Account 334 – Payables to employees

1. Rules for accounting

This account is used to record payables and payment of payables to employees of enterprises, including salaries, wages, bonuses, social insurance and other payables included in employees‘ incomes.

2. Structure and contents of account 334 – Payables to employees

Debit:

- Salaries, wages and bonuses, social insurance and other items which are paid or paid in advance to employees;

- Amounts deducted from salaries or wages of employees

Credit: Salaries, wages and bonuses, social insurance and other items which are paid to employees;

Credit balance: Outstanding salaries, wages and bonuses, social insurance and other items payable to employees;

Account 334 may have debit balance. Debit balance of account 334 is particular – recording negative difference between paid amounts and salaries, wages or other payables to employees (if any).

Account 334 shall be recorded according to: Salary payment and other payments.

Account 334 – Payables to employees, comprises 2 sub-accounts:

- Account 3341 – Payables to staff: This account is used to record payables and payment of payables to staff of enterprises, including salaries, wages, bonuses, social insurance and other payables included in staff‘ incomes.

- Account 3348 – Payables to other employees: This account is used to record payables and payment of payables to other employees of enterprises, including salaries, wages, bonuses, social insurance and other payables included in employees‘ incomes.

3. Method of accounting for several major transactions

a) When determining salaries or allowances payable to employees as prescribed, the following accounts shall be recorded as follows:

Dr 241 – Construction in progress

Dr 622, 623, 627, 641, 642.

Cr 334 – Payables to employees (3341, 3348).

b) Bonuses paid to staff:

- When determining bonuses paid to staff from welfare fund, the following accounts shall be recorded as follows:

Dr 353 – Welfare funds (3531)

Cr 334 – Payables to employees (3341).

- When paying bonuses, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees (3341).

Cr 111, 112, etc.

c) When determining social insurance (illness, pregnancy, work-related accidents, etc) payable to staff, the following accounts shall be recorded as follows:

Dr 338 – Other payables or receivables (3383)

Cr 334 – Payables to employees (3341).

d) When determining actual annual leave salary to staff, the following accounts shall be recorded as follows:

Dr 623, 627, 641, 642.

Dr 335 - Expenses payable (Enterprises accrue salary of annual leave)

Cr 334 – Payables to employees (3341).

dd) Items must be deducted from salary and income of staff and other employees of enterprises, such as unspent advances, medical insurance, social insurance, collected compensation of assets in shortage awaiting resolution, etc, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees (3341, 3348).

Cr 141 - Advances

Cr 338 – Other payables or receivables

Cr 138 – Other receivables.

e) When determining personal income tax of staff and other employees of the enterprise payable to the state, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees (3341, 3348).

Cr 333 – Taxes and other payables to the State (3335)

g) When giving advance or paying salaries or wages to staff and other employees of enterprises actually, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees (3341, 3348).

Cr 111, 112, etc.

h) When making payables to staff and other employees of the enterprise, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees (3341, 3348).

Cr 111, 112, etc.

i) In case of paying salary or bonus to staff or other employees of the enterprise by products, goods, the sale revenues excluding VAT shall be recorded as follows:

Dr 334 – Payables to employees (3341, 3348).

Cr 511 - Revenues

Cr 3331 - VAT payable (33311).

k) Determination and payment of other payables to staff and employees of the enterprise such as shift-meal, rents, phone bills, school fees, membership cards, etc:

- When determining payables to staff and employees of the enterprise, the following accounts shall be recorded as follows:

Dr 622, 623, 627, 641, 642.

Cr 334 – Payables to employees (3341, 3348).

- When making payables to staff and employees of the enterprise, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees (3341, 3348).

Cr 111, 112, etc.

Source: Circular 200