Welfare expenses are included in manufacturing expenses. Welfare expenses are included in the cost or expense according to the department to which the personnel belong: the welfare expenses incurred by workshop workers and workshop managers are included in the manufacturing expenses, the welfare expenses incurred by company managers are included in the management expenses, and the welfare expenses incurred by marketing personnel are included in the sales expenses.
Legal basis:
Notice of the Ministry of Finance on Strengthening the Financial Management of Employee Welfare Funds: Employee welfare funds in enterprises refer to welfare funds provided by enterprises for employees except wages, bonuses, allowances, subsidies included in the management of total wages, employee education funds, social insurance premiums, supplementary pension insurance premiums (annuities), supplementary medical insurance premiums and housing accumulation funds. Including the following cash subsidies and non-monetary collective benefits paid to or for employees: 1. Cash subsidies and non-monetary benefits paid or paid for employees' medical treatment and life, including medical expenses for employees going abroad on business, medical expenses for employees in enterprises that have not yet implemented medical co-ordination, medical subsidies for employees to support their immediate family members, medical expenses for employees' recuperation, subsidies for self-run canteens or unified lunch supply for employees who have not run their own canteens, subsidies for heating expenses that meet relevant financial regulations of the state, and expenses for heatstroke prevention and cooling. Second, the equipment, facilities and personnel costs incurred by the collective welfare departments within the enterprise that are not separated, including the depreciation, maintenance and maintenance costs of the equipment and facilities of the staff canteen, staff bathroom, barber shop, infirmary, nursery, sanatorium, dormitory and other collective welfare departments, as well as the wages, social insurance premiums, housing accumulation fund, labor fees and other labor fees of the staff of the collective welfare departments. 3. Subsidies for employees in difficulty, or funds established and managed by enterprises as a whole to help and relieve employees in difficulty. Four, the overall expenses of retirees, including medical expenses for retirees and other retirees. The expenses of retirees involved in enterprise restructuring shall be handled in accordance with the Notice of the Ministry of Finance on Financial Management of Resettlement Expenses for Employees in Enterprise Restructuring (Caiqi [2009]117). Unless otherwise stipulated by the state, such provisions shall prevail. Five, according to the provisions of other employee welfare expenses, including funeral subsidies, pension expenses, employee resettlement fees, one-child expenses, family leave travel expenses, and other expenses that meet the definition of enterprise employee welfare expenses but are not included in this notice.