Welfare expenses paid in cash can only be recorded in the total wages, and can be deducted before enterprise income tax.

However, it is necessary to calculate the personal income tax withheld and remitted for each employee.

If you don't make the salary, you need to obtain the purchase invoice, which is recorded as the physical welfare expenses, and the pre-tax deduction is allowed within 14% of the total salary at the time of final settlement.

Entries:

Cash benefits, if you can't get the payment invoice, go directly to the salary account.

In-kind benefits or other benefits paid for employees that can be invoiced shall be subject to employee salaries-welfare expenses.