Are insurance premiums calculated from vacation pay - important rules, payment deadlines, examples

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Published: 05/06/2016

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All cash payments transferred by the head of an organization or an individual entrepreneur to employees must be subject to personal income tax. Amounts paid to employees going on vacation are also considered income and, therefore, are subject to personal income tax.

The role of the employer in this situation is to collect personal income tax and transfer it to the state budget. This is done by the employer, not the tax agent! Difficulties arise in this situation because the payment of personal income tax on vacation pay does not have a sufficient legislative basis.

According to the Tax Code of the Russian Federation, the moment of receipt of income is the day of payment of vacation pay, or their transfer to the taxpayer’s bank account.

• How are personal income tax holiday payments reflected in accounting entries?
• When should the withheld tax be transferred to the budget? Vacation pay is paid in cash from cash proceeds
• Vacation pay is paid in cash from the taxpayer's current account
• Vacation pay is paid by bank transfer

When and how to pay personal income tax

There are vacation pay, and there is compensation for unused vacation. Both are subject to personal income tax. The tax rate is 13% for Russians and 30% for foreigners.

How to issue vacation pay

Vacation pay tax is calculated in the same way as salary tax:

Articles on the topic (click to view)

• Fine for late payment of vacation pay
• What to do with unused vacation
• What to do if your employer does not pay vacation pay
• How long after employment is vacation allowed?
• Is maternity leave taken into account when calculating pensions?
• Accounting for compensation for unused vacation
• Dismissal while on maternity leave

With this money Nikolai goes on vacation.

Personal income tax must be calculated and withheld on the day the employee receives the money. And you can transfer it to the tax office later:

• Tax on vacation pay can be paid immediately when the money is given to the employee or on any day before the end of the month. Vacation pay was issued on March 10, which means that personal income tax must be transferred by March 31;
• Tax on vacation compensation is paid on the day the employee received the money or at most the next day. On the same day if paid in cash at the cash desk, the next day if by transfer to a card.

There are penalties for delay - 20% of the tax. We advise you to transfer money to the tax office immediately so as not to forget.

Example of personal income tax postings from vacation pay

The employee's vacation period is from June 25 to June 8, 2021. Accrual of vacation pay - 20,000 rubles. The payment was made on June 21. Personal income tax was calculated and withheld on June 21 in the amount of 2,600 rubles. (RUB 20,000 * 13%). The accounting reflects:

How to calculate insurance premiums

Employers pay insurance premiums for employees. They go toward free healthcare, pensions, and in case of work-related injuries.

How to save on employee contributions

The contribution amount is 30% of the salaries of all employees. Contributions are not withheld from wages as personal income tax; they are paid by the employer.

They are distributed like this:

• pension insurance - 22%;
• compulsory health insurance - 5.1%;
• social insurance - 2.9%.

In addition to these 30%, they also pay contributions in case of injuries and occupational diseases - from 0.2% to 8.5%.

This is important to know: Are weekends and holidays included in vacation days?

All contributions, except contributions for injuries, are transferred to the tax office. Injuries are listed in social insurance.

If an employee goes on vacation, insurance premiums are paid as usual - only vacation pay is added to the salary.

For each type of contribution you will have to fill out a separate payment form, so you will also have to count it separately. An approximate calculation is:

Salmon's accountant will enter these figures into the payment slips - one for each type of contribution.

When to pay contributions from vacation pay

Contributions are calculated in the same month when vacation pay is issued. You can transfer contributions to tax and social security later - until the 15th of the next month. The same goes for vacation compensation.

Nikolai received vacation pay at the end of February, and went on vacation on March 8. Kirill’s employer calculates contributions for February and pays until March 15th.

There are holiday pay from which you do not need to pay insurance premiums:

• additional Chernobyl leave;
• leave for sanatorium treatment of an employee who has suffered an accident at work or an occupational illness.

Now let's move on to the payment.

What taxes are withheld from vacation pay?

In addition to the right to annual paid leave of standard duration, labor and social security legislation provides for other types of paid leave. Depending on the classification (purpose) of leave, the rules for assessing payments due to the employee with taxes and contributions also change:

Is the payment taxable?

