Is the salary of a regular employee in the canteen a welfare expense or a salary expense ?

Mondo Social Updated on 2024-01-28

If you think it's a payroll expense, you're wrong!Let's take a look at the correct answer!

The salary of a regular employee of the canteen

Welfare expenses or salary expenses

This issue needs to be looked at separately from an accounting perspective and a tax perspective.

1. Accounting perspective

Let's take a look at the two document provisions first:

The Interpretation of the Application Guide of Accounting Standard No. 9 – Employee Remuneration stipulates that:

As explained in this application note,:The wages, bonuses, subsidies, etc. paid to the regular employees of the canteen must belong to the "employee wages".

However, according to the provisions of the Notice of the Ministry of Finance on Strengthening the Financial Management of Employee Welfare Expenses by Enterprises (Cai Qi (2009) No. 242):

Therefore,In terms of accounting, the wages of employees in the staff canteen need to be accounted for as both wages and benefits.

The corresponding accounting treatment is as follows:

1. Accrual of canteen staff salaries:

Borrow: Management Expenses - Welfare Expenses.

Credit: Employee Compensation Payable - Wages.

2. Pay the wages of canteen personnel:

Borrow: Employee remuneration payable - wages.

Credit: Bank deposits.

Tax payable - personal income tax.

Employee remuneration payable - three insurances and one housing fund for the individual part.

Reminder: For the wages of staff canteen personnel, it is also the base for calculating trade union funds and employee education expenses.

2. Tax perspective

Regulations for the Implementation of the Enterprise Income Tax Law stipulates:

Reasonable wage and salary expenses incurred by the enterprise are allowed to be deducted. The term "wages and salaries" as used in the preceding paragraph refers to all cash or non-cash labor remuneration paid by an enterprise to its employees in each tax year, including basic salary, bonuses, allowances, subsidies, year-end salary increases, overtime wages, and other expenses related to employees' positions or employment. ”

Therefore, the wages of canteen employees are also reasonable wages and salaries of the enterprise, which can definitely be deducted before tax, but because they are included in the "management expenses - welfare expenses" when they are accrued, they directly enter the profit and loss of the tax year, as well as the "employee welfare expenses", "employee education expenses" and "trade union expenses" and other limit deduction calculation basesWhen filling in the tax return for the final settlement of enterprise income tax, the "salary" and "welfare expenses" of the "A105050 Employee Salary Expenses and Tax Adjustment Schedule" need to be filled in.

Classification and accounting treatment of canteen accounting

1. Classification of canteen accounting

Category 1: Non-operating internal canteens, which are included in enterprise income tax.

Regardless of whether the enterprise canteen is a non-business activity or provides free meals for employees, the expenses need to be calculated and paid by the company and all included in the remuneration payable to employees to deduct the enterprise income tax.

Category 2: Canteens that are restricted from profit and enjoy the exemption policy.

Canteens of primary and secondary schools and colleges and universities enjoy state subsidies and canteens are exempt from value-added tax. In particular, the canteens of primary and secondary schools are strictly limited in various localities. (Generally limited to between 10% and 30% of the food expenses) in this part of the canteen, although the first responsible person is a public institution personnel, (generally the principal) but the bookkeeping is in accordance with the accounting standards of the enterprise bookkeeping, and the audit is also relatively strict.

The third category: general catering canteens.

There is no difference from ordinary restaurant bookkeeping, and although some of them are in colleges and universities, they do not belong to the scope of school canteens. Generally, it is levied on a regular basis, and it is also necessary to keep accounts.

2. Accounting entries

The goods purchased by the canteen purchaser on the day are paid by bank transfer and put into the warehouse first.

Borrow: raw materials - edible oils.

Grains. - Spices.

Meat dishes. — vegetables.

Meals. Credit: Bank deposits.

2.Because the gas of the canteen is a necessary cost for production, it is also calculated according to the raw materials when it is listed, and if it is prepaid through pre-recharge, it is directly included in the raw materials.

Borrow: raw material - gas.

Credit: Cash Other Payables (Personal Advances).

3.The purchaser applies for the purchase reserve.

Debit: Other receivables - xx purchase reserve.

Credit: Cash Bank Deposits.

4.The pre-sale card charging fee is charged to other payables, not to pre-receivables. Because the customer did not make an appointment for consumption, or scheduled consumption, but only recharged the card. If there is a cash rebate on the card, it will be included in the sales fee.

Borrow: Cash. Credit: Other payables.

There is cashback on card charging.

Borrow: Selling expenses.

Credit: Prepaid Accounts - XX Recharge Cashback.

5.Pre-sale cash or Alipay - WeChat transfer to the bank.

Borrow: Bank deposit.

Credit: Cash Other monetary funds - Alipay (WeChat).

6.Supplies consumed on the day.

Borrow: Cost of main business.

Credit: raw materials.

7.Acquisition of fixed assets (refrigerators, stoves, etc.).

Borrow: Fixed assets.

Tax payable - VAT payable (input tax) (not used for small scale, directly incorporated into fixed assets for small scale).

Credit: Bank deposits.

