In the debit of account 70 “Settlements with personnel for wages” are reflected:
a) paid amounts of remuneration, bonuses, allowances, pensions, etc., income from participation in the capital of the organization:
b) the amount of accrued taxes, payments under executive documents and other deductions from wages employees:
| Debit | Credit | |
| 68 "Calculations for taxes and fees" | withheld income tax individuals |
|
| 71 "Settlements with accountable persons" | unused and not returned in a timely manner accountable amounts withheld |
|
| 73 “Settlements with personnel on other transactions” (sub-account 73-1 “Settlements on loans granted”) | Amounts retained to repay loans |
|
| 73 "Settlements with personnel for other operations" (sub-account 73-2 "Calculations for compensation of material damage") | amounts were withheld in compensation for the material damage caused by the employee to the enterprise, including as a result of shortages and theft of monetary and inventory items, marriages made through the fault of the employee, etc. |
|
| 73 “Settlements with personnel for other operations” (sub-account 73-3 “Payments for uniform (special) clothes”) | withheld the amount of the cost of uniform (special) clothing |
|
| 76 “Settlements with different debtors and creditors” (sub-account “Settlements for goods sold on credit”), | amounts withheld to pay off the cost of goods sold on credit |
|
| 76 “Settlements with different debtors and creditors” (separate sub-account) | the sums directed at the personal application of the employee for the payment of trade union membership dues, alimony, etc. were withheld. |
|
| 91 "Other income and expenses" | withheld interest on borrowed funds |
c) amounts accrued but not paid within the established period (due to non-appearance of recipients) (deposited amounts):
The balance of account 70 “Settlements with personnel for wages” is credit. It shows the company's debt to employees for accrued wages (i.e., the total amount payable according to the estimated or payroll at the end of the month).
The debit balance of account 70 may, for example, pay an unscheduled advance against future earnings or when paying excess amounts(if overpaid).
Accounting for additional wages for vacation is carried out on passive account 89 “Reserves for future expenses and payments”, subaccount 1 “Reserve for vacation”.
Debitsch. 89/1 Credit
*) - Since the actual amount of the additional salary for the holiday should be included in the annual cost of production, then at the end of the year the planned amount of the reserve for the holiday is adjusted by the amount of its deviation from the actual amounts accrued for the holiday with a reversal entry or regular posting, therefore, account 89/1 does not have a balance at the end of the year, except for the amount of the reserve for vacation in the amount of debt on vacation pay to employees who did not use vacation in the reporting year.
Account 70 in accounting is intended to reflect settlement operations with employees of the enterprise. The amount of established wages (salary or piecework pay), as well as bonuses and other additional payments, are recorded on the account. The deduction of material damage is reflected in the debit of the account.
general characteristics
In order to immediately eliminate all questions about which account is 70, active or passive, we will analyze its structure. The remuneration of employees is a short-term accounts payable of the enterprise, and any accounts payable is a source of funds. In addition, account 70 has only a credit balance. Therefore, it is a passive synthetic account.
An account with a passive structure assumes the reflection of the crediting of funds on a loan, and the write-off - on a debit. At the end of the reporting period, the accountant will calculate the credit and debit turnovers and allocate the final balance. The value of the amount of wage obligations will be reflected in the financial statements of the enterprise.
Accounts analytical accounting open for each employee separately. For example, to reflect the remuneration for the work of an employee V.V. Sidorov will open 70.1 account. Additionally, for each employee, the accountant conducts:
- card tax accounting income of an individual;
- settlement sheet;
- document on settlements and payments;
- payroll.
Account 70 in accounting is used in the course of financial activities every organization.
Debit transactions 70
The 70th account corresponds in debit with the accounts:
- money accounting;
- accounting for settlement transactions (from 66 to 69 inclusive, 73, 76, 79);
- financial result (90, 91, 93, 94).
A debit transaction would mean a decrease accounts payable enterprises to the employee or withholding amounts for taxes and fees, material damage.
Credit transactions. 70
The entry indicating "credit account 70" characterizes the crediting of wages, vacation and social benefits. On credit, account 70 corresponds with the accounts:
- accounting for production costs (section III of the chart of accounts);
- accounting for finished products and goods (44);
- money accounting (50);
- accounting for social insurance contributions (69) and accounts 76, 77, 79;
- financial result of the enterprise (90, 91, 96.97);
- capital (84).
A transaction with an account credit of 70 will always mean an accrual Money employee, whether it be wages or incentive payments.
