How to Record Employee Salary & CPF (Singapore)

• How to Record Employee Salary 
• How to Record Post-Dated Salary

How to Record Employee Salary

Create the following accounts:

• Wages & Salary (Expenses)
• CPF (Expenses)
• CPF Payable – Employer + Employee (Liability)

You may create Wages & Salary (Expenses) and CPF (Expenses) by following the guide below.

Step 1: Go to Control Panel > Accounting > Profit & Loss Accounts.

Step 2: Click on Add New

Step 3: You may key in the details as below and click Save.

Step 4: Repeat Step 2. Then, you may key in the details as below and click Save.

You can create CPF Payable – Employer + Employee (Liability) by following the guide below.

Step 1: Go to Control Panel > Accounting > Balance Sheet Accounts.

Step 2: Click on Add New

Step 3: You may key in the details as below and click Save.

The entry to record employee salary will be:

• Debit - Wages & Salaries
• Debit –  CPF (Expenses)
• Credit - CPF Payable
• Credit - Bank account

Below are the steps on how to record it.

Step 1: Click on Transactions > Create New > Journal.

Step 2: Click on Add New under Items section and the column box will appear for you to key in the details.

Step 3: You may key in the details as below and click Save once you have done record these 4 entries.

How to Record Post-Dated Salary

Example of a scenario:-

Salary expense incurred for December but only paid out on 7th January.  As such, I will record salary payable as a journal entry in Dec 2020 but will subsequently record as a salary expense in Jan 2021. Please advise step by step guide.

Example: 

Employee has a base salary of $5000,

Employer CPF will be $850

Employee CPF will be $1000

Total Employer + Employee CPF will be $1850

Create the following accounts:

• Wages & Salary (Expenses)
• CPF (Expenses)
• CPF Payable (Liability) - Employer + employee
• Net Salary(Liability) Amount payable in January

The entries to record post-dated salary will be:  

Record the transaction in December 

Step 1: Click on Transactions > Create New > Journal.

Step 2: Click on Add New under Items section and the column box will appear for you to key in the details.

Step 3: You may key in the details as below and click Save once you have done record these 4 entries.

Record the transaction in January (salary payable to the employee in January) 

Step 1: Click on Transactions > Create New > Withdrawal

Step 2: Choose the Bank account under Withdrawal From.

Step 3: Click on Add New under Items section and the column box will appear for you to key in the details.

Step 4: You may key in the details as below and click Save.

Record the transaction in January (payable to CPF in January) 

Step 1: Click on Transactions > Create New > Withdrawal

Step 2: Choose the Bank account under Withdrawal From.

Step 3: Click on Add New under Items section and the column box will appear for you to key in the details.

Step 4: You may key in the details as below and click Save.