Employee Benefits Expense

Employee Benefits Expense groups everything paid or accrued for staff: monthly salaries and wages, the gratuity and retirement benefits earned, welfare spending such as festival meals and uniforms, and the value of share options granted. It posts nothing itself; payroll Journal Entries and Purchase Invoices debit the ledgers beneath it. Nepali law adds several costs on top of salary, provident fund, gratuity, Social Security Fund contributions and Dashain bonus, and all of these belong in this group so the true cost of a person is visible. Salary TDS withheld from staff is not an expense; it is part of the gross salary and sits in TDS Payable until deposited. The group total is the staff cost line.

Employee Benefits Expense = Salaries and Wages + Gratuity and Retirement Benefits + Staff Welfare + Share-based Payment Expense

1. 01Go to Accounts Setup > Chart of Accounts, expand Expenses, then Employee Benefits Expense.
2. 02Post each month's payroll with Invoicing > Journal Entry to the ledgers beneath.
3. 03Open Financial Reports > Profit and Loss Statement and read the group total.
4. 04Compare the salary ledger with the E-TDS salary return filed with the IRD.

Do not post here. Salary Journal Entries use Salaries and Wages or another child.

Employee Benefits Expense for Shrawan is Rs 1,65,000: salaries Rs 1,50,000 plus Rs 15,000 Dashain festival expense.