Accounting for deposited amounts
Funds not received by the employee from the cash desk of the enterprise in time are transferred to storage. The accountant carries out account assignment Dt 70 Kt 76 (subaccount "Depositors") indicating the deposited amount, after which the funds are transferred for storage to the bank. Additionally, the auditor issues an expense cash document.
The deposited salary is stored for 3 years, after which it can be written off to the organization's income (Dt 76 Kt 91).
Payment in kind
Some manufacturing enterprises can pay for labor with goods of their own production. This takes into account market price products, which includes VAT and tax on excisable goods. The following entries are made: Dt 70, Kt 90, 91. Next, the accountant reflects the cost of goods issued as wages. Withholding amounts for taxes and obligatory payments to the budget occurs in the same manner as in cash settlements.
Characteristics of deductions from wages
The administration has the right to deduct from the employee's monetary remuneration the amount of material damage or marriage that occurred through his fault. A financially responsible individual, according to the contract, pays the full or partial amount of the damage caused to the organization.
The full amount of expenses to be reimbursed in connection with the damage is imputed to the employee in the event that the liability agreement stipulates the obligation to fully repay the amount of material damage to the deposited object. In a particular case, responsible persons are cashiers, head. warehouse and storerooms, as well as all those who accept money from buyers and other persons without the participation of the cashier.
Partial repayment of the amount of material damage implies reimbursement of funds within a predetermined limit (for example, not higher than the average monthly salary). The amount is calculated based on the actual losses of the enterprise according to the data accounting.
An example of reflection of the retention process
Consider the situation in the organization with the onset of liability for work:
It was established that an employee disabled a device with a book value of 7000 rubles, the amount of accumulated depreciation was 1600 rubles. It is necessary to reimburse 5400 r.
The amount to be deducted from the employee's wages reflects account 70 (debit) and account credit 73.3. If the debt is repaid through the cash desk, account 70 is not used.
The accountant will record the transaction with the following entries:
- Dt 73.3 Kt 94 - 5400 r. - the amount of material damage attributed to the employee of the organization.
- Dt 70 Kt 73.3 - 5400 r. - the amount is deducted from the remuneration for the work of the employee.
- Dt 94 Kt 91 - 5400 r. - the amount of the loss has been recovered.
If the employee repaid the debt through the cash desk, instead of the second posting, an entry is made: Dt 50 Kt 73.3.
Withholding amounts for marriage
Marriage, depending on the severity of defects, is divided into correctable and irreparable. A repairable marriage entails the costs of the enterprise for repair work, which the employee will reimburse. If the defect is irreparable, the amount of compensation for damage is the sum of the costs of manufacturing defective products minus the benefits received after the liquidation.
Payment of expenses in connection with an irreparable marriage is made on the basis of the difference between the debit and credit turnover of account 28. The identified total amount of losses from the marriage is recorded in the debit of the account. 70.
personal income tax
Personal income tax is a mandatory payment to the budget, deducted from the amount of remuneration for the work of an employee. Tax policy allows you to apply tax deductions on the certain income employee:
- the amount of minimum income that is not taxed;
- deductions based on social status, charity;
- professional deductions;
- property deductions.
The tax rate for most taxpayers in 2016 remains the same - 13%. The accrual of personal income tax is reflected in the correspondence: Dt 70 "Settlements with employees for wages" Kt 68 (subaccount "personal income tax").
postings
Account 70 in accounting characterizes many transactions. Consider the main postings on account 70:
| Dt | ct | Amount, r. | Operation description |
| 20 | 70 | 10000 | salary paid: personnel employed in the main production; personnel employed in auxiliary production; administrative staff; general production personnel; workers selling goods; OS liquidation workers. |
| 84 | 70 | 3000 | paid dividends to staff members |
| 70 | 50 | 5000 | paid salary from the cash register |
| 70 | 51 | 9000 | the amount of remuneration for work is transferred to the bank account of the employee |
| 70 | 68 | 800 | withheld by personal income tax |
| 70 | 73.3 | 2000 | the amount of material damage withheld |
| 70 | 76 | 3000 | child support deducted from salary |
| 69.1 | 70 | 1200 | sick leave amount |
| 96 | 70 | 7000 | holiday pay accrued |
| 70 | 28 | 1400 | withheld the amount for defective products |
| 70 | 69.2 | 900 | contributions made to PF |
Account 70 in accounting combines many operations carried out by the company on a monthly basis. At the end of the reporting period, the auditor calculates the credit balance and refers it to the balance sheet liability item. The balance reflected on the account indicates that the company has accounts payable to employees. It is important to keep track of wage obligations correctly, because account 70 in accounting also reflects the accrual of payments to the budget.
