Pre-tax deduction standard of enterprise employee education funds
The main contents of enterprise staff education and training include political theory and professional ethics education; Professional technical and vocational skills training and adaptability training; Continuing education of enterprise managers and professional and technical personnel; Job-changing training for surplus employees of enterprises; Conduct various cultural education and technical skills training for employees as needed.
Enterprises can carry out employee education and training through internal training, entrusting affiliated enterprises, entrusting colleges or third-party educational institutions, etc., and encourage individual employees to obtain vocational training and degree certificates. The reasonable expenses directly related to employee education and training arising therefrom are paid from the extracted employee education funds.
According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on the Pre-tax Deduction Policy for Employees' Education Funds, starting from 20 18 1, the part of employees' education funds incurred by enterprises that does not exceed 8% of the total wages and salaries is allowed to be deducted when calculating the taxable income of enterprise income tax; The excess shall be allowed to be carried forward and deducted in future tax years.
In other words, the proportion of employee education funds each year is determined by the enterprise within the range of 1.5%-8%.
Accounting entries of employee education fund
When extracting:
Borrow: production cost
Management cost
construction in progress
Loans: Payables-Employee Education Fund
When in use:
Borrow: Payables to Employees-Employee Education Fund
Loans: bank deposits