The procedure for paying vacation pay
Pay for your vacation no later than three days before it starts.
At the same time, the Labor Code does not prohibit paying vacation pay earlier (Part 9 of Article 136 of the Labor Code of the Russian Federation). Situation: on which days should the three-day period for payment of vacation pay be counted - calendar or working days?
Calculate the deadline for payment of vacation pay based on calendar days.
After all, if the Labor Code does not directly indicate which days to count for a particular period, it is necessary to proceed from the calendar.
This procedure also applies to the deadline for the payment of vacation pay, since Article 136 of the Labor Code of the Russian Federation does not directly indicate which days to take into account. Therefore, count both working and non-working days - holidays, weekends. That is, all calendar days. Moreover, if the end of the term falls on a non-working day, then make the payment the day before - on the last working day.
This procedure is provided for in Article 14 of the Labor Code of the Russian Federation, similar conclusions are expressed in the letter of Rostrud dated July 30, 2014 No. 1693-6-1.
Situation: is it possible, at the request of an employee, to pay him vacation pay after he returns from vacation?
Answer: no, you can't.
Labor legislation does not allow this. The organization is obliged to pay vacation pay to the employee no later than three days before the start of the vacation (Part 9 of Article 136 of the Labor Code of the Russian Federation). And the Labor Code of the Russian Federation does not contain any exceptions to this provision related to the desire of the employee.
Postings for vacation pay and other important information
Question
Answer
When an employee has the right to the first vacation (at a new place of work)
After six months of continuous work in the organization. By agreement, the employer can provide leave earlier than six months (Article 122 of the Labor Code of the Russian Federation)*
Is a vacation schedule required?
Yes, it must be drawn up and approved two weeks before the start of the calendar year (Article 123 of the Labor Code of the Russian Federation)
How can an employee divide his vacation?
At your own discretion. The main thing is that one of the parts of the divided vacation is at least 14 calendar days (Article 125 of the Labor Code of the Russian Federation)
How to provide vacation to part-time employees
Part-time employees are granted leave simultaneously with leave at their main place of work. Moreover, if a part-time employee is working for the first year, then he does not have to work for six months. The organization is obliged to let him go on vacation in advance (Article 286 of the Labor Code of the Russian Federation)
When should vacation pay be paid?
No later than three calendar days before the start of the vacation (Article 136 of the Labor Code of the Russian Federation and letter of Rostrud dated December 21, 2011 No. 3707-6-1)
What amount of vacation pay is written off as expenses: with personal income tax or minus this tax?
The entire accrued amount is written off as expenses, that is, together with personal income tax. After all, labor costs include accrued and not issued amounts (letter of the Ministry of Finance of Russia dated November 24, 2009 No. 03-11-06/2/246)
When is it necessary to pay personal income tax on vacation pay?
On the day of withdrawing cash from the bank to pay vacation pay or transferring it by bank transfer to the employee’s card. When paying vacation pay from cash proceeds - on the day following such payment (Clause 6 of Article 226 of the Tax Code of the Russian Federation)
When do you need to transfer insurance premiums from vacation pay?
No later than the 15th day of the month following the month of payment accrual (Clause 5, Article 15 of the Federal Law of July 24, 2009 No. 212FZ)
Is it possible to pay compensation for unused vacation to a working employee?
At the written request of the employee, a portion of the annual paid leave exceeding 28 calendar days** can be replaced with monetary compensation. However, such a replacement is not allowed in relation to pregnant women, employees under the age of 18, as well as persons employed in work with harmful or dangerous working conditions (if additional leave has been granted for work in such conditions) (Article 126 of the Labor Code of the Russian Federation)
Does the employer face any liability if its employees do not go on vacation or the rules for registering or paying for vacation are violated?
A fine of 30,000 to 50,000 rubles is possible. - for companies and from 1000 to 5000 rubles. - for entrepreneurs or suspension of activities for up to 90 days (Article 5.27 of the Code of Administrative Offenses of the Russian Federation)
How does the payment of vacation pay affect the tax base (calculation of the single tax) under the simplified tax system?
