Salary advance: terms and definitions
The procedure for submitting 6-NDFL once again prompts financial specialists to think about the nuances of filling out this reporting puzzle.
Salary advance in 6-NDFL is one of many issues that require separate clarification.
An advance is considered to be part of an employee’s earnings given to him by the employer:
- without fail;
- the force of legal requirements;
- deadlines established by the company itself (taking into account the requirements of labor legislation).
NOTE! The need for advance payment arises from the requirements of labor legislation. Art. 136 of the Labor Code of the Russian Federation requires the employer to pay wages at least every half month, otherwise he faces fines (Article 5.27 of the Code of Administrative Offenses of the Russian Federation) and material losses in the form of interest for late wages (Article 236 of the Labor Code of the Russian Federation).
For more information about the advance, see the article “Salary Advance in 2020 under the Labor Code.”
Study salary nuances using the materials posted on our website:
- “Payroll taxes in 2021 - table of changes”;
- “Payment for shift work” and .
Thus, an advance is an element of an employee’s income that is subject to personal income tax and, as a result, has every reason to be included in personal income tax reports, one of which is form 6-NDFL. You will find out whether the advance is reflected in 6-NDFL in the next section.
In which line of 6-NDFL is the salary advance reflected?
There is no point in looking for a separate advance line in the report. There is no space allocated for information about the salary advance issued to employees and the personal income tax corresponding to this payment.
This seemingly flaw in the report is actually based on tax legislation, since:
- the employer is obliged to calculate personal income tax on the date of actual receipt of income (this approach is dictated by clause 3 of Article 226 of the Tax Code of the Russian Federation);
- it is necessary to withhold tax from the employee’s salary upon its actual payment (clause 4 of article 226 of the Tax Code of the Russian Federation);
- the date of receipt of income in the form of wages (including advance payments) is the last day of the month for which salary accruals were made (clause 2 of Article 223 of the Tax Code of the Russian Federation, see also letters of the Ministry of Finance dated January 15, 2019 No. 03-04-06/1192, dated 07/13/2017 No. 03-04-05/44802).
Thus, at the time of payment of the advance, it is not yet recognized as income, and therefore there is no need to withhold personal income tax from it. Additional confirmation that information about the advance in 6-NDFL is not reflected in a separate line is the opinion on this matter of federal tax officials, expressed by them in letters dated January 15, 2016 No. BS-4-11/320, dated March 24, 2016 No. BS-4 -11/4999.
For more details, see: “Do I need to pay personal income tax on an advance and when?”
Important to consider! Recommendation from ConsultantPlus: But if the advance is paid on the last day of the month, then in essence it is payment for the month and when paying it, the employer must calculate and withhold personal income tax (clause 2 of Article 223 of the Tax Code of the Russian Federation, Ruling of the Supreme Court of the Russian Federation dated May 11, 2016 No. 309-KG16-1804). In this case, the advance amount in the 6-NDFL calculation is shown as... (for more details, see K+).
Despite all of the above, advance payments took place in the reporting quarter, and the question of how to reflect the advance in 6-personal income tax remains open.
Salary for several months in 6 personal income tax
How to fill out a declaration if an employee was paid a salary for several past months during the calculation?
If the employee has not been paid arrears of wages before the termination of the contract, the employer is obliged to do this on the specialist’s last working day. According to the Tax Code of the Russian Federation, the day of actual receipt of this remuneration upon termination of the trade agreement is considered the date of settlement. And in relation to debt, the rule of reflecting remuneration on the last day of the month for which it is accrued applies. In the reporting, pages 100-140 will be formed in different blocks, according to the month of salary calculation.
For example, if upon termination of a TD on 10/30/2019, the employee received accruals for 2 periods of September and October, then in the declaration it will look like this:
- 100 – 30.09.2019
- 110 – 30.10.2019
- 120 – 31.10.2019
- 100 – 30.10.2019
- 110 – 30.10.2019
- 120 – 31.10.2019
Withholding occurs upon actual receipt of profit, in our case this is the date of dismissal - October 30, 2019, and transfer to the state budget is the next working day, i.e. October 31, 2019
How to show a salary advance in the 6-NDFL report: example
Advance payments are still reflected in 6-NDFL, but not in a separate line, but in cells designed to reflect the salary issued. In this case, the salary advance is the legally paid part of the earned income.
Let's show the algorithm for reflecting an advance in 6-NDFL using an example.
Example
Tekhspetsprom LLC began operating only in January 2021, and by the end of the 1st quarter, salary accruals amounted to 738,000 rubles. (personal income tax - 95,940 rubles), including:
- On January 22, 2020, a salary advance was issued (RUB 300,000);
- On 02/05/2020 the final payment for August was made (RUB 438,000).
To simplify the example, we will assume that there are no other accruals and payments during this period.
Filling out 6-NDFL:
- The date of actual receipt of income (line 100) is 01/31/2020;
- Tax withholding date (line 110) - 02/05/2020;
- The tax payment deadline (line 130) is 02/06/2020;
- The amount of income actually received (line 130) is 738,000 rubles;
- The amount of tax withheld (line 140) is RUB 95,940.
How to reflect the dismissal of an employee in 6-NDFL if the vacation was taken in advance
Let's consider a particular situation when an employee has been given leave in advance and has not worked it out on the day of dismissal. In this case, the employee is deducted for unworked vacation days. In this case, the employee’s personal income tax base is reduced by the amount of deduction. Therefore, in the reporting form it is necessary to show the amounts of the final payment minus the deduction for unworked vacation.
