Accounts with personnel are an integral part of the work of any organization if at least 1 employee is hired. But in addition to issuing wages, the employer needs to formalize other transactions and reflect them in accounting. For example, the calculation of insurance premiums, the entries for which form the necessary amounts to be paid to the funds.
What insurance premiums are charged on wages?
After calculation wages V mandatory must be accrued insurance premiums. Their number and volume depend on the type of activity economic entity, the applied taxation system, the amount of payments. Insurance premiums include the following payments:
- Transfers to pension insurance― 22% (tariff valid until the end of 2019).
- Payments for compulsory health insurance - 5.1%.
- Social security contributions - 2.9%.
- Contributions to the Social Insurance Fund for insurance against accidents at work - from 0.2% to 8.5%.
Above are the basic payroll insurance rates. However, rates may vary depending on the type of activity of the employer. Organizations and individual entrepreneurs who are on the simplified tax system and are employed in a certain production area, as well as in the field of healthcare, construction, sports development and others can apply for preferential payments in a reduced amount. In addition, it is allowed to charge contributions in a reduced amount for payers whose activities meet the criteria of Art. 427 Tax Code of the Russian Federation. We are talking about entities working in technological, scientific fields and others.
Contributions for injuries to the Social Insurance Fund also depend on the type of work. The higher the hazard class for employees, the larger the amount of deductions.
Calculation of insurance premiums, accounting entries
After calculating payments in favor of employees, wage insurance contributions must be calculated, entries (one or more) for which are formed according to certain rules. Account 69 is used for these purposes. For the convenience of settlements, sub-accounts are opened, each of which corresponds to one of the types of insurance premiums. For example, an organization has the right to make contributions for social needs; the posting contains the following accounts:
- 69.01 - payments to the Social Insurance Fund for social insurance;
- 69.02.7 - accruals for compulsory pension insurance;
- 69.03.1 - contributions for compulsory health insurance;
- 69.11 - deductions for injuries to the Social Insurance Fund.
When calculating charges, account 69 corresponds for Dt with the corresponding cost accounts (20, 23, 25, 26, 44). If an organization has several structural divisions, the calculation of insurance premiums will be generated depending on the employees’ belonging to a particular production area.
Example 1
In November 2016, the organization accrued wages in the total amount of 225,000 rubles, including in favor of workers in the production sector - 150,000 rubles, for the management department - 75,000 rubles. The organization is engaged in the production of furniture, applies the simplified tax system, and accordingly, uses a preferential tariff for calculating insurance premiums (20% in the Pension Fund, there are no charges in the Federal Compulsory Medical Insurance Fund and the Social Insurance Fund, the tariff for contributions for injuries is 1.4%).
According to the above conditions, deductions for social needs were made in the total amount of 45,000 rubles in the Pension Fund, including for production workers - 30,000 rubles, for the management staff - 15,000 rubles. Contributions for injuries to the Social Insurance Fund amounted to 2,100 rubles and 1,050 rubles, respectively. As a result, insurance premiums are accrued, the entries for which reflect the costs for each structural unit:
- Dt 20 - Kt 69.01 - 30,000 rubles - contributions to the Pension Fund for workers in the production sector.
- Dt 26 - Kt 69.01 - 15,000 rubles - contributions to the Pension Fund for the salary of the management staff.
- Dt 20 - Kt 69.11 - 2100 rubles - deductions for injuries for production workers.
- Dt 26 - Kt 69.11 - 1050 rubles - contributions for injuries were assessed for employees of the management service.
- Dt 69.01 - Kt 51 - 45,000 rubles - insurance premiums are transferred to the budget, the posting contains the total accrual of payments to the Pension Fund.
- Dt 69.11 - Kt 51 - 3150 rubles - insurance premiums are transferred to the budget, the posting includes the total accrual to the Social Insurance Fund.
Some organizations, due to the specifics of their activities, must create reserves to pay for upcoming vacations. This applies to medium and large payers who do not have the right to maintain simplified accounting. The formation of the reserve amount should take place not only taking into account vacation pay, it is necessary to take into account the costs of insurance premiums. Accordingly, the transaction of deduction to the reserve fund of the transaction involves the following:
- Dt 20, 25, 44 - Kt 96 - formation of reserves.
