welfare expenses incurred by enterprises are generally handled through the accounts payable to employees. For welfare expenses, can tax treatment be deducted before enterprise income tax?

can welfare expenses be deducted before tax?

welfare expenses can be deducted before tax.

employee welfare funds can be deducted before tax in proportion. The employee welfare expenses incurred by the enterprise shall be deducted if they do not exceed 14% of the total wages and salaries.

according to article 34 of the regulations for the implementation of the enterprise income tax law of the people's Republic of China, reasonable wages and salaries incurred by enterprises are allowed to be deducted. The wages and salaries mentioned in the preceding paragraph refer to all cash or non-cash labor remuneration paid by an enterprise to its employees who are employed or employed in the enterprise every tax year, including basic salary, bonus, allowance, subsidy, year-end salary increase, overtime pay and other expenses related to employees' employment or employment.

Accounting treatment of welfare expenses

Borrowing: production costs, manufacturing costs, management costs, sales expenses, etc.

Loaning: Payable to employees-employee welfare expenses

Employee welfare expenses refer to the expenses paid to enhance the material interests of employees, help employees and their families solve some special difficulties and set up collective welfare undertakings. Including trade union funds allocated, staff welfare funds extracted according to the standard, one-child health care expenses, public medical expenses, medical expenses for employees who did not participate in public medical units, hospitalization for work-related injuries, food subsidies during hospitalization and recuperation, wages for employees who have been sick for more than two months, travel expenses for employees to visit relatives, severance payment paid by the original unit, travel expenses for retired employees and their accompanying families, cremation and expenses for employees' death, subsidies for survivors' living difficulties, subsidies for long-term support personnel, and subsidies for "budget"

what does the salary payable to employees include?

Under the new accounting standards, the salaries payable to employees include the following contents:

1. Employees' salaries, bonuses, allowances and subsidies;

2. Employee welfare funds;

3. Social insurance premiums such as medical insurance premium, endowment insurance premium, unemployment insurance premium, work injury insurance premium and maternity insurance premium;

4. Housing accumulation fund;

5. Trade union funds and staff education funds;

6. Non-monetary welfare;

7. Compensation for termination of labor relations with employees;

8. Other expenses related to obtaining services provided by employees.