Synthetic accounting of payroll calculations.
Synthetic accounting of settlements with personnel for wages, as well as for the payment of income on shares and other securities conducted on account 70 “Settlements with personnel for wages” (P).
Features of the balance sheet for account 70
The credit of account 70 reflects ANY accrual in favor of the employee (accrued wages (basic and additional), income from securities, dividends).
The debit of account 70 reflects:
a) deductions from accrued wages;
b) actually paid wages;
c) wages accrued but not paid on time.
The credit balance of the account shows the obligations (debt) of the enterprise to employees for wages. Analytical accounting on account 70 is conducted for each employee of the enterprise.
Accrued wages are one of the elements of costs (costs, prime cost) for the enterprise, therefore, simultaneously with the calculation of wages (on the credit of account 70), its amount is recorded in the debit of accounts that take into account the formation of costs. When choosing a corresponding account, they proceed from the department in which the employee works and what work he performs. For instance:
D 20 (23, 29) - wages were accrued to employees of the main (auxiliary,
K 70 service) production
D 26 - wages to management personnel are accrued
D 44 - wages were accrued to employees employed in the process of selling products
Wages of employees of non-production divisions of the enterprise (houses of culture, kindergarten, sanatorium, etc.), that is, non-industrial personnel, is attributed to other expenses of the enterprise or paid out of retained earnings:
D 91 (84) - wages were accrued to employees of non-production divisions
Extraordinary expenses include the wages of workers who eliminate the consequences of emergencies(fire, flood, etc.):
D 91 - wages were accrued to employees who eliminate the consequences
K 70 emergencies
Payroll deductions are:
mandatory (for example, administrative fines, alimony);
- at the initiative of the enterprise (for example, personal income tax);
- at the request of the employee (for example, the return of borrowed funds and interest on the loan).
Withheld amounts are posted to the debit of account 70.
For instance,
D 70 - personal income tax (PIT) withheld from accrued wages
D 70 - the amount of material damage is deducted from the employee's salary
D 70 - the amount of alimony was withheld from the salary
D 70 - the amount of the loan and interest on the loan was deducted from the salary
According to the Labor Code of the Russian Federation, the total amount of all deductions for each payment of wages cannot exceed 20 percent of the wages due for issue (that is, for deduction of personal income tax). In some cases, deductions reach 50 percent (if deductions are made under several executive documents) and 70 percent (if the damage caused by the crime is compensated).
Red balance on account 70
sch. 70 “Settlements with personnel for remuneration” applies legal entities to display information about the settlements made with the employees of the organization in terms of remuneration for their labor activity.
Account 70 in accounting is intended to summarize information on settlements with personnel in terms of remuneration for their work. Displayed here:
- Amounts of accrued and issued wages, vacation pay, bonuses, one-time payments
- Accrued social benefits (for example, for temporary disability)
- Dividends paid to founders who are employees from their participation in the capital of the organization.
- Withholding taxes and other amounts (for example, alimony according to the writ of execution).
70 accounting account is passive. The debit displays the amounts actually issued or transferred to the cards, the credit shows the accrual.
Should be borne in mind! According to the current legislation, the organization must make payments to employees at least every half a month.
If the employee has not received wages within 3 appointed days (for example, due to absence, illness, vacation), the amount accrued for issuance is deposited, the money is transferred to the organization's servicing bank. The deposit is displayed on the debit of account 70 (in correspondence with account 76).
Analytical monitoring
The Labor Code clearly regulates the procedure for settlements with personnel for their remuneration, therefore, for an in-depth analysis of mutual settlements, movements on account 70 are displayed separately for each employee.
Should be borne in mind! OSV account 70 for employees of the organization must match the pay slips, the amounts of the transferred personal income tax are checked against the certificate of settlements with the Federal Tax Service.
Regulatory regulation
The use of account 70 for information on mutual settlements with employees of the organization in terms of wages, vacation pay, sick leave and other payments is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, the Labor Code of the Russian Federation and other legislative documents.
70 account - common postings in accounting
- Payroll
Dt20 Kt70 - for employees of the main production
Dt23 Kt70 - auxiliary production
Dt26 Kt70 - an employee of the administrative department
- Accrual of social benefits (for example, sick leave)
- Dividends paid to founders-employees of the company
- accrual vacation pay at the expense of the created reserve for holidays
- Issuance of wages and other payments
Dt70 Kt50 - from the cash desk according to payroll
Dt70 Kt51,52,55 - amounts transferred through settlement accounts
Attention! According to the legislation, payments to cards can be made both according to the general register of the salary project in a certain bank, and to cards of any other bank at the request of the employee.
