How do you count the daily allowances of the Social Security for employees?

If the employee directly receives the daily allowances from the Social Security, the latter do not appear in the accounts of the company. For accountancy training Best school of accountancy In Pakistan. On the other hand, where there is subrogation of the employer , the company receives the daily subsistence allowances of the Social Security and must therefore count them since the company is the creditor of the social organizations. When the employee is absent from the company, account 4387 "Social Welfare - Accounts Receivable" is to be debited and credited to account 641 " Remuneration of staff ". At the time of reimbursement of the daily allowances of Social Security, account 512 "Bank" must be debited and credit account 4387 "Social insurance - Receivables".

How do you count the daily allowances of the Social Security for non-employees?

Where the daily allowances for the Social Security are for a non-employee, they should be recorded differently by debiting account 4551 "Associates - current accounts " (for company managers) or account 108 "Account of the operator" Individual entrepreneurs) and then crediting account 791 "Transfer of operating expenses".

The daily subsistence allowance of the Social Security therefore requires a specific accounting calculation to be put in place as soon as the employee's sick leave is in place, whether he is employed or self-employed.