Accounting and taxation of financial assistance to employees

Institutions and organizations provide financial assistance to employees, former employees, as well as members of their families on various grounds. At the same time, it is important to document such payments, as well as their taxation. We will talk about the features of these payments in the article.

According to Art. 144 of the Labor Code of the Russian Federation, wage systems (including tariff wage systems) for employees of state and municipal institutions are established:

- in federal government institutions - collective agreements, agreements, local regulations in accordance with federal laws and other regulatory legal acts of the Russian Federation;

- in state institutions of the constituent entities of the Russian Federation - collective agreements, agreements, local regulations in accordance with federal laws and other regulatory legal acts of the Russian Federation, laws and other regulatory legal acts of the constituent entities of the Russian Federation;

- in municipal institutions - collective agreements, agreements, local regulations in accordance with federal laws and other regulatory legal acts of the Russian Federation, laws and other regulatory legal acts of constituent entities of the Russian Federation and regulatory legal acts of local governments.

The Government of the Russian Federation can establish basic salaries (basic official salaries), basic wage rates for professional qualification groups. At the same time, remuneration systems are established taking into account, in particular, the approximate provisions on the remuneration of employees of institutions by type of economic activity, approved by federal government bodies and institutions - the main managers of federal budget funds (clause “e” of clause 2 of Government Decree of the Russian Federation N 583 ).

From the above rules it follows that if there is financial opportunity, the institution has the right to prescribe in a local regulatory act the payment of financial assistance for one reason or another and issue it to employees. However, remember that material assistance is a social service provided to employees to support them and improve their standard of living (GOST R 52495-2005 “Social services to the population. Terms and definitions”, approved by Order of Rostekhregulirovaniya dated December 30, 2005 N 532-st). In this case, material assistance can be provided in the form of cash, food, sanitation and hygiene products, child care products, clothing, shoes and other essential items, fuel, as well as special vehicles, technical means for the rehabilitation of disabled people and people in need in outside care. As practice shows, most often material assistance is provided in the form of cash.

Main aspects of payment of financial assistance

Financial assistance is provided when employees encounter special circumstances. It is a non-production payment, does not depend on the performance of the institution and is not related to the individual results of employees. Accordingly, it is not stimulating or compensatory in nature and is not considered an element of remuneration. Its main goal is to create the necessary material conditions to solve the problems that the employee has encountered. In addition, financial assistance cannot be regular and is paid at the request of the employee, most often in connection with:

- with treatment;

— with the death of an employee’s family member;

- with the death of the employee himself;

- with damage caused by any emergency;

- with marriage;

- with the birth of a child.

Let us clarify that the amount of financial assistance is established by the management of the institution and is determined depending on each specific situation and the financial capabilities of the institution. In this case, the procedure for providing financial assistance must be regulated by a local act of the institution, a collective or labor agreement.

In addition, many institutions, when providing annual leave to employees, pay financial assistance, which they are guaranteed along with other payments. Such a payment, in its essence, will be a one-time payment, and it must be provided for in the local regulatory act of the institution. In this case, the specified payment is an element of remuneration, since it is related to the employee’s performance of a labor function. That is, a lump sum payment made when granting annual leave cannot be recognized as financial assistance, and therefore is taken into account in labor costs when calculating income tax. A similar opinion is presented in letters of the Ministry of Finance of the Russian Federation dated 09/03/2012 N 03-03-06/1/461 and the Federal Tax Service of the Russian Federation dated 06/26/2012 N ED-4-3/ [email protected] , as well as in the Resolution of the Federal Antimonopoly Service dated 03/05/2012 N Ф03-379/2012.

If financial assistance is an element of remuneration and is provided to an employee for annual leave, then the basis for its payment are:

— employee’s application for leave;

— an order from the head of the institution to provide the employee with leave and pay financial assistance in the established amount.

How to apply for financial assistance?

