Accounting processing of company employee housing provident fund

The housing provident fund is a long-term housing savings deposited by employees of the unit. In addition to being used to purchase housing loans, it can also be used to pay for medical expenses. It is generally divided into two parts, one part is paid by the employee's employer, and the other part is paid by the individual employee. The following is the content compiled by Deep Sky Network about the accounting processing of employee housing provident funds. Let’s learn about it together.

How to account for employee housing provident funds?

The company's employees' housing provident fund account processing is as follows:

1. When the unit pays the housing provident fund, the accounting processing is as follows:

Debit: employee salary payable—— Provident Fund (unit)

Other payables - Provident Fund (individual)

Loan: bank deposit

2. When calculating the housing provident fund that the enterprise should bear, The accounting treatment is as follows:

Debit: production costs/administrative expenses/sales expenses/manufacturing expenses, etc.

Credit: employee compensation payable - provident fund (unit)

3. When housing provident fund is deducted from wages according to regulations (which should be borne by individual employees), the accounting treatment is as follows:

Debit: employee salary payable

Credit: other payables - — Provident Fund (Individual)

Employee compensation payable:

What is the Housing Provident Fund?

The housing provident fund refers to the funds paid and deposited by state agencies, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions, private non-enterprise units, social groups and their employees. Long-term housing savings.

Use of provident fund: Provident fund can be used for home purchase loans, payment of rent, house decoration and medical expenses, etc. The deposited housing provident fund will be returned to individual employees.

Characteristics of housing provident fund:

1. Housing provident fund is only established in cities and towns, and no housing provident fund system is established in rural areas.

2. The housing provident fund system is established only for employees on the job.

3. The housing provident fund consists of two parts, one part is paid by the employee's employer, and the other part is paid by the employee personally.

4. The long-term nature of housing provident fund deposits.

5. The housing provident fund is a personal housing savings deposited by employees in accordance with regulations and used exclusively for housing consumption expenditures. It is cumulative and exclusive.

Accounting entries for salary accrual and salary payment

1. Salary accrual

Debit: administrative expenses

Credit: payable Employee compensation - wages

2. Provision for social security

Debit: administrative expenses

Debit: employee compensation payable - social security

3. Pay wages

Debit: employee compensation payable—salary

Debit: employee compensation payable—social security (personal social security)

Tax payable Fees - personal income tax payable

Cash in inventory/bank deposits