Dear Respected Members,
Please educate me on following:
if a firm pay salary and overtime to their each employee by separate cheque with some time difference (For example salary cheque is being issued on 1st of month whereas overtime cheque issues on 10th of month), should the firm create one account of employee and post both remunerations in this account or should the create separate account each remuneration ?
It would be highly appreciated, if you will be able to provide explanation about your answer?
Thanks in advance for your precious time and efforts regarding reply of this query.
You can do it in a single account or create another account. During finalization of accounta all remuneratuin plus overtime will be shown under the head salariez
If an employee receives any payment in respect of extra work done by him then the same is charged to tax under the head “Salaries”. In other words, remuneration received for extra work will be charged to tax as salary income.
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