EMPLOYEE ENTITLEMENTS Flashcards
(21 cards)
Employee entitlements are governed by
NZ IAS 19.
Short term employee benefits
Wages, salaries, annual leave, sick leave
Post - employment benefits
Retirement benefits and post - employment medical care
Termination benefits
Salary enhancements
Bonuses and lump sum payments
Other long term employee benefits
Superannuation, long - service leave, sabbatical leave
Salaries and wages journal, at balance day
Dr salaries and wages exp
Cr PAYE tax payable
Medical benefits payable
Salaries and wages payable
Salaries and wages journal after balance day
Dr. Salaries and wages expense
Salaries and wages payable
Cr. PAYE tax payable
Medical benefits payable
Cash
Salaries and wages journal entry, remittance (transfer) to IRD and medical fund
Dr PAYE tax payable
Medical Benefits Payable
CR. Cash
Annual leave journal entry
Recognising annual leave obligations throughout the year
Dr annual leave expense
Cr provision for annual leave
Annual leave journal entries
When annual leave is taken
Dr. Provision for annual leave
Cr. PAYE tax payable Cr. Cash
Vesting sick leave
Employee has a right to receive the calculated amount in cash, even if the employee leaves the employer.
Accounted for in the same manner as annual leave.
Non vesting sick leave
Only paid upon a valid claim for sick leave by the employee.
Only that part which has accumulated through past service and which is expected to be taken should be recognised as a liability
Sick leave journal
Recognising sick leave each week
Dr sick leave expense
Cr provision for sick leave
Sick leave
If employees are sick their entitlement are charged to sick leave provision instead of salaries and wages.
Provision for sick leave
Salaries and wage expense
PAYE tax payable
Cash
Long service leave
Leave In addition to annual leave granted if an employee stays with an employer for long ass time
Long service leave journal
Recognising
Dr long service leave expense
Cr. Provision for long service leave
Long service leave journal
When the long service leave is taken
Dr. Provision for long service leave
Cr. Cash
Superannuation
Payment made to employees after their retirement, in a stream of periodic payments or a lump sun on termination.
Superannuation journal entries
Recognising obligation
Dr employee benefits cost - superannuation
Cr. Employee benefits payable
Super annuation journal entries
When the amount is paid
Dr employee benefits payable
Cr cash
