Pay your salary for December 2021 by December 31

Terms of payment in the organization

The terms within which wages are paid in an institution are established by the regulations on wages in accordance with the Labor Code of the Russian Federation. Local regulations determine how to calculate and how to pay wages for December 2021 to employees. According to the law (Part 6 of Article 136 of the Labor Code of the Russian Federation), the institution must pay remuneration for the work performed twice a month:

• advance payment - until the end of the reporting month (no later than the 30th day);
• the second part of the salary - no later than the 15th day of the month following the reporting month.

The main thing that the employer must remember is that the difference between the transfer of the advance and the final salary should not exceed 15 days, otherwise there is a high probability of penalties (Article 5.27 of the Code of Administrative Offenses of the Russian Federation).

Insurance contributions from salary for December

Contributions from the Pension Fund of the Russian Federation, compulsory medical insurance, social insurance (including “injuries”) from salaries for December 2021 are accrued on December 31. They must be listed within the prescribed period - no later than the 15th day of the next month (clause 3 of Article 431 of the Tax Code of the Russian Federation; clause 4 of Article 22 of Law No. 125-FZ of July 24, 1998). That is, payment should be made no later than January 15, 2021. But it is not forbidden to list them earlier; there are no restrictions in the law on this matter. Therefore, having paid your salary, for example, on December 31, you can also transfer insurance premiums on the same day.

Payment of wages for December

We will pay the advance payment until December 30, 2020, and employees will receive the rest of the remuneration until January 15, 2021. The date for payment of the December advance is set by management. The main requirement is to transfer it no later than the end of the working year.

The exact dates of issue should be established in the collective agreement and local regulations on wages; they also state when it is better to pay wages and transfer personal income tax for December 2021 (don’t forget about insurance premiums). As a general rule, if an advance is issued on December 25, then the rest of the earnings are transferred after the holiday holidays, but no later than January 11 in 2021.

ConsultantPlus experts gave an example of how to correctly reflect the payment of December salaries in accounting. Use these instructions for free.

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Responsibility for failure to comply with the payment deadline

According to Part 6 of Art. 136 of the Labor Code of the Russian Federation, the employer must pay employees at least every half month. In this case, specific dates for payment of wages must be established, but no later than 15 days from the end of the period for which it was calculated.

If an employer violates this rule, he will be punished under Art. 5.27 of the Code of Administrative Offenses of the Russian Federation, namely, penalties will be imposed:

• 30,000 - 50,000 rub. for legal entities;
• 10,000 - 20,000 rub. for officials;
• 1,000 - 5,000 rub. for individual entrepreneurs.

If the violation is committed repeatedly, then the liability is significantly increased:

• 50,000 - 100,000 rub. for legal entities;
• 20,000 - 30,000 rub. or disqualification for 1-3 years for officials;
• 10,000 - 30,000 rub. for individual entrepreneurs.

Due to the fact that most companies will start working only on January 11, salaries sometimes need to be paid in advance to avoid penalties. However, some accountants do not approve of early payment of salaries because they believe that:

• there is a violation of the legal requirement for the payment of personal income tax - the tax cannot be paid before the payment of wages;
• there is a violation of the frequency of payment of wages at least 2 times a month - in January, wages will be paid only once (for the first half of January).

December and January payments

Payment for December in advance is mandatory - advance payment for the first part of the month. Delivery should not take place on a weekend. If the deadline set for advance transfers falls on a Saturday or Sunday, the accounting department pays the money in advance, that is, on the last working day before the weekend.

The January payment is the remaining part of the earnings. New Year holidays 2020–2021 last from 01/01/2021 to 01/10/2021. The remuneration will have to be transferred immediately after returning to work, observing the legal interval. In our example, this is 01/11/2021.

If an advance is made in an organization before December 23, 2020, then in this case payment is required according to the “December - in December” scheme. Local standards indicate how many payments state employees will have in December in this case - two: an advance and the main part of the salary. The employer is obliged to pay employees in full by the end of the working year - by Thursday, 12/31/2020. If you count according to the calendar, then the payment of the remaining income falls during the New Year holidays, which is obviously impossible.

