Is child care benefit subject to insurance contributions? Child care allowance Is child care allowance up to 3 years taxable?
Question
Good afternoon Tell me if the child care benefit for children under 3 years old is 50 rubles. on the 2-personal income tax certificate? If not, can we issue the employee a zero certificate?
Answer
As a general rule, the following state benefits are not subject to personal income tax:
— maternity benefit;
- child care allowance for up to one and a half years;
— monthly compensation for child care up to three years old.
Grounds - clause 1 of Art. 217 Tax Code of the Russian Federation.
In accordance with paragraph 4 of Art. 229 of the Tax Code in tax returns, individuals (taxpayers) indicate all the income they received during the tax period, unless otherwise provided by the specified paragraph of Art. 229 of the Code. And they have the right not to indicate in their declarations income that is not subject to taxation (exempt from taxation) in accordance with Art. 217 of the Code. In this regard, the tax agent must reflect in the 2-NDFL certificate those non-taxable incomes that partially exempt from taxation. In particular, they are specified in paragraph 28 of Art. 217 of the Code (material assistance, prizes, gifts).
If from taxation the entire amount paid to an individual is exempt(in full), then it does not need to be reflected in the 2-NDFL certificate. Accordingly, the amount of monthly compensation in the amount of 50 rubles is not reflected in the 2-NDFL certificate.
You can issue the employee a zero certificate, because... It will not be a violation of tax legislation if the employer issues a certificate in form 2-NDFL at the request of the employee, if she, in addition to the monthly compensation payment in the amount of 50 rubles, did not receive any income from the organization and the specified certificate is zero.
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In the new calculation of insurance premiums in section 3 “Personalized information about insured persons”, subsection 3.2.1 in line 210 “Amount of payments and other remunerations” - are child care benefits indicated for children up to 1.5 years old (the employee is on leave for child care up to 1.5 years old) and compensation of 50 rubles (the employee is on maternity leave for a child from 1.5 to 3 years old)? Does child care allowance refer to the concept of “amounts of payments and other remuneration accrued in favor of an individual”?
Child care benefits refer to the concept of “amounts of payments and other remuneration in favor of individuals” for the purposes of applying Chapter 34 of the Tax Code of the Russian Federation. When filling out subsection 3.2.1 of section 3 of the new calculation for insurance contributions, the amount of benefits must be indicated on line 210 “Amount of payments and other remuneration”.
Section 3 of the calculation is completed for all insured persons for the last three months of the billing (reporting) period, including in whose favor payments and other remunerations within the framework of labor relations were accrued during the reporting period. In personalized information about insured persons that does not contain data on the amount of payments and other remuneration accrued in favor of an individual over the last three months of the reporting (calculation) period, subsection 3.2 of section 3 is not filled in. Subsection 3.2 contains information on the amounts of payments and other remuneration accrued by payers of insurance contributions in favor of an individual, as well as information on accrued insurance contributions for compulsory pension insurance. When filling out subsection 3.2, when the payer of insurance premiums calculates payments and other remunerations to an individual subject to insurance premiums at different rates, the required number of calculation lines is filled in. The procedure for filling out subsection 3.2 does not provide for exceptions for benefits (exempt from taxation) from the amounts of “payments and remunerations” indicated on the corresponding lines.
The object of taxation of insurance premiums for payers, unless otherwise provided by Article 420 of the Tax Code of the Russian Federation, is payments and other remuneration in favor of individuals subject to compulsory social insurance (clause 1 of Article 420 of the Tax Code of the Russian Federation). Separately, Article 422 of the Tax Code of the Russian Federation provides for exceptions, i.e. payments that are not subject (exempt) to insurance premiums. In particular, these include: monthly benefits for child care up to 1.5 years. When caring for a child until he reaches 3 years of age, the monthly compensation is 50 rubles. Additional payments in favor of the employee as child care benefits up to three years old, i.e. in excess of the limits established by the state are subject to insurance premiums (letter of the Ministry of Finance of Russia dated March 21, 2017 No. 03-15-06/16239).
