PAYROLL LIABILITIES:

1
PAYROLL LIABILITIES TURKISH CASE
2
Payroll Liabilities (TURKEY)
Gross Pay
TL
Social Security Insurance Premium Employers Share
Unemployment Insurance Premium

Employers Share
Social Security Insurance Premium Employees Share
Unemployment Insurance Premium

Employees Share
Income Taxes Stamp Duty
3
February 2004 Payroll for Gross Salary of
1.500.000.000 TL
TOTAL WAGES EXPENSE
1.822.500.000 TL Social Security Insurance
Premium

Employers Share (19,5 of gross
payment) 292.500.000 TL  Unemployment
Insurance Premium

Employers Share (2 of gross payment)
30.000.000 TL  GROSS SALARY
1.500.000.000 TL Social Security
Insurance Premium

Employees Share (14 of gross
payment) 210.000.000 TL Unemployment
Insurance Premium

Employees Share (1 of gross payment)
15.000.000 TL Stamp Duty (0,6 of gross
payment) 9.000.000 TL  Income Tax
(15 of Tax Base) 191.250.000 TL NET
SALARY 1.074.750.000 TL Tax Base
Gross Salary S.S.I.P. Employees Share U.I.P.
Employees Share Tax Base 1,500,000,000TL
210,000,000 TL 15,000,000 TL Tax Base
1.275.000.000 TL
4
Social Security Insurance
Limits of Social Security Premium (after
01.01.2004) Minimum 549.630.000 TL
Maximum 2.748.150.000 TL
Rates of Social Security Premiums
Percent of
Gross Salary S.S. Insurance Premium Employers
Share ........... 19,5 U. Insurance Premium
Employers Share .............. 2 S.S.
Insurance Premium Employees Share ..........
14 U. Insurance Premium Employees Share
............. 1
5
Tax Base (for 2004)
Gross Salary () Social Security Ins. Pr.
Employees Share () Unemployment Ins. Pr.
Employees Share Tax Base
Gross Salary 1,500,000,000 TL (-)
S.S.I.P. Employees share 210,000,000 TL (-)
U.I.P. Employees share 15,000,000 TL
Tax Base 1.275.000.000 TL
6
Income Tax Rates (2004- For Salaries)
Income Interval Tax Rate For less than
6.000.000.000 TL .................................
... 15 From 6.000.000.000 TL to
14.000.000.000 TL ............. 20 From
14.000.000.000 TL to 28.000.000.000 TL
........... 25 From 28.000.000.000 TL to
70.000.000.000 TL ........... 30 From
70.000.000.000 TL to 140.000.000.000 TL .........
35 For more than 140.000.000.000 TL
.............................. 40
7
(2004) Monthly Cumulative
Income Months Tax base Tax
base Interval Tax Rate January
1.275.000.000 TL 1.275.000.000 TL 1
15 February 1.275.000.000 TL 2.550.000.000
TL 1 15 March 1.275.000.000 TL
3.825.000.000 TL 1 15 April
1.275.000.000 TL 5.100.000.000 TL 1
15 May 900.000.000 TL
6.000.000.000 TL 1 15
375.000.000 TL 6.375.000.000 TL 1
20 June 1.275.000.000 TL 7.650.000.000
TL 2 20 July 1.275.000.000 TL
8.925.000.000 TL 2 20 August
1.275.000.000 TL 10.200.000.000 TL 2
20 September 1.275.000.000 TL 11.475.000.000
TL 2 20 October 1.275.000.000 TL
12.750.000.000 TL 2 20 November
1.250.000.000 TL 14.000.000.000 TL 2
20 25.000.000 TL 14.025.000.000
TL 3 25 December 1.275.000.000 TL
15.300.000.000 TL 3 25
8
February 2004 Payroll for Gross Salary of
1.500.000.000 TL
TOTAL WAGES EXPENSE
1.822.500.000 TL Social Security Insurance
Premium

Employers Share (19,5 of gross
payment) 292.500.000 TL  Unemployment
Insurance Premium

Employers Share (2 of gross payment)
30.000.000 TL  GROSS SALARY
1.500.000.000 TL Social Security
Insurance Premium

Employees Share (14 of gross
payment) 210.000.000 TL Unemployment
Insurance Premium

