What is State trust funds?

State trust funds to which the company pays contributions. Under NAS No. 21 (paragraph 278), account 6520 is used to summarize information on the organization's payables to state trust funds for contributions. An assessed contribution is recorded on the credit of 6520 in correspondence with expense accounts (a contribution made at the employee's expense, with 6710), and 6520 is debited on payment. Analytical accounting is kept separately for each fund for which the company is a payer.