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Corresponding author:
1 Vinnytsia National Agrarian University, Ukraine
E-mail: angelikaam@ukr.net
ORCID: https://orcid.org/0000-0001-9514-504X
ResearcherID: L-5938-2018 

DOI: https://doi.org/10.30525/2661-5150/2021-4-7

ORGANIZATION OF PAYMENT ACCOUNTING  
AT THE ENTERPRISE AND DIRECTIONS OF ITS IMPROVEMENT

Anzhelika Mashevska1

Abstract. The article examines the accounting of the pay organization and its elements, indicates what leads to an 
unfair wage system. The objectives are in the process of organizing payroll accounting, as well as problematic issues 
in the organization of accounting of labor and its payment, arising in the implementation of business operations. 
One of the peculiarities of payroll accounting is described, namely the use of a separate document – the Payroll 
Regulations, which defines the use of payroll in the enterprise and contains all the necessary elements of accounting. 
Methodology. Payroll is an important economic process in any enterprise and an effective means of motivating 
employees to be highly productive. Payroll accounting is an important component of payroll management, and its 
proper organization provides clear, reliable and accurate information on payroll. This is the most time-consuming 
and responsible stage in further accounting. In today's business there are many different disadvantages, including 
the correct and effective organization of payroll, which makes the selected topic relevant. Results. The study points 
to the importance of the Order (Regulation) on accounting policy, which defines alternative approaches to the 
reflection of information on employee payments in accounting and reporting. It is noted that the accounting of 
payroll settlements will be facilitated by detailing the sub-account 661 "Payroll". Practical implications. Suggestions 
for improving payroll accounting registers are offered. The author emphasized that the organization of payroll 
accounting, its size and structure are of common interest to business owners and employees. The instruments of 
state regulation of the organization of labor remuneration are considered. It also suggests its own ways of improving 
payroll accounting, in particular, the use of software products designed specifically for payroll accounting, constant 
updating of the database and constant monitoring of payroll accrual. Value/originality. To improve the calculation 
and organization of accounting wages for employees at the enterprise it is necessary to introduce an individual 
system of payment, using the established rates for high-quality work performed by an employee, or set rates, which 
will increase the effectiveness of incentives for employees. The main objective of writing this article is to provide 
recommendations for improving the organization of labor remuneration. However, please note that despite the 
large number of articles and other scientific works on improving the organization of accounting for payroll at 
enterprises the questions related to the automation of accounting and implementation of really effective ways to 
improve and facilitate the organization of accounting for payroll are still unresolved.

Key words: wages, organization of wage accounting, tools of state regulation, calculations of payments to 
employees.

JEL Classification: J30, J31, J39, M40

1. Introduction
Payroll is the main source of income for employees

of any enterprise. Accounting for it is a complex 
part of the accounting process that requires reliable  
documentation of the time worked, products produced, 
work performed, services rendered and paid for.

Today, the organization of payroll accounting at 
the enterprise requires a more detailed study, since 
in modern conditions it performs such important 
functions as reproductive and stimulating.

In addition, constant changes in the legal and 
organizational basis of accounting require the modern 
accountant to make timely adjustments both in the 
accounting procedure and in the display of information 
on wages and salaries in the statements of the enterprise.

Wages, the level of payments to employees, their 
nature and structure are of great social importance 
and influence not only the standard of living but also 
the current and future performance of the enterprise. 
In addition, the efficiency of the enterprise depends 

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0



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on the work of the employees themselves, and their 
motivation, in turn, depends on the level of wages and 
working conditions. Therefore, the chosen topic is 
very relevant, because in conditions of automation of 
accounting greatly facilitates and speeds up the work of 
the employees themselves. This creates all the conditions 
for more effective accounting, which contributes to the 
increase of the company 's profits in the future.

The organization of payroll means its construction, 
bringing its elements into a certain system, providing 
the interrelation of the quantity and quality of labor 
with the amount of wages. Organization of payroll at the 
enterprise is determined by three elements: tariff system, 
labor regulation and forms of labor remuneration 
(Shepel', 2018).

