Staff Welfare
Also called: Staff Amenities, Tea and Snacks
Tea, lunch, medical help, uniforms, staff outings and festival gifts, on the Profit and Loss statement.
In detail
Staff Welfare holds the small costs of looking after the team that are not part of anyone's salary: tea and snacks, the Teej or Dashain office lunch, uniforms, first-aid supplies and a team outing. They are usually paid in cash or by card and recorded with a Journal Entry or a Purchase Invoice against this ledger. Separating them from Salaries and Wages keeps payroll clean for the E-TDS return, and separating them from Miscellaneous Expenses lets the owner see what staff care costs over a year. The IRD accepts reasonable welfare spending with bills; large gifts to individuals can be treated as taxable salary, so keep amounts modest and documented.
Formula
Staff Welfare for the period = Sum of welfare bills and cash vouchers posted to the ledger
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Staff Welfare | Rs 6,500 | |
| Cash | Rs 6,500 |
How to record it in BRAccount
- 01Collect the restaurant or shop bill for the welfare spend.
- 02Go to Invoicing > Journal Entry > New dated the bill, or Buying > Purchase Invoice for a registered supplier.
- 03Debit Staff Welfare with the cost center of the team and credit Cash or the bank.
- 04Attach the bill and submit. The entry below posts.
- 05Review the ledger on Financial Reports > General Ledger before the annual return.
When to use it
Post by Purchase Invoice, Journal Entry or Payment Entry for staff-related spending that is not salary.
Example from the demo books
Dr Staff Welfare Rs 6,500, Cr Cash Rs 6,500 for the Teej lunch for the office team.