Calculation of sick leave taxes. What are the taxes on sick pay?
State benefits paid to individuals are generally not subject to income tax, however, an exception is made for benefits for temporary disability and for caring for a sick child (Article 217 (1) of the Tax Code of the Russian Federation). In other words - Personal income tax from sick leave in 2018 must be withheld and transferred to the budget.
To whom and at whose expense sick leave is paid
According to article 2 of the law of December 29, 2006 No. 255-FZ, temporary disability benefits are paid without fail only to employees hired by. Is the sick leave taxable with personal income tax in case of payments to contractors providing services within the framework? No, because these individuals cannot claim sickness compensation from the employer and the FSS, respectively, and tax withholding does not occur due to the lack of a tax base.
The allowance for the first three days of illness of an employee is paid at the expense of the employer, the remaining days until the restoration of working capacity or the establishment of disability - at the expense of the Social Insurance Fund. Insurance premiums are not calculated on the amount of the benefit. The employer must accrue the money within 10 days from the date of presentation of the certificate of incapacity for work, and transfer them together with the payment of the next salary.
Transfer of personal income tax from sick leave in 2018
When paying for sickness, the employer acts as a tax agent, i.e. must withhold income tax and transfer it to the budget. The personal income tax rate in 2018 when paying sick leave did not change and was set at 13%.
As for the tax base for calculating personal income tax, it depends on whether your region participates in the FSS pilot project. In general, income tax is withheld from the entire payment, without dividing it into the part that the employer pays and the part that social insurance pays extra.
Example: An employee of Vega LLC Alekseeva N.A. was in hospital for 10 days. Based on the disability certificate, the accountant calculated the sick allowance in the amount of 12,780 rubles. Of these, three days were paid at the expense of the organization (1278 * 3 = 3834 rubles), and another 7 days - at the expense of the Social Insurance Fund (1278 * 7 = 8946 rubles). Considering that the entire amount was paid by the company along with the salary, the organization keeps the personal income tax as a tax agent. Let's calculate the income from the allowance: 12780 * 13% = 1661.4 rubles. Alekseev will receive 12,780 - 1,661.4 = 11,118.6 rubles in his hands.
Personal income tax from sick leave: a pilot project of the Social Insurance Fund
In the above example, the employer withheld tax on all income, including the part that is paid out of the social security fund. In the general case, the FSS reimburses this amount after the employer submits an application for debt reimbursement according to Form 4-FSS.
Since 2012, the Social Insurance Fund has launched a pilot project "Direct payments", in which the part that is supposed to be paid from social insurance funds is sent directly to the employee. The purpose of the project is the efficient use of budgetary funds, protection of the interests of employees from unscrupulous employers who delay or do not pay benefits, reduce cases of insurance fraud, and reduce errors in calculations.
According to the Decree of the Government of the Russian Federation of April 21, 2011 No. 294, the following regions are involved in the implementation of the pilot project:
Period of participation in the project |
|
---|---|
Karachay-Cherkess Republic and Nizhny Novgorod Region | 01.01.2012 - 31.12.2019 |
Khabarovsk Territory and Astrakhan, Kurgan, Novgorod, Novosibirsk, Tambov regions | 01.07.2012 - 31.12.2019 |
Republic of Crimea, Sevastopol | 01.01.2015 - 31.12.2019 |
Republic of Tatarstan and Belgorod, Rostov, Samara regions | 01.07.2015 - 31.12.2019 |
Republic of Mordovia and Bryansk, Kaliningrad, Kaluga, Lipetsk, Ulyanovsk regions | 01.07.2016 - 31.12.2019 |
Republic of Adygea, Republic of Altai, Republic of Buryatia, Republic of Kalmykia, Altai and Primorsky Territories, Amur, Vologda, Magadan, Omsk, Orel, Tomsk Regions and the Jewish Autonomous Region; | 01.07.2017 - 31.12.2019 |
Republic of Sakha (Yakutia), Trans-Baikal Territory, Vladimir, Volgograd, Voronezh, Ivanovo, Kemerovo, Kirov, Kostroma, Kursk, Ryazan, Smolensk, Tver regions; | 01.07.2018 - 31.12.2019 |
Republic of Dagestan, Republic of Ingushetia, Republic of Karelia, Republic of Komi, Republic of North Ossetia-Alania, Republic of Khakassia, Kabardino-Balkarian Republic, Udmurt Republic, Chechen Republic, Chuvash Republic, Arkhangelsk, Tula, Yaroslavl regions | 01.07.2019 - 31.12.2019 |
Is personal income tax withheld from sick leave during a pilot project? Yes, of course, but in a special order:
- The employer pays from his own funds only three days due to illness and withholds personal income tax only from this amount;
- Starting from the 4th day of illness, the allowance is transferred at the expense of the FSS, and he also acts as a tax agent for this amount.