Taking this into account, when filling out section 3 for each employee, it is also necessary to fill out subsection 3.2.1, namely, for each month of the reporting period, on lines 210 - “amount of payments and other remunerations”, indicate the accrued benefit for up to 1.5 years and compensation for up to 3 years.
Insurance premiums: child care benefit
Employees on maternity leave for up to three years receive benefits from the employer. In fact, they do not work, but data about them and payments in their favor must be reflected in the calculation of insurance premiums.
From a letter to the editor
Our “maternity leavers” receive monthly child care benefits in the amount of 50 rubles, paid from the company’s funds. We pay them along with the monthly salary. Should these amounts be reflected in the calculation of insurance premiums?
Expert opinion
Leave to care for a child can continue until the child is three years old, and during the entire leave to care for a child up to three years, the employee is paid a monthly compensation in the amount of 50 rubles at the expense of the employer (clause 1 of Decree of the President of the Russian Federation of May 30, 1994 No. 1110). This compensation is assigned by the manager by order within 10 calendar days from the day the employee’s application for its appointment was received.
The company pays compensation at its own expense within the following terms (part 8 of article 13, part 1 of article 15 of the Federal Law of December 29, 2006 No. 255-FZ):
- for the first time - on the next payday after her appointment;
- in subsequent months - on the first of the dates established in the organization for payment of salaries in that month.
Compensation for caring for a child under three years of age in the amount of 50 rubles is not subject to personal income tax and insurance contributions (clause 1 of Article 217 of the Tax Code of the Russian Federation, subclause 2 of clause 1 of Article 422 of the Tax Code of the Russian Federation, letter of the Ministry of Finance dated March 21, 2017 No. 03 -15-06/16239). It can be taken into account as part of labor costs for tax purposes - both for income tax and for the single tax under the simplified tax system (Article 255 of the Tax Code of the Russian Federation, letter of the Ministry of Finance dated May 16, 2006 No. 03-03-04/1/ 451).
In the calculation of insurance premiums, this compensation must be reflected in income on line 030 of subsection 1.1 of Appendix 1 to Section 1. Payments not subject to insurance premiums are deciphered in line 040 (clauses 7.5, 7.6 of Appendix 2 to the order of the Federal Tax Service of Russia dated October 10, 2016. No. ММВ-7-11/). Additionally, information about employees receiving these amounts must be filled out in section 3 of the calculation.
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Do I need to pay insurance premiums when paying benefits for child care up to 1.5 years?
Hello!
Please tell me, if an organization pays a maternity leaver a monthly allowance for caring for the first child of 8500 rubles, it does not pay an allowance of 50 rubles because there was no application from the employee for payment of this benefit.
On the website of the chief accountant they write that compensation for child care up to three years of age exceeds 50 rubles. add contributions. If you pay compensation within the norms, do not subject it to insurance premiums (subclause 2, clause 1, article 422 of the Tax Code of the Russian Federation). If you pay additional compensation in excess of the norm (more than 50 rubles), add contributions from the excess amount.
Question: is it necessary to start paying contributions or accruals? Income that is not subject to taxation (exempt from taxation) still falls under Article 217 of the Tax Code of the Russian Federation.
Thank you
Quote: Tax Code of the Russian Federation Article 422. Amounts not subject to insurance contributions
(introduced by Federal Law dated July 3, 2016 N 243-FZ)
1. The following are not subject to insurance premiums for payers specified in subparagraph 1 of paragraph 1 of Article 419 of this Code:
1) state benefits paid in accordance with the legislation of the Russian Federation, legislative acts of the constituent entities of the Russian Federation, decisions of representative bodies of local government, including unemployment benefits, as well as benefits and other types of compulsory insurance coverage for compulsory social insurance
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Are insurance premiums paid on sick leave?