2. The task of organizing payroll accounting
The use of inefficient or unfair payment system leads

to a decrease in labor productivity, product quality, 
violation of labor discipline, emergence of social and 
labor conflicts between the employees and the employer, 
negatively affects the final results of the enterprise.  
Each company is characterized by peculiarities of 
activity, sets specific goals, and each employee has its 
own values and attitudes (Vasyurenko, 2017).

In the process of organizing payroll accounting are the 
following tasks:
– ensuring timely payment of wages (accrual of wages
and other payments, calculation of deductions);
– ensuring the timeliness and accuracy of the distribution 
of the amount of accrued wages and deductions for
production costs;
– ensuring control over the number of employees,
the use of working time and compliance with labor
discipline;
– grouping of indicators for the purposes of operational
control and preparation of necessary reporting
(Katkova and Maslova, 2017).

It is advisable to specify problematic issues in the 
organization of accounting of labor and its payment, 
arising in the performance of operations:
a) control over the use of working time and ensuring
growth in labor productivity;
b) timely and correct determination of amounts of
accrued wages and contributions to social insurance
bodies and their inclusion in the cost of production
(works, services);
c) making all payments to employees for wages and
other payments in due time;
d) accounting and control over the use of the wage
fund and other funds allocated to pay employees of the 
enterprise.;
e) introduction of work motivation for the employees of 
the company (Myronova and Panasenko, 2016).

One of the peculiarities of payroll accounting is the 
development of a separate document at the enterprise – 

the Payroll Regulations, which defines the procedure 
for applying wages at the enterprise and includes:
– general principles of labor remuneration at the
enterprise, systems and forms of remuneration applied
to various categories of employees;
– the staff schedule of the company;
– construction of basic (tariff ) wages by positions and
professions;
– the size of tariff rates and fixed salaries or the procedure 
for calculating payments depending on the performance 
of the employee and the company as a whole;
– other bonus systems used at the enterprise
(Saukh, 2011).

The order (regulation) on accounting policy 
defines alternative approaches to the reflection in the  
accounting and reporting of information on payments 
to employees and the formation of security payments, it 
should also be specified elements of accounting policy, 
namely methods of accounting for payroll, a list of 
accounting information at all stages of accounting, the 
timing of their presentation, provisions for payment 
of leave. And as an appendix, attach the work plan of 
accounts.

3. Reflection in the accounting
of wage settlements

Y. M. Krot believes that the important tasks of
improving the calculation of wages are the acceleration 
of scientific and technological progress, mechanization 
of labor-intensive work, optimization of the use of 
labor resources, reducing the loss of working time.  
The researcher also presented a working model of 
analytical accounting of wages, which should be 
streamlined and improved. For this purpose the 
researcher suggested introducing appropriate sub-
accounts to account 66 "Settlements on Employees' 
Remuneration":
– 661 "Payroll";
– 6611 " Settlement of accrued charges";
– 66110 "Current payments";
– 66111 "Salaries and wages";
– 66112 "Other accruals for wages";
– 66113 "Overtime pay ";
– 66114 "Bonuses and other incentive payments";
– 66115 "Commissions";
– 6612 "Termination allowance";
– 6613 "Payments after employment";
– 6614 "Vacation pay calculations" (Krot and
Nakonechna, 2012).

Namely, for more convenient accounting of wage 
settlements it is advisable to develop it by detailing 
the sub-account 661 "Payroll" and to use the facet 
method of grouping information for its formation, 
which will provide information for various purposes by  
accounting information simultaneously in several 
analytical sections.



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To group wages by employee category, accounts of the 

third order should be opened: 6611 " Wage settlements 
for administrative and managerial personnel"; 
6612 " Wage settlements for engineers and technicians 
of structural units"; 6613 " Wage settlements for 
workers". The composition of each analytical account 
must be detailed in the breakdown of payments: 
salary, additional payments (by type) and allowances  
(by type) (Ostroverkha, 2014).

Also, the company, in accordance with the peculiarities 
of its specialization can develop registers of synthetic 
and analytical accounting with the help of special 
computer programs. And one of the most important 
components of the organization of payroll accounting 
is the organization of control, which is the systematic 
monitoring of the use of the payroll fund, accrual 
of wages for each employee and the timeliness of  
payment.

