Filling out 2-NDFL from payments upon dismissal of an employee

Why should vacation time be taken into account separately from basic earnings?

Vacation payments to an employee are one of the forms of social guarantees provided for in Art.
114 Labor Code of the Russian Federation. But they cannot be considered as wages, since during vacation the employee de facto does not work. The difference between payments for time worked and for annual rest is significant, since they provide for different points for calculating the taxable base for personal income tax:

• earnings for days worked - the last day of the month of its accrual or the day of termination of the working relationship (clause 2 of Article 223 of the Tax Code of the Russian Federation);
• vacation pay - the day of the expense transaction for their payment (subclause 1, clause 1, article 223 of the Tax Code of the Russian Federation).

That is, the tax agent is obliged to calculate and withhold personal income tax at the time of payment of vacation pay, and he has the right to transfer the withheld amount to the budget until the last day of the month in which the payment was made.

This judgment was officially confirmed by the Russian Ministry of Finance in its letter dated January 17, 2017 No. 03-04-06/1618.

Thus, a separate reflection of the vacation pay code in the 2-NDFL certificate is required so that tax authorities can monitor compliance with the deadlines and amounts of tax transfers.

Recommendation from ConsultantPlus: We recommend filling out the 2-NDFL certificate in the following order: general part; section 1; Application; section 3; section 2. Line-by-line algorithm for filling out 2-NDFL, see K+. Trial full access to the K+ system can be obtained for free.

Maternity leave

This type of leave is issued in connection with the birth of an employee and for caring for a small child up to 1.5 years old. Throughout the entire period, the woman receives benefits from which no tax is withheld.

When a woman applies for a form, it may be issued if:

• the employee decided to work part-time;
• the maternity leave was issued to the husband, close relatives who work, but in a gentle manner;
• if the woman was awarded a bonus or was paid financial assistance, which is taxable;
• the young mother receives a profit, from which the personal income tax percentage (real estate rental) is calculated.

There is a certain procedure for registering leave for an employee. The management’s task is to timely submit the tax form to the authority and provide the employee with all the conditions for rest provided by law.

In certificate 2 of personal income tax, the employer reflects payments in favor of employees. Each income is assigned a unique code. A separate designation is also provided for vacation payments. Since a person is not working at this time, it is not correct to consider monetary amounts as wages. 2012 - Personal income tax - vacation pay income code in certificate 2 of personal income tax.

The current personal income tax code in 2021 for vacation pay and for its compensation

Clause 2 Art. 230 of the Tax Code of the Russian Federation defines the employer’s obligation to provide tax authorities with 2-NDFL certificates every year. They must be compiled reflecting payments received from the enterprise by month of accrual, codes of types of income and separate divisions, as well as indicating tax deductions that the recipient of payments uses.

Do not forget that from 2021 the form of calculation of 6-NDFL is changing, and the 2-NDFL certificate, as a separate document, has been cancelled. We also remind you that the deadline for submitting 2-NDFL certificates to the Federal Tax Service has been reduced by 1 month. You now need to report on the form no later than March 1st. In 2021 it is a working Monday. This means there will be no transfers. In addition, the report must be submitted electronically if you have more than 10 employees. See here for details.

Possible payment codes that are practiced when filling out personal income tax registers are mentioned in Appendix No. 1 to the order of the Federal Tax Service of Russia dated September 10, 2015 No. ММВ-7-11 / [email protected] For vacation pay, the code is highlighted separately - 2012 “Vacation pay amounts,” he continues valid this year as well; changes in the code book did not affect it.

Payments of compensation to an employee for unused vacation days due to dismissal are also worthy of special mention. Since for them, starting with reporting for 2021, a new code 2013 “Amount of compensation for unused vacation” was introduced.

And for severance pay exceeding three times the average salary, code 2014 is provided.

Since January 2021, other income and deduction codes have been introduced for filling out the 2-NDFL certificate.

See here for details.

For a complete list of income codes in the 2-NDFL certificate, see the article “List of income codes in the 2-NDFL certificate (2012, 4800, etc.)”

Leave and compensation

In labor legislation there is a concept called vacation compensation. This is a cash payment that is transferred to the employee for vacation days, but the person does not rest at this moment. Compensation in lieu of rest is received only for vacation days that exceed 28 days.

