Are previous vacation pay included in the calculation of vacation pay?

Despite extensive experience and high qualifications, there are a number of issues that cause disagreements and questions even among experienced accountants. One of these includes the month of accrual of vacation pay, if the vacation is from the 1st day. In this article we will look in detail at the procedure for calculating vacation pay.

Month of accrual of vacation pay if vacation is on the 1st

Legal basis

According to the Labor Code, every employee of the Russian Federation has the right to 28 days of paid leave. At the request of the employee, this period can be divided into parts, and the minimum part of the entire vacation cannot be less than two weeks. There are also a number of preferential categories and specialties where employees are entitled to additional days of vacation. Depending on the legal basis, they can be paid or issued at your own expense.

If holidays that are considered public holidays fall during the vacation period, then the vacation is extended by this number of days. An employee has the right to reschedule a planned vacation, but this can be done no more than twice a year. When an employee is dismissed and has unofficial leave, the employee is entitled to compensation for these days.

Compensation is due for late payment

According to the law, benefits must be accrued and paid to the employee three days before the specified date in the application. Ignoring this will result in serious fines and administrative penalties for the employer.

If the audit reveals the fact of incorrect and untimely accrual of money, then for an individual entrepreneur this threatens with a fine of up to 5 thousand rubles, and for an LLC - up to 50 thousand. This rule is regulated by Article 136 of the Labor Code of the Russian Federation.

Art. 136 TK

Even if for some reason the employer is unable to meet this three-day deadline, he should be compensated for each day of delay. And the amount of compensation and the basis for its calculation must be formalized in a special local act. Only then, when checked by regulatory authorities, will the situation not be considered a violation.

But when an employee indicates the start date of vacation on the 1st, the situation raises many questions. After all, in fact, the month has not yet been fully worked at the time of actual payroll. And wages must be issued along with benefits. How to be in this case?

Determining the billing period

Considering that the accrual must occur before the reporting period is fully exhausted, the calculation should be made on the average. The accountant must calculate the average salary for the last 12 months. If an employee has only worked for six months, then the average is calculated for 6 months.

When calculating vacation pay, the average annual salary is taken into account

If an employee goes on vacation from July 1, 2021, then the period that, on average, will be taken as the basis for the calculation will be 07/1/2018 to 06/30/2019. There is one more nuance of the legislative framework that may raise questions. If the first day falls on a public holiday. How to calculate benefits in this case? This provision is regulated by Article 136 of the Labor Code (Part 8), which provides for such a situation. If the vacation coincides with a holiday, the payment must be made the day before.

How to calculate vacation pay if an employee goes on vacation from the first day of the month?

The average daily earnings for vacation pay are calculated for the last 12 calendar months, therefore, the month preceding the vacation should be included in the calculation (Part 3 of Article 139 of the Labor Code of the Russian Federation, paragraph 4 of the Regulations on the specifics of the procedure for calculating the average salary, approved by the Decree of the Government of the Russian Federation dated December 24, 2007 N 922 (hereinafter referred to as Regulation N 922)).

If an employee goes on vacation on the 1st, 2nd or 3rd of the month, then he must be paid vacation pay in the previous month. So that he receives the money no later than three calendar days before the start of the vacation (Article 136 of the Labor Code of the Russian Federation). Therefore, you will have to calculate vacation pay when the last month of the billing period has not yet been fully worked out.

In such a situation, two options are possible :

1. A full month is included in the calculation of average earnings. For example, if an employee goes on vacation from October 1, 2019, then the calculation period will include the full 12 months from October 1, 2018 to September 30, 2021.

To calculate vacation pay, the full salary for September 2021 is taken into account.

With this option, situations are possible as a result of which vacation pay should be recalculated at the end of the month (for example, temporary disability of an employee that occurred in September 2021).

If the amount of vacation pay paid to an employee turns out to be more than required, the overpayment is counted toward the next salary paid. If the amount of vacation pay paid is less than it should be, then the difference is paid when paying wages.

2. When calculating average earnings, the last month of the pay period is included as not fully worked. And the amount of payments takes into account the amounts due to the employee for the time he worked in the last month of the billing period from the 1st day to the day of calculation of vacation pay.

In this case, the average daily earnings are calculated by dividing the amount of actually accrued wages for the billing period by the sum of the average monthly number of calendar days (29.3), multiplied by the number of complete calendar months, and the number of calendar days in incomplete calendar months. In this case, the number of calendar days in an incomplete calendar month is calculated by dividing the average monthly number of calendar days (29.3) by the number of calendar days of this month and multiplying by the number of calendar days falling on the time worked in a given month (clause 10 of Regulation No. 922) .