Annual paid vacation

in connection with pregnancy and childbirth

in connection with adoption

Thus, we can clearly determine the general principle of taxation of vacation payments:

• If the vacation was paid by the employer, then the amount of vacation pay is subject to taxes.
• If the payment was made at the expense of the Social Insurance Fund, then payments for vacation are not subject to taxes.

Read more about the calculation and payment of insurance premiums from workers' vacation pay in this material.

Rules for calculating and transferring income tax on vacation pay in 2021

The tax rate for personal income tax on vacation pay corresponds to Art. 224 of the Tax Code of the Russian Federation and amounts to:

• for residents of the Russian Federation - 13%;
• for non-residents - 30%.

Personal income tax is withheld from the amount of vacation pay on the day of payment. The deadline for tax remittance is set for the last day of the month in which the employee’s vacation was paid.

Expert opinion

Novikov Oleg Tarasovich

Legal consultant with 7 years of experience. Specializes in criminal law. Member of the Bar Association.

This rule applies not only to vacations that fall within one month entirely. If an employee’s vacation is divided between two or more months, then income tax is still withheld and transferred in the month in which the employee’s payment falls.

Read more about the nuances of transferring personal income tax in our article “What is the procedure for paying personal income tax on vacation pay in 2019?”

Disputes about the timing of transfer of taxes on vacation pay.

1 clause 1 art. 223 states that a percentage of the amount of vacation pay must be transferred to the state budget on the day the employee receives the funds. But there are nuances.

The same article of the Tax Code regulates that the deadline for sending the tax is the last day of the month for which the amount was calculated.

Tax legislation contains one more clause that completely confuses the matter.

In paragraph 6 of Art. 226 of the Tax Code of the Russian Federation states that funds must be transferred to the budget exactly on the day when the organization transferred them to the bank, to the recipient’s account.

And if the funds were transferred personally, then payments are transferred on the next business day.

It is not surprising that there is confusion on this issue. Numerous disputes on this issue have led to the fact that vacation pay is equal to salary. And the day the tax is transferred from wages is the day it is issued.

But this is not the case with vacation pay. The tax authorities insisted that payments from vacation benefits be made no later than the next worker after the funds were issued to the employee.

So when is tax due?

The latest amendments to the law put an end to this issue.

Edition of paragraph 6 of Art. 226 of the Tax Code of the Russian Federation today clearly prescribes tax payments from vacation and sick leave no later than the last calendar day of the month for which these payments were assigned.

It is important to understand that we are not talking about tax withholding, but about actual payment to the budget. The amount is withheld during the calculation. And the payment can be postponed until the last day of the month.

Tax deduction from vacation pay

The use of tax deductions when calculating income tax on vacation pay is one of the most insidious aspects in the procedure for calculating the amounts due for payment.

Since a standard or social deduction is applied on a monthly basis, the fixed amount of such a deduction reduces the tax base only in the period in which the payment to the employee occurred. Here's an example:

Salary tax: (10,400.00 – 1,400.00) × 13% = RUB 1,170.00.

Total personal income tax: 1,170.00 + 2,723.50 = 3,893.50 rubles,

Of this amount, the first part of the tax (1,170.00 rubles) must be transferred - if the salary payment is due by the 10th day of the next month - by 06/11/2019 inclusive, and the second part - by 05/31/2019.

Basis for calculating personal income tax on vacation pay

Tax agents represented by legal entities and individuals must calculate, withhold and remit income tax on all types of income. Vacation pay is also income that is recognized as income and tax is withheld from it on the day of payment, and paid up to and including the last day of the month when vacation pay is paid, if the last day of the month is a day off, then on the next working day (unlike wage payments, when transfer of tax on which is carried out on the next day after payment). That is, payments can be made from the payment date to the last day of the month. The last day of the month is convenient for transferring vacation pay taxes during the summer, when several employees go on vacation.

Important! Personal income tax on vacation pay paid to employees is required to be calculated, withheld and transferred by tax agents.

Results

An employee's vacation, paid for by the employer, is subject to personal income tax and contributions in the same way as wages. Only the tax payment deadline changes. The main thing is to correctly determine the month in which personal income tax is withheld and transferred. Then the rules for calculating and applying tax deductions are quite logical.

