WAGES SALARIES KISS PRINCIPLES Job satisfaction chat LOL
WAGES & SALARIES “KISS” PRINCIPLES
Job satisfaction chat!? LOL “SOMETIMES I FEEL THAT I HAVE THE WORLD’S WORST JOB” ”YA RIGHT!”
SALARIES & WAGES INCOME SALARIES PAID PER MONTH WAGES PAID WEEKLY EITHER PER HOUR OR PER PIECE PLUS OVERTIME [1. 5 AT LEAST OF NORMAL RATE] COMMISSION [% OF SALES] NET SALARY/WAGES = “take home pay ” NET SALARY/WAGE = GROSS SALARY/ WAGES LESS DEDUCTIONS ! GROSS SALARY/WAGES IS YOUR REMUNERATION BEFORE DEDUCTIONS.
WAGES & SALARIES TOTAL DEDUCTIONS = COMPULSORY DEDUCTIONS + OPTIONAL DEDUCTIONS COMPULSORY DEDUCTIONS ARE UIF, SARS [PAYE], SKILLS DEVELOPMENT LEVY & STAFF FUND “OPTIONAL “DEDUCTIONS ARE PENSION FUND + MEDICAL AID FUND
Total Remuneration Package TOTAL REMUNERATION PACKAGE [What you tell your wife to impress ] Gross salary/wage Plus BENEFITS ? [what the business contributes to your funds over and above your own deduction/contribution] UIF contribution, Pension Fund contribution, Medical Aid contribution Plus Allowances/subsidies such as entertainment , housing, petrol, car etc.
STEPS Check period: PA or PM? 1. RECORD ENTRIES IN WJ/SJ 2. POST TO THE GENERAL LEDGER DR these EXPENSES [ E+ -] “WAGES OR SALARIES” “PENSION FUNDS CONTRIBUTIONS” “UNEMPLOYMENT INSURANCE FUND CONTRIBUTIONS” CR these LIABILITIES [L+] “PENSION FUND” X 2 , “CREDITORS FOR WAGES OR SALARIES” “MEDICAL AID FUND” X 2 , “STAFF ASSOCIATION” “SARS[PAYE]” , “UNEMPLOYMENT INSURANCE FUND” X 2
• • 3. RECORD TOTAL PAYMENTS IN THE CPJ. WHICH AMOUNT DO WE RECORD IN THE CPJ? USE THE TOTAL OF THE CREDIT SIDE OF THE LEDGER! = The opening balance plus the entry[s] from the Wages Journal [WJ]or Salaries journal [SJ] 4. POST FROM CPJ TO GENERAL LEDGER. DR ALL LIABILITIES [FUNDS] [L-] CR BANK [A-]
KNITTING WRONG SO FAR?
WAGES & SALARIES “KISS” PRINCIPLES • 4 STEPS Check period: PA or PM? • 1. RECORD ENTRIES IN WJ/SJ 2. POST TO THE GENERAL LEDGER • DR ALL EXPENSES • • E+ - CR ALL LIABILITIES L+ 3. RECORD TOTAL PAYMENTS IN THE CPJ 4. POST FROM CPJ TO GENERAL LEDGER. • DR ALL LIABILITIES [FUNDS] [L-] CR BANK [A-] • “WITH TOTAL OWED TO FUNDS” •
ONLY 4 STEPS
WAGES & SALARIES “KISS” PRINCIPLES STEPS Check period: PA or PM? • 1. RECORD ENTRIES IN WJ/SJ • 2. POST TO THE GENERAL LEDGER DR ALL EXPENSES [E+ O-] “WAGES OR SALARIES” “PENSION FUNDS CONTRIBUTIONS” “UNEMPLOYMENT FUND CONTRIBUTIONS” CR ALL LIABILITIES [FUNDS] [L+] “PENSION FUND” X 2 “CREDITORS FOR WAGES OR SALARIES” “MEDICAL AID FUND X 2” “STAFF ASSOCIATION” “SARS[PAYE]” “UNEMPLOYMENT INSURANCE FUND” X 2 • 3. RECORD TOTAL PAYMENTS IN THE CPJ. WHAT IS THE TOTAL? The opening balance plus the entry[s] from the WJ & SJ • 4. POST FROM THE CPJ TO THE GENERAL LEDGER. DR ALL LIABILITIES [FUNDS] [L-] CR BANK [A-] “WITH TOTAL OWED TO FUNDS”
DO YOU REALLY UNDERSTAND WHAT I’M TELLING YOU? !
ASK QUESIONS IF YOU DO NOT UNDERSTAND THE WORK.
WAGES & SALARIES “KISS” PRINCIPLES 4 STEPS Check period: PA or PM? • 1. RECORD ENTRIES IN WJ/SJ • 2. POST from WJ/SJ TO THE GENERAL LEDGER • 3. RECORD TOTAL PAYMENTS IN THE CPJ. • 4. POST FROM THE CPJ TO THE GENERAL LEDGER.
Summary of General Ledger JOURNAL DEBIT CREDIT WJ UIF CONTRIBUTION UIF WJ WAGES CREDITORS FOR WAGES WJ PENSION FUND CONTRIBUTION PENSION FUND WJ WAGES PENSION FUND WJ WAGES SARS [PAYE] WJ WAGES MEDICAL AID FUND WJ WAGES UIF SJ UIF CONTRIBUTION UIF
JOURNAL DEBIT CREDIT SJ SALARIES UIF SJ SALARIES PENSION FUND SJ SALARIES SARS [PAYE] SJ PENSION FUND CONTRIBUTION PENSION FUND SJ MEDICAL AID FUND MEDICAL AID SJ CONTRIBUTION SALARIES CREDITORS FOR SALARIES CPJ MEDICAL AID FUND BANK CPJ SARS [PAYE] BANK
JOURNAL DEBIT CREDIT CPJ PENSION FUND BANK CPJ CREDITORS FOR SALARIES BANK
YOU MUST KNOW THE 4 STEPS IN RECORDING WAGES & SALARIES OFF BY HEART !! HAVE YOU GOT ME!!?
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