Example. Calculation of vacation pay taking into account an incomplete month

The employee goes on vacation from October 1, 2021. Vacation pay will be calculated on September 27, 2021. The calculation will include payments accrued for the period from October 1, 2021 to September 27, 2021. The number of calendar days in an incomplete month is September 2021. will be 26.4 days (29.3 / 30 x 27). Thus, to calculate the average daily earnings, the accrued amount will be divided by the number of days determined as follows: 29.3 x 11 + 29.3 / 30 x 27.

With this option, after the end of the month, a recalculation should be made and, if necessary, additional vacation pay should be paid to the employee.

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Features of granting vacations

Vacation pay is accrued at the request of the employee. Large enterprises maintain a vacation schedule, which is laid out before the start of the calendar year. This helps create a continuous production process and allows the accounting department to make all payments correctly and on time. The vacation schedule is maintained in accordance with Article 123 of the Labor Code of the Russian Federation.

123 Article of the Labor Code of the Russian Federation

In small companies there may not be such a schedule, in which case the manager can independently designate the recommended vacation period. But in any case, if an employee writes a statement, according to the law he cannot be refused. In addition, the enterprise must maintain a time sheet. This is a document that controls employee visits. An Order must be drawn up for the enterprise, which designates the person responsible for maintaining the Timesheet.

Timesheet of Working Days

The document can be completed in writing or electronically. The choice of report card designation (letter or code) is also determined by management.

Article 135 of the Labor Code clearly regulates the procedure for registering leave and calculating money. Payment to an employee can be made in any way:

• to a current bank account;
• on the map;
• cash at the cash register.

Each employer independently establishes for itself a convenient form of payment.

Vacation pay can be issued to an employee either in cash or in non-cash form.

Transferring money to a card is much more convenient for an enterprise, as it allows you to minimize the costs of cash transactions. When hiring an employee, the company must control the opening of a bank account. The employee writes a statement to the accounting department, where he indicates the account details. According to this statement, all accruals and payments (vacation pay, sick leave, bonuses, wages) are carried out in the future.

The procedure for granting vacations

Duration of vacation

For different categories of workers, the duration of vacation is different.

Six months after joining the company, any employee can go on vacation. The law provides for 28 calendar days for each year.

If he works in harmful and dangerous industries, in the Far North, then the vacation days are increased, additional vacation days are added. The employer independently sets these days.

Every year the company must draw up a vacation schedule (Article 123 of the Labor Code of the Russian Federation). If he suddenly forgot when this wonderful time awaits him, then he can always find out in the accounting department.

He must also be reminded 2 weeks in advance.

The procedure for registering vacation at the enterprise

According to Article 123 of the Labor Code of the Russian Federation, the following registration procedure has been developed:

1. the employee writes a statement indicating the period worked and the start date;
2. the manager checks this data and signs the application;
3. an Order is created at the enterprise;
4. The accounting department makes the payment three days before the date indicated in the application.

Vacation pay is calculated based on the employee’s average earnings.

Employees often ask how many days they have already “earned” for vacation. This applies to newly registered employees who have not worked for another full year without a break. According to the law, an employee can take advantage of vacation 6 months after employment. For each month 2 days are credited.

Calculation of vacation days

But the Law also defines a separate category of persons who are entitled to benefits. These include:

• Chernobyl victims;
• mothers who raise children themselves;
• workers with many children, etc.

There is also the concept of standard and extended vacation. Workers in the field of education, health care, the Ministry of Internal Affairs and the category of people working in enterprises with hazardous conditions have an extended period of rest.

Table 1. Number of vacation days for different categories of employees

Reference. A separate category includes people who work in the Far North. Given the difficult working and living conditions, they are entitled to extended rest and accrual of length of service according to a different coefficient.

The general rules for providing rest are regulated by Chapter 9, Art. 114 RF TC.

Chapter 9, art. 114 RF TC

The calculation period for accrual includes all time worked including holidays. But maternity leave and temporary disability are not included in the billing period.

Rules for calculating vacation pay

When calculating vacation pay, it is important to rely on a few simple tips:

• in order to calculate vacation pay, it is necessary to determine the average earnings (AS). To do this, you need to divide the amount of wages by the number of days in the month, taking into account workdays, weekends and holidays;
• Knowing the average daily earnings, you can easily calculate the amount of vacation pay. To do this, the SDZ should be multiplied by the number of days according to the application;
• After calculating vacation pay, the amount of income tax is determined, which must be withheld no later than the day the vacation pay is paid. The accounting department must transfer personal income tax in the same month to the budget in which the payment was made.