Let's return to our example: let the employee not receive compensation, but a deduction for unworked vacation in the amount of 5,000 rubles.
What should you do if the accrued final payment turns out to be less than the deduction for unworked vacation? It is impossible to reflect the amounts of accruals and taxes in the report with a minus. In this case, you will have to submit an updated 6-NDFL report for the period in which vacation pay was paid. In this report you will have to reduce the amount of accrued vacation pay.
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Tags: accountant, job description of the general director, tax, personal income tax, dismissal, Form
The amount of a fixed advance payment in 6-NDFL: how not to make a mistake in terms
We’ve figured out how to show an advance on salary in 6-NDFL. But sometimes it also indicates an advance of a completely different nature, namely: a fixed advance payment (FAP), which is paid by foreigners working on the basis of a patent.
For him, the calculation has a separate line 050 and its own reflection rules, due to the offset between the personal income tax advance, which is transferred by the employee under the patent, and the tax that the employer has calculated and must transfer to the budget from the income paid to the employee.
Thus, the amount of the FAP in line 050 should not exceed the amount of tax from such employees included in line 040. When the personal income tax paid under a patent is less than the tax calculated on wages, the entire fixed advance is reflected in line 050. When more, only a part of it equal to the calculated personal income tax. If the foreigner continues to work and receive a salary, the difference is counted in subsequent periods.
Filling out the calculation in such a situation is discussed line by line in the article “Nuances of filling out 6-NDFL for “patent” foreigners .
Salary advance in 6-NDFL: is it necessary to show how to reflect it, an example of filling
Tax agents know that they need to submit income tax calculations to the Federal Tax Service. However, accountants often doubt the correctness of reflecting the advance amount in Form 6-NDFL. Meanwhile, all data must be entered into it according to existing rules. Only compliance with them will help avoid problems with regulatory authorities.
Is it necessary to reflect the advance in 6-NDFL?
Despite the fact that the advance is a full part of the employee’s salary for the month, its amount is not paid separately anywhere. This is explained by the fact that part of the salary issued in advance is not considered officially received income until the date of payment of the full amount.
This money will become income only during the general payment of salaries. Then the tax will be withheld and transferred. The rule is confirmed by a letter from the Federal Tax Service. For this reason, Form 6-NDFL does not contain a special line or section for recording advances issued.
It is important to note that an advance transferred to an individual under a civil contract must be reflected in 6-NDFL (this is applicable if the other party to such an agreement is a legal entity or individual entrepreneur). If a businessman cooperates with another legal entity/individual entrepreneur, then they are not tax agents for each other, therefore, form 6-NDFL is not filled out and the advance is not shown in it
The law states that the advance is part of the salary, therefore it is not entered separately in Form 6-NDFL
How to reflect an advance in form 6-NDFL
To fix the amount of the advance payment, you can use the composition of the salary against which it is paid. To do this, in the second section of form 6-NDFL there is a general line number 130. You can understand the correctness of the actions by considering a specific example.
Example of correct filling
For the fifth month of 2021, an employee of the company received a salary in the amount of 63,217 rubles. The tax, based on a thirteen percent rate, amounted to 8,218 rubles. On May 19, the employee received an advance in the amount of 26,000 rubles. And the total payment of wages took place on 06/02/2017. Its amount was 29,000 rubles. Let’s assume that the employee did not have any additional income for the entire six months.
Fixed advance payment amount
A fixed advance payment for personal income tax is required to be paid by a citizen of another state who works in the territory of the Russian Federation under a patent. His employer has the right to reduce personal income tax by the amount of these payments.
The right to reduce personal income tax must be confirmed with the tax office. The employer must take a notice there confirming the possibility of such a reduction. But for this you will need to write a special application to the tax authorities.
It is now possible to submit an application electronically.
And the foreign employee himself will also need an application with documents attached to it. They must confirm the payment of fixed advance payments for personal income tax.
Advance payment for personal income tax is filled out on the basis of a payment document monthly
Where to reflect the fixed advance payment
First you need to open section No. 1 in 6-NDFL. Section 050 line exists only for information on foreign workers. And it is filled out only if the company has employees from abroad.
To reflect a fixed advance payment, line 050 in form 6-NDFL is intended - the amount of advances
Field 050 records the total amount of advances issued to them. When there are no foreign workers in the company, line 050 will contain a zero.
When filling out a report, every single cell must contain data. If there is no information for some cells, dashes should be placed in them.
How to check the correctness of filling
To clarify the correctness of entering values into the lines, you need to take into account that the amount reflected in line 050 should not be higher than the amount of taxes from field 040.
If the tax paid under the patent is lower than the tax subtracted from the funds earned, the entire fixed advance is entered in field 050. But if the tax is higher, they write the part that coincides with the calculated personal income tax. Meanwhile, all data must be entered according to existing rules.
In subsequent months, when the employee continues to work, the difference will be counted against future salaries.
: payment of personal income tax on advance payment
The process of submitting 6-NDFL is often accompanied by difficulties in filling out this document correctly. One of the most frequently asked questions is the salary advance in 6-NDFL.
That is why it is important for financial specialists to understand the explanations of tax specialists and use them in their daily work