- Dt 96 - Kt 70 - accrual of vacation payments.
- Dt 96 - Kt 69 - use of parts reserve fund for calculating insurance premiums.
The reserve can be formed monthly or quarterly. The amount of deductions may depend on the wage fund or be formed separately for each employee.
Example 2
The organization makes contributions to the reserve for upcoming vacations on a monthly basis based on general fund wages. In February, vacation was accrued to 1 employee in the amount of 36,000 rubles, the total amount of contributions was 10,872 rubles. The postings will look like this:
- Dt 44 - Kt 96 - 86,500 - reserve contributions;
- Dt 96 - Kt 70 - 36,000 - vacation pay accrued;
- Dt 96 - Kt 69.01 - 1044 rubles - accrual of contributions to the Social Insurance Fund from vacation pay;
- Dt 96 - Kt 69.02.7 - 7920 rubles - insurance contributions to the Pension Fund;
- Dt 96 - Kt 69.03.1 - 1836 rubles - contributions to the Federal Compulsory Medical Insurance Fund;
- Dt 96 - 69.11 - 72 rubles - contributions for injuries.
Postings for calculating penalties on insurance premiums
When late repayment arrears in contributions to the organization will have to pay the amount of penalties received. And here some nuances already appear. Indeed, in the case when insurance premiums are accrued, the posting takes the form - Dt cost account - Kt 69.
When penalties appear, account 99 is used. Postings for calculating penalties on insurance premiums are reflected in the accounting records as follows: Dt 99 - Kt 69 (the required subaccount is used). Repayment of debt on penalties will create an accounting entry: Dt 69 (corresponding subaccount) - Kt 51.
If it is discovered that insurance premiums are not listed in in full, in addition to penalties, the amount of arrears is also collected from the payer. If the amounts were initially calculated incorrectly, the arrears of insurance premiums should be calculated; the entries are identical in in this case with the usual calculation of payments: Dt cost account - Kt 69.
Postings for transfer of contributions
The responsibilities of employers include not only the timely calculation of contributions. It is also required to transfer the amounts received on time. The deadline for payment of insurance premiums is no later than the 15th day of the month following the accrual. Delay will entail penalties, and in some cases may lead to additional fines.
Payment of insurance premiums is made through the organization's current account. When the debt is repaid, the following entry appears in the accounting records:
Dt 69 - Kt 51 - insurance premiums are listed, posting uses the corresponding subaccounts.
Postings for fixed payments of individual entrepreneurs
Individual entrepreneurs have the right not to keep accounting records. Accordingly, such an operation as the calculation of fixed payments does not require the individual entrepreneur to prepare transactions. If an entrepreneur nevertheless makes entries for his own accounting of income and expenses, the easiest way is to use general rules. That is, when calculating fixed payments, the individual posting generates the following:
- Dt 20, 26, 44 ― Kt 69.02.7 ― fixed contributions in PF;
- Dt 20, 26, 44 - Kt 69.03.1 - fixed contributions to the FFOMS.
Others off-budget funds Entrepreneurs are not required to make payments.
We will not consider payroll calculations in detail, but will analyze the entries that are generated in accounting after the calculations are completed for each employee.
Stages of work on payroll accounting in an organization:
- payment of personal income tax and contributions.
To record all transactions related to wages, account 70 “Settlements with personnel for wages” is used. The credit of this account reflects accruals, the debit - personal income tax, other deductions and salary payments. Postings for payroll, deductions, accrual of personal income tax and insurance contributions are usually made on the last day of the month for which salaries are accrued. Postings for salary payments and personal income tax payment and contributions - on the day of actual transfer (issue) of funds.
Payroll
Wage expenses are written off against the cost of production or goods, therefore the following accounts correspond to account 70:
- For manufacturing enterprise— 20 account “Main production” or 23 account “Auxiliary production”, 25 “General production expenses”, 26 “General (administrative) expenses”, 29 “ Service industries and farms";
- For trading enterprise- Account 44 “Sales expenses”.
The wiring looks like this:
D20 (44.26,…) K70
This wiring is done on total amount accrued salary for the month, or for each employee, if accounting on account 70 is organized with analytics for employees.