Employees Share (1 of gross payment)
15.000.000 TL Stamp Duty (0,6 of gross
payment) 9.000.000 TL  Income Tax
(15 of Tax Base) 191.250.000 TL NET
SALARY 1.074.750.000 TL Tax Base
Gross Salary S.S.I.P. Employees Share U.I.P.
Employees Share Tax Base 1,500,000,000TL
210,000,000 TL 15,000,000 TL Tax Base
1.275.000.000 TL
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Journal Entries for Payroll Liabilities
End-month adjusting entry to recognize the
payroll liabilities

• --------------------------- February 28, 2004
  --------------------------
• Wages expense 1.822.500.000
• S.S. Insurance Premium Payable
  502.500.000
• Unemployment Ins.Premium Payable
  45.000.000
• Taxes payable 200.250.000
• Wages payable 1.074.750.000
• -------------------------------------------------
  ------------------------------

10
Journal Entries for Payroll Liabilities
Payment of wages to the employee at the beginning
of the following month (March) .

• --------------------------- March 1, 2004
  ------------------------------
• Wages payable 1.074.750.000
• Cash 1.074.750.000
• ------------------------------------------------
  ------------------------------

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Journal Entries for Payroll Liabilities
Taxes are paid on 26th of the following month
(March)

• -------------------------- March 26, 2004
  ----------------------------
• Taxes payable 200.250.000
• Cash 200.250.000
• -------------------------------------------------
  ----------------------------

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Journal Entries for Payroll Liabilities
At the end of the following month (March)
insurance premiums are paid.
TL

• --------------------------- March 31, 2004
  ----------------------------
• S.S.I.P. Payable 502.500.000
• U.I.P. Payable 45.000.000
• Cash 547.500.000
• -------------------------------------------------
  ------------------------------

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01.01.2004 Tarihinden Itibaren Asgari Ücret ve
Yasal Kesintiler

• SSK Primi Isçi Hissesi (19,5) 82.485.000
• Issizlik Sigortasi Primi Isçi H. (2)
  8.460.000
• Brüt Ücret 423.000.000
• SSK Primi Isçi Hissesi (14) 59.220.000
• Issizlik Sigortasi Primi Isçi H. (1)
  4.230.000
• Gelir Vergisi 53.932.500
• Damga Vergisi 2.538.000
• Kesintiler Toplami 119.920.500
• Net Ücret 303.079.500
• Vergi Matrahi 359.550.000

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01.01.2004 Tarihinden Itibaren 5073 SAYILI KANUN
GEREGINCE DEVLET TARAFINDAN KARSILANACAK MIKTAR
TABLOSU
15
Updated information is available on TURMOBs
website www.turmob.org.tr
16
September 2004 payroll for an employee who has
been receiving 1.200.000.000 TL Gross Salary from
the beginning of the year
TOTAL WAGES EXPENSE 1.458.000.000 TL Social
Security Insurance Premium

Employers Share (19,5 of gross
payment) 234.000.000 TL  Unemployment
Insurance Premium

Employers Share (2 of gross payment)
24.000.000 TL  GROSS SALARY 1.200.000.000
TL Social Security Insurance Premium

Employees Share (14 of
gross payment) 168.000.000 TL Unemployment
Insurance Premium

Employees Share (1 of gross payment)
12.000.000 TL Stamp Duty (0,6 of gross
payment) 7.200.000 TL  Income Tax (20 of
Tax Base) 204.000.000 TL NET SALARY
808.800.000 TL Tax Base Gross Salary S.S.I.P.
Employees Share U.I.P. Employees Share Tax
Base 1,200,000,000TL 168,000,000 TL
12,000,000 TL Tax Base 1.020.000.000 TL
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(2004) Monthly Cumulative
Income Months Tax base Tax base
Interval Tax Rate January
1.020.000.000 TL 1.020.000.000 TL 1
15 February 1.020.000.000 TL 2.040.000.000
TL 1 15 March 1.020.000.000 TL
3.060.000.000 TL 1 15 April
1.020.000.000 TL 4.080.000.000 TL 1
15 May 1.020.000.000 TL
5.100.000.000 TL 1 15 June
900.000.000 TL 6.000.000.000 TL 1
15 220.000.000 TL 6.120.000.000 TL
2 20 July 1.020.000.000 TL
7.140.000.000 TL 2 20 August
1.020.000.000 TL 8.160.000.000 TL 2
20 September 1.020.000.000 TL 9.180.000.000
TL 2 20 October 1.020.000.000 TL
10.200.000.000 TL 2 20 November
1.020.000.000 TL 11.220.000.000 TL 2
20 December 1.020.000.000 TL 12.240.000.000
TL 2 20
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The END