Accounting for salaries
ID:CVACSA

Video Overview

Because employers are required to make certain statutory deductions and may also make some voluntary ones for their employees, the traditional double entry that we have learned about so far to record the payment of wages does not suffice. There may be pension fund contributions; medical aid contributions; PAYE, UIF and SDL contributions; or even staff funds or association contributions. This means that an employee’s salary is paid over to several parties; a portion goes to SARS, a portion goes to a medical aid fund, a portion goes to a pension fund, and a portion goes to the employee himself. These payments may even be paid out on different dates. For example; the employee may be paid on the last day of the month and SARS contributions are normally paid over on or before the seventh of the new month. This contributes to a more complicated payroll system, so a thorough knowledge of accounting for salaries is essential when working in this area. This tutorial deals with this particular subject, and, as salaries relate to a monthly period of remuneration, we will be dealing with it in this manner.