The procedure for registration and payment of financial assistance to workers is not fixed at the legislative level, however, based on the general provisions of the Labor Code of the Russian Federation and other acts in the field of regulation of labor relations, we can come to the conclusion that:

• payment can be made on the basis of an application from the employee, a memo from the employee’s immediate superiors, or without such documents, based on the will of the organization’s management;
• the decision to make payments is made by the employer, i.e. an administrative act is required that expresses such a will (order, instruction);
• a clear payment procedure can be established in local documentation or a collective agreement.

Attention! Sample from ConsultantPlus See a sample of the Regulations on the payment of financial assistance to employees of the organization.

Application of regional coefficients

In accordance with Art. 315-317 of the Labor Code of the Russian Federation for persons working in the regions of the Far North and equivalent areas, the use of regional coefficients and percentage increases in wages, the amount of which is established by the Government of the Russian Federation, is provided. Let us note that similar norms exist in Art. 10 and 11 of the Law of the Russian Federation of February 19, 1993 N 4520-1 “On state guarantees and compensation for persons working and living in the regions of the Far North and equivalent areas.” However, the acts provided for by the above norms have not been issued, and therefore previously published legal acts of federal government bodies of the Russian Federation or government bodies of the former USSR that do not contradict the Labor Code of the Russian Federation (Part 1 of Article 423 of the Labor Code of the Russian Federation) are applied. Accordingly, one should be guided by the Explanation approved by Resolution of the Ministry of Labor of the Russian Federation No. 49.

According to clause 1 of the Explanation, percentage bonuses for persons working in the regions of the Far North, equivalent areas, in the southern regions of Eastern Siberia, the Far East, and coefficients (regional, for work in high mountain areas, for work in desert and waterless areas) established to the wages of persons working in areas with unfavorable natural and climatic conditions are accrued on actual earnings, including remuneration for long service, paid monthly, quarterly or in a lump sum.

In addition, according to paragraph 19 of the Instruction on the procedure for providing social guarantees and compensation to persons working in the regions of the Far North and in areas equated to the regions of the Far North, in accordance with current regulations, approved by Order of the Ministry of Labor of the RSFSR dated November 22, 1990 N 2, The salary for which bonuses are calculated does not include payments based on wage coefficients, average earnings, one-time remuneration for length of service, remuneration based on the results of work for the year, financial assistance, as well as payments that are of a one-time incentive nature and are not conditional. wage system.

Since material assistance cannot be recognized as actual earnings, it is not possible to assign a regional coefficient to it.

When financial assistance is included in the calculation of benefits: judicial practice

In some cases, financial assistance may be included in the calculation of average earnings for vacation pay and benefits in full, regardless of the fact that the amount of the limit is exceeded. We are talking about situations where, on the basis of a court decision, it is recognized that financial assistance is directly related to the employee’s performance of official duties, and therefore, in essence, financial assistance is not recognized.

Let us turn to the resolution of the Arbitration Court of the West Siberian District No. F04-917/2021 dated April 26, 2021. The court considered the organization's complaint against the actions of the Social Insurance Fund, which did not deduct the amount of insurance premiums paid with financial assistance.

The essence of the case was as follows: the company paid the employee financial assistance in connection with going on annual paid leave. The amount of financial assistance did not exceed 4,000 rubles. At the same time, according to local regulations and the employment contract, this type of financial assistance was paid in accordance with the length of service at the enterprise, provided that the employee did not have disciplinary measures. Having paid financial assistance, the employer calculated and paid insurance premiums, and took the payment amount into account in calculating average earnings. The FSS recognized the organization’s actions as unlawful in terms of presenting the amount of insurance premiums for deduction.

The court sided with the taxpayer on the following grounds: in this case, there is a direct relationship between the payment of financial assistance and the employee’s performance (experience, absence of disciplinary sanctions), and therefore the amount of payment is recognized as an element of remuneration. Insurance premiums must be calculated on the amount of financial assistance; the payment is taken into account in calculating the average earnings for benefits.

