28 – Employee Benefits/Pension Fund

Personnel Expenses

Synopsis

Account 28

Debits

Credits

  1. The monthly provision for contributions to fringe benefit programs instituted for the benefit of employees.

 

 

Remarks:

In most employee benefit programs; the employees and the retailer share in the expense of the program.  Only the retailer's portion of the expense is to be charged to this account.

Employee benefit programs that normally should be charged to this account include Pension Fund, life insurance, hospitalization insurance, sickness and accident insurance, welfare and recreation funds, and workers’ compensation insurance.

An accurate method of payroll deductions for employee contributions should be established.  Such deductions are controlled more effectively if they are cleared through a payable account.

Departmental distribution should be made in relation to payroll dollar amount per department.