So, for example, employees with irregular working hours have an additional 3 days of rest, they are issued a compensation payment.

An exception to this rule is the dismissal of an employee. If upon dismissal a person has days off, they are replaced by a cash payment and transferred on the day of dismissal along with the payment.

Previously, a separate code designation for compensation was not provided.

In practice, there were 3 options for reflecting accrued payments:

• 2000 – salary code;
• 2012 – vacation pay number in the certificate;
• 4800 – other income. This is the option recommended by the Federal Tax Service.

But at the end of 2021, income codes were revised and new designations appeared, including for compensation. Now in 2nd personal income tax this amount is reflected according to code 2013 in the month in which the funds were paid.

Compensation is also paid instead of vacation, and in addition to it. For state and municipal employees, such payments are guaranteed by law; compensation is paid for 10 days - a one-time payment for vacation. It is reflected in the reporting under code 4800.

People working in other areas receive such a payment if this is provided for by the employer’s local regulations. But organizations have no obligation to pay compensation. If the company provides for such payments, they are shown in 2nd personal income tax as financial assistance - code 2760.

What accrual period for vacation pay income code should be in the 2-NDFL certificate?

Another question that concerns an accountant in the “Salaries and Personnel” section is how to correctly calculate personal income tax for a time period, taking into account the employee’s tax deductions.

As you know, vacation is paid according to the average earnings for the entire vacation period at once. If in a situation where the vacation period falls within the framework of one month, everything is clear, then what to do with “rolling” vacations, the end date of which does not fall in the month when they were paid?

The answer to this question has been repeatedly given by both tax authorities and the Ministry of Finance, including in the letters that we mentioned earlier: regardless of the start and end dates of the vacation, the period for receiving income will be the month in which the vacation pay was actually paid.

Read about reducing the tax base for individuals here.

Questions and answers

1. Our employees go on vacation from January 15, 2020 to January 13, 2020. How to calculate personal income tax in this case, given the fact that the vacation begins in one month and ends in another?

Answer: When paying vacation pay, the employer is responsible for transferring funds to the employee no later than 3 days before the employee goes on vacation. Thus, the employee receives all vacation pay in the month when the vacation begins. Based on this, the period for receiving income will be the month in which vacation pay was paid.

1. The employee went on sick leave during vacation, but he was paid vacation pay. How to note payments for sick leave in the 2-NDFL certificate?

Answer: After you receive a certificate of temporary incapacity for work from the employee, there will be a need to pay benefits according to this document. When calculating benefits, enter code 2300 in the column opposite the benefit amount.

personnel documents, tax reporting, personal income tax, Vacation, Personnel

Results

In the 2-NDFL certificate, payments to vacationers must be separated from wages and accounted for under a separate income code. This will allow you to comply with the requirements of tax legislation regarding the procedure for tax accounting and filling out reports.

Sources:

• Tax Code of the Russian Federation
• Order of the Federal Tax Service of Russia dated September 10, 2015 No. ММВ-7-11/ [email protected]

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

Codes of income that are subject to personal income tax when the limit is exceeded

Income code 2720 - cash gifts to the employee.
If the amount exceeds 4,000 rubles, then tax is charged on the excess. In the certificate, the amount of the gift is shown with income code 2720 and at the same time with deduction code 503. Income code 2760 - financial assistance to an employee or former employee who has retired. If the amount of assistance exceeds 4,000 rubles, then a tax is levied on the excess. In the certificate, the amount of financial assistance is shown with the income code 2760 and at the same time the deduction code 503.

We talked about coding children's deductions from 2021 here.

Generate a 2-NDFL certificate automatically in the online service Kontur.Accounting. Here you can keep records, pay salaries and submit reports.

What is a 2-NDFL certificate?

Certificate 2-NDFL is a document containing the following information:

• source of income;
• salary amount;
• volume of taxes withheld.

This information is provided in relation to the following categories of citizens:

• workers;
• contractors;
• citizens receiving dividends.