8.Calculation of employee compensation.

Accrual. Borrow: Cost of main business.

Credit: Employee Remuneration Payable - Basic Salary Social Security Benefits.

Issue. Borrow: Employee remuneration payable.

Credit: Bank deposits.

9.Pay the canteen utility bill for the month in cash.

Borrow: the cost of main business - water and electricity bills.

Credit: Bank deposits.

10.Depreciation of fixed assets.

Borrow: Cost of main business.

Credit: Accumulated depreciation.

11.Meals are charged.

Borrow: Cash, Bank Deposits, Accounts Payable (for prepaid card purchases).

Credit: main business income.

12.Calculate the profit.

Borrow: main business income.

Credit: Profit for the year.

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

A few reminders about the entry of food and beverage invoices

1. Catering invoices can be included in "business entertainment expenses".

Business entertainment expenses refer to the entertainment expenses paid by enterprises for the needs of operating business, also known as social entertainment expenses, mainly including catering, cigarettes, water, food, normal entertainment activities, etc., as well as business negotiations, product promotion, external liaison, public relations exchanges, conference reception, guest reception, etc., such as entertainment meals, entertainment tobacco and tea, transportation expenses, etc.

2. Catering invoices can be included in the "employee welfare expenses".

According to the notice of the State Administration of Taxation on the deduction of wages and salaries and employee welfare expenses of enterprises (Guo Shui Han 2009 No. 3), it is stipulated that: "3. Regarding the deduction of employee welfare expenses, the employee welfare expenses stipulated in Article 40 of the "Implementation Regulations" include the following:

1) The equipment, facilities and personnel expenses incurred by the welfare departments within the enterprises that have not yet implemented the separation of social functions, including the equipment, facilities and maintenance costs of the collective welfare departments such as staff canteens, staff bathrooms, barber rooms, infirmaries, nursery schools, and nursing homes, as well as the wages and salaries, social insurance premiums, housing provident funds, and labor expenses of the staff of the welfare departments.

2) Various subsidies and non-monetary benefits issued for employees' health care, living, housing, transportation, etc., including medical expenses issued by enterprises to employees for medical treatment in other places for official purposes, medical expenses for employees of enterprises that have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, subsidies for employees' difficulties, relief expenses, subsidies for staff canteens, and transportation subsidies for employees.

3) Other employee welfare expenses incurred in accordance with other provisions, including funeral subsidies, bereavement allowances, settling-in allowances, travel expenses for family leave, etc. ”

In addition to the above, it should be included in the employee welfare expenses. In the daily practice of enterprises, it often happens that employees have dinners during the New Year's holidays, and all the people participating in catering activities are employees of the enterprise. In addition, there are employees who work in the field or work overtime, etc., because it is inconvenient for employees to eat, the company provides working meals to employees. should be included in the benefit fee. This is for employees, not outsiders. Expenses for outsiders are included in the entertainment expenses.

3. Catering invoices can be included in "travel expenses".

Some enterprises have cash subsidies for employees on business trips, and some enterprises are reimbursed according to the catering invoices incurred during the employees' business trips. The catering invoices during the employee's business trip should be reasonably divided: if the employee goes to the banquet with the enterprise task during the business trip, etc., the catering invoice should still be included in the "business entertainment expenses";If it is the consumption within the subsidy standard during the employee's personal business trip, it should be included in the "travel expenses".

As for whether the business trip subsidy must provide invoices, the national policy is not uniform. The Beijing Municipal Local Taxation Bureau clearly requires that the business trip subsidy must provide an invoice, otherwise the part of the subsidy without a ticket will be included in the salary for the calculation of individual income tax. The Guangxi District Local Taxation Bureau has made it clear that as long as the business trip subsidy is within a reasonable range, it can be subsidized without a ticket. Therefore, companies need to understand the policies in their region on this.

4. Catering invoices can be included in the "conference fee".

Enterprises often hold various meetings and invite some customers, businessmen, and employees to participate. As a conference fee, it must include transportation, accommodation, meals, etc. incurred for the conference, so there will be a meal invoice in the conference fee. There is no problem with pre-tax deductions, but in general, you will be asked to provide documents related to the meeting, such as meeting notices and conference sign-in books, which can prove the authenticity of the conference fee. Such as meeting notice (including content: meeting time, meeting arrangement, meeting content, meeting standards, etc.), meeting minutes and other materials.

5. Is there any need to pay individual income tax for meal allowance?

1) Circumstances in which individual income tax is not required to be withheld:

If an employee works in an urban or suburban area on business and cannot eat at the workplace or return, the individual income tax shall not be withheld for the meal allowance received according to the actual number of missed meals and the prescribed standardEmployees who spend meals and working meals on business trips will receive travel allowance within the standard and will not be subject to individual income tax. There is no specific standard for this standard, and the enterprise itself formulates the travel expense subsidy standard according to the situation of the enterprise.

2) Circumstances that require withholding of individual income tax:

Except for the tax-exempt situation where the meal subsidy is directly paid to employees, individual income tax shall be calculated and paid according to the income from wages and salaries.

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