Hi Madhu Sir,
My concern is regarding the gratuity entry for accounting purposes. The gratuity was paid and entered in the accounts book, but there is no proof for this entry as there is for salary and wages. This is what I am worried about.
Secondly, in the organization, there is a policy to encash in January any excess of 75 earned leaves (EL) each year. This encashment is also mentioned on the salary slip. I would like to know if this encashment of EL should also be recorded in the salary and wages register. Additionally, bonuses are paid quarterly in this organization, and the bonus amount is stated on the salary slip. I need clarification on whether all these should be shown on the salary and wages register or not.
Regards,
Dinesh Kumar
From India, New Delhi
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38My concern is regarding the gratuity entry for accounting purposes. The gratuity was paid and entered in the accounts book, but there is no proof for this entry as there is for salary and wages. This is what I am worried about.
Secondly, in the organization, there is a policy to encash in January any excess of 75 earned leaves (EL) each year. This encashment is also mentioned on the salary slip. I would like to know if this encashment of EL should also be recorded in the salary and wages register. Additionally, bonuses are paid quarterly in this organization, and the bonus amount is stated on the salary slip. I need clarification on whether all these should be shown on the salary and wages register or not.
Regards,
Dinesh Kumar
From India, New Delhi
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Who told you that gratuity should be treated like wages? How can we include it in the salary slip? No, you cannot include it in the wage slip but should be accounted separately like any other expense, such as debiting the Gratuity Paid account.
In a similar way, Bonus should also be paid separately and should not be shown in the salary slip. It is up to you to pay it quarterly, but as per the Bonus Act, you have to pay the bonus within 8 months of the end of the financial year. That means the bonus of 2013-14 should be paid on or before November. When you pay it quarterly, some amount will be due for payment, which is not proper as per law.
Regarding encashment of PL, the same practice is to be followed. You can pay it without including the same in the wages register.
Madhu.T.K
From India, Kannur
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In a similar way, Bonus should also be paid separately and should not be shown in the salary slip. It is up to you to pay it quarterly, but as per the Bonus Act, you have to pay the bonus within 8 months of the end of the financial year. That means the bonus of 2013-14 should be paid on or before November. When you pay it quarterly, some amount will be due for payment, which is not proper as per law.
Regarding encashment of PL, the same practice is to be followed. You can pay it without including the same in the wages register.
Madhu.T.K
From India, Kannur
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