- Holds
Dt70 Kt68 - personal income tax withheld, transferred to the Federal Tax Service Inspectorate by a tax agent organization
Dt70 Kt76 - withholding alimony
- Depositing funds
Natalya Vasilyeva, 2017-03-28
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Related reference materials
How is the balance sheet for account 70 formed?
Score 63 in balance sheet is not reflected.
Accounting with suppliers and contractors
TO suppliers and contractors include organizations that supply raw materials, materials and other goods and materials, as well as provide various services (supply of electricity, water, gas, communication services, etc.) and perform various work (current or overhaul OS). For accounting of settlements with suppliers and contractors is used active-passive account 60 "SETTLEMENTS WITH SUPPLIERS AND CONTRACTORS", the account has an expanded balance.
Sn Dt means the debt of suppliers and contractors to the organization for previously received advances.
Sn Kt reflects the organization's debt to suppliers and contractors on unpaid invoices.
Turnover by Dt account 60 reflects the repayment of debts to suppliers for previously delivered goods, works, services or advances transferred in the current month.
Turnover by CT account 60 reflects the emergence of a new debt to suppliers and contractors for the goods received, work performed, services rendered or the offset of the previously transferred advance payment in settlements with suppliers
at Thu settlements with personnel for wages and other operations
According to CT account 70 reflects accruals on wages, benefits at the expense of funds social insurance, dividends and other similar amounts.
By Dt account 70 reflects deductions from the accrued amount of wages and incomes, paid amounts of wages, bonuses, benefits and other deductions.
Balance Kt on account 70 shows the organization's debt to employees for accrued, but not issued wages.
Salary accrual
Withhold from salary
Accounting for the cost of production of GP
Cost accounting for the production of GP.
Organizations keep records of production costs according to one of the possible schemes, which should be recorded in accounting policy and is not prohibited by industry guidelines and tax laws.1. The traditional accounting option provides for the calculation of the total cost of products (works, services) with the division of costs into direct and indirect. Actual costs are taken into account on the active account 20 "Main production", reflected in its Dt in correspondence with accounts 02, 10, 70, 69, 60, etc. In addition, accounts 21, 23, 25, 26, 28 can be preliminarily involved. At the same time, the costs of auxiliary production are first collected according to Dt of account 23 "Auxiliary production", indirect expenses - according to the debit of accounts 25 "General production expenses" and 26 " General running costs", losses from marriage - account 28 "Marriage in production", from where they are transferred to account 20 "Main production". The actual production cost of finished products, work performed, services rendered in correspondence with accounts 43 " Finished products"(when delivering products to a warehouse), 45 "Goods shipped" (in the case of shipment of products to the buyer directly from production, the proceeds from the sale of which cannot be recognized in accounting until a certain point), 90 "Sales" (when selling products, works straight from production).
Financial and economic activities of organizations in accordance with Order of October 31, 2000 N 94n
Account 70 “Settlements with personnel for wages” is intended to summarize information on settlements with employees of the organization for wages (for all types of wages, bonuses, benefits, pensions for working pensioners and other payments), as well as for the payment of income from shares and other securities of this organization.
By credit account 70“Settlements with personnel for remuneration” reflects the amounts:
- wages due to employees - in correspondence with the accounts of production costs (sales expenses) and other sources;
- wages accrued at the expense of the reserve formed in accordance with the established procedure for paying holidays to employees and the reserve of remuneration for length of service paid once a year - in correspondence with account 96 "Reserves for future expenses";
- accrued benefits for social insurance of pensions and other similar amounts - in correspondence with account 69 "Calculations for social insurance and security";
- accrued income from participation in the capital of the organization, etc. - in correspondence with the account 84 " Undestributed profits(uncovered loss)".
Debit account 70“Settlements with personnel for remuneration” reflects the paid amounts of remuneration, bonuses, benefits, pensions, etc., income from participation in the capital of the organization, as well as the amount of accrued taxes, payments under executive documents and other deductions.
Amounts accrued but not paid on time (due to non-appearance of recipients) are reflected in the debit of account 70 “Settlements with personnel for wages” and the credit of account 76 “Settlements with various debtors and creditors” (sub-account “Settlements on deposited amounts”) .
