Accounting account 70 “Settlements with personnel for wages”

The formation of a balance sheet for account 70 in the accounting of an organization makes it possible to quickly monitor:

• the amount of accrued wages separately for each employee;
• the amount of accrued benefits (for example, payment of sick leave);
• the amount of dividends accrued to the founders who are employees of the company;
• withheld amounts of taxes, as well as payments under writs of execution;
• settlements made with employees regarding the accrual amounts paid.

The balance sheet of account 70 allows for operational monitoring of the company’s mutual settlements with its employees. The report is generated for a selected arbitrary time interval and shows the amounts of accrued amounts, as well as issued funds separately for each individual. For a more detailed analysis, it is possible to generate a table highlighting the types of wage accruals.

In the accounting of an organization, all settlements with employees regarding payment for their work activities are displayed on the account. This account is passive: the debit shows the actual amounts of funds issued, the credit of the account shows the calculation of wages and benefits, bonuses. The data is entered on the basis of salary registers in correspondence with the corresponding cash accounts for the payment of amounts (,), as well as with accounts for the cost of paying staff (, , etc.). The amount of tax withheld from a company employee in correspondence with the account is reflected separately (a separate sub-account 68.01 is opened to monitor the company’s settlements with the budget as a tax agent).

Note from the author! According to current legislation, an employee has the right to receive wages on a bank card of any bank by submitting a corresponding application.

Information is generated for each employee of the company, so opening additional sub-accounts is not provided.

Scope of application

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.

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

Formation of OSV 70 account in 1C

When maintaining accounting records in specialized 1C software products, it is possible to generate a detailed statement that will display all types of accruals for the payment of funds to the company’s personnel in terms of payment for their work activities. The final amounts of the statement show the amount of the formed wage fund and its changes.

The period for the formation of the balance sheet for settlements with personnel in terms of accrual and payment of wages is determined in an arbitrary interval depending on the purposes of monitoring (from one business day to several years), but, as a rule, it is formed monthly to control calculations and verify the correctness of maintenance accounting.

The procedure for creating a report in 1C:

• In the menu, select Reports – Account balance sheet;
• Determine the period of interest and select the account for which the report will be generated;
• Select report detailing: general changes in payroll, report in the context of settlements with each employee separately, settlements with personnel in the context of types of accruals (vacation, salary calculation, one-time bonuses, etc.);
• Create a statement and analyze the results.

Something to keep in mind! The SALT data for account 70 must fully correspond to the pay slips issued to employees monthly. The amount of taxes accrued for withholding on personal income is verified with a certificate of settlements made with the budget.

General description of the balance sheet for account 70

This register groups information about balances at the beginning and end of the period, turnover for the reporting period in account 70 “Settlements with personnel for wages”. Data in the statement must be disclosed for each employee. The procedure for recording transactions on account 70 is regulated by Section VI of the Order of the Ministry of Finance of the Russian Federation “On approval of the chart of accounts for accounting…” dated October 31, 2000 No. 94n:

* The “Salary Deposit” operation is becoming less and less common these days. 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.

As of November 30, 2020, the Bank of Russia’s directive No. 5587-U dated October 5, 2020 eliminated the rule about reflecting in the payroll the deposit of unpaid wages on time.

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 its accrual, for example, in the event of an erroneous transfer to a salary account.

Results

SALT for account 70 is one of the possible registers for grouping data on settlements with employees. The data from this report is used to generate financial statements. Balance sheet according to the account. 70 provides information on accrued and paid wages and balances as of reporting dates for each employee of the organization. In order to obtain more detailed information on settlements with personnel, it is necessary to use other forms of accounting registers.

The formation of a balance sheet for account 70 in the accounting of an organization makes it possible to quickly monitor:

• the amount of accrued wages separately for each employee;
• the amount of accrued benefits (for example, payment of sick leave);
• the amount of dividends accrued to the founders who are employees of the company;
• withheld amounts of taxes, as well as payments under writs of execution;
• settlements made with employees regarding the accrual amounts paid.

The balance sheet of account 70 allows for operational monitoring of the company’s mutual settlements with its employees. The report is generated for a selected arbitrary time interval and shows the amounts of accrued amounts, as well as issued funds separately for each individual. For a more detailed analysis, it is possible to generate a table highlighting the types of wage accruals.

In the organization’s accounting, all settlements with employees regarding payment for their work activities are displayed on account 70. This account is passive: the debit shows the actual amounts of money issued, the credit of the account shows the calculation of wages and benefits, bonuses. The data is entered on the basis of salary registers in correspondence with the corresponding cash accounts for the payment of amounts (50.51), as well as with accounts for the cost of paying staff (20, 23, 44, etc.). The amount of tax withheld from a company employee in correspondence with account 68 is reflected separately (a separate sub-account 68.01 is opened to monitor the company’s settlements with the budget as a tax agent).

