The company organizes free travel for employees, which can be included in the accounting of administrative expenses and welfare expenses. How to account for travel expenses in practice?

How to account for employee travel expenses?

Accrual:

Debit: Management expenses - welfare fees

Debit: employee benefits payable

When paid:

Debit: employee compensation payable

Credit: bank deposits/cash on hand

Administrative expenses refer to various expenses incurred by the administrative department of the enterprise to organize and manage production and operation activities. For example, company funds, labor union funds, board of directors fees, consulting fees, litigation fees, business entertainment expenses, office expenses, postage and telecommunications expenses, management personnel salaries and welfare expenses, etc. are all included in management expenses. The debit side registers various administrative expenses incurred by the enterprise, and the credit side transfers the administrative expenses to the "profit for the year" account at the end of the period. After the transfer, there is no balance in this account.

Tax-related treatment of travel expenses

1. According to the "Notice of the State Administration of Taxation on the Deduction of Enterprise Wages, Salaries and Employee Welfare Fees" (Guo Shui Han [2009] No. 3) Regulations stipulate that enterprise employee welfare expenses that can be deducted within the limit before corporate income tax do not include employee travel expenses.

2. According to the relevant provisions of the "Implementation Regulations of the Individual Income Tax Law of the People's Republic of China", the forms of personal income include cash, physical objects, securities and other forms of economic interests. The company allowing employees to travel for free is considered "other forms of economic benefits" and personal income tax should be paid based on wages and salaries.