Salary deductions
Deductions from salary reduce the amount of accruals and go through the debit of account 70. As a rule, all employees have one deduction - personal income tax. Here account 70 corresponds with account 68 “Calculations for taxes and fees”, posting:
D70 K68
In postings for other deductions, the credit account changes depending on where it goes. For example, when holding on writ of execution In favor of a third party, account 76 “Settlements with various debtors and creditors” is used, posting:
D70 K76
Calculation of insurance premiums
Account 70 is not included in postings for insurance premiums, because they are not accrued to employees and are not deducted from their salaries.
Insurance premiums are included in the cost of production, i.e. pass through the debit of accounts 20 (26,29,...) or 44 in correspondence with account 69 “Calculations for social insurance and security”. 69 accounts usually have subaccounts for each contribution. Wiring:
D 20 (44, 26, …) K 69
Payment of wages
After the salary is accrued on the credit of account 70, and personal income tax and other deductions are withheld on the debit of account 70, the remainder is paid to the employees. Payment can be made either from the cash register or through a bank (money is transferred to the accounts of employees from the organization’s current account), i.e. Account 70 corresponds with either account 50 “Cashier” or account 51 “Cash Account”, posting:
D70 K50(51)
Transfer of personal income tax and contributions
On the payday, the organization is obliged to pay personal income tax and insurance premiums for injuries. The remaining insurance premiums are paid by the 15th of the next month. Payment is made from the current account (account 51), the debt to the Federal Tax Service and funds is closed (accounts 68 and 69). Postings:
D68 K51 - personal income tax paid
D69 K51 – fees paid
Example of payroll with postings
Employees were paid salaries for January 2018, personal income tax was withheld, and insurance premiums were calculated. Accounting for account 70 is carried out without analytics for employees, for account 69 - with subaccounts for each contribution. Expenses for salaries and contributions are included in account 20.
02/10/2018 - wages were paid, personal income tax and insurance contributions to the Social Insurance Fund for injuries were paid,
02/15/2018 - insurance contributions to the Pension Fund, Federal Migration Service, and Social Insurance Fund were paid.
Contributions:
- to the Pension Fund of Russia - 16,500 rubles
- to the Federal Migration Service - 3,825 rubles
- FSS - 2,175 rubles
- FSS injuries - 150 rubles
Postings for all operations:
date Wiring Sum Contents of operation 31.01.2018 D20 K70 75 000 Salary accrued D70 K68.NDFL 9 750 Personal income tax withheld Insurance premiums charged: D20 K69.pfr 16 500 - to the Pension Fund of Russia D20 K69.fms 3 825 - to the FMS D20 K69.fss1 2 175 - in the Social Insurance Fund (temporary disability) D20 K69.fss2 150 - in the Social Insurance Fund (injuries) 10.02.2018 D68.NDFL K51 9 750 Personal income tax listed D69.fss2 K51 150 FSS contributions transferred (injuries) D70 K50 65 250 Employees' salaries were paid from the cash register 15.05.2018 Insurance premiums listed: D69.pfr K51 16 500 - to the Pension Fund of Russia D69.fms K51 3 825 - to the FMS D69.fss1 K51 2 175 - FSS (temporary disability)
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Making payments to extra-budgetary funds is the responsibility of every employer. What are extra-budgetary funds, what transfers are made to them, how to reflect transactions on them in accounting - we will answer all these questions in our article.
An extra-budgetary fund is called government agency, financial resources which are formed outside state budget. Source of financing for extra-budgetary funds - mandatory deductions who carry out legal entities in order to realize the social rights of citizens. That is why extra-budgetary funds are also called social funds.
Currently, there are 3 main social extra-budgetary funds in the Russian Federation: Pension Fund, Fund social insurance(FSS) and compulsory health insurance FFOMS).
Payments to extra-budgetary funds are required to be transferred. The basis for calculating payments is the employee’s income paid by the employer. Such income includes:
- salary;
- allowance, surcharge;
- payment under a contract, author's agreement;
- severance pay.
Insurance premiums are charged by the employer for payments received by an employee within the framework of an employment relationship, a contractor under a contract, or an author's contract. Also, accrual is carried out on remuneration paid to the head of the organization if he is its only participant.
According to changes in legislation that came into force in 2015, contributions to extra-budgetary funds (PFR) are also charged on the income of employees who are foreign citizens and stateless persons. In this case, the period of conclusion and validity of the employment contract does not matter.