Analytical accounting on account 70 “Settlements with personnel for wages” is conducted for each employee of the organization.
Typical postings on account 70
By account debit
Debit Credit Salary paid from the cash desk of the organization 70 50 Salary transferred from current account 70 51 Salary transferred from foreign currency account 70 52 Salary transferred from a special bank account 70 55 Personal income tax withheld from salary 70 68 The debt of employees on vouchers at the expense of social insurance funds is reflected 70 69-1 Accountable amounts issued to the employee are offset against wages 70 71 The amount of property damage deducted from the salary 70 73-2 Personal insurance payments deducted from salary 70 76-1 Salary not received on time 70 76-4 The accrued salary of an employee transferred to a branch allocated to a separate balance sheet was written off (entry in the accounting of the head office) 70 79-2 Written off the accrued salary of an employee transferred to the head office (posting in the accounting of the branch) 70 79-2 Withheld from the salary the amount of shortage in excess of the norms of natural attrition 70 94 Withheld from the salary amounts issued under the report and not returned within the prescribed period 70 94 By account credit
Content of a business transaction Debit Credit Wages accrued to employees engaged in construction or acquisition of non-current assets 08 70 Salary paid to workers employed in the main production 20 70 Salary paid to workers employed in auxiliary production 23 70 Salary paid to workers involved in production maintenance 25 70 The salary of employees employed in the management of the organization is accrued 26 70 Salary paid to workers involved in the correction of marriage 28 70 Salary paid to workers employed in service production 29 70 Sales employees paid 44 70 Social benefits accrued at the expense of the FSS (sick leave, etc.) 69 70 Payments due from other organizations accrued 76 70 The salary of an employee transferred from a branch allocated to a separate balance sheet has been taken into account (entry in the accounting of the head office) 79-2 70 The salary of an employee transferred from the head office has been taken into account (entry in the accounting of the branch) 79-2 70 Dividends accrued to founders who are employees of the organization 84 70 Wages accrued to employees engaged in obtaining other income or working in non-production divisions of the organization (kindergartens, rest homes) 91-2 70 Salary was accrued to employees who eliminated the consequences of emergency situations (earthquake, flood, fire, etc.) 91-2 70 Salary accrued at the expense of a previously created reserve 96 70 Wages accrued to employees engaged in the performance of work, the costs of which are taken into account in deferred expenses 97 70
In their activities, business entities use the labor of employees hired under labor agreements. For the performance of their labor functions, the management of the company or the entrepreneur must pay appropriate remuneration. Account 70 in accounting is used to account for settlements with personnel on salaries.
Account 70 “settlements with personnel for remuneration” is used according to the Chart of Accounts to reflect on it all payroll calculations for both employees who carry out activities under labor contracts, and under work contracts and the provision of services with individuals.
This account accumulates information on payroll in all its constituent parts:
- salary payment;
- premiums;
- surcharges;
- holidays;
- compensation;
- payment of benefits and material assistance, etc.
With the help of this information, the administration can make the necessary decisions on labor costs. This account summarizes the salary of employees in general for all departments of the company. On the other hand, depending on the offsetting account, you can set labor costs for each structural unit.
This reflects information about the presence of existing debts of both the employee for the overpaid salary, and the enterprise itself for wages that were not issued on time.
Attention! Account 70 also reflects settlements with the founders, who are also employees of the company, for the dividends accrued to them.
Account characteristic
Account 70 is used to account for payroll calculations. When asked which account 70 is active or passive, you can unequivocally answer that this is an active-passive account.
Depending on the situation, he can have two balances at once. The debit balance reflects the debt of persons working at the enterprise for the amount paid to them by the enterprise. The balance on the loan, on the contrary, reflects the debt of the employer to the employees working in the company.
When determining the final balance of an account, it matters which side the balance is on. If by debit, then the debit turnover reflects an increase in debt, and its credit repayment.
The opening balance is added to the debit turnover, after which the result must be compared with the credit. If the final value of the difference with the turnover on the loan is positive, then the final balance is debit.
When the initial balance of account 70 is in credit, the increase in debt is reflected on the credit side, and its repayment on the debit side. If the difference between the amount of the opening balance and the credit turnover of an account with a debit turnover is positive, then the closing balance is in credit. Otherwise, at the end of the period, a debit balance of account 70 is obtained.
Attention! The turnover sheet for account 70 can reflect two balances at once. This is due to the fact that sub-accounts inside it can be either debit or credit, and a synthetic account can have a folded double balance.