Note from the author! According to current legislation, an employee has the right to receive wages on a bank card of any bank by submitting a corresponding application.

Information is generated for each employee of the company, so opening additional sub-accounts is not provided.

Accrued wages: posting

The accrual of wages to employees is reflected in the debit of the cost accounting accounts and other sources and the credit of account 70. The debit account in the specified correspondence will depend on to whom and for what the wages are accrued.

For example, wages are accrued to workers in the main production: posting Debit account 20 “Main production” - Credit account 70.

In addition to the debit of account 20, the following accounts may participate in payroll transactions:

• 23 “Auxiliary production”;
• 25 “General production expenses”;
• 26 “General business expenses”, etc.

Trade organizations keeping payroll records will take into account the accrual of wages in the debit of account 44 “Sales expenses”.

The accrual of vacation pay from the previously created reserve is reflected in the debit of account 96 “Reserves for future expenses.”

Case Study

Limited Liability Company "Shkatulka" makes settlements with staff for wages on the 25th and 10th of each month. At the beginning of the month, the organization had arrears in paying wages for August, which was paid in full in cash on September 10. In September 2021, employees were accrued the following amounts:

Antonova Maria Sergeevna: 45 thousand rubles;

Ivanov Ivan Mikhailovich: 15 thousand rubles;

Petrov Sergey Yurievich: 20 thousand rubles.

Accounting entries for business transactions:

1. Payment of wages for August Dt70 (Antonova) Kt50 – 35 thousand rubles. Dt70 (Ivanov) Kt 50 – 10 thousand rubles. Dt70 (Petrov) Kt50 – 15 thousand rubles.
2. Advance payment for September Dt70 (Antonova) Kt50 – 10 thousand rubles. Dt70 (Ivanov) Kt 50 – 5 thousand rubles. Dt70 (Petrov) Kt50 – 5 thousand rubles.
3. Payroll for September Dt44 Kt70 (Antonova) - 45 thousand rubles. Dt44 Kt70 (Ivanov) – 15 thousand rubles. Dt44 Kt70 (Petrov) – 20 thousand rubles.
4. Withholding tax on personal income of Shkatulka LLC as a tax agent. Dt70 (Antonova) Kt68.01 Dt70 (Ivanov) Kt 68.01 Dt70 (Petrov) Kt68.01

Balance sheet for account 70 for September 2021

Output data: BU (accounting data)

The debt of Shkatulka LLC to its employees amounted to 60 thousand rubles. This amount will be issued on the day specified for wages - October 10.

What is Deposited Salary?

There are situations when the salary was accrued, but the employee was not given it on time due to his absence. Now this is rare, since most people receive their salary on a bank card, but such situations do happen. The reasons why an employee was unable to collect his salary from the cash register on time are different, for example, he was admitted to the hospital and he was unable to appear at the organization’s cash desk.

In this case it

salary is deposited

, that is, they reflect it not received in the primary documents. To do this, do the wiring:

Dt 70 Kt 76. Settlements on deposited amounts

When the employee receives the deposited salary, the following posting is made:

Dt 76 Kt 50

Salaries are deposited for up to 3 years. If during this time the employee does not show up for it, then it is subject to inclusion in the company’s income.

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.

Example of business transactions

To better understand what transactions can be made using account 70, you should familiarize yourself with several examples.

Calculation of wages for personnel in the 1C system

You can correctly calculate your salary in the 1C: Salary and Personnel program if you follow a certain sequence of arrangement of all the required data in the information base. The calculation results are entered into the payroll sheet. Some organizations issue wages using cash receipts issued for each worker. To avoid mistakes, users of the 1C system are recommended to calculate all the numbers in the payslip and issue money according to the required documents.

To draw up a payslip in the 1C program, you need to open the “Reports” menu and select the appropriate item. The document can be compiled for the enterprise as a whole or for a specific division, as well as for a group of employees. The procedure for reflecting data in the pay slip:

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 “Directories” 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.
7. Column 15 sums it up.
8. Column No. 16 shows the company’s debt (employee’s debt) based on the results of previous calculations.
9. If there is a difference between the totals of columns No. 12 and No. 15, it is shown in column No. 18 “Amount to be paid.”

The article examined in detail account 70 “Settlements with employees for wages”. Knowing its features, young specialists will be able to correctly perform the required financial transactions.

Which accounts does account 70 correspond to?

Account 70 corresponds with many expense accounts. For convenience, we have collected everything in a table.