Reflection of transactions with extra-budgetary funds in accounting
To account for transactions on contributions to extra-budgetary funds, account 69 is used. For each of the bodies social protection (Pension Fund, FSS for social insurance contributions, FFOMS) create a separate sub-account.
Let's look at typical transactions for accruals and transfers to extra-budgetary funds using examples.
Social contributions from payments under employment contracts
Marker LLC in August 2015 accrued payments in favor of employees: salary - 1,350,000 rubles, sick leave benefits RUB 54,500 (including 2,700 rubles for the first 3 days at the expense of the organization).
The amount of social contributions was calculated:
- Pension fund - RUB 1,350,000. * 22% = 297,000 rub.
- FSS - 1,350,000 rubles. * 2.9% = 39,150 rub.
- FFOMS - 1,350,000 rubles. * 5.1% = 68,850 rub.
The accountant of Marker LLC made the following entries:
| Dt | CT | Description | Sum | Document |
| 44 | Payroll | RUB 1,350,000 | ||
| 44 | for the first 3 days at the expense of Marker LLC | 2,700 rub. | Sick leave | |
| 69 FSS | Accrual of sick leave at the expense of the Social Insurance Fund (RUB 54,500 - RUB 2,700) | 800 rub. | Sick leave | |
| 44 | 69 Pension Fund | Calculation of contributions to the Pension Fund | RUB 297,000 | Payroll sheet |
| 44 | 69 FSS | Calculation of contributions to the Social Insurance Fund | RUB 39,150 | Payroll sheet |
| 44 | 69 FFOMS | Calculation of contributions to the FFOMS | RUB 68,850 | Payroll sheet |
The expenses of Marker LLC for social insurance amounted to 800 rubles, which is more than the accrued amount of contributions for August (39,150 rubles). For this reason, Marker LLC did not make any transfers to the Social Insurance Fund in August 2015. Part of the uncovered expenses (800 rubles - 39,150 rubles = 12,650 rubles) was taken into account in September 2015.
Social contributions from payments under a contract
Between Globus LLC and Yu.P. Kondratenko a contract was concluded for the amount of 000 rubles. (construction and installation works). According to the terms of the contract, Kondratenko was paid an advance in the amount of 10% of the cost of the work (4,300 rubles). The balance of funds was paid upon completion of the work (RUB 38,700).
The following entries were made in the accounting of Globus LLC:
| Dt | CT | Description | Sum | Document |
| 76 | Transfer of advance payment to Kondratenko under the contract | 4,300 rub. | Payment order, contract | |
Insurance contributions to the Funds: Pension, Health insurance and Social Insurance are calculated from the salaries of the company's employees. For entrepreneurs with employees and who are not employers, a fixed amount is established Pension Fund contributions and FFOMS.
Insurance premium rates and tax base
On this moment basic insurance premium rates:
- Pension Fund – 22%
- FFOMS – 5.1%
- Social Insurance Fund – 2.9%
- Accident insurance (accident insurance) is established by the Fund for each policyholder, depending on the hazard class of the main type of economic activity.
Previously, payments to the Pension Fund for pension insurance were divided into insurance and savings part. Now premiums need to be charged only for the insurance part.
Insurance contributions are levied on employee payments under employment contracts: wages, vacation pay, bonuses, wage compensation, additional payments. Also, insurance premiums to the Pension Fund must be calculated for payments under civil contracts, author's orders, and licensing agreements. This category payments are not subject to contributions to the Social Insurance Fund.
On the contrary, they are not subject to contributions: all types social benefits, material aid, preferential payments, unemployment benefits, monetary allowance military personnel, etc.
Accounting for insurance premiums in accounting entries
The accrual of insurance premiums is reflected on the loan. Each type of insurance has its own subaccount. By debit 69, the account corresponds with cost accounts: 20, 44.
Postings for calculating contributions:
- Debit 20 (...) Credit 69.1 (FSS) - accrual to the Social Insurance Fund.
- Debit 20 (...) Credit 69.2 (PFR) - accrual Pension Fund.
- Debit 20 (...) Credit 69.3 (FFOMS) - accrual to the Medical Insurance Fund.
