The definition of personnel expenses refers to the remuneration that a company or business makes to the workers under its charge, which goes beyond the payment of salaries.
In this section there is room for all kinds of retributions fixed and variable, compensation and mandatory contributions to the different Social Security regimes. Also included are social benefits that include all kinds of pensions and expenses of a social nature.
Personnel expenses in the PGC
The accounts that make up the personnel expenses in the Accounting Plan are:
- Salaries and salaries.
- Social security in charge of the company.
- Long-term remuneration through defined contribution and defined benefit systems.
- Remuneration to personnel through equity instruments.
- Other social expenses, such as pension plans.
Regarding the concept of personnel expenses, two components must be differentiated above all: salaries and contributions to Social Security.
The Wages and salariesThey are the compensation paid by the company to the worker for the provision of a task or service. The company does not pay this amount in full to the employee since it withholds a part for two concepts such as Social Security and withholding for personal income tax (IRPF).
Every employee has the obligation to contribute to the Social Security regime, but instead of directly making the income, it is the company for which he performs the work that withholds an amount and is in charge of making the income to the Social Security.
With regards to retention From the income of individuals, companies have the obligation to withhold part of the worker's salary to pay it to the Tax Agency, as an advance on the tax that each employee will have to bear.