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All employees for whom Social Security contributions are paid, if they fall ill, have the right to receive sick leave benefits. It is calculated on the basis of a sick leave certificate, which is issued by a doctor when the employee himself is ill or if care is needed for a sick child, as well as another family member. Pregnant women are also given sick leave before going on maternity leave.
Are sick leaves subject to insurance premiums? Our article will answer this question.
Insurance premiums for sick leave – should they be taxed?
Sick leave is paid by both the employer and the Social Insurance Fund. According to clause 1, part 2, art. 3 of Law No. 255-FZ of December 29, 2006, an ill or injured employee is reimbursed by the employer for the first three days with his own funds, and from the fourth day until the end of sick leave, the benefit is paid by the Fund. In other cases (caring for a sick child or family member, maternity benefits, etc.), sick leave is fully paid for by the Social Insurance Fund. An employee can apply for payment for as long as 6 months after illness, but the employer must calculate the amount of sick leave 10 days in advance and pay it to the employee in the next salary (Article 12 of Law No. 212-FZ of July 24, 2009).
When are disability benefits subject to insurance contributions to the Pension Fund, Compulsory Medical Insurance and Social Insurance Fund? The answer to this question is the following: sick leave insurance premiums are never subject to insurance premiums. This applies to all types of disability benefits provided for by law. Let's try to explain why.
Disability benefits paid by the Social Insurance Fund cannot be subject to insurance premiums for compulsory insurance (pension, medical and social), since these benefits are state benefits, and they are exempt from taxation on the basis of clause 1, part 1 of Art. 9 of the law of July 24, 2009 No. 212-FZ.
Employers who pay from their own funds for sick leave for the first three days, for the same reason, should not charge contributions to their part of the payment included in the temporary disability benefit.
Insurance contributions to the Social Insurance Fund for “injuries” do not apply to sick leave, as stated in paragraphs. 1 clause 1 art. 20.2 of the law of July 24, 1998 No. 125-FZ.
As we found out, sick leave contributions are not calculated, but you should remember that personal income tax must be withheld from the full amount of sick leave benefits. Payment of sick leave to an employee is made minus income tax (13%). This does not apply only to maternity benefits, which are exempt from income tax on the basis of clause 1 of Art. 217 Tax Code of the Russian Federation. There are no more taxes or contributions on sick leave.
Are insurance premiums and personal income tax calculated on the amount of maternity benefits?
No, there is no need to withhold personal income tax, and SV benefits are not assessed.
Good afternoon No, it is not subject to contributions and personal income tax is not withheld.
The following types of income of individuals are not subject to taxation (exempt from taxation):
1) state benefits, with the exception of temporary disability benefits (including benefits for caring for a sick child), as well as other payments and compensation paid in accordance with current legislation. At the same time, benefits that are not subject to taxation include unemployment benefits, maternity benefits;
(Article 217, “Tax Code of the Russian Federation (Part Two)” dated 08/05/2000 N 117-FZ (as amended on 12/30/2012))
Quote (buhuh86): Good afternoon! No, it is not subject to contributions and personal income tax is not withheld.
Article 9. Amounts not subject to insurance premiums for payers of insurance premiums making payments and other rewards to individuals
1. The following are not subject to insurance premiums for payers of insurance premiums specified in paragraph 1 of part 1 of Article 5 of this Federal Law:
1) state benefits paid in accordance with the legislation of the Russian Federation, legislative acts of the constituent entities of the Russian Federation, decisions of representative bodies of local government, including unemployment benefits, as well as benefits and other types of compulsory insurance coverage for compulsory social insurance;
(Article 9, Federal Law of July 24, 2009 N 212-FZ (as amended on December 25, 2012) “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund”)
Article 217. Income not subject to taxation (exempt from taxation)
The employee receives a monthly payment (at the expense of the employer) in the amount of 50 rubles when the child reaches 3 years of age. 1) Are any contributions accrued on these 50 rubles (PFR, Social Insurance Fund, Compulsory Medical Insurance Fund, from the National Social Insurance Fund)? Should personal income tax be withheld from this amount? 2) Are there other benefits (not at the expense of the employer) for up to 3 years in the Stavropol Territory in 2013?
