Employee welfare funds are the expenses used by enterprises for medical expenses of employees, salaries of medical staff, medical expenses, travel expenses for medical treatment of employees injured on business, subsidies for employees' living difficulties, salaries of employees in bathrooms, barbershops, kindergartens and nurseries. Employee welfare funds can not only effectively improve the treatment of enterprise employees, but also be deducted before tax according to state regulations.

Article 2 of the Notice of State Taxation Administration of The People's Republic of China on Deduction of Wages, Salaries and Employee Welfare Expenses (No.3 [2009] of the State) stipulates that the employee welfare expenses of enterprises include the following contents:

Subsidies and non-monetary benefits for employees in medical care, living, housing and transportation. , including medical expenses paid by enterprises to employees on business trips in other places, medical expenses of employees of enterprises who have not implemented medical co-ordination, medical subsidies for employees to support their immediate family members, heating subsidies, heatstroke prevention and cooling expenses for employees, subsidies for employees' difficulties, relief funds, subsidies for employees' canteens, and transportation subsidies for employees.

Extended data

Financial treatment of employee welfare fund

1. When the expenses are actually paid:

Borrow: Payable employee salaries-employee welfare expenses.

Loan: cash/bank deposit

2. When the expenses are carried forward at the end of the month:

Borrow: management expenses-employee welfare expenses

Loan: Payable employee salary-employee welfare fund.

3. When the profit and loss are carried forward at the end of the year:

Debit: this year's profit

Loan: management fee-employee welfare fee

Baidu encyclopedia-employee benefits