Summary
KLARA posts pay using the debit position method, where only the employer's expenses are recorded in the expense account, while employee deductions are debited to the respective social insurance current account.
KLARA utilizes the debit position method for posting wages. This method ensures that only the employer's expenses are recorded in the expense account, while the employee deductions are debited to the current account of the respective social insurance.
When you make a payment to a social insurance company, KLARA automatically posts to this current account, effectively crediting it. You can upload, post (social insurance transaction), and pay your social insurance bill for automatic posting. Most bank reconciliations will automatically assign the transaction.
This is how the posting appears:
The advantage of using this method is that your income statement will always reflect the accurate employee expenses, while your balance sheet will show the liability or account related to social insurance.