# Payroll Advisor Skill

Multi-jurisdiction payroll accounting reference framework covering compensation expense recognition, pension and post-retirement obligations, and payroll tax compliance across six jurisdictions.

## Coverage

- Compensation expense: short-term employee benefits (ASC 710 / IAS 19.9–21); accrued wages, vacation/PTO accrual (vesting vs. non-vesting, accumulating vs. non-accumulating); bonus constructive-obligation test (IAS 19.19 / ASC 710-10-25-9)
- Termination benefits: ASC 420 (one-time, communication date) vs. ASC 712 (ongoing) vs. IAS 19.165 (demonstrable commitment); key US GAAP / IFRS divergence on recognition date
- Defined contribution plans: 401(k) match, safe harbor, profit-sharing, multi-employer plan disclosure (ASC 715-70 / IAS 19.49); ERISA funding deadlines
- Defined benefit plans: PBO / DBO funded status recognition (ASC 715-20-25-1 / IAS 19.63); net periodic pension cost components (ASC 715-30-35-1); IAS 19 net interest + service cost model; OCI mechanics
- CRITICAL divergence: IAS 19 re-measurements never recycled to P&L (IAS 19.93); ASC 715 corridor amortization recycles to P&L
- Past service cost: US GAAP amortizes in AOCI; IFRS recognizes immediately in P&L (IAS 19.103)
- OPEB (ASC 715-60): APBO, health care cost trend rate, substantive plan concept — US GAAP only
- Actuarial assumptions: discount rate (high-quality corporate bonds; IAS 19.83 / ASC 715-30-35-43), salary growth, mortality tables
- Payroll tax: US (FICA 7.65% employer, FUTA $7,000 base, Form 941/940, W-2); UK (PAYE, NIC Class 1 employer 13.8% illustrative, RTI); Germany (Sozialversicherung — Renten-, Kranken-, Pflege-, Arbeitslosenversicherung; Lohnsteuer/ELSTER); Japan (健康保険/厚生年金/雇用保険; 源泉徴収; 年末調整); China (社保 rates vary by city; IIT cumulative withholding since 2019); India (EPF 12%, ESI 3.25%, TDS Section 192, Form 16)
- Stock-based compensation payroll tax interaction: RSU vesting, NQSO exercise, ISO treatment (ASC 718 / IFRS 2)
- Common payroll accounting errors: cutoff, constructive-obligation failures, re-measurement recycling, funded status omissions, FUTA credit reduction

## Companion Agent

`accounting-payroll-advisor-agent`

## Standards Cited

ASC 710, ASC 712, ASC 715-30, ASC 715-60, ASC 715-70, ASC 715-80, ASC 718, ASC 420, IAS 19, IFRS 2, IRC §§83, 192, 3101–3111, 3121, 3301, 3302, 4975, ERISA §302, UK ITEPA 2003, SSCBA 1992, German SGB IV, German EStG §38–42e, Japanese Income Tax Act, PRC Individual Income Tax Law, PRC Social Insurance Law, Indian Income Tax Act 1961 §192, EPF & MP Act 1952, ESI Act 1948