Compensation for parental leave up to three years is not subject to personal income tax, contributions to the Pension Fund, Social Insurance Fund, Social Insurance Fund and contributions to insurance against industrial accidents and occupational diseases
The rationale for this position is given below in the materials of the Glavbukh System
Personal income tax and insurance premiums
Compensation for caring for a child under three years of age refers to compensation payments established by law. The organization pays it without fail, regardless of the presence of such a condition in labor (collective) agreements. That is, the employee receives it outside the framework of employment agreements concluded with the organization. This follows from the Decree of the President of the Russian Federation of May 30, 1994 No. 1110. Therefore, do not tax this amount:*
- contributions to compulsory pension (social, medical) insurance (,);
- contributions for insurance against industrial accidents and occupational diseases ().
The procedure for accounting for compensation when calculating other taxes depends on whether the organization applies only the general taxation system or combines it with UTII.
BASIC
The amount of compensation can be taken into account when calculating income tax. It is a payment during the vacation period established by law and is included in labor costs. This conclusion follows from paragraph 7 of Article 255 of the Tax Code of the Russian Federation and is confirmed by letter of the Ministry of Finance of Russia dated April 2, 2012 No. 03-03-07/13.
If the organization uses the accrual method, take into account the compensation in income tax expenses at the time of accrual, that is, on the last day of the month (clause 4 of Article 272 of the Tax Code of the Russian Federation).
If an organization uses the cash method, consider compensation in income tax expenses at the time it is paid to the employee ().
An example of how compensation for the period of parental leave of up to three years is reflected in accounting and taxation. The organization applies a general taxation system
Secretary of Alfa CJSC E.V. Ivanova went on maternity leave for up to three years from April 1, 2013, having submitted all the necessary documents on March 28.
On April 5, 2013, the head of the organization issued an order granting her compensation for caring for a child under three years old.
Along with the salary for April, the accountant accrued compensation to Ivanova:
Debit 26 Credit 70
– 50 rub. – compensation is accrued for the period of parental leave up to three years.
She was paid compensation on the day the salary was paid:
Debit 70 Credit 50
– 50 rub. – compensation was issued from the cash register.
The accountant took into account the amount of compensation when calculating income tax. He did not impose personal income tax on this amount, contributions to compulsory pension (social, medical) insurance and insurance against accidents and occupational diseases.
G.A. Orlova
Deputy Head of the Legal Support Department of the FSS of Russia
List of payments
The legislation provides for the following payments related to the birth of a child:*
– benefits for women who registered in the early stages of pregnancy;
– maternity benefit;
– one-time benefit for the birth of a child;
– monthly allowance for child care up to 1.5 years;
– monthly compensation for the period of parental leave up to 3 years.
For working citizens, these benefits (compensations) are paid by the employer (
Compensation payments for child care until they reach the age of three are provided for by Decree of the President of the Russian Federation of May 30, 1994 N 1110 “On the amount of compensation payments to certain categories of citizens.”
It is set at a fixed rate and amounts to 50 rubles. per month (clause 1 of the said Decree)<1>.
——————————–
<1>If in districts and localities regional coefficients are applied to wages in accordance with the established procedure, then the amount of compensation is determined taking into account these coefficients (clause 21 of the Procedure for the appointment and payment of monthly compensation payments to certain categories of citizens, approved by Decree of the Government of the Russian Federation of November 3, 1994 N 1206).
