Account for the employer's share

Account for the employer's share

Employer social security contributions are automatically recorded during payroll processing. Journal entries are generated if the accounting of company expenses is enabled.

Step 1 – Enter employer rates

Enter the employer rate in the insurance solution

If the employer's rate is located in the insurance solution or the AVS/AC configuration :
  1. Display the relevant insurance solution page or AVS/AC Configuration : Menu Salaries , Basic Data , Insurance, then AVS/AC or LAA or LAAC or IJM Configuration.
  2. On the insurance page, open the relevant insurance solution and enter the employer rates.
     Example with the I JM insurance solution:


Enter the employer rate in the salary element

If the employer's contribution rate is included in a salary component (for example: LPP contributions , Family PC , Maternity Insurance , Family Allowances , etc.):
  1. View the Salary Elements page: Menu Salaries , Basic Data , Salary Elements.
  2. Open the relevant item and complete the Employer share field:



  3. Repeat this action for each relevant element.

Step 2 – Define the employer's share accounting accounts

To select the employer's share accounting accounts:
  1. Display the Salary Elements page: Salary menu, Basic data , Salary Elements.
  2. Open the relevant item.
  3. Select an account from the Employer's share accounting list:


    Info
    Generally, an expense account is selected from the Employee share accounting list (for example: account 5700 AVS, AI, APG, unemployment insurance ) and a liability account from the Employer share accounting list (for example: account 2050 AVS fund creditor) .

Step 3 – Calculate the employer's share

When calculating a salary, the columns Employer Coefficient/Rate and Employer Amount display respectively:
  1. The rate or coefficient applied to the employer.
  2. The corresponding amount to be recorded.


Step 4 – Activate employer expense accounting

To generate the employer's share entries:
  1. View the Payroll Accounting page: Human Resources menu, Payroll processing , Payroll accounting .
  2. Activate the Options tab.
  3. Activate the option to account for employer expenses :



  4. Record the payroll entries. For more details, see the article Recording Salaries and Payments .

Example of accounting

Let's take the example of the salary element AVS contribution , with the option to account for employer charges activated.
Accounts defined in the salary element:
  1. Employee share accounting : Account 5700 AVS, AI, APG, unemployment insurance .
  2. Accounting for employer's share : Account 2050 Creditor AVS/AC fund .



When accounting for salary, the following entries are made:
  1. Employee share :
    1. Debit: Gross salary account (e.g., 5000 Salaries ).
    2. Credit: Liability account defined in the Employer share accounting list (ex.: 2050 cash Creditor AVS/AC ).

  1. Accounting for the employer's share :
    1. Debit: Expense account defined in Employee share accounting (e.g. 5700 AVS, AI, APG, unemployment insurance ).
    2. Credit: Liability account defined in Employer share accounting (e.g., 2050 cash Creditor AVS/AC ).
In the end, account 2050 cash Creditor AVS/AC contains the total amount due to the fund (employee share + employer share), and expense account 5700 AVS, AI, APG, unemployment insurance contains only the employer share.


Info
The creditor invoice from the AVS fund must be recorded as a debit to account 2050 Creditor AVS/AC fund , in order to settle the amount due.