Recognition of awards to trainees

For best accountancy training Best school of accountancy In Pakistan. The training allowances are generally recognized in the writings of payroll and payroll taxes. They are staff costs. Their accounting can then be done as follows:

We debit:

Account 6413 "Bonuses and gratuities" for the amount of the allowance awarded,

Account 6451 "Contributions to the URSSAF" for the amount of the social contributions "accident at work and occupational disease"

And we credit:

Account 431 "Social security" for the amount of the AT / MP contributions,

Account 421 "Personnel - Compensation due".

Then, when the internship allowance is paid:

It debits the account 421 "staff - Compensation due"

And account 512 "Bank" is credited.

If the company pays its trainee at a higher rate than the statutory minimum, it would be liable for employers '(and wage-earners') social contributions calculated on the amount of the bonus that exceeds the statutory minimum (only the supplement is subject with payroll taxes):

The trainee pays social security contributions (they will be credited to the subdivisions of account 43 "Social security and other social organizations" and will reduce the net of the trainee),

The company pays employers' social security contributions (the subdivisions of account 645 "Social security and welfare expenses" are debited and the social security and other social welfare funds are credited for the same amount).