Each employee is entitled to annual paid leave (Article 114 of the Labor Code of the Russian Federation).

No later than 3 days before its start, the employee must be paid vacation pay (Article 136 of the Labor Code of the Russian Federation).

Insurance premiums are charged on vacation pay (including “for injuries”), since vacation pay is recognized as an object of taxation and is not included in the list of non-taxable payments (Part 1 of Art.

7, art. 9 of the Law of July 24, 2009 N 212-FZ, paragraph.

1 tbsp. 20.1, art.

This is important to know: Can a working grandmother take maternity leave?

20.2 of the Law of July 24, 1998 N 125-FZ).

The procedure for calculating personal income tax on vacation pay

Despite the fact that vacation pay payments are not income from employment, these amounts are also income and are subject to personal income tax. The tax is transferred to the Federal Tax Service at the location of the organization (except for separate divisions, the personal income tax of which is transferred to the location of this division).

Vacation pay is calculated based on average earnings for the year preceding the vacation.

Personal income tax rates:

• 13% for residents
• 30% for non-residents

If the vacation is transferable, then personal income tax is calculated from the amount of vacation pay, taking into account deductions due to the employee that reduce the tax base.

Vacation pay is paid 3 days before going on vacation, without taking into account the fact that the vacation is transferable (that is, a payment is made relating to the next month). In this case, personal income tax must be calculated and withheld from the amount of vacation pay. Reductions in the personal income tax base for tax deductions due to an employee are made for the month in which the vacation begins, that is, they do not need to be distributed among deductions for the current and next months.

Is compensation for unused vacation subject to contributions?

If an employee who has unused vacation days leaves an organization, he may be paid compensation for them (Article 127 of the Labor Code of the Russian Federation). Insurance premiums for compensation upon dismissal are calculated in the general manner as from the payment transferred to the employee within the framework of the labor relationship (Part 1, Article 7, subparagraph “d”, paragraph 2, part 1, Article 9 of the Law of July 24, 2009 N 212- Federal Law, paragraph 1, 2 article 20.1, paragraph 2 paragraph 1 article 20.2 of the Law of July 24, 1998 N 125-FZ).

Each employee can exercise their right to vacation once a year, that is, after working for 11 months. This vacation is paid.

Expert opinion

Novikov Oleg Tarasovich

Legal consultant with 7 years of experience. Specializes in criminal law. Member of the Bar Association.

Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to find out how to solve your particular problem , contact a consultant:

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The employer is obliged to calculate and pay vacation pay to employees. This compensation serves as financial support for the employee during the period of absence from work.

Vacation pay is calculated based on 3 factors:

• duration of vacation;
• the employee's average daily earnings;
• billing period.

The key role is played by the employee’s income received in the billing period. When calculating, not only salary is taken into account, but also bonuses, allowances, etc.

Vacation pay is paid 3 days before going on vacation. Violation of this norm may become the basis for filing a complaint with the labor inspectorate against the employer’s actions.

Before paying vacation pay, personal income tax is withheld from them in accordance with the rules of the Tax Code of the Russian Federation.

No deduction provided - excess of the calculation base

Example2

A situation may arise that the personal income tax calculation base after all June calculations have been made is 320,000 rubles. - i.e. does not exceed 350,000 rubles. And in accordance with Article 218 of the Tax Code of the Russian Federation (clause 4, clause 1, Article 218 of the Tax Code of the Russian Federation), the deductions due to the employee must be provided. But if we add July vacation pay in the amount of 40,000 rubles to this calculation base, then the calculation base will exceed 350,000 rubles. Deductions are not allowed starting from the month in which the amount of taxable income reached RUB 350,000. That is, it will be illegal to provide deductions in June.

Let us remind you that tax should be withheld simultaneously with the transfer of income to the employee. And in order to withhold tax, it is necessary to calculate the tax base. It is at this moment that the Tax Code of the Russian Federation provides for the provision of deductions (clause 1 of Article 218 of the Tax Code of the Russian Federation). Thus, if an employee receives money for a vacation that will take place in July in June, then it will be taken into account when calculating the tax base for June. If vacation pay is transferred in July, then, accordingly, vacation pay will not affect June deductions. Moreover, in the proposed Example, different combinations of events are possible:

1. When vacation was calculated and paid, the salary had not yet been calculated, and the calculation base did not exceed 350,000 rubles. Deductions were provided. But later, when calculating salaries, it was discovered that the total tax base exceeds the established limit. In this case, additional tax accrual in the 1C: Salaries and Personnel Management 8 program, edition 3, will occur in the same way as case 1.

