PAYROLL LIABILITIES:

1
PAYROLL LIABILITIES TURKISH CASE
2
Payroll Liabilities (TURKEY)
Gross Pay
YTL
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 2005 Payroll for Gross Salary of 1.500
YTL
TOTAL WAGES EXPENSE 1.822,50
YTL Social Security Insurance Premium

Employers Share
(19,5 of gross payment) 292,50 YTL 
Unemployment Insurance Premium

Employers Share (2 of gross payment)
30,00 YTL  GROSS SALARY
1.500,00 YTL Social Security
Insurance Premium

Employees Share (14 of gross
payment) 210,00 YTL Unemployment Insurance
Premium

Employees Share (1 of gross payment) 15,00
YTL Stamp Duty (0,6 of gross payment)
9,00 YTL Income Tax (15 of Tax
Base) 191,25 YTL NET SALARY
1.074,75 YTL Tax Base Gross SalaryS.S.I.P.
Employees Share U.I.P. Employees Share Tax
Base 1.500,00 YTL 210,00 YTL 15,00 YTL Tax
Base 1.275,00 YTL
4
Social Security Insurance
Limits of Social Security Premium (between
01.01.2005 / 31.12.2005) Minimum 488,70 YTL
Maximum 3.176,70 YTL
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 YTL (-) S.S.I.P.
Employees share 210 YTL (-) U.I.P.
Employees share 15 YTL Tax Base
1.275 YTL
6
Income Tax Rates (2005- For Salaries)
Income Interval Tax Rate For
less than 6.600 YTL ..............................
.... 15 From 6.600 YTL to 15.000 YTL
....................... 20 From 15.000 YTL
to 30.000 YTL ..................... 25 From
30.000 YTL to 78.000 YTL .....................
30 For more than 78.000 YTL
............................... 35
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(2005) Monthly Cumulative
Income Months Tax base Tax base
Interval Tax Rate January 1.275 YTL
1.275 YTL 1 15 February 1.275
YTL 2.550 YTL 1 15 March
1.275 YTL 3.825 YTL 1
15 April 1.275 YTL 5.100 YTL
1 15 May 1.275 YTL 6.375
YTL 1 15 June 225
YTL 6.600 YTL 1 15
1.050 YTL 7.650 YTL 2
20 July 1.275 YTL 8.925 YTL
2 20 August 1.275 YTL 10.200
YTL 2 20 September 1.275 YTL
11.475 YTL 2 20 October 1.275
YTL 12.750 YTL 2 20 November
1.275 YTL 14.025 YTL 2
20 December 975 YTL 14.000 YTL
2 20 300 YTL 15.300 YTL
3 25
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February 2005 Payroll for Gross Salary of 1.500
YTL
TOTAL WAGES EXPENSE 1.822,50
YTL Social Security Insurance Premium

Employers Share
(19,5 of gross payment) 292,50 YTL 
Unemployment Insurance Premium

Employers Share (2 of gross payment)
30,00 YTL  GROSS SALARY
1.500,00 YTL Social Security
Insurance Premium

Employees Share (14 of gross
payment) 210,00 YTL Unemployment Insurance
Premium

Employees Share (1 of gross payment) 15,00
YTL Stamp Duty (0,6 of gross payment)
9,00 YTL Income Tax (15 of Tax
Base) 191,25 YTL NET SALARY
1.074,75 YTL Tax Base Gross SalaryS.S.I.P.
Employees Share U.I.P. Employees Share Tax
Base 1.500,00 YTL 210,00 YTL 15,00 YTL Tax
Base 1.275,00 YTL
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Journal Entries for Payroll Liabilities
End-month adjusting entry to recognize the
payroll liabilities

• ------------------------- February 28, 2005
  -------------------------
• Wages expense 1.822,50
• S.S. Insurance Premium Payable
  502,50
• Unemployment Ins.Premium Payable
  45,00
• Taxes payable 200,25
• Wages payable 1.074,75
• ------------------------------------------------
  -----------------------------

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

• ------------------------- March 1, 2005
  ----------------------------
• Wages payable 1.074,75
• Cash 1.074,75
• ------------------------------------------------
  --------------------------

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

• ------------------------ March 26, 2005
  --------------------------
• Taxes payable 200,25
• Cash 200,25
• ------------------------------------------------
  -------------------------

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

• ------------------------- March 31, 2005
  --------------------------
• S.S.I.P. Payable 502,50
• U.I.P. Payable 45,00
• Cash 547,50
• ------------------------------------------------
  --------------------------

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01.01.2005 Tarihinden Itibaren Asgari Ücret ve
Yasal Kesintiler

• SSK Primi Isveren Hissesi (19,5) 95,30
• Issizlik Sigortasi Primi Isveren H.(2) 9,77
• Brüt Ücret 488,70
• SSK Primi Isçi Hissesi (14) 68,42
• Issizlik Sigortasi Primi Isçi H. (1)
  4,89
• Gelir Vergisi 62,31
• Damga Vergisi 2,93
• Kesintiler Toplami 138,55
• Net Ücret 350,15
• Vergi Matrahi 415,39

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01.01.2004 Tarihinden Itibaren Asgari Ücret ve
Yasal Kesintiler

• SSK Primi Isveren Hissesi (19,5) 82.485.000
• Issizlik Sigortasi Primi Isvrn. 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
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Updated information is available on website of
Gelirler Genel Müdürlügü http//www.gelirler.gov.
tr and TURMOBs website http//www.turmob.org.tr
17
Linkler

• Gelir vergisi tarifesi
• Asgari Ücret hesaplamasi

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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