- Debit 20 (...) Credit (NS) - accrual to the Social Insurance Fund for accident insurance.
For April, employees' wages were accrued in the total amount of 259,874 rubles. Calculate and make contributions to the Funds. For accident insurance, the tariff is 0.2%.
FFOMS = 259,874 x 5.1% = 13,253.57
Social Insurance Fund = 259,874 x 2.9% = 7536.35
NS = 259,874 x 0.2% = 519.75
Example of entries for the calculation and payment of insurance premiums
| Account Dt | Kt account | Wiring description | Transaction amount | A document base |
| 69.1 | Insurance premiums paid to the Social Insurance Fund | 7536,35 | Payroll T-51 | |
| 69.2 | Contributions to the Pension Fund have been accrued | 57 172, | Payroll T-51 | |
| 69.3 | Contributions to the FFOMS have been accrued | 13 253,57 | Payroll T-51 | |
| Tax contributions accrued | 519,75 | Payroll T-51 | ||
| Materials transferred to production | 100 318 | Payroll T-51 | ||
| 69.1 |
Accounting account 69 is used to reflect generalized information about the amounts of insurance premiums paid by the employing organization from employee salaries. We will talk about the features of organizing accounting for transactions with insurance premiums, as well as about typical entries for account 69 in our article.
An enterprise that makes payments to employees in accordance with concluded employment contracts is obliged to record the accrual of insurance premiums for their subsequent transfer to an extra-budgetary fund. The law provides for compulsory medical, social and pension insurance for employees. The employer must also ensure payment of insurance premiums in case of occupational diseases and accidents at work.
To reflect the amounts of accrued and paid contributions to extra-budgetary funds, account 69 is used. To analyze and control the amounts of contributions, the organization can open sub-accounts in accordance with the types of transfers made.
Regulatory documents provide that account 69 can be used to reflect the following transactions:
- payment of the amount of contributions (fines, penalties);
- reflection of expenses for contributions to extra-budgetary funds.
It should be noted that on account 69 not only the amounts of obligations to the funds are recorded, but also credits coming from the Social Insurance Fund are made.
Subaccounts 69 accounts
Table of typical transactions for account 69
The basis for calculating the amount of insurance premiums is the amount of remuneration that is paid to the employee according to employment contract. The amount of accrual of contributions is carried out according to Kt 69, transfers to extra-budgetary funds are reflected in Dt 69. Also, according to Kt 69 the amount of receipts of contributions credited from extra-budgetary funds in favor of the organization can be carried out.
Basic transactions on account 69 are reflected in accounting with the following entries:
Example of postings for account 69
On January 31, 2016, Start LLC made a payment to K.R. Sazonov, an employee of the economic department:
- salary - 41,300 rubles;
- sickness benefit - 7,500 rubles. (including for the first 2 days at the expense of the organization - 2,350 rubles).
When paying Sazonov’s salary, the accountant at Start LLC calculated the amount of insurance premiums:
- Pension Fund for the insurance part of the labor pension: 41,300 rubles. x 14.0% = RUB 5,782;
- Pension Fund for the funded part of the labor pension: 41,300 rubles. x 6.0% = 2478 rub.;
- FSS for insurance premiums: 41,300 rubles. x 2.9% = 1198 rub.;
- FSS for contributions to insurance against accidents and occupational diseases: 41,300 rubles. x 0.2% = 83 rub.;
- FFOMS: 41,300 rub. x 1.1% = 454 rubles;
- TFOMS: 41,300 rub. x 2.0% = 826 rub.
The accountant at Start LLC reflected the payment of wages to Sazonov and the accrual of insurance premiums with the following entries:
| Dt | CT | Description | Sum | Document |
| 91.2 | The salary of K.R. Sazonov has been accrued. | RUB 41,300 | Payroll | |
| 91.2 | Sickness benefits accrued (at the expense of Start LLC) | RUB 2,350 | Payroll | |
| Sickness benefit accrued (at the expense of the state) | RUB 5,150 | Payroll | ||
| 91.2 | The amount of insurance contributions to the Social Insurance Fund has been calculated | 1198 RUR | Payroll | |
| 91.2 | The amount of insurance premiums accrued (accidents and occupational diseases) | 83 rub. | Payroll | |
| 91.2 |