2. The next month's vacation pay amount immediately increased the calculation base beyond the limit and no deductions were provided.

The only way to save deductions for the month of June without violating the Tax Code is to pay vacation pay in July. In order not to violate the Labor Code, vacation should begin no earlier than July 4th.

The explanation that opens with the More information about personal income tax calculation icon (see Fig. 4) on the Main leave tab of the Vacation document helps you understand the specifics of using deductions when calculating vacation.

Rice. 4. Detailed explanation of personal income tax calculation

What do you need to know?

Many employers do not know for sure whether vacation pay is subject to personal income tax. This payment is not a salary or bonus, but is nevertheless subject to taxation.

This fact is connected with the fact that vacation pay is a citizen’s income. And in accordance with the Tax Code of the Russian Federation, income tax is calculated on all types of income of a citizen, with the exception of cases established by law. Vacation pay is no such exception.

This payment can be presented to the employee in the form of cash or in non-cash form by transfer to a bank account or card.

Before the funds are transferred, personal income tax is collected from them. The employer acts as a tax agent and is obliged to take appropriate actions to accrue, withhold and transfer funds to the treasury.

Money is transferred to the budget on the day vacation pay is paid or at the time of transfer to the employee’s account. There is no need to do these operations in advance.

Objects of taxation

The object of personal income tax is income received by an individual. The employee receives vacation pay before going on vacation. They are the ones who will act as the object.

Vacation pay is calculated using the formula: duration of vacation (in days) * average daily income of the employee.

The resulting amount is then multiplied by 13%.

This is the exact amount of tax that will be collected from the employee.

By the way, the employee himself does not need to take any action. All operations are carried out by the employer-tax agent. He will also be responsible for the correctness of calculations and timely transfer of funds to the budget.

Vacation pay taxes

So, only one tax is calculated from vacation pay - personal income tax. In the current year, the employer’s obligation to accrue and withhold this amount remains unchanged. Minor changes affected the timing of the transfer of personal income tax to the budget. Let us remind you that previously the tax was withheld on the day the funds were provided to the employee.

Today, the situation has changed - the employer is obliged to transfer the tax before the end of the month in which the funds were transferred to the employee for vacation pay.

Such changes will be more convenient for the tax agent. Now there is no need to transfer money to the employee and tax to the treasury on the same day, and also to reflect these transactions in accounting and tax documents.

Find out when vacation pay is calculated according to the law. Is alimony calculated from vacation pay? See here.

Income

Income tax is the main type of direct tax. It is deducted from all individuals who receive income. The Tax Code of the Russian Federation provides for certain types of profit on which personal income tax is not collected.

For example, it is not deducted from their benefits, which are paid by the state. At the same time, it is necessarily calculated and transferred to the budget from temporary disability benefits.

The income tax rate is 13%. In some situations it can be 9, 35, 30 and 15 percent. The rate is determined depending on the income a person receives, as well as his status.

The tax base is the full amount of income. It should be remembered that citizens have the right to receive a tax deduction. Income tax for working citizens is calculated and transferred from their wages by the employer.

It is he who acts as a tax agent. The employer is responsible for the correct calculation and timely transfer of funds to the treasury.

“Will income tax be taken on holiday pay in 2021?” — the legislation provides a positive answer to this question.

Personal income tax

Personal income tax is an income tax. This payment is collected from all working citizens. But they are not the only ones obliged to list it. Personal income tax provides for taxation of all income received by an individual. It is paid by both citizens of the Russian Federation and foreigners, as well as stateless persons.

Typically, payers themselves do not transmit information to the tax office and do not monitor the deadline for paying taxes. However, if they made a profit outside of their enterprise, for example, they sold real estate or a car, then they must transfer the information by filling out a declaration.

The reporting period for personal income tax is equal to a year. The declaration can be submitted in paper or electronic form. The deadline for its transfer is April 30 of the year following the reporting year.