Therefore, the organization of payroll accounting 
should ensure a high level of labor productivity and 
accurate payroll calculation. Tasks should correspond  
to the specialization of enterprises, and actions on 
payroll accounting should be reflected in the accounting 
policy. After all, the motivation of employees and 
the reliability of information depends on the rational 
organization of accounting.

In accordance with the innovations introduced in the 
Regulations of Accounting Standard 26, and a number 
of other regulations, including the Chart of Accounts 
and the Instruction on its application, I. V. Shepel' 
proposes changes to the text of the Instruction on 

the use of registers in the journal-order form of 
accounting for agricultural enterprises (Order No. 390)  
(Shepel', 2018).

That is, these changes apply to journal-orders to 
summarize the information they contain about employee 
benefits. In accordance with the Methodological 
Recommendations on the organization and maintenance 
of accounting in the journal-order form in enterprises 
of agroindustrial complex I. V. Shepel' given control 
procedures for checking entries in the journal-order 
№ 5 s.-g. and in general control of synthetic accounting 
settlements with employees (Table 1).

The authors of this work fully agree with the  
opinion of L. V. Vasyurenko, that the unified 
wage scale, with all its imperfections, can become 
a fundamental tool, taken as a basis for improving 
the calculation of wages in commercial and non-
governmental enterprises and organizations. A unified 
wage scale, developed for each individual enterprise 
with appropriate justification, must be approved by 
management and recorded in a separate paragraph of 
the order on accounting policy and in the provision 
on the organization of accounting at the enterprise. 
Such a mechanism for organizing the accrual of wages 
will become a link for improving labor relations  
(Vasyurenko, 2017).

The organization of labor accounting and its payment 
should take into account that labor payment, and 
especially its size and structure, is a point of intersection 
of interests of different users: owners and enterprises. 
The wide range of operations falling under the forming 

Table 1
Proposals for improving the accounting registers of payments for labor

Name and purpose of registers Proposed changes
Journal-order 5 B s.-g.
Journal-order 5 B s.-g. on credit accounts:
65 "Insurance settlements" sub-accounts:
651 "On pension provision"
652 "On social insurance"
653 "Unemployment insurance"
656 "On insurance against accidents at work and occupational diseases"
66 "Settlements on employee benefits"

Journal-order 5 B s.-g. on credit accounts:
65 "Insurance settlements" sub-accounts:
651 "According to the calculations of mandatory state social insurance"
652 "On social insurance"
654 "On individual insurance"
655 "For property insurance"
66 "Payments to employees"

Statement 5.1 s.-g. 
Summary statement of accrual and distribution of wages 
and salaries and deductions from it on the objects of cost accounting

On adjusted deductions sub-accounts.

Statement 5.2 s.-g.
Book of settlements with depositors – 

Statement 5.3 s.-g. 
Summary list of settlements with workers and employees
Statement 5.4 s.-g.
Statement of analytical accounting on the account
65 "Insurance settlements" sub-accounts:
651 "On pension provision"
652 "On social insurance"
653 "Unemployment insurance"
656 "On insurance against accidents at work and occupational diseases"

Statement of analytical accounting on the account
65 "Insurance settlements" sub-accounts:
651 "According to the calculations of mandatory state social insurance"
652 "On social insurance" 
654 "On individual insurance"

Source: (Shepel', 2018)



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factors of labor and its payment, causes the necessity of 
their organizational support (Shepel', 2018).

4. Approaches to raising wages
O. O. Hryhorevska believes that improving or building 

the basic organizational provisions of accounting for 
labor remuneration transactions, businesses must be 
reasonable and balanced approach to this issue, taking 
into account the scientific results of previous studies.

When developing internal documents (regulations 
on remuneration, bonuses, etc.) it is necessary to 
expand the use of personalized rates and salaries for the 
most qualified employees, focused on increasing labor 
productivity; take into account industry specifics, in 
particular, to determine specific job evaluation factors 
for the methods of the bonus system for each category 
of personnel, strengthening the regulatory and incentive 
functions of wages; the list of factors and criteria for 
evaluating bonus conditions should include levels of 
qualification, degree of responsibility for the work 
performed, skill level, initiative, work experience, etc. 
That is, the criteria to which the current state, tactical 
and strategic action plans and management tools meet 
(Hryhorevs'ka and Khrystos, 2015).