Under the simplified tax system with an object, income minus vacation expenses reduces the tax base at the time of their payment. In addition, insurance premiums accrued on the amount of vacation pay are taken into account as expenses on the date of their actual payment (subclauses 6 and 7, clause 1, article 346.16 and clause 2, article 346.17 of the Tax Code of the Russian Federation). With the simplified tax system for the object, income can be reduced by the single tax by the amount of insurance premiums paid from vacation pay (clause 3.1 of article 346.21 of the Tax Code of the Russian Federation)
What postings for vacation pay will be in accounting?
DEBIT 20 (23, 25, 26, 29, 44.) CREDIT 70 - vacation pay accrued; DEBIT 70 CREDIT 50 (51) - vacation pay paid
* For some employees (at their request), the employer is obliged to provide leave in advance, for example, women before and after maternity leave, employees under 18 years of age (Article 122 of the Labor Code of the Russian Federation).
Duration of annual paid leave
Category of workers
Number of vacation days*
All employees who work in an organization or for an individual entrepreneur under an employment contract, provided that they do not enjoy the right to extended basic leave (including external part-time workers and homeworkers, since they are subject to the norms of the Labor Code of the Russian Federation)
28 calendar days (Article 115, Article 287 and Article 310 of the Labor Code of the Russian Federation)
Extended main leave**
From 42 to 56 calendar days, depending on the type of educational institution (Article 334 of the Labor Code of the Russian Federation, Decree of the Government of the Russian Federation dated October 1, 2002 No. 724)
At least 30 calendar days (Article 23 of the Federal Law of November 24, 1995 No. 181FZ)
Persons under the age of majority (18 years old)
31 calendar days (Article 267 of the Labor Code of the Russian Federation)
Workers with irregular working hours
At least three calendar days*** (Article 119 of the Labor Code of the Russian Federation)
Persons working in the Far North either permanently or on a rotational basis
24 calendar days (Articles 116, 302 and 321 of the Labor Code of the Russian Federation)
Persons working in areas equated to the regions of the Far North, permanently or on a rotational basis
16 calendar days (Articles 116, 302 and 321 of the Labor Code of the Russian Federation)
Employees engaged in heavy work, work with harmful and (or) dangerous working conditions, if such nature of work is confirmed by the results of a special assessment of working conditions
At least seven calendar days*** (Articles 116 and 117 of the Labor Code of the Russian Federation, Decree of the Government of the Russian Federation dated November 20, 2008 No. 870)
Citizens exposed to radiation at the Chernobyl nuclear power plant
14 calendar days (clause 5 of article 14 of the Law of the Russian Federation dated May 15, 1991 No. 1244-1)
Professional athletes and coaches
At least four calendar days*** (Article 348.10 of the Labor Code of the Russian Federation)
General practitioners (family doctors) and nurses of these doctors who have worked continuously in the specified positions for more than three years
Three calendar days (clause 1 of the Decree of the Government of the Russian Federation dated December 30, 1998 No. 1588)
Any category of workers at the employer's choice
Any number of days, taking into account the production and financial capabilities of the employer*** (Article 116 of the Labor Code of the Russian Federation)
* Non-working holidays falling during the period of annual leave are not included in the number of calendar days of leave (Article 120 of the Labor Code of the Russian Federation).
** The above list is not exhaustive. There may be other cases established by federal laws.
*** The employer must specify the exact number of additional days of rest in a collective or labor agreement or local act.
Responsibility for late payment of vacation pay
Attention: failure to comply with the payment deadline for vacation pay may be regarded as a violation of labor law requirements. For this violation, the labor inspectorate may fine the organization or its officials.
The responsibility is as follows:
- for officials of the organization (for example, a manager) - a warning or a fine from 1000 to 5000 rubles;
- for entrepreneurs – a fine from 1000 to 5000 rubles;
- for an organization – a fine from 30,000 to 50,000 rubles.
Repeated violation entails:
- for officials of the organization (for example, a manager) - a fine of 10,000 to 20,000 rubles. or disqualification for a period of one to three years);
- for entrepreneurs – a fine from 10,000 to 20,000 rubles;
- for an organization – a fine from 50,000 to 70,000 rubles.
Such liability measures are established in parts 1 and 4 of Article 5.27 of the Code of the Russian Federation on Administrative Offenses.
An employee who has not been paid vacation pay in a timely manner may request that annual leave be postponed to another time (Part 2 of Article 124 of the Labor Code of the Russian Federation, Clause 2 of the ruling of the Constitutional Court of the Russian Federation dated June 23, 2005 No. 230-O).
