Salary to employee
Querist : Anonymous
If salary paid to driver of company for working on sunday. What is the treatment for disclosure ? Whether it shall be added on payroll or shall be shown separately, as misc. ( office ) expenses ?
valuable contribution of experts requested.
You are requested to see the nature of expenses. If it is in the nature of Overtime then it should form part of salary only, however, if that amount is paid for food/conveyance then it should be the part of welfare.
Go by the nature of the expense.
Regards,
Querist : Anonymous
I have checked it out, and came to know that, it is paid for overtime ( working on sunday i.e. driving ), and debited to misc. (office ) expenses.
So, shall it be changed and debited to salary a/c ?
Here’s why:
* Overtime is an extension of normal work hours and thus part of salary.
* Including it in salary ensures correct compliance with labor laws, statutory deductions (like PF, TDS), and proper financial reporting.
* Showing it under Miscellaneous (Office) Expenses is not ideal and may lead to audit queries or compliance issues.
**So, you should:**
* Reclassify the Sunday overtime payment from Miscellaneous Expenses to Salary Expenses.
* Reflect it in the payroll records and salary register.
* Deduct applicable taxes and contributions on this amount as per rules.
If you want, I can help you with the journal entries or payroll adjustments for this! Would you like that?
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