Structure of account 334 – payable to employees & how to account for account 334 (salary accounting, bonus accounting…) according to Circular 200 (with examples)
I. Content and structure of account 334 – Payables to employees
Account 334 is divided into 2 secondary accounts:
- Account 3341 – Wages payable to employees;
- Account 3348 – Payable to other employees.
| Structure of content of account 334 | |
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II. How to account for account 334 – Payable to employees
1. Calculate salary and allowances payable to employees
Debit account 241, 622, 623, 627, 641, 642: Total salary and allowances payable;
Credit account 334: Total salary and allowances payable.
2. Calculate bonuses payable to employees
➤ Determine the amount of bonus employees receive from the reward fund:
Debit account 3531: Bonus payable to employees;
Credit account 334: Bonuses payable to employees.
➤ When paying bonuses to employees:
Debit account 334: Bonus paid to employees;
Credit account 111, 112: Bonus paid to employees .
3. Calculate social insurance premiums for sickness, maternity, etc. to be paid to employees
When an employee is entitled to sick leave or maternity leave, the company must calculate the social insurance premium to be paid to the employee:
Debit account 3383: Amount entitled to benefits;
Credit account 334: Amount of benefit.
4. Calculate leave pay payable to employees
Every month, the accountant calculates (deducts) leave pay for employees:
Debit account 622, 623, 627, 641, 642: Leave salary;
Debit account 335: Vacation salary (if any deduction);
Credit account 334: Leave salary.
5. Amounts to be deducted from salary
➤ Unspent advance payment:
Debit account 334: Unspent advance payment;
Credit account 141: Unspent advance payment.
➤ Amount of compensation collected for property according to the handling decision:
Debit account 334: Compensation amount collected;
Credit account 138: Compensation amount collected.
➤ Deductions from social insurance, health insurance, unemployment insurance from employee’s salary:
Debit account 334: Total social insurance, health insurance, unemployment insurance that employees must pay;
Credit account 3383: Social insurance deducted from salary (8% x insurance participating salary);
Account 3384: Health insurance deducted from salary (1.5% x insurance participating salary);
Account 3386: Social insurance deducted from salary (1% x insurance participating salary).
6. Calculate personal income tax
Calculate the personal income tax that employees must pay to the state budget:
Debit account 334: Personal income tax payable;
Credit account 3335: Personal income tax payable.
7. Advance or actual salary payment
When employees advance wages or businesses pay wages to employees:
Debit account 334: Amount advanced or paid to employees;
Credit account 111, 112: Amount advanced or paid to employees.
8. Payment of payables
Other payables such as food, rent, phone, gas, tuition, etc.:
Debit account 334: Amount payable to employees;
Credit account 111, 112: Amount payable to employees.
9. Cases of paying salary or bonus to employees with products or goods
When a business pays salaries or rewards employees with products or goods, it must record revenue from the sale of goods, recording:
Debit account 334 – Amount of products and goods including tax;
Credit account 511 – Sales revenue;
Credit account 33311 – VAT payable.
III. Frequently asked questions about accounting for account 334 – Payable to employees
1. On what basis does the company calculate salaries, allowances and salary deductions for employees?
Every month, the payroll accountant will prepare a payroll to calculate salary, allowances and salary deductions based on:
- Labor contract;
- Employee timesheet;
- Company salary, bonus and allowance regulations;
- Advances, social insurance, health insurance, unemployment insurance, personal income tax arising during the month.
2. In August 2022, the enterprise (according to Circular 200/2014/TT-BTC) incurred expenses for salaries, allowances and deductions from salaries in the sales department as follows: basic salary: 65,000,000 VND, responsibility allowance: 8,000,000 VND; during the month, cash salary advance for employees is 15,000,000 VND; personal income tax in the month incurred: 550,000 VND; in August, there is an employee entitled to maternity benefits: 36,000,000 VND, social insurance is paid through the company’s account; the company transfers payment for social insurance, health insurance, unemployment insurance, union fees and pays salaries in cash. So, how should the enterprise account for salaries?
Accounting as follows:
➧ Sales department staff salary:
Debit account 6411: 73,000,000 VND;
Credit account 3341: 73,000,000 VND.
➧ Cash salary advance for employees:
Debit account 3341: 15,000,000 VND;
Credit account 1111: 15,000,000 VND.
➧ Social insurance, health insurance, unemployment insurance, and union fees are included in company expenses:
Debit account 6421: 17,155,000 VND;
Credit account 3383: 73,000,000 x 17.5% = 12,775,000 VND;
Credit account 3384: 73,000,000 x 3% = 2,190,000 VND;
Credit account 3386: 73,000,000 x 1% = 730,000 VND;
Credit account 3382: 73,000,000 x 2% = 1,460,000 VND.
➧ Social insurance, health insurance, unemployment insurance, and union contributions deducted from employee salaries:
Debit account 3341: 7,665,000 VND;
Credit account 3383: 73,000,000 x 8% = 5,840,000 VND;
Credit account 3384: 73,000,000 x 1.5% = 1,095,000 VND;
Credit account 3386: 73,000,000 x 1% = 730,000 VND.
➧ Personal income tax incurred must be deducted from employee’s salary:
Debit account 3341: 550,000 VND;
Credit account 3335: 550,000 VND.
➧ Accounting for maternity benefits for employees:
Debit account 3383: 36,000,000 VND;
Credit account 3341: 36,000,000 VND.
➧ When the company receives employee maternity pay:
Debit account 1121: 36,000,000 VND;
Credit account 3383: 36,000,000 VND.
➧ The company pays the employee maternity pay in cash:
Debit account 3341: 36,000,000 VND;
Credit account 1111: 36,000,000 VND.
➧ Company transfers money to pay social insurance, health insurance, unemployment insurance, and union fees:
Debit account 3383: 18,615,000 VND;
Debit account 3384: 3,285,000 VND;
Debit account 3386: 1,460,000 VND;
Debit account 3382: 1,460,000 VND;
Credit account 1121: 24,820,000 VND.
➧ Paying salaries to employees after deducting salary deductions:
➝ Salary payable = 73,000,000 – 15,000,000 – 7,665,000 – 550,000 = 49,785,000 VND.
Debit account 3341: 49,785,000 VND;
Credit account 1111: 49,785,000 VND.