If vacation pay has been calculated and paid, but the employee cannot go on vacation due to an emergency situation at work, issue a recall from vacation (Part 2 of Article 125 of the Labor Code of the Russian Federation).
Reserve for vacation pay
Since 2011, organizations have been required to create a reserve for vacation pay in accounting, since upcoming expenses for vacation pay are recognized as an estimated liability (clause 8 of PBU 8/2010, letter of the Ministry of Finance of Russia dated June 14, 2011 No. 07-02-06/107). Accordingly, all vacation pay (including for transferable vacation) is written off in accounting at the expense of the created reserve. An exception is provided only for small businesses, provided that they are not issuers of publicly offered securities (clause 3 of PBU 8/2010). Such enterprises have the right not to create a reserve for vacation pay and assign vacation pay directly to current cost accounts.
“Ideal” algorithm for calculating the reserve for future expenses
How should vacation pay be reflected under the new rules? Ideally, an accountant should monthly calculate how much vacation pay each employee of the company earned. If the employee’s vacation is 28 calendar days, then the required amount is equal to the product of the average daily earnings by 2.33 days (28 days: 12 months). This value must be reflected in the debit of the “cost” account (usually these are accounts 20, 21, 26 and 44) and the credit of account 96 “Reserves for future expenses”. Then, when the employee goes on vacation and receives vacation pay, the reserve should be written off.
Example 1
Andrey Fedorov works in a retail store. Starting in January 2011, the accountant every month includes in the reserve for upcoming expenses the amount that Fedorov should receive when going on vacation.
Fedorov’s average daily earnings in each month of 2011 is 1,500 rubles. It turns out that the monthly reserve amount is 3,495 rubles. (RUB 1,500 x 2.33 days).
Every month the accountant makes an entry:
DEBIT 44 CREDIT 96 - 3,495 rub. — a reserve has been formed for upcoming expenses for employee Fedorov’s vacation pay
For 10 months (from January to October), the amount of the reserve for Fedorov’s vacation pay reached 34,950 rubles (3,495 rubles x 10 months).
From November 1, 2011, Fedorov went on vacation for 14 calendar days. The amount of vacation pay was 21,000 rubles (1,500 rubles x 14 days). The accountant made the following entry:
DEBIT 96 CREDIT 70 - 21,000 rub. — employee Fedorov’s vacation pay was issued at the expense of the reserve for future expenses
Accounting: no reserve is created
If a reserve is not created in accounting, then reflect the accrual and payment of vacation pay as follows:
Debit 20 (23, 25, 26, 29, 44...) Credit 70
- vacation pay accrued.
Debit 70 Credit 50 (51)
- vacation pay was paid.
This procedure follows from the Instructions for the chart of accounts (account 70).
Make similar entries if the vacation is rolling (that is, it begins in one month and ends in another). In this case, the accountant will not have to distribute vacation pay by month.
This is explained as follows.
Since 2011, expenses incurred by the organization in the reporting period, but relating to subsequent reporting periods, may not be reflected in the balance sheet as deferred expenses (in a separate line). They are shown in the balance sheet in accordance with the conditions for asset recognition established by accounting regulations. And they are subject to write-off in the manner established for writing off the value of assets of this type.
Such rules are established by paragraph 65 of the Accounting Regulations, approved by order of the Ministry of Finance of Russia dated July 29, 1998 No. 34n.
In this regard, account 97 “Deferred expenses” is not used in all cases in which it was used previously. This account can be used provided that the corresponding amounts are expressly named as deferred expenses in the current accounting regulations. Or amounts are accounted for in account 97 if they meet the following criteria:
- the organization incurred expenses, while the counterparty did not have counter-obligations to it (otherwise a receivable is recognized, not an expense);
- these expenses do not form the value of tangible or intangible assets;
- expenses determine the receipt of income over several reporting periods.
Vacation pay accrued in the current month for the next month are not considered deferred expenses, since such expenses do not lead to the receipt of income in several reporting periods (clause 19 of PBU 10/99) and affect the financial result of the period in which they were incurred . Consequently, in accounting, vacation pay does not need to be distributed between the months in which the vacation fell, that is, they should be taken into account at a time upon accrual.