The employer pays the compensation payment from his own funds allocated for wages according to the following rules (clauses 11, 15, 17, 20 of the Procedure for assigning and paying monthly compensation payments):
– compensation is intended for employees who are on parental leave - mother, father, adoptive parent, guardian or other relative;
– the payment is assigned from the day the parental leave begins. Moreover, until the child reaches the age of one and a half years, it is paid along with the child care allowance discussed in the previous sections;
– compensation is paid monthly;
– payment of compensation ceases from the month following the month in which the circumstances for its termination occurred. Such events, for example, are: the mother going to work before the expiration of maternity leave, the child turning three years old.
Note
For more information on the procedure for assigning and paying compensation for child care until the child reaches the age of three, read section. 14.8 “The procedure for assigning, calculating and paying monthly compensation for child care under three years old” of the Practical Guide to Personal Income Tax.
As for the question of taxing insurance premiums for compensation payments for child care until the child reaches the age of three, there is no clear answer to it.
The object of taxation of contributions for insurance against industrial injuries are payments and other remunerations in favor of the insured persons made within the framework (clause 1 of Article 20.1 of Law No. 125-FZ):
– labor relations;
Compensation payment for child care under three years of age does not meet these criteria. This means that it is not subject to the calculation of insurance premiums.
At the same time, the list of payments contained in Art. 20.2 of Law N 125-FZ, exhaustive. It does not mention compensation payments for child care under three years of age.
ARE INSURANCE PREMIUMS SUBJECT TO ADDITIONAL PAYMENT TO THE COMPENSATION PAYMENT FOR CHILD CARE UP TO THREE YEARS OLD?
If an employer pays compensation for caring for a child under three years of age in a larger amount than established by Decree of the President of the Russian Federation of May 30, 1994 N 1110, the question arises: is it necessary to charge insurance premiums for the excess amount?
Let us note that the object of taxation of contributions for insurance against industrial injuries are payments and other remuneration in favor of the insured persons made within the framework (clause 1 of article 20.1 of Law No. 125-FZ):
– labor relations;
– civil contracts, if the terms of the contract oblige the policyholder to pay insurance premiums.
At the same time, Law No. 125-FZ does not specify what exactly should be understood as payments within the framework of labor relations. In our opinion, these are those payments to individuals that are related to the performance of a labor function, are stimulating in nature and depend on the results of work.
The supplement to the compensation payment for child care under three years of age does not meet these criteria. This means that it is not subject to the calculation of insurance premiums.
However, it is possible that officials of the Federal Social Insurance Fund of the Russian Federation will take a different position: all payments in favor of employees, except those listed in Art. 20.2 of Law No. 125-FZ.
In this case, the list of payments contained in Art. 20.2 of Law No. 125-FZ, exhaustive. The supplement to the compensation payment for caring for a child under three years of age is not named in it.
Thus, if it is excluded from the base for calculating insurance premiums, claims from regulatory authorities are very likely.
Note
Until 2011, amounts for which it was not necessary to charge contributions for insurance against industrial injuries were contained in the List of Non-taxable Payments. The supplement to the compensation payment for child care under three years of age was not named in it.
We do not have official explanations from regulatory authorities about how such payments should have been levied on insurance premiums before 2011. However, in practice, the Federal Social Insurance Fund of the Russian Federation often accrued additional contributions to the amount of the additional payment to the compensation payment. They argued this by saying that additional payment in excess of the amount of compensation established by law is not provided for in the List of Non-taxable Payments.
Some courts supported them in this (Resolutions of the Federal Antimonopoly Service of the Ural District dated January 24, 2013 N F09-13863/12, Federal Antimonopoly Service of the Moscow District dated January 30, 2012 N A40-72035/11-90-310, dated January 25, 2012 N A40-77321/11 -92-650).