If we return to our example, then the accountant of Vega LLC will withhold income only from the amount that was paid at the expense of the organization's funds (1278 * 3 = 3834 rubles). The income tax will be 3834 * 13% = 498.42 rubles, and the employee will receive 3335.58 rubles in her hands. The rest of the money will be directly transferred to her by the FSS.
In this case, the fund itself acts as a tax agent for the amount transferred from social insurance funds. The employer is not responsible for withholding and transferring income tax to the budget from this part of the income.
When to transfer income tax from sick leave
When to transfer personal income tax from sick leave in 2018? Until January 1, 2016, the terms for paying income tax on employee income were as follows:
- no later than the day of receipt of cash from the bank or transfer to the account of an individual;
- in other cases (for example, when paying income from proceeds) - no later than the day following the day of actual receipt of income.
Law No. 113-FZ of May 2, 2015 changed this procedure, and from January 1, 2016, it is necessary to transfer personal income tax from sick leave and vacation pay no later than the last day of the month in which such income was paid (Article 226 (6) of the Tax Code of the Russian Federation).
Do not want to experience difficulties in accounting and tax accounting? Open a current account at Tinkoff Bank and get online accounting for free.
Personal income tax from sick leave in the 2-NDFL certificate
In 2018, the form of a certificate of income of individuals is valid, approved by order of the Federal Tax Service dated January 17, 2018 No. ММВ-7-11 / [email protected] The code for temporary disability payments has not changed, so the code 2300 must be indicated on the help page. Only sick leave payments are included in this category, because maternity payments are not subject to income tax.
Please note that although benefits are paid on the same day as the next next paycheck, the dates for receiving these two types of income differ:
- the date of receipt of income in the form of wages is the last day of the month for which it was accrued;
- the date of receipt of income for the period of illness is the day of payment to the employee.
For example, in August 2018, an employee was paid a salary and benefits for a period of incapacity for work in the same month, and on September 5 they were paid. The month of receipt of income in the form of wages (code 2000) in the certificate will be August, and sick leave (code 2300) - September, although both amounts were paid at the same time.
In the case when a sick leave is issued to a worker who was being treated for an illness, injury or was caring for a sick family member, personal income tax is withheld from the sick leave (Article 226, clause 1.4 of the Tax Code of the Russian Federation). As for contributions to the PFR and the FSS, sick leave is not subject to insurance premiums. There is legal evidence for this.
- From the information provided in Art. 7 of Law No. FZ-212, it follows that deductions to a state institution engaged in life and health insurance of citizens are paid only from the income of an employee bound by an employment contract with an employer for the provision of services or work.
- Also, according to part 1 of Art. 9, paragraph 1 of Law N FZ-212, payments for insurance are not deducted from state benefits and other types of compulsory insurance coverage.
- Based on the information provided in Art. 8, paragraph 2 of Law N FZ-165 of 07/16/1999, payment for temporary disability refers to one of the types of compulsory insurance coverage.
In what cases is the tax not taken?
Is sick leave subject to income tax?
As indicated above, sick leave is not subject to FSS and PFR contributions in any case.
As for personal income tax, there are some types of income, according to the disability certificate, from which it is not deducted either.
Accounting for personal income tax
Having dealt with whether sick leave is taxed, let's move on to accounting for personal income tax. In order to carry out accounting, you must first calculate the amount of tax. If there are no additional nuances, this is done as follows.
- The first thing to do is to add up the amount of income for the previous 2 years, and divide the result by 730. Income for the current year is not included in the calculations. There is also no tax deduction from this amount.
- Thanks to the calculations, we get the average daily income.
- Now you need to multiply this value by the number of days spent on sick leave.
- The resulting amount is disability income. However, it will only be possible to receive the full amount if insurance experience equal to or more than 8 years. From 5 to 8 years, the employee will be paid 80 percent of the amount. In the case when the length of service is equal to or less than five years, the payment will be only 60 percent.
