's work, depending ontime and approved work standards);
• tariff-free (salary depends on the total income of the entire company);
• mixed (taking into account the total income of the company and the contribution of some employee to it).

In the Russian Federation, it is customary to use the tariff system, or rather its temporary form. At the same time, the qualifications and experience of the employee, which must be indicated in the employment contract, are taken into account. This document indicates only the fixed salary of the employee, while the total amount may vary both up and down.

From time to time, employers specify a mixed settlement system in the contract, which is especially important for sales, when a professional specialist can exceed the salary as a result of their own achievements.

Initial data for calculation

The following data will be required for payroll calculation:

1. Accrued amounts.
2. Amounts to be withheld.
3. Amount of monthly salary or rate. Wages are calculated in two ways: by time and by piece work. Earning time depends on the number of hours (days) spent on work, and is not related to the amount of work performed. Piecework salary depends on the increase in the volume of work or the sale of goods.
4. Extra amount received for long service life, professional ability, irregular working hours, etc.
5. Amount of bonus (premium)payments, if any.
6. Other co-pays.

All available data is added to wages resulting in dirty income.

Calculation procedure

Payroll is related to the work of an accountant. If the company is quite large, then it has a separate staff unit whose responsibilities include calculation, accrual, payment, determination of deductions and other activities related to wages and other payments and fees from employees.

Payroll is done at the beginning of each month. Paying salaries to staff is required by the 10th day of the month following the month worked.

Documents for payroll:

• T-49 payroll - a form that consolidates payroll for all employees;
• T-51 payroll only applies to the payroll process;
• T-53 payroll is used for payroll purposes only;
• payslip is a document that is issued to an employee upon receipt of wages, contains the amounts accrued to the employee.

Calculation algorithm

The accountant must complete the following steps in the payroll order:

• determine the amount of the salary (tariff rate), which was set in the month of calculation in accordance with the hours worked;
• find what additional payments to staff should be accrued,except for the fixed part;
• withhold income tax;
• calculate insurance payments to pay off-budget funds;
• make all other deductions from the employee's salary (advance payment, alimony, losses);
• calculate salary including all fees and deductions;
• pay the employee the amount due.

Let's take a closer look at each of these actions.

Payroll

Account systems that are based on hours worked are calculated at a flat rate or monthly salary.

The tariff rate can be daily or hourly.

Another option is that the salary corresponds to the number of hours per month. If an employee works only part of the time, then he receives wages in proportion to the number of days (hours) worked.

The formula for calculating wages with a fixed daily rate is:

ZP=L × S, where: ZP - the amount of the monthly salary, D - the number of days worked in accordance with the exit schedule, C - the daily rate.

When paid by the hour, its value is multiplied by the amount of time worked in hours.

The salary of employees (engineers, technicians, department managers) is to receive a fixed rate per month of work. If they work during the month, wages are calculated according to the number of days worked:

ZP=O / N × F, where: N is the number of days in the past month in the production calendar, O is the amount of salary, F is the number of days actually worked.

The bottom line is how many days the employee actually worked.

The above formulas calculate the salary without allowances and bonuses. 13% of personal income tax is deducted from the accrued amount, after which the money is transferred to the employee on a bank card or issued at the cash desk.

Example.

Malygina A. A. works as a teacher at the institute. She has an hourly wage with a rate of 350 rubles per hour. She worked 99 hours in October 2018.

Determine how to calculate the salary of Malygina A. A.:

ZP=99 hours × 350 rubles=34,650 rubles

Monthly average

Calculation of the average monthly salary of an employee is required for basic operations:

• calculation of payments while maintaining the average monthly salary at the main place of work;
• calculation of remuneration during an unemployed period due to the fault of the employer or due to natural disasters and other force majeure events;
• calculation of vacation (wages for the required rest time) and compensation for unused vacation if the employee quits and leaves;
• calculation of retirement benefits and other benefits, after the completion of an employment contract, with a reduction in staff;
• calculation of disability benefits;
• payment for working time on business trips.

The average monthly wage is also calculated if an employee requests income statements and other information to be submitted to government agencies.

Currentlythe list does not include some types of social benefits and reimbursements:

• one-time financial assistance (for holidays, for treatment);
• compensation for travel, utilities, meals;
• temporary disability and maternity benefits;
• monthly allowances for the care of a child under the age of 1, 5 or 3 years;
• burial allowance and some others.

The last 3 types of payments are reimbursed from the Social Insurance Fund. To compensate for them, the employer makes petitions to the relevant authority in the form of an application.

When calculating the average monthly salary for the past year, the above social benefits and compensations are deducted from the amount of accruals. The amount received is divided by the number of worked calendar months - fully worked periods from 1 to 30 (31), and in February - up to 28 (29) numbers.

Average salary

To calculate this indicator, you need:

1. Know the amount of remuneration accrued for 12 months. If an employee works less, all days count.
2. Know the working hours on the calendar. To calculate it, you need to sum up all the calendar days of the year and divide them by 12.

The formula for calculating the average salary looks like this:

Average salary=Payments for the period / hours worked.

Formula for calculating the average monthly salary:

Salary=Salary for the year / days per month on average.

Formulato calculate the average wage per day:

AWR=(Basic Pay + Additional Pay) / (12 × 29, 3), where the basic payment includes payment of the tariff or salary for 12 months, 29, 3 - the average number of days per month, which was established by law, additional - payments in excess of a fixed amount for 12 months.

Additional calculation of the payroll includes other payments, allowances, bonuses, remuneration, coefficients, night, overtime, etc.

When an employee leaves, compensation for unused vacation is added to the amount. In this case, the average monthly salary is adjusted for the actual hours worked and daily is calculated. The number of days remaining is multiplied by the average daily salary.