It is necessary to pay attention to the fact that from 01.01.2020, in accordance with the approved:

• form of information on the income of individuals and amounts of personal income tax “Certificate of income and amounts of tax of an individual” (form 2-NDFL);
• the procedure for filling out the form for information on the income of individuals and amounts of personal income tax “Certificate of income and amounts of tax of an individual” (form 2-NDFL);
• format for presenting information on the income of individuals and amounts of personal income tax “Certificate of income and amounts of tax of an individual” (form 2-NDFL) in electronic form;
• the procedure for submitting to the tax authorities information on the income of individuals and the amount of personal income tax and notification of the impossibility of withholding tax, the amount of income from which tax was not withheld, and the amount of unwithheld personal income tax;
• form of a certificate of income received by individuals and withheld amounts of personal income tax “Certificate of income and amounts of tax of an individual.”

The new 2-NDFL certificate contains information on the income of individuals and the amount of personal income tax for the 2018 tax period.

The tax agent provides 2-NDFL certificates to the Federal Tax Service within the following deadlines:

Income codes that are always subject to personal income tax

Income code 2000 is wages, including bonuses (for harmful and dangerous work, for night work or combined work).

Income code 2002 is a bonus for production and similar results that are provided for in employment contracts and legal norms.

Income code 2003 - a bonus from the company’s net profit, targeted income or special purpose funds.

Income code 2010 - income from civil contracts, excluding copyright contracts.

Income code 2012 - vacation pay.

Income code 2300 - sick leave benefit. It is subject to personal income tax, so the amount is included in the certificate. At the same time, maternity and child benefits are not subject to income tax, and they do not need to be indicated in the certificate.

Income code 2610 - indicates the employee’s material benefit from loans.

Income code 2001 is remuneration for board members.

Income code 1400 - an individual’s income from renting out property (if it is not transport, communications or computer networks).

Income code 2400 - an individual’s income from leasing vehicles, communications equipment or computer networks.

Income code 2013 - compensation for vacation that the employee did not have time to take.

Income code 2014 - severance pay.

Income code 3021 - interest on bonds of Russian companies.

Income code 1010 - transfer of dividends.

Income code 4800 is a “universal” code for other employee income that is not assigned special codes. For example, daily allowance in excess of the tax-free limit or sick leave supplement.

Generate a 2-NDFL certificate automatically in the online service Kontur.Accounting.

Where is a 2-NDFL certificate required?

Certificate 2-NDFL is required by the Federal Tax Service. From this document the tax authorities receive the following information:

• employee's salary;
• tax deductions;
• deductions that were made from the employee.

In addition to the Federal Tax Service, where the 2-NDFL certificate is provided by the employer or tax agent, this document can be requested from the taxpayer in the following cases:

Responsibility of the employer for refusal to provide a 2-NDFL certificate

Failure by an employer to provide a 2-NDFL certificate upon a written application from an employee is a violation of labor legislation and entails administrative sanctions ():

If the applying citizen is not a current employee of the enterprise, in relation to this case, Article 5.27 of the Code of Administrative Offenses of the Russian Federation is not valid, but comes into force. According to Art. 5.39 of the Code of Administrative Offenses of the Russian Federation, an unlawful refusal to provide a citizen with information, the provision of which is provided for by federal laws, untimely provision of it, or provision of knowingly false information shall entail the imposition of an administrative fine on officials in the amount of five thousand to ten thousand rubles.

Compensation upon dismissal, personal income tax code 2018 in an individual’s income certificate

In accordance with stat. 127 of the Labor Code of the Russian Federation, in the event of an employee’s dismissal, he is entitled to monetary compensation for the entire period of unused vacation. The amounts of compensation payments are subject to inclusion in the 2-NDFL certificate. In the future, this document will be useful to the specialist when registering as a member of the staff of another enterprise.

From what date do the changes take effect? The Order itself does not contain precise explanations on this matter. To determine the period, it is necessary to count 10 days (calendar) from the moment of the official publication of the normative act - the indicated Order of the Federal Tax Service was registered with the Ministry of Justice on December 21, 2017, its effective date falls on January 1, 2018. This means that certificates for 2021 were required already indicating the new code “2013”.

Note! Vacation compensation is indicated in section 3 of form 2-NDFL. Such amounts refer to the period (month) of final settlements with the employee (stat.

140 Labor Code of the Russian Federation). For example, if an individual quit and received a paycheck in November, the amount of monetary compensation for “non-vacation” vacation should be indicated in payments for November.