Kunpeng Project
Can benefits to employees be included in the payroll account?
Generally speaking, as an additional benefit provided by the company to the employee, it is independent of the basic salary. Benefits generally include, but are not limited to, bonuses, allowances, welfare vouchers, medical insurance, housing allowances, etc. In accounting, according to financial rules, benefits are generally not calculated into an employee's salary.
In particular, the inclusion of allowances in salaries raises the following questions:
1.Confusing employees: If the company takes benefits into account, employees will mistakenly believe that the company is deliberately withholding expenses in order to reduce taxes, or that the company's expenses are deducted from employees' salaries. This can lead to a decrease in the trust and satisfaction of employees in the company.
2.Legal: Counting allowances in paychecks would be contrary to local labor laws and regulations. Most laws in China separate the basic salary and benefits of employees, and explain in detail the payment methods and tax returns. If a company counts these benefits into its paycheck, it can lead to lawsuits and fines.
For example, a company buys health insurance for its employees and buys health insurance for them. Generally speaking, these expenses are used as a benefit for the company, not as a paycheck for the employee. The advantage of this approach is that it makes it clear to employees that this allowance is paid for them by the company, independent of their salary, and does not arouse their suspicion.
Another case is the travel allowance paid by the company to the employee. The Company reserves the right to reimburse travel expenses and other fringe benefits. Similarly, in accounting, such expenses are not included in the company's welfare expenses as employee salaries. The idea is to make it clear to employees that the money is given to them by the company and not to count it all in their paycheck.