Accounting for social insurance and other insurance contributions deducted from salaries is a crucial task that helps businesses accurately reflect personnel costs, insurance obligations, and payments to employees. Mandatory insurance contributions include social insurance (BHXH), health insurance (BHYT), unemployment insurance (BHTN), and trade union fees (KPCĐ), which are jointly contributed by the business and employees according to prescribed ratios. Accountants need to follow the correct procedures from the initial contribution, deduction from salaries, payment to the management agency, to monitoring the insurance benefits that arise.
Accurate accounting not only helps businesses control payroll costs but also ensures that financial statements, tax records, and insurance obligations are transparent and complete.
This account is used when accounting for social insurance and other insurance contributions deducted from salaries.
When accounting for social insurance and other insurance contributions deducted from salaries, accountants need to correctly identify the accounting system to fully reflect the obligations payable, deductions from salaries, and the portion of expenses borne by the enterprise. The table below summarizes the accounts commonly used in this accounting process.
| Account | Content | Role |
| Account 334 (Payable to employees) | Track employee salaries, bonuses, and other payments due. | This reflects the deductions from wages and the actual amount paid to employees. |
| Account 338 (Other payables and liabilities) | Track insurance premiums and payment obligations. | This is a consolidated account for recording social insurance contributions, health insurance contributions, unemployment insurance contributions, and trade union fees. |
| Account 3382 | Trade union funds | This reflects the amount of trade union fees that the enterprise is required to deduct and pay. |
| Account 3383 | Social insurance | Track the social insurance contributions made jointly by the employer and the employee. |
| Account 3384 | Health insurance | Keep track of the health insurance contributions that must be deducted according to regulations. |
| Account 3386 | Unemployment insurance | This reflects the unemployment insurance contributions that must be deducted from both businesses and employees. |
| Account 3335 (Personal Income Tax) | Track the personal income tax deducted from employees' salaries. | Used when businesses deduct and pay personal income tax on behalf of their employees. |
| Account 154, 622, 623, 627, 641, 642 | Production and business expense accounts | Used to record the portion of business insurance included in expenses for each department where it is incurred. |
Understanding the function of each account will help accountants accurately record social insurance and other insurance contributions deducted from salaries, while also facilitating cost allocation, data reconciliation, and the preparation of accounting reports in accordance with regulations.
Accounting for insurance contributions paid by the employer and employees.
When accounting for social insurance and other insurance contributions deducted from salaries, accountants can summarize the employer's share and the employee's share in a comparison table as follows:
| Content | Insurance premiums are deducted from business expenses. | Insurance contributions are deducted from salary. |
| The nature of accounting | Record as a production and business expense by the department employing the labor force. | Direct deduction from wages payable to employees. |
| Debit account | Debit accounts 154, 241, 622, 623, 627, 641, 642 | Debit account 334 |
| Social Insurance | Account 3383: 17.5% is on salary subject to insurance. | There is account 3383: 8% on salary subject to social insurance contributions. |
| Health Insurance | Account 3384: 3% is on salary subject to insurance contributions. | Account 3384: 1.5% on salary subject to insurance contributions. |
| Unemployment insurance | There is account 3386: 1% on salary contributions. | There is account 3386: 1% on salary contributions. |
| Trade union funds | There is account 3382: 2% on salary contributions. | Not applicable |
| Total percentage | 23.5% | 10.5% |
The total amount borne by the business and included in the cost is 23.5% based on the insured payroll fund, while the amount deducted from the employee's salary is 10.5%.
For businesses that lack a professional accounting team or struggle with handling payroll, insurance, and recurring tax matters, choosing a suitable accounting service is essential. full accounting service This can help businesses control their books and documents and ensure that accounting operations are carried out in accordance with regulations.
Accounting when a business pays insurance premiums.
After completing the insurance premium deductions, the business makes payments to the insurance agency and related entities. The accountant needs to record the correct amount paid to reduce the payable obligation in the corresponding account 338.
| Content | Debit account | Credit account | Proportion |
| Pay Social Insurance | Account 3383 | Account 111, 112 | 25.5% |
| Pay health insurance | Account 3383 | Account 111, 112 | 4.5% |
| Pay unemployment insurance | Account 3386 | Account 111, 112 | 2% |
| Pay union dues | Account 3382 | Account 111, 112 | 2% |
| Total amount paid | Accounts 3383, 3384, 3386, 3382 | Account 111, 112 | 34% |
Specifically, the enterprise paid 321 TP3T to the insurance agency and 21 TP3T to the Labor Union. Accurate accounting for each item helps accountants track payment obligations precisely and facilitates reconciliation with regulatory authorities.
Accounting for personal income tax on employee salaries.
In addition to mandatory insurance, accountants also need to track personal income tax arising from salaries.
When deducting personal income tax from employee salaries:
- Debit Account 334 – Payable to employees
- Account 3334 – Personal Income Tax
When businesses pay personal income tax:
- Debit Account 3335 – Personal Income Tax
- There are accounts 111 and 112.
Integrating payroll, insurance, and tax tracking helps businesses maintain full control over their employee-related financial obligations.
See more: Accounting for personal income tax of employees according to Circular 99.
Accounting for wages paid in products or goods.
In cases where businesses pay employees with products or goods, accountants need to determine the correct method for calculating VAT to record revenue and liabilities appropriately. The following content summarizes the accounting methods for each specific case.