Calculations for the piece rate system

The formula for calculating the wages of employees depends on the type of piecework payment chosen. For example, in the case of a partial form of calculation, the formula looks like this:

ZP=Eu × St + Stv, where: Ei is a unit of measure of work (the volume of products produced, information is taken from the work order), St is the rate for the work performed.

Payroll example.

Worker Anosov A. M. works at the plant. He has a production plan: 240 units per month with a tariff of 100 rubles per unit.

The contract also provides for a premium of 20 rubles per unit of product manufactured above the plan. In October 2018, Anosov released 300 products.

Calculate wages.

Zp=300 units. × 100 rub.=RUB 30,000

Stv=20 rubles × (300 units - 240 units according to the plan)=1200 rubles.

As a result, Anosov's salary will be 31,200 rubles.

With a piecework wage system, the formula for calculating the wages of employees differs significantly from the previous version and looks like this:

Zp=(Fz + Stv) / Ki, where: Fz is the cost of a fixed income that was established by the employee's contract, Ki is the number of performers who are included in the team.

Deductions from payroll

After completing the payroll (accrual) work, the accountant must determine all deductions. Since the employer is a tax agent, he must calculate and withhold personal income tax in the amount of 13% of all payments due.

The amount of tax is withheld when an employee is paid a salary at the end of the month for which such income was accrued.

After calculating income tax, the accountant must determine the amount of deductions:

• for unworked advances, for example, upon dismissal;
• overpaid income, for example, due to a calculation error;
• at the request of an employee, for example, for voluntary pension insurance;
• alimony and other deductions for the execution of a judicial act or notarial agreements.

The amount of deductions in the first and second options cannot exceed 20% of the salary paid, in the last - 50%.

In exceptional cases, for example, when compensating for harm to he alth caused to another person or when paying alimony to minor children, the amount of deductions cannot exceed 70%.

Before you can calculate child support from the amount of an employee's earnings, you need to calculate income tax. In this case, the employee is provided with all the necessary tax deductions.

When calculating the amount of salary and deductions, the accountant must reflect all accruals in accounting. For this, the following postings are used:

Dt	CT	Transcript
20 (08, 23, 25, 26, 44)	70	Payroll
70	68	NDFL accrued and reflected
70	76	Amounts withheld in favor of third parties

To view the settlements with each employee, you need to set up analytics on account 70.

Salary Contributions

Deductions from employee salaries consist of the following insurance premiums:

• 22 percent pension insurance (PSI);
• medical insurance (CMI) - 5, 1%;
• accident insurance - the percentage depends on the type of activity of the employer;
• disability and maternity insurance - 2.9%.

Employer must submit a quarterly report on earnings, accrued contributions and income tax from employees in the following forms:

• 6-NDFL;
• single calculation of insurance premiums;
• 4-FSS.

Calculation of wage compensation

Some regions of Russia have their own local indicator. There may be several of them in one region, since it is assigned by district. The set coefficients have a gradation from 1.15 to 2.0.

The smallest indicator falls on the most comfortable areas for living. The highest values, on the contrary, are assigned to those regions where climatic and other conditions are considered more unfavorable.

This measure is aimed at increasing wages in order to prevent the outflow of residents. When setting the coefficient, climatic conditions are taken into account, as well as other characteristics that affect the standard of living and human satisfaction.

Lowest rates:

• Vologda;
• Perm;
• Yekaterinburg;
• Orenburg;
• Chelyabinsk;
• Kurgan.

Highest bids:

• Kamchatka;
• Sakhalin Region;
• Chukotka and surrounding regions;
• Kuril Islands;
• Yakutia;
• lands adjacent to the Arctic Ocean.

Calculation of wages in the presence of a coefficient is quite simple. You need to multiply by it the amount of income that was calculated before the deduction of personal income tax.

Only lump sum payments cannot be increased,for example, sick leave payments, financial assistance, travel allowance and other payments that are one-time payments.

Payroll on vacation

The system for calculating the amount that employees are en titled to when they go on a well-deserved rest for 28 (or more) days has been established for a long time. In 2018, no new rules for calculating vacation pay were adopted. As before, this process is regulated by Article 139 of the Labor Code of the Russian Federation.

The formula for calculating wages in case of leave is as follows:

O=WS per dayH, where: O- the amount of vacation pay, tr, SZ per day - the amount of earnings per day, tr., N - the number of vacation days, days.

When calculating vacation pay, as before, you need to take into account all the income of the worker, which are associated with the wage system. In other words, salary, benefits, bonuses and allowances.

Example.

Consider the case where an employee worked all 12 months in the billing period.

Petrova O. P. applied for leave from March 1 to March 28, 2018.

Her salary is 45,000 rubles, the monthly bonus is 5,000 rubles.

Determine the billing period: from March 1, 2017 to February 28, 2018.

Calculate the average income:

(45,000 + 5,000) x 12/12=50,000 rubles.

Calculate holiday pay:

50,000 / 29, 3 x 28=47,781.51 rubles.

In Petrova's hands, the vacation pay minus income tax will be 41,569.97 rubles.

Payment for holidays and weekends

During shift work, exitpaid according to the tariff rate. It should be borne in mind that work on weekends and holidays is paid with an increase in the rate by 20 percent. The same applies to work at night - from 22:00 to 6:00.

Conclusion

The calculation of remuneration for work is done by an accountant on the basis of a number of documents. There are two main systems: piecework and temporary. The latter is the most popular, it is quite simple and is used in most industries. The payment of the due amount of income occurs 2 times a month in the form of an advance payment and the rest of the salary. It is also necessary to submit reports to regulatory authorities.