Algorithm for calculating vacation pay

Benefits must be accrued clearly according to the number of days specified in the application. Even if this period coincides with public holidays, the vacation is simply extended, but vacation pay for these days is not paid.

Thus, the month in which vacation pay was accrued in a situation where vacation starts on the 1st will be considered the month in which vacation pay was paid. This happens because income tax and its transfer to the budget will also be made last month.

The accountant must make the calculation based on average daily earnings. If, after the end of the billing period, it turns out that the SDZ is higher, then the employee will be recalculated and the money will be credited from above. When determining the average salary of an employee, the accountant does not take into account the following items:

• travel allowances;
• compensation;
• benefit payments;
• bonuses;
• payment for a particularly important task, etc.

Calculation of average daily earnings

Also, if an employee is one of the company’s shareholders and is paid monthly dividends, they are not included in the amount of average earnings by the accountant.

To calculate the accrual amount, use the vacation pay calculator.

Performing vacation pay accrual

This stage in 1C Accounting is performed only after the preliminary settings that were described above. In 1C ZUP such manipulations are not required. Now you can proceed directly to calculating salaries and vacation pay.

The first step is to go to the “Salaries and Personnel” section, where the “All accruals” item is located. The following is a step-by-step process:

1. Click the “Create” button (if this button is not in the program window, you should return to the settings and double-check the necessary parameters).
2. In the small menu that opens, select “Vacation” (if this menu does not appear, then you should return to the software settings).
3. After opening the form to fill in the data, you must select employees, indicate the organization, start and end date of vacation time.

These manipulations will allow you to automatically determine for each employee the amount of accrual of vacation pay and personal income tax (NDFL). In the created document, it is necessary to correctly and accurately fill in information about the employees and the company in which they work. Now you should select the month, after which you can begin the basic design of the document in the “Main” tab.

Calculation of accruals for each employee is performed automatically. When calculating, the system is based on salary data. You can check this in the additional “Accrual” tab, where the following information is provided:

1. Annual reporting on the amount of work performed.
2. Days worked for each month.
3. Total time worked.
4. Monthly salary payments.

This information is provided in the form of a table, which has two sections. Below you can see the amount of average earnings and vacation accruals, which take into account the established vacation days.

The amounts that are taken into account when compiling vacation pay are:

• accrued;
• personal income tax;
• average earnings.

The last two indicators can be adjusted manually by clicking on a special button that looks like a pencil. The green pencil is located next to the field that can be changed.

The average earnings figure is based on data for the last year. The actual time worked is taken into account. In the window where you can change all the necessary values, you can edit the amount of monthly accruals and days worked. After the changes have been made, an automatic calculation will be carried out, the result of which will be displayed in the special field “Average earnings”. All that remains is to click the “Refill” button for the changes to take effect and you can return to the main calculations. Similar changes can be made with the personal income tax indicator.

Now you need to post the document. An error may appear after wiring. This error contains the text: “The document date cannot be greater than the planned payment date.”

To get rid of this problem, you should make some adjustments to the document parameters. It is necessary to change the document posting date, that is, the date when the vacation amount is calculated. In accordance with the Labor Code, employers are required to pay for vacation a maximum of three days before the start of the vacation period. You should also make payments before the start of non-working days and holidays.

If you cannot change the date because the program does not provide access for this, then you should perform the following manipulations:

1. On the main software window on the right side, click the “More” button.
2. Select "Change Shape".
3. Go to the “Main” subsection.
4. Check the box next to “Payment Date”.

When all the settings have been set, the data has been entered, and the document itself has been posted, you can print it. For this purpose, the 1C 8.3 program has a “Print” menu. In it you can choose:

• Calculation of average earnings;
• Order on granting leave (T-6).

What to do if vacation pay is late or incomplete

If an employee does not receive vacation pay on time or does not receive it in full, then there are a number of government bodies where you can turn to for clarification of the current situation and to challenge it. But first, of course, it is better to contact the accounting department directly and clarify why vacation pay was not paid on time and in full. Perhaps the employee himself did not keep track of his wages correctly. For example, when receiving your basic salary in a “gray” way, you should not expect that the same money will be credited during your vacation.

The State Labor Inspectorate monitors violations by employers and protects the interests of workers

If, nevertheless, a fact of illegal actions on the part of the employer is recorded (denial of leave, untimely accrual of benefits, incorrect calculation of the amount), then you can contact the state labor inspectorate and appeal this situation.

Understanding the regulations on the interaction between employer and employee, knowledge of the rights of labor legislation will help to insure yourself against unlawful actions on the part of superiors.