Financial assistance and alimony obligations

The list of types of wages and other income from which alimony for minor children is withheld is approved by Decree of the Government of the Russian Federation of July 18, 1996 N 841. According to paragraphs. "l" clause 2 of this List, alimony is withheld from amounts of financial assistance, except for one-time financial assistance paid from the federal budget, budgets of constituent entities of the Russian Federation and local budgets, extra-budgetary funds, at the expense of foreign states, Russian, foreign and interstate organizations, other sources in connection with a natural disaster or other emergency circumstances, a terrorist act, the death of a family member, as well as in the form of humanitarian assistance and for assistance in identifying, preventing, suppressing and solving terrorist acts and other crimes. That is, alimony should be withheld from amounts of financial assistance.

Contributions to mandatory social funds

According to letters and instructions from the Ministry of Health and Social Development of Russia, only that assistance involves the calculation of insurance premiums, which is carried out within the framework of the labor relationship between the organization and its employee. The one who turns out to be exempt from contributions is:

• to a former employee (after the date of dismissal);
• to an employee on the occasion of the death of a relative;
• financial assistance in connection with natural disasters and other emergency circumstances.

Also, contributions will not be calculated on amounts paid to the mother and father (and separately, if both work at the enterprise) for the birth of a child, provided before the baby is one year old. The amount should not exceed 50,000 rubles.

As mentioned above, assistance not exceeding 4,000 rubles is not subject to taxes and contributions. per person per calendar year.

Financial assistance and average earnings

Let us remind you that average earnings are calculated to pay vacation pay, compensation for unused vacation, as well as to calculate temporary disability benefits, maternity benefits, and monthly child care benefits. In this case, the average earnings for paying vacation pay and compensation for unused vacation are calculated in accordance with Art. 139 of the Labor Code of the Russian Federation and Procedure No. 922, and for calculating benefits - in accordance with Federal Law No. 255-FZ and Regulation No. 375.

So, according to Art. 14 of Federal Law N 255-FZ, clause 2 of Regulation N 375, benefits for temporary disability, maternity benefits, monthly child care benefits are calculated based on the average earnings of the insured person, calculated for the two calendar years preceding the year of the onset of temporary disability, maternity leave, child care leave, including during work (service, other activities) with another policyholder (other policyholders). At the same time, the average earnings, on the basis of which these types of benefits are calculated, include all types of payments and other remuneration in favor of the insured person, for which insurance contributions to the Social Insurance Fund are calculated in accordance with Federal Law N 212-FZ.

Let us clarify that by virtue of clause 3, part 1, art. 9 of Federal Law No. 212-FZ are not subject to insurance premiums for the amounts of one-time financial assistance provided by insurance premium payers:

- to individuals in connection with a natural disaster or other emergency circumstance in order to compensate for material damage caused to them or harm to their health, as well as to individuals who suffered from terrorist acts on the territory of the Russian Federation;

- to an employee in connection with the death of a member (members) of his family;

- to employees (parents, adoptive parents, guardians) at the birth (adoption) of a child, paid during the first year after birth (adoption), but not more than 50,000 rubles. for each child.

Financial assistance paid not on the grounds mentioned above is subject to insurance contributions if it exceeds 4,000 rubles. per employee for the billing period (clause 11, part 1, article 9 of Federal Law N 212-FZ).

That is, the amounts of financial assistance listed in clause 3, part 1, art. 9 of Federal Law N 212-FZ, as well as those not exceeding 4,000 rubles, are not taken into account when calculating average earnings for the purpose of calculating temporary disability benefits, maternity benefits, and monthly child care benefits. Other financial assistance in an amount exceeding RUB 4,000. per employee per calendar year, is included in the employee’s average earnings for calculating benefits.

When calculating average earnings for vacation pay and compensation for unused vacation, all types of payments provided for by the remuneration system used in the institution are taken into account, regardless of their source (Article 139 of the Labor Code of the Russian Federation and clause 2 of Order No. 922). By virtue of clause 3 of Order No. 922, when calculating average earnings in this case, social payments and other payments not related to wages, in particular, financial assistance, payment for the cost of food, travel, training, utilities, and recreation are not taken into account.