Effective organization of wage accounting, correct 
classification of wage components, timely analysis of 
operations on wage accrual ensure the search and choice 
of ways to increase wages and motivate employees to 
perform their work. It is important to take into account 
labor rationing, dynamics of its indicators, control over 
the performance of tasks and functions.

Users of such information have the opportunity to 
implement control functions in the structural elements 
of the use of working time, the implementation of such 
a system of ways to improve, which will correspond to 
a rational ratio of labor productivity growth and wages.

Therefore, of course, it is necessary to reduce the 
volume of paper copies of payroll documents and 
completely switch to an automated accounting system.

According to O. S. Kriuchko, the formation of 
conceptual approaches to improving wages in the 
context of socio-economic development of regions 
should be based on the following principles: 
– Improvement of remuneration of labor, taking into 
account the results of monitoring the sectoral and 
regional level of labor remuneration;
– a combination of systemic and individual approaches 
to remuneration, which will reduce subjectivity in 
assessing labor results and increase individualization in 
remuneration;
– compliance of the remuneration and motivation 
system goals with the strategic goals of the company and 
the socio-economic development of the region;
– elimination of demotivating factors: conflict, 
internal discomfort, unattainable goals and objectives, 
lack of necessary resources to perform tasks, dependence 

of wages on the individual contribution of an  
employee;
– transparency and clarity of the remuneration system;
– fairness in remuneration;
– timeliness of payment of remuneration;
– a set of remuneration systems that combines tangible 
and intangible rewards;
– empowering businesses in the region and giving 
them the responsibility to monitor gender equality 
(Kryuchko, 2013).

I. V. Dymedenko proposed a bonus system that would 
include the following types of bonuses:
– current premiums on the main financial indicators of 
the company for the reporting period;
– bonuses for completing certain tasks, which are 
essential for the company to achieve high results in the 
form of bonuses, commissions;
– one-time bonuses for achievements or significant 
merits of the employee;
– a bonus based on the results of the year;
– a bonus based on the results of the production 
program of the company, calculated for three to five 
years (Dymedenko and Dymedenko, 2012).

To improve the wage system in today 's business 
environment is necessary:
– to ensure a higher level of workplace organization;
– to ensure timely issuance of work assignments;
– to improve the technical condition of the workplace, 
timely preventive and routine repairs and upgrades;
– to improve coordination of work at a specific 
workplace with the work of the structural unit as a 
whole and technologically interconnected workplaces;
– to intensively implement effective labor organization 
models;
– to develop a flexible unified wage scale adapted 
to the enterprise, its own progressive scale 
between grade factors, taking into account the 
complexity of the work, the level of qualification and  
responsibility;
– to provide a mechanism for the consistent 
establishment of the minimum rate of the first tariff 
category at the level of the minimum subsistence level;
– to ensure that the remuneration system takes into 
account labor conditions, variability, professional skills, 
productivity, intensity, complexity, quality of work, 
rhythm, economic, labor and technological discipline 
(Varakuta and Bobyl', 2012).

5. Conclusions
To summarize, it can be said that the process of 

improving the organization of accounting and payroll is 
a set of rules and requirements of the head-owner of the 
organization, which ensure the registration of economic 
life, in order to obtain verified information, with which 
the reporting is formed and the necessary management 
decisions are made.



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Having analyzed the above information, according to 

the authors, it is advisable to implement the following 
ways to improve the organization of payroll accounting:

– use software products designed specifically for
payroll accounting;

– constantly update the database;
– to carry out regular monitoring of the accrual of

wages.
Attention is paid to such main points in the field of 

organization of accounting for payroll at enterprises 

as insufficient provision of some areas of accounting 
with automated systems, a slight difference in wages of 
different categories of workers.

Thus, to improve the calculation and organization 
of labor remuneration at the enterprise it is necessary 
to introduce an individual system of payment, 
using the established rates for high-quality work 
performed by an employee, or set tariffs, which 
will increase the effectiveness of incentives for  
employees.

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