Payroll accounting

Payroll Accounting in Practice

Fundamentals of Payroll Accounting

• Wage types and wage type groups: recurring payments, one-time payments, non-cash benefits, in-kind payments, net pay, and net deductions.
• Gross/Net Pay: Structure and Interplay of Tax and Social Security Deductions.
• Types of Employment: Mini-jobs, short-term employment, tips, and service charges.
• Payroll Tax and Social Security: Classification of Pay Components and Their Impact on Payroll Processing.

Typical Wage and Salary Components

• Wages and Salaries.
• Capital-forming benefits.
• Vacation pay.
• Tax-exempt and flat-rate taxed components of compensation.
• Sunday, Holiday, and Night Work as a Compact Practical Training Module.
• Employer loans and advances: a brief overview.

Travel Expenses, Reimbursement of Out-of-Pocket Expenses, and Hospitality

• Business trips from the perspective of employers and employees.
• Incidental travel expenses, travel costs, and reimbursement of out-of-pocket expenses.
• Meal costs, additional meal expenses, and reductions.
• Entertainment Expenses on Business Trips / Entertainment Expenses Not Related to Business Trips.
• Input Tax Deduction and Documentation Requirements for Reimbursement of Expenses.

Monetary Benefits, Non-Monetary Compensation, Meals, and Lodging

• Employee discounts and staff discounts.
• Benefits in kind and gift certificates.
• Meal subsidies, meal vouchers, and cafeteria meals.
• Lodging and meals as non-cash compensation.
• Company Housing, Apartments, and Lodging: Distinctions and Treatment as a Non-Cash Benefit.
• Preschool subsidy, recreation allowance, and other tax-free benefits.

Mobility and Company Vehicles

• Travel expense reimbursements for trips between home and the primary place of work.
• Job Ticket and BahnCard.
• Company cars, electric and hybrid vehicles, and deductibles.
• Company Bike / Work Bike with "on-top" provision and deferred compensation.

Payroll Accounting, Payroll Journal and Posting List

• Practical implementation in the payroll program: Track every wage type processed in " training " and its effects in " Payroll Accounting," the payroll journal, the posting list, and financial accounting.
• Payroll Accounting Read: Gross, Tax, Social Security, Net Pay, Net Deductions, and Net Payout.
• Understanding the Payroll Journal: Individual Payroll Entries, Monthly Totals, and Control Totals.
• Understanding the Posting List: Posting Document, Account Assignment for Payroll Categories, and Transfer to Financial Accounting.
• Personnel accounts in SKR 03 and SKR 04.
• E-balance sheet requirements for correct account assignment.
• List of bookings for individual employees and for all employees combined.
• Transfer and Posting of Payroll Data to Financial Accounting: Timing, Posting Texts, Interface, and Common Sources of Error.

Reconciliation Between Payroll Accounting and Financial Accounting

• Reconcile payroll accounts with financial accounting.
• Payroll Clearing Account.
• Liabilities arising from wages and salaries.
• Liabilities for income tax, church tax, and the solidarity surcharge.
• Social security liabilities.
• Employee withholdings, asset accumulation, occupational pension plans, garnishments, and other net deductions.
• U1/U2 Allocation: Reimbursements and Assignment.
• Early Payment of Social Security Contributions and Outstanding Contribution Liabilities.
• Account reconciliation, variance analysis, and best-practice monthly routine.

Supplementary Information and Reference Sections

• AAG Reimbursements U1/U2.
• Company events and work anniversaries.
• Customer events related to employees.
• Mandatory Workers' Compensation Insurance for Individual Pay Types and Reporting Logic for the Workers' Compensation Association.
• Artists' Social Security Contribution: A brief note in the compensation section.
• GoBD and GDPR only to the extent that they pertain to the documentation and retention of payment records.

Attachments, Checklists, and Transfer

• SFN surcharges at a glance; detailed explanations are provided in the appendices.
• Wage garnishment for an employee at Payroll Accounting.
• Termination / Resignation of an Employee as a Practical Case Related to Payroll and Accounting.
• Personnel and pension provisions as an additional and reference section.
• Checklists, workflows, and mini-cases for follow-up work.
• Transfer questions regarding payroll, human resources, financial accounting, and bookkeeping.