As for the accounting treatment of employment security funds for the disabled and VAT exemption for small and micro enterprises, our tax accountant firm is often asked by customers. Today we will make a presentation.

1About the employment security fund for the disabled, which account should be included in the accounting process?

According to the Administrative Measures for the Collection and Use of Employment Security Funds for the Disabled (finance and Taxation [2015:72(), employment security funds for the disabled shall be included in the "management account" when accounting.

For exampleAIn the company2019Nian40People, the total salary of active employees20wan,20wan*1.6%=0.32, when drawing employment security funds for the disabled:

Borrow: Administrative expenses 0.32

       Loan: Other payables - employment security payable to the disabled 0.32

2020Annual actual payment time:

Borrow: Other payables - Employment security payable to the disabled 0.32

       Loan: bank deposit0.32

2, On small and micro enterprises did not reach the quarterly revenue30In this case, VAT should be included in which account?

When a small and micro enterprise obtains sales revenue, it shall calculate the VAT payable in accordance with the provisions of the Tax law and recognize it as the tax payable, and transfer the relevant VAT payable into the profit and loss of the current period when the VAT exemption conditions stipulated in the VAT system are met.

For exampleAcompany,2020years10Monthly income3Ten thousand,11Monthly income5Ten thousand,12Monthly income7Ten thousand,10-12Total monthly income15Ten thousand,

First of all, when we do accounting,4VAT is accrued quarterly and monthly

10month

Borrow: Bank deposit  3

               Loan: Income from main business  2.91

                       Taxes payable-VAT payable  0.09

11month 

Borrow: Bank deposit  5

               Loan: income from main business  4.85

                      Taxes payable-VAT payable  0.15

12month

Borrow: Bank deposit 7

               Loan: income from main business  6.8

                      Taxes payable-VAT payable  0.2

According to the2020Tax policy in 2004,30VAT is exempt up to ten thousand, so in12VAT payable in the month shall be handled as follows0.09+0.15+0.2=0.44

I: Taxes are payable-VAT payable 0.44

              Loan: Other income     0.44

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