Help for workers: what are its nuances?

The concept of “material assistance to an employee” stands somewhat apart in the accrual system.

Let's figure out what it is. Already from the definition it is clear that one-time financial assistance is a type of labor guarantee that is social in nature. It cannot be paid for conscientious work or professional skill. Its intended purpose is to support the employee in the current unfavorable financial situation.

The grounds on which one-time financial assistance is prescribed are, as a rule, unforeseen circumstances that involve serious financial costs. This could be physical or material damage, events that require significant expenses (wedding, birth of children, funeral).

Consequently, financial assistance does not depend in any way on the results of production or the employee himself. It is strictly individual in nature and is paid only upon the personal application of the employee accompanied by documents confirming special circumstances. Also, it cannot be regular and serve as compensation for costs incurred.

Providing financial assistance is aimed at resolving employee problems that have arisen. References to the possibility of obtaining it are most often included in the local regulatory acts of the enterprise.

But the presence of such an opportunity does not imply an automatic obligation of the employer to provide assistance to everyone on an ongoing basis, turning it into a type of bonus.

Documenting

The procedure for paying financial assistance must be enshrined in a local regulatory act: a collective agreement, Regulations on remuneration, Regulations on payment of financial assistance (a sample is given below), or others.

Regulations on the payment of financial assistance to employees of the Federal State Budgetary Institution "Novorossiysk Research Institute of Traumatology and Orthopedics" of the Ministry of Health and Social Development of the Russian Federation

1. General Provisions

1.1. This Regulation provides for the payment of financial assistance to employees of the Federal State Budgetary Institution “Novorossiysk Research Institute of Traumatology and Orthopedics” of the Ministry of Health and Social Development of the Russian Federation (hereinafter referred to as the Institution).

1.2. Financial assistance can be provided one time or several times during the calendar year.

2. Directions and amount of financial assistance

2.1. For the purpose of social protection of employees of the Institution and non-working pensioners of the Institution, they may be provided with financial assistance from funds coming from the federal budget (if there are savings in the wage fund), as well as from funds coming from extra-budgetary sources (from income-generating activities, directed by the Institution to pay employees).

2.2. An employee is considered to be an employee hired under an employment contract.

2.3. Financial assistance for partial reimbursement of costs in connection with expensive treatment of an employee is:

- for the purchase of expensive medicines and other medicinal products and equipment - up to 20,000 rubles;

— for treatment, prosthetics and dental implantation, harvesting and replanting of a dental bone block — up to 150,000 rubles;

— for inpatient treatment, including sanatorium-resort treatment — up to 50,000 rubles;

— for surgical operations for vital indications — up to 50,000 rubles.

In exceptional cases, by decision of the director, an employee may be provided with financial assistance in large amounts.

In this area, financial assistance is provided upon provision of relevant documents from the medical institution.

2.4. If an employee suffers material damage as a result of emergency circumstances (burglary, apartment flooding, etc.), assistance is paid in the amount of up to 50,000 rubles.

The fact of a natural disaster, theft and the amount of damage must be confirmed by relevant documents.

2.5. Financial assistance in connection with death:

- employee (working or dismissed) - up to 30,000 rubles;

- close relatives (Article 2 of the RF IC) - from 10,000 rubles. up to 30,000 rub.

2.6. Financial assistance to women on maternity leave aged 1.5 to 2 years - in the amount of 20,000 rubles. at one time. Financial assistance is provided subject to the employee’s application before the child turns two years old.

2.7. Financial assistance to an employee upon dismissal due to retirement, including illness and disability:

- with work experience in the Institution from 1 to 5 years - in the amount of the official salary;

- with work experience in the Institution from 5 to 10 years - in the amount of two official salaries;

- with more than 10 years of experience in the Institution - in the amount of four official salaries.

