The purchase of property insurance, life insurance and other commercial insurance by employees from commercial insurance companies is a personal investment, and all the funds required are borne by the employees themselves, and the enterprises will not reimburse them. Enterprises in accordance with the internal rules of procedure, after the board of directors or manager (factory director) office meeting resolution, reform the internal distribution system, in addition to the actual payment of wages and social insurance as a whole, for employees to buy commercial insurance as an employee reward, the required funds from the wages payable to solve; As employee welfare funds, the required funds shall be charged from the balance of welfare funds payable, but it shall not lead to the deficit of welfare funds payable. The tax issues involved shall be handled in accordance with the relevant provisions of the state tax policy. (1) Accounting treatment of commercial insurance purchased by enterprises for employees, accounting treatment is different according to different purposes. As an employee reward, debit "salary payable" and credit "bank deposit". As employee welfare funds, debit "welfare funds payable" and credit "bank deposits", but it shall not lead to a deficit in welfare funds payable. Like the enterprise annuity in non-pilot areas, it can also be debited first and then transferred to the welfare funds payable. The difference between employee rewards and employee benefits is that employee rewards are awarded to employees who have contributed, not everyone has a share; And employee welfare is the welfare expenditure shared by everyone. (II) Tax Treatment "Measures for Pre-tax Deduction of Enterprise Income Tax" stipulates that "the personal insurance or property insurance insured by taxpayers with commercial insurance institutions for their investors or employees, as well as supplementary insurance other than the basic insurance for employees, shall not be deducted", and it is clear that the commercial insurance purchased by enterprises for employees shall not be deducted before tax; However, this provision on supplementary insurance has been revised by document10012003, Guo Shui Fa [2003] No.45. Because in accounting, the commercial insurance purchased by enterprises for employees is charged separately in the accounts of wages payable and welfare payable, rather than directly before tax, and no tax adjustment is needed.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.