Calculation of the amount

Vacation pay is calculated using the following formula: number of vacation days * average daily income of the employee for the billing period.

To calculate the average daily income, you need to carry out the following calculations:

income received in the billing period/number of months of the billing period/29.3 (average number of days in a month).

When taking into account the number of months of the billing period, only those months are used when the employee worked fully, that is, did not go on vacation at his own expense and did not take sick leave. If in any month he was absent for these reasons, then it is necessary to make an additional calculation on the number of days that will be taken into account.

To calculate these days, you must use the following formula:

29.3/number of days in a month*number of days worked

After all the calculations have been made, you will need to determine the amount of personal income tax. To do this, you need to multiply the amount of vacation pay by 13%.

Payment procedure

Personal income tax is collected only from that part of the funds that the employee actually receives. This rule is relevant when an employee does not take a full vacation.

Expert opinion

Novikov Oleg Tarasovich

Legal consultant with 7 years of experience. Specializes in criminal law. Member of the Bar Association.

When several employees within one enterprise go on vacation, the payment is transferred to the treasury in total for all of them at once.

This is important to know: Is it possible to fire on the last day of vacation?

And as we mentioned earlier, now employers can transfer funds to the treasury not on the day the vacation pay is issued, but until the end of the month in which the employee is granted vacation.

If vacation pay is not paid, what should I do? Read here.

How is vacation pay calculated correctly? Details in this article.

Video about tax issues

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Vacation pay taxes: when and how to pay, transfer deadlines.

All employers are required to make tax deductions in our country. It does not matter whether the employee works officially, with information entered in the work book, or under a contract. Any work must be paid, and any payment must be subject to income tax. Let's consider how taxes are calculated on vacation pay, and within what time frame they must be transferred.

Is income tax withheld?

Vacation pay accrued during the period of regular vacation is subject to income tax.

Personal income tax is withheld at a rate of 13% from accrued income and paid to the tax authority. For non-residents the rate is 30%.

All expenses for paying this type of tax are borne by the employee, but you do not need to pay anything yourself. This function is assumed by the employer, acting in this case as an intermediary.

The employer only withholds personal income tax from vacation pay and transfers the amount of withholding to the budget, without incurring any expenses.

transferred tax is subtracted from the accrued vacation pay . The employee receives a payment in hand, reduced by the amount of personal income tax.

In addition to personal income tax, the employer must also calculate insurance premiums. Unlike income tax, insurance contributions fall on the employer. It is he who must count them and transfer them from his own funds.

Should vacation benefits be taxed?

Tax legislation regulates the rules for transferring all payments, including vacation benefits. Are vacation pay taxable?

Yes, this money, like wages, must be taxed. The employer acts as an agent who must transfer funds to the budget. In particular, an accountant.

There are different types of vacations.

Annual leave

Annual leave, according to Art. 114 of the Labor Code of the Russian Federation must be paid in full by the employer. It is necessary to make deductions from it: personal income tax and insurance premiums.

Income tax is charged on holiday pay.

Extraordinary leave.

There are situations when an employee requires additional paid leave. These circumstances are described in articles: 116, 117, 118, 119 of the Labor Code of the Russian Federation.

The employer is obliged to provide leave if there are grounds for doing so.

Contributions to the budget are made without fail, and they do not differ from those payments that are due in the case of payment of regular annual leave benefits.

Leave for the duration of the session.

For those who work and at the same time improve their skills, receive higher education, leave is provided.

Parental leave.

An exception to the rule is parental leave. The state exempts the Social Insurance Fund from taxes on this type of payment.

Parental leave benefits are not taxed.

The law provides for three types of parental leave:

• Maternity leave is regulated by Art. 255 Labor Code of the Russian Federation.
• From birth to three years, a woman has the right to take legal leave, in accordance with Article 256. At the request of the employee and the consent of management, leave can be extended.
• Couples who have adopted a child also have the right to vacation benefits: Art. 257 Labor Code of the Russian Federation. The situation here is no different from the birth of a child. The state supports families who decide to adopt and provides them with equal conditions.

Child care is not paid by the employer, payments are calculated through the accounting department at work, but the Social Insurance Fund pays.

Whatever the parental leave, you are not required to pay taxes on it.