Table: Accounting for wages paid in products and goods.
| Case | Recording method | Accounting entries |
| Products and goods subject to Value Added Tax (VAT) under the deduction method. | Record internal revenue at the price excluding VAT. | Debit Account 334 (Payable to employees)
There is account 3331 (VAT payable) There is account 5118 (Other revenue) |
| Not subject to VAT or required to declare VAT using the direct method. | Recorded at the payment price. | Debit Account 334 (Payable to employees)
There is account 5118 (Other revenue) |
Therefore, when paying wages with products or goods, businesses need to base their accounting on the nature of the goods and the method of VAT declaration to ensure accurate and consistent accounting data.
Accounting for bonuses from the reward and welfare fund.
When determining the amount of bonus to be paid to employees:
- Debit Account 353 – Reward and Welfare Fund
- Account 334 – Payable to employees
When paying out bonuses:
- Debit account 334
- There are accounts 111 and 112.
Accounting for social insurance benefits including sickness, maternity, and accident benefits.
For social insurance benefits paid by the insurance agency, such as maternity leave, sickness benefits, and work-related accident benefits, accountants need to track them separately.
When determining the amount of social insurance contributions to be paid to employees:
- Debit Account 3383 – Social Insurance
- Account 334 – Payable to employees
When receiving money from the Social Insurance agency:
- Debit accounts 111 and 112
- Account number 3383
When paying employee benefits:
- Debit account 334
- There are accounts 111 and 112.
Practical examples of accounting for social insurance and insurance contributions deducted from salaries.
Example 1: Accounting for insurance for sales staff
Let's assume company X has a sales employee whose salary subject to social insurance contributions is 10,000,000 VND/month.
Insurance premiums are deducted from company expenses.
| Operations | Account | Application rate | Calculation method | Amount |
| Social insurance contributions (including social security, health insurance, unemployment insurance, and trade union fees) are included in company expenses. | Debit account 6421 | 23.5% | 10,000,000 x 23.5% | 2,350,000 VND |
| Account number 3383 | 17.5% | 10,000,000 x 17.5% | 1,750,000 VND | |
| Account number 3384 | 3% | 10,000,000 x 3% | 300,000 VND | |
| Account number 3386 | 1% | 10,000,000 x 1% | 100,000 VND | |
| Account number 3382 | 2% | 10,000,000 x 2% | 200,000 VND |
Insurance contributions are deducted from employees' salaries.
| Operations | Account | Application rate | Calculation method | Amount |
| Deducting social insurance, health insurance, and unemployment insurance contributions from employee salaries. | Debit account 334 | 10.5% | 10,000,000 x 10.5% | 1,050,000 VND |
| Account number 3383 | 8% | 10,000,000 x 8% | 800,000 VND | |
| Account number 3384 | 1.5% | 10,000,000 x 1.5% | 150,000 VND | |
| Account number 3386 | 1% | 10,000,000 x 1% | 100,000 VND |
When paying social insurance contributions
| Operations | Account | Application rate | Calculation method | Amount |
| Pay insurance premiums | Debit account 3383 | 25.5 | 10,000,000 x 25.5% | 2,550,000 VND |
| Debit account 3384 | 4.5% | 10,000,000 x 4.5% | 450,000 VND | |
| Debit account 3386 | 2% | 10,000,000 x 2% | 200,000 VND | |
| Debit account 3382 | 200,000 VND | |||
| There is account number 1121. | 34% | 10,000,000 x 34% | 3,400,000 VND |
Example 2: Accounting for maternity benefits
To better track the process of recording maternity benefits in businesses, below is a summary table of accounting entries corresponding to the case where an employee of ABC company receives 60,000,000 VND from the Social Insurance Fund.
| Accounting time | Business content | Accounting entries | Amount |
| When determining the amount to be paid | Record the maternity benefit payment made by the Social Insurance Fund to the employee. | Debit Account 3383 / Credit Account 334 | 60,000,000 VND |
| When receiving money from the Social Insurance agency. | Record the amount of social insurance contributions transferred to the enterprise. | Debit Account 112 / Credit Account 3383 | 60,000,000 VND |
| When paying employees | Paying maternity benefits to employees. | Debit Account 334 / Credit Account 112 | 60,000,000 VND |
Therefore, with maternity benefits paid by social insurance, accountants need to fully track each step from recording the payment, receiving money from the social insurance agency, to paying the employee to ensure accurate and transparent data.
Points to note when accounting for social insurance and insurance contributions deducted from salaries.
To ensure accurate accounting data, businesses need to take note of the following:
- Regularly update regulations on insurance contribution rates to avoid applying incorrect rates.
- Allocate insurance costs correctly to each expense-generating department.
- Keep track of insurance payment deadlines to minimize the risk of penalties for late payments.
- Regularly compare data between businesses and the social insurance agency.
- Maintain complete records of payroll, insurance, and deductions.
In reality, many businesses struggle to keep up with insurance policies while simultaneously handling monthly accounting and tax transactions. In such cases, consideration is needed. hire accounting services Seek assistance from reputable and professional organizations like MAN – Master Accountant Network to more effectively declare, record, and manage accounting documents, minimizing the risk of errors during operations.
Conclude
Proper accounting of social insurance and other insurance contributions deducted from salaries helps businesses effectively manage personnel costs, ensure compliance with insurance obligations, and minimize errors in accounting reporting.
For businesses looking to optimize their accounting system, reduce document processing workload, and ensure compliance with tax and insurance regulations, they can consider this solution. outsource accounting to find a solution that suits the scale of operations.
Choosing the right accounting support solution not only helps businesses save resources but also ensures that payroll, tax, and insurance data are managed accurately and transparently.
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Responsible for production and professional content review by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant NetworkHe is a CPA Vietnam auditor with over 30 years of in-depth experience in accounting, auditing, taxation, and corporate legal consulting.