2.8. Financial assistance in connection with the birth of a child - in the amount of 50,000 rubles.

2.9. Financial assistance in connection with marriage - in the amount of 10,000 rubles.

2.10. Financial assistance to an employee in connection with an anniversary (40, 45, 50, 55, 60 years, then by decision of the director) - in the amount of 10,000 rubles.

2.11. Financial assistance for specific social needs:

- in case of difficult financial situation of the employee - from 10,000 rubles. up to 30,000 rubles;

— for urgent needs (once per calendar year) — up to 10,000 rubles;

- for social needs in addition to the amount of annual basic paid leave - up to 30,000 rubles;

— for preparing schoolchildren for first grade — 5,000 rubles.

2.12. An employee has the right to receive financial assistance on all the grounds provided above, no more than once a year for each of them.

3. Procedure for obtaining financial assistance

3.1. To receive financial assistance, a personal application from the employee (his close relative) or a pensioner is drawn up in the name of the director, indicating the reasons for paying financial assistance and attaching documents confirming the right to receive it.

3.2. When paying financial assistance in connection with the death of close relatives, the employee himself (working or dismissed) must submit a copy of the death certificate to the accounting department.

In such cases, financial assistance is issued:

- employee (in case of death of close relatives);

- close relatives of the employee (in the event of the death of the employee himself - working or dismissed) upon presentation of copies of documents confirming family ties (birth certificates, marriage certificates, etc.).

3.3. Payment of financial assistance is formalized by the accounting department with an expense order and issued from the cash desk or transferred to the current account specified in the submitted application.

3.4. Amounts of financial assistance are not taken into account as expenses recognized when calculating income tax.

3.5. This Regulation comes into force on January 9, 2013.

Director Sinyakov /Sinyakov V.A./

As we have already indicated, the employee must submit an application in any form addressed to the employer, attaching copies of the relevant supporting documents.

Let us present the main reasons for the allocation of financial assistance in the table and indicate what documents they must be confirmed with.

When considering an application submitted by an employee, the employer puts its resolution on the payment or non-payment of financial assistance. If the manager approves the payment of financial assistance, an order is issued, which must contain the required details: Full name. the person receiving financial assistance, its amount and source of payment, as well as the basis. Let us remind you that there is no unified form for such an order, so it is issued in a free form approved by the institution.

Here is a sample order for the payment of financial assistance in connection with expensive treatment.

FSBI Novorossiysk Research Institute

Traumatology and Orthopedics" Ministry of Health and Social Development of the Russian Federation

Reason for granting

Financial assistance is classified as non-production payments. In this regard, its source is the profit of the organization. Since no legislative documents provide for the provision of financial assistance, its payment is made only at the discretion of the employer.

The basis for providing financial or material support to an employee is various regulations. So, an employee can write an application for financial assistance. If, after considering it, the manager gives a positive answer, an order is issued. This document states the following:

• reference to a normative act that stipulates the possibilities of providing financial assistance;
• FULL NAME. the person to whom this payment is intended;
• the reason for the decision to provide assistance;
• amount of payments;
• accrual period.

There may be cases when the procedure and conditions for paying assistance to employees are not established in local regulations. Despite this, it is not prohibited to provide social support to an employee. How this issue will be resolved completely depends on the opinion of the head of the enterprise.

Financial assistance to an employee can also be provided at the initiative of the employer. As a rule, these are payments on the occasion of some celebration or anniversary of the employee. As in the previous case, the basis for accruing such financial assistance will be an order signed by the head of the enterprise.

Targeted payments

Financial assistance provided in the event of an emergency, death or birth is not subject to insurance premiums and personal income tax. However, such a benefit can only be applied if the employee attaches supporting documents to the application. They can be certificates from the Ministry of Emergency Situations, as well as copies of a birth or death certificate, etc. If the documents necessary to confirm the benefit are not available, then the inspectors may impose a fine in the amount of twenty percent of the unwithheld tax amounts, additionally accrue the contributions themselves and make a calculation penalties.

Targeted assistance is not taxed in cases where it was provided in kind. For example, the company made repairs on its own or organized a funeral.