To avoid violations of labor laws and subsequent fines, schedule all settlements with employees at the end of the current year. The correct day for payments in 2021 is 12/28/2020. The last December working days fall on the 30th and 31st, and most institutions direct all resources to mutual settlements with counterparties, including employees. This means that programs and payment systems will be overloaded, which will lead to delays in payments. Don’t take risks, pay everyone off in advance and calmly close the year. Provide salary funding in advance. The budget standards indicate when money must be ordered to pay salaries in order to pay for December at the end of December - at least for a month, that is, in November. The accountant preliminarily calculates the remaining allocations and selects the entire allocated funding for the December salary.

IMPORTANT!

Rostrud recommends paying December salaries on December 28!

Popular questions (FAQ)

When should I transfer wages for December 2021 if the date falls on the January holidays?

Official holidays in January 2021 are dates from the 1st to the 10th of the month inclusive. Those organizations and individual entrepreneurs that usually pay money to employees in this time period transfer them before the end of the month. This is even an obligation of employers, not a right.

The rationale is this: according to Article 136 of the Labor Code of the Russian Federation, if the payment day coincides with a non-working holiday, the employer is obliged to issue funds in advance - on the eve of this day. Thus, in December, public sector employees will receive wages for the last month of the year worked, as will employees of commercial organizations, in which payments are planned in the period from the 1st to the 10th.

The deadline for transferring money is December 31, 2021. Personal income tax in this case, based on clause 7 of Art. 6.1 of the Tax Code of the Russian Federation and Federal Tax Service letter No. BS-4-11/8568 dated May 16, 2016, may be transferred on the next business day. In the coming year it is 01/11/2021.

When should salaries be paid if the payment date falls on a working day in January?

Since the payment is scheduled for a working day, there is no reason to postpone the due date. But the management of the organization has the right to transfer money ahead of schedule, because this does not worsen the situation of employees and is not a direct violation of labor laws.

At the same time, the time interval of 15 days between payments in January is not observed, which violates the provisions of Article 136 of the Labor Code of the Russian Federation. However, Rostrud promises that they will not fine you. There has even been a certain judicial practice in favor of employers, and if necessary, the decision of GIT inspectors can be easily challenged.

To avoid fewer claims, we recommend issuing an order for early payment of money for December.

In the document, specify whether salaries for December will be paid in full or in part. It is permissible to first issue a certain part (for example, 80% or 90%), and transfer the rest later - within the prescribed period. Then in January people will receive wages twice, the terms and frequency are not violated, and there is nothing to punish the employer for.

IMPORTANT!

If the organization provides for the payment of money in cash, in addition to the order, you will need a payslip for the payment of wages on December 31, 2021, in order to process everything correctly. Prepare everything in advance, including notifying employees when paychecks are due, to avoid conflicts ahead of the long winter break.

Does the employer have the right to pay the December salary in full if the date falls on the New Year holidays?

Such a solution is possible, but, according to the provisions of Art. 136 of the Labor Code of the Russian Federation, there is a temporary limit of 15 days between the dates of payment for the first and second half of the month. Paying money more often is allowed, less often - not. Salaries for the second half of the month must be transferred before the holidays, and for the first half - on time. If you combine the dates, it turns out that wages for the first half are paid in violation, and on the basis of Art. 236 of the Labor Code of the Russian Federation, you will have to pay additional compensation of no less than 1/150 of the refinancing rate of the Central Bank of the Russian Federation for each day of delay.

For example, paydays in an organization are the 21st and 6th of the month. January 6 is a holiday, so employees must be paid on the last working day before the long weekend. Having decided to pay the full amount on December 31, 2021, you will have to pay additional interest for the days of late payment for the first half of the month.

Taxation of December salary

In a situation where the payment date falls on a weekend and the money is issued on December 31, 2020, there are no difficulties or issues with the transfer of personal income tax. They arise when early wages for December are paid, when to issue them and how to deal with personal income tax in this case - in December or January. When paying for labor earlier than the deadline established in the LNA, personal income tax should not be transferred to the budget immediately. Income in the form of wages is recognized as received only on the last day of the month worked, and tax cannot be withheld from it in advance. As a last resort, tax fines can always be challenged: judges often side with taxpayers. But since legal proceedings bring little pleasure, we recommend paying personal income tax on the December salary issued before the New Year on January 11.