An example of how vacation pay is reflected in accounting. Vacation starts in one month and ends in another. The organization is a small business entity and does not create a reserve for vacation pay.
In June 2015, the manager of Torgovaya LLC A.S. Kondratiev was given basic paid leave. Duration of vacation - 28 calendar days: from June 16 to July 13, 2015. Vacation pay was paid to the employee on June 11, 2015.
For the billing period - from June 1, 2014 to May 31, 2015 - Kondratiev received a salary in the amount of 360,000 rubles. The billing period has been fully worked out.
Kondratiev’s average daily earnings were: 360,000 rubles. : 12 months : 29.3 days/month = 1024 rub./day.
The accountant accrued vacation pay in the amount of: 1024 rubles/day. × 28 days = 28,672 rub.
including:
- for June: 1024 rub./day. × 15 days = 15,360 rub.;
- for July: 1024 rub./day. × 13 days = 13,312 rub.
The accountant of the organization reflected the accrual of vacation pay in the accounting records with the following entries.
In June 2015:
Debit 44 Credit 70 – 28,672 rub.
– vacation pay was accrued to Kondratiev for June and July.
Vacation pay calculation scheme
Large enterprises maintain a schedule and record of employee leave, which is compiled for the next calendar year. Such measures are necessary to plan rest for all employees, but without jeopardizing the production process.
Employees notify their direct supervisor of the desire to start and duration of leave. Based on this data, a schedule is drawn up.
Calendar days taken into account when calculating vacation pay
Also, such a schedule helps the accounting department to generate expenses and payment of benefits from the payroll fund in advance. If an employee then declares his desire to take unscheduled leave, then he retains this right. Despite the fact that usually all these situations are agreed upon with management, according to the Labor Code, the employer cannot refuse an employee to take a vacation.
The situation with wage increases deserves special attention. In this case, accounting specialists have a question about how vacation pay should be indexed.
Accounting: reserve is created
If an organization creates a reserve for vacation pay, then do not include the amounts of accrued vacation pay in the expenses of the current month. Reflect the accrual of vacation pay and contributions for compulsory insurance in accounting using the following entries:
Debit 96 subaccount “Reserve for vacation pay” Credit 70
– vacation pay is accrued from the reserve;
Debit 96 subaccount “Reserve for vacation pay” Credit 69 subaccount “Settlements with the Pension Fund for the insurance part of the labor pension”
– pension contributions were accrued from the reserve to finance the insurance part of the labor pension from vacation pay;
Debit 96 subaccount “Reserve for vacation pay” Credit 69 subaccount “Settlements with the Social Insurance Fund for social insurance contributions”
– social insurance contributions from vacation pay are accrued from the reserve;
Debit 96 subaccount “Reserve for vacation pay” Credit 69 subaccount “Settlements with the Federal Compulsory Medical Insurance Fund”
– contributions for health insurance to the Federal Compulsory Medical Insurance Fund of Russia from vacation pay were accrued from the reserve;
Debit 96 subaccount “Reserve for vacation pay” Credit 69 subaccount “Settlements with the Social Insurance Fund for contributions to insurance against accidents and occupational diseases”
– contributions for insurance against accidents and occupational diseases from vacation pay are accrued from the reserve.
Reflect the payment of vacation pay by posting:
Debit 70 Credit 50 (51)
- vacation pay was paid.
This procedure follows from the Instructions for the chart of accounts (accounts 70 and 96).
Write off payments for additional vacations against the reserve, but not always
The debit of account 70 “Settlements with personnel for wages” displays the amount of vacation pay paid through the cash register or current account. In this case, correspondence can be generated:
- Dt 70 Kt 50 - vacation pay was paid from the cash register;
- Dt 70 Kt 51 - vacation pay is transferred to the employee’s card.
There are situations when, upon dismissal of an employee, it is discovered that he took his vacation in advance. In this case, it is necessary to withhold vacation payments within the limits established by law, taking into account the number of vacation days to which the employee is not entitled.
Dt 20, 23, 25, 26, 44 Kt 70 REVERSE.
The reversed amounts will be reflected in accounting with a minus sign.
Vacation pay for rolling vacation
Situation: how to reflect in accounting the accrual of vacation pay from the reserve for rolling vacation (starts in one month and ends in another)?