At the same time, the opposite position was reflected in judicial practice. It was that such an additional payment is not related to the employee’s performance of his job duties and is essentially a compensation payment. Moreover, clause 5 of the List of non-taxable payments did not establish any restrictions on the amount of compensation for caring for a child under three years of age. Based on this, it was concluded that the additional payment for child care compensation is not subject to insurance premiums (see, for example, Resolutions of the Federal Antimonopoly Service of the Far Eastern District of August 27, 2010 N F03-5328/2010, FAS of the West Siberian District of December 28. 2010 N A27-3737/2010, FAS Volga District dated 04/09/2009 N A12-10883/2008).
The general answer to this question is contained in Art. 7 of Law No. 212-FZ of July 24, 2009, which establishes such a concept as an object of taxation with insurance premiums (IC). It lists all payments that are or are not related to the contribution object.
However, simply reading this provision of the law will not give you a complete picture of what amounts are subject to tax. After all, there are many nuances when paying remuneration. Some of them are discussed in the article.
The object of taxation of the SV is, in fact, a list of payments subject to accruals. And the base is the amount with which contributions must be paid. Correct determination and accumulation of the insurance base is the key to error-free payment of insurance premiums.
Salary is the main object, but not the only one
The main taxable amounts are the labor income of individuals, and above all their salary. But according to the employment contract, the employee receives not only this. The range of payments in any organization or individual entrepreneur is quite wide, and for each such payment the question arises: whether to impose contributions. Numerous materials in this subsection of our website will help you find a solution easier.
Insurance premiums and holidays
Any businessman who has employees is faced with vacations. Are they subject to contributions? Mostly taxable. But there are also vacations for which contributions are not accrued.
Insurance premiums and financial incentives for personnel
The second fairly common situation is bonuses. There are even more questions regarding contributions with him. The SV is definitely subject to “labor” bonuses - for production results, length of service, etc. But what about bonuses of a different nature? For example, for the birthday of an employee or company, state or professional holidays. Here everything is not so clear.
Stimulating employees to work can occur not only through bonuses. They may receive gifts from you.
Travel and reporting
A separate group of issues is related to the calculation of contributions for payments during business trips and the issuance of money to employees on account. Both are classified as exempt from SV. However, here too there are nuances and circumstances in which the calculation of contributions cannot be avoided. And all of them are discussed in this subsection of the site.
Continuing the topic of business trips, read the material. There is a recommendation on what to do to avoid paying contributions on these amounts.
As for the accountables, here too there is a point that requires special attention from the point of view of the SV - this is the timeliness of the report and calculation of the advance received. Read about how to deal with undisciplined employees in the material .
Contributions from other payments to employees
Labor relations involve the payment not only of wages and other income associated with work, but also certain social guarantees, in particular, payment to employees during periods of illness. Read about some of the features of calculating contributions for hospital benefits in the article .
By the way, since 2015, the procedure for calculating SV for dismissal pay has changed. For information about what these changes brought, see the material .
Contributions under civil contracts
You can hire individuals not only under employment contracts. You can also enter into GPC agreements with them, for example, construction contracts. Amounts paid under such agreements are also included in the SV object. Moreover, the procedure for calculating them is somewhat different from the labor one. What exactly? We talk about this in detail in the article. .
You can conclude a civil contract not only with a third-party citizen, but also with your own employee. For example, renting a car from him. Should I pay the SV? It all depends on the type of rental - with or without a crew. How this affects contributions and whether they can be minimized or avoided altogether, read the article .
Postings for calculating insurance premiums
When the contribution base has been determined and all amounts have been calculated, it is time to make the appropriate entry in the accounting records. A typical transaction for calculating SV looks like this:
Dt X - Kt 69, subaccount Y,
X is the cost account to which you attribute insurance payments (20, 26, 44, etc.);
Y - subaccount to reflect debt to the relevant fund (social insurance, pension fund, health insurance).
If the issue of reflecting contributions in accounting interests you in more detail, read the article .
In it you will find all the information on accounting for mutual settlements with insurance funds.
Regularly visit this section of the site and you will know even more about the calculation of contributions.