Legal documents

• part 6 art. 136 Labor Code of the Russian Federation
• Art. 5.27 Code of Administrative Offenses
• Article 136 of the Labor Code of the Russian Federation
• clause 7 art. 6.1 Tax Code of the Russian Federation
• Art. 136 Labor Code of the Russian Federation
• Art. 236 Labor Code of the Russian Federation

Early payment of wages

The most numerous questions employees have to accountants are: when will the final remuneration be transferred, until what date are payrolls closed in December, will employers make a one-time payment for the entire month or will they split it into two payments? The Labor Code does not prohibit the advance payment of December income. The employer is responsible for late payment, which will happen if the payment of money is delayed in January 2021.

Earnings transferred in advance do not in any way violate the employee’s labor rights, and therefore do not entail additional liability for the employer. The manager has the right to organize a one-time payment of December income, that is, to issue both an advance and the remaining part of the labor remuneration on a set day. If there is no financial possibility of a single payment, then the transfer of December wages is scheduled for the last working days of the year - in the period from December 28, 2020 to December 31, 2020.

The salary payment date falls on the New Year holidays - when should I pay my December salary?

Holidays in January are from the 1st to the 8th, and the 9th and 10th are days off (Saturday and Sunday). If the employer pays wages from the 1st to the 10th, then he does not have the opportunity to pay the December salary. Therefore, this must be done before the New Year holidays - the company is obliged, and not just has the right.

According to Art. 136 of the Labor Code of the Russian Federation, if the day of payment of salaries falls on a weekend or holiday, the money must be paid in advance - the day before. Accordingly, the December salary must be paid no later than December 31.

As for personal income tax, it can be transferred on the next business day, i.e. in this case, January 11, 2021. This is indicated in paragraph 7 of Art. 6.1 of the Tax Code of the Russian Federation and Letter of the Federal Tax Service dated May 16, 2016 No. BS-4-11/8568.

Preparation of an order for early payment of wages

Any deviations in the timing of accrual and payment of labor remuneration are accompanied by an order from management. If the manager or manager has decided to make advance payments to employees according to the “December - in December” scheme, they must prepare an order for early payment of wages.

In commercial organizations, everything is not so strict; January payments for such enterprises are quite common. But the budget has different rules: in December, state employees will receive their salaries for the last month in full. In budgetary institutions of all types, the obligation to make early payments is defined at the regulatory level. The table lists the timing of payments to public sector employees.

If the company transfers the final remuneration on December 31, 2020, then personal income tax and insurance premiums will have to be paid on the first working day of 2021 - January 11.

Early payment of earnings is approved by order. Such an order is prepared in advance - issue it a week before the planned settlement. Here's how to create an order:

1. Prepare the institution's letterhead.
2. Mark the basis for the formation of the order.
3. Please indicate the reason for early payment.
4. Enter the exact date of transfer and appoint a responsible employee.
5. Have the document certified by your supervisor.

There is no need to familiarize employees with the order. This order does not violate the rights of employees, so their signatures on the document are not required.

Methods for issuing funds

Methods for issuing wages to employees are prescribed in the collective agreement, labor agreement and in the regulations on remuneration of the organization. And don't forget to prepare an order. If the organization does not have an order for early payment, then it is not recommended to issue salaries for December before the New Year. And the basic rule: do not violate the deadlines established for settlements with employees.

Here's how to pay December wages:

• issue “by hand” - in cash;
• transfer to employees' salary bank cards.

In both cases, management ensures that funds are received in advance - at the end of the year, due to the huge volume of transactions, banks work more slowly, payment systems hang, and payments take much longer to process.

If you plan to transfer the December remuneration no later than December 28, 2020, then send salary payment orders in advance to the bank that services your organization. Under the normal rhythm of operation of a banking institution, payments are processed during the business day, and the money is credited to employee accounts the next day.

Issuing pay slips

Upon the issuance of monthly remuneration for December, the accountant provides the employee with a payslip, the form of which is approved by the appropriate order in each institution (Part 2 of Article 136 of the Labor Code of the Russian Federation). If employers pay wages for December before the new year, then payslips should be distributed immediately after payments, that is, no later than December 31, 2020. If the balance of income is paid in January 2021, then the calculation will be issued in the same month.

In the payslip for the last month, the accountant reflects the total amount of income. It includes the basic salary, incentives, compensation, bonus payments, and other additional payments and allowances. The calculation indicates all deductions for December 2020: personal income tax, union dues and other payments confirmed by management orders. The final line of the payslip indicates the amount of income to be issued.