The full amount of accrued vacation pay must be written off against the amounts of the previously created reserve. The fact that the leave is transferable from one month to another does not matter.
The reserve for vacation pay is an estimated liability (clause 5 of PBU 8/2010). It is reflected in accounting as of the reporting date. Its value represents the “virtual” debt of the organization if it had to simultaneously accrue and pay vacation pay to all employees. This debt includes both the vacation pay itself and the amount of taxes and contributions that must be paid to the budget from it.
This procedure for creating an estimated liability is provided for in paragraph 15 of PBU 8/2010.
At the time of payment of vacation pay to the employee, part of the estimated liability will be repaid. According to the rules of labor legislation, vacation pay is paid to the employee no later than three days before the start of the vacation (Article 136 of the Labor Code of the Russian Federation). Consequently, regardless of whether the vacation is transferable from month to month or not, the estimated liability is repaid in full when vacation pay is paid. This means that when accruing vacation pay to a specific employee, the previously created reserve must be reduced by their full amount. There is no need to break the vacation into parts in order to write off the obligation in parts corresponding to the number of vacation days in each month.
This follows from the provisions of paragraphs 5 and 21 of PBU 8/2010. An exception is the situation when the amount of the reserve turned out to be insufficient to write off accrued vacation pay at its expense.
An example of how accrual of vacation pay is reflected in accounting using the created reserve for vacation pay. Vacation starts in one month and ends in another
In June 2015, the manager of Torgovaya LLC A.S. Kondratiev was given basic paid leave. Duration of vacation - 28 calendar days - from June 16 to July 13, 2015. Vacation pay was paid to the employee on June 11, 2015.
For the billing period - from June 1, 2014 to May 31, 2015 - Kondratiev received a salary in the amount of 360,000 rubles. The billing period has been fully worked out.
Kondratiev’s average daily earnings were: 360,000 rubles. : 12 months : 29.3 days/month = 1024 rub./day.
The total amount of vacation pay is: 1024 rubles/day. × 28 days = 28,672 rub.
Including:
- for June: 1024 rub./day. × 15 days = 15,360 rub.;
- for July: 1024 rub./day. × 13 days = 13,312 rub.
The accountant of the organization reflected the accrual of vacation pay in the accounting records with the following entries.
In June:
Debit 96 subaccount “Reserve for vacation pay” Credit 70 – 28,672 rubles. – vacation pay was accrued to Kondratiev for June–July.
Example of calculating vacation pay
To correctly calculate vacation pay, the accountant calculates the employee’s average daily earnings. The resulting value is multiplied by the duration of rest. Holidays also include weekends. When a public holiday falls during a vacation period, the total duration is increased by the number of such days.
Calculation of the number of days
This also applies to the period of temporary incapacity for work if the LN was issued during vacation. An employee, while on sick leave, must notify the person in charge of the company (or his manager) about the start of the sick leave. Then the subject responsible for filling out the work time sheet makes the appropriate notes in the document.
In order to correctly calculate vacation pay, the accountant excludes from the calculation all payments for travel allowances, additional benefits, bonuses, important assignments, etc. That is, the calculation takes only wages and calculates the average value.
Vacation pay is calculated based on the correct calculation of the number of days
It should also be taken into account that vacation pay is calculated based on average accrued earnings. In a situation where an employee receives their basic salary unofficially, “in an envelope,” the payment will be made according to the documents that are reflected in the accounting statements and from which personal income tax was withheld. According to the Labor Code, an employee is entitled to 28 days of vacation per year, while the employer cannot refuse to take vacation in one part of less than 14 days.
The remaining days, at the request of the employees and in agreement with management, can be divided into several periods throughout the year. Each time, leave is issued through an Order based on an application. According to this statement, benefits are paid.
Most employees are entitled to 28 days of vacation per year
You can read about the basic rules for filling out an application for leave below.
How to apply for leave
The legislation defines a separate category of persons who are entitled to longer rest. Such persons include:
- doctors;
- teachers;
- employees of the Ministry of Internal Affairs;
- military personnel.
Those who work in the Far North are also entitled to additional rest while maintaining benefits. All these days also go towards calculating the total length of service.
Doctors and some other categories of workers are entitled to longer leave
