What should be the account of social security contributions borne by individuals

Withholding and payment of personal social insurance is included in the payable compensation - social security, or other receivables accounting.

Social insurance generally refers to pension, medical, work injury, unemployment, maternity insurance, according to the relevant provisions of the pension and medical insurance have a personal part of the burden, the rest for the enterprise.

Social security costs are actually payments made by the enterprise for its employees, which is a kind of employee compensation, so it should be accounted for by the account of employee compensation payable.

Withholding for social security actually means that the enterprise, in order to unify the payment of social security expenses, withholds money from individuals to pay together. There are two types of withholding and payment of individual social insurance business,

The first one is the social security of the employees within the enterprise, the individual part of the burden.

In this case, it is necessary to deduct from the employee's salary the part of the social security of the personal burden, at the same time, the enterprise undertakes to correspond to the enterprise part of the social security costs.

The accounting entries for social security in this case are:

1, the portion of the enterprise's burden

Borrow: administrative expenses (or production costs, selling expenses, etc., according to the employee's department to determine)

Loan: payable employee compensation - social security

2, from the employee's salary deduction of the part of the personal burden

Borrow: payable Employee Compensation - Wages

Loan: Employee Compensation Payable - Social Security

3. Payment of social security (personal burden plus the company's burden)

Borrow: Employee Compensation Payable - Social Security

Loan: Bank Deposits.

The second situation, that is, the so-called dependency approach, the enterprise does not bear the cost of social security, all borne by the individual, the monthly personal payment of the full amount of social security to the enterprise, the enterprise on behalf of the individual payment to the Social Security Administration. This situation is actually the individual and whether or not the enterprise employees have no relationship, so do not need to use the payable employee compensation subject to collect accounting, and other receivables (first payment after collection) or other payables (first payment and then payment) subject to collect accounting; account handling entries for:

1, received from the individual social security

Borrow: bank deposits (or cash on hand)

credit: other accounts payable - social security

2, payment

borrow: other accounts payable - social security

credit: bank deposits

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