Attention! The length of service may not be equal to the length of service. It depends on how long the employer has been making payments in the PF of compulsory insurance. In other words, the firm's accounting department, for some time, made tax deductions improperly.
The scheme will be different for those employees who have not worked for the previous 2 years or have not been able to submit an income statement. In this case, the calculation will be made as follows.
- You need to take the amount indicated in the government decree as the minimum wage (SMIC) and multiply it by the number of days during which the employee was absent.
- The resulting total must be divided by the number of days of the month in which the employee was treated.
- The resulting amount is considered the average daily income.
- The following calculation steps are identical to those given above, starting from point 3.
- The amount is paid in full.
Reference. Every year, the amount of the average daily income is limited by a government decree. So in 2015 this figure could not exceed 1631.88 rubles, and in 2016 1771.60 rubles.
After the employee has provided a sick leave, benefits must be assigned to him within 10 days. The employer is obliged to pay it along with the salary that will be issued next after the sick leave. This fact is enshrined in Art. 15 h. 1 and art. 8 hours 13 edition of the decree of 07.24.2009 N 213-FZ.
How to reflect income in the 2-personal income tax certificate?
In order to correctly issue a personal income tax certificate for a sick leave, in which it is necessary to reflect a tax deduction from disability income, one should refer to the recommendations of the Federal Tax Service of the Russian Federation.
They are described in letter number ED-4-3/74.
According to Art. 223 of the Tax Code of the Russian Federation, in the personal income tax certificate 2 for sick leave, all income received by the employee for the specified period is reflected.
The third section of the help is filled in as follows. In the "month" field, the serial number of the calendar period for which funds are accrued and actually received is put.
The amount of wages is indicated for the current month, and the income on the disability certificate for the previous one, when the employee took sick leave. Each of these amounts will be reported under different codes. The salary goes under the code 2000, and the amount on the sick leave is under 2300.
After reading the article, it becomes clear whether personal income tax is charged on sick leave, which is enshrined in law regarding payments, on sick leave. What amount can an employee expect and how to calculate it. How to correctly reflect the income on sick leave in certificate 2 - personal income tax or find it in this document.
Useful video
Finally, we suggest watching a short video that talks about the deadline for transferring personal income tax from sick leave:
Is personal income tax subject to sick leave at the expense of the FSS in Russia in 2020. Basic concepts and terms. Situations when tax collections are not carried out.
Dear readers! The article talks about typical ways to solve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
It's fast and IS FREE!
Tax accounting algorithm. These and other aspects related to the topic under consideration can be found in the proposed article.
general information
A temporary disability sheet allows a citizen not to officially go to work for a certain period of time and at the same time keep a certain percentage of his salary.
The attending physician of the employee (child - when applying for sick leave for child care) has the right to issue this document.
A temporary disability sheet allows a citizen to receive benefits. Its size depends on many factors.
Photo: minimum sick leave payment
Every citizen of the Russian Federation who conducts official work activities on the basis of a concluded employment contract has the right to issue a sick leave in the following situations:
- in the event of a disease;
- with a work injury;
- when it becomes necessary to care for a child or a close relative;
- in connection with pregnancy and childbirth.
Representatives of other states, also draw up this document and receive due benefits in case of:
- injury at work;
- the development of an occupational disease;
- under other circumstances related to the field of activity in which the foreign citizen works.
Definitions
The main concepts and terms related to the topic under consideration and used in the article are presented in the table:
concept | Definition |
Sick leave | A document confirming the fact of the occurrence of a temporary disability of a citizen for a certain period of time, allowing him to receive a certain percentage of wages |
personal income tax | Tax levied on income received by individuals |
Labor contract | A document establishing the basic rights and obligations between a citizen and a legal entity or individual entrepreneur with whom he has a working relationship |
work injury | Physical injury received by employees in the course of performing their job duties. |
What taxes are withheld
According to the provisions of the first paragraph of the 217th article of the Tax Code of the Russian Federation, temporary disability benefits are not included in the list of payments that are state benefits.
Therefore, these deductions are classified as personal income and subject to the corresponding tax in the amount of thirteen percent of the amount.
This rule is effective from January 1, 2007. Until that moment, personal income tax was not withheld from compensation for temporary disability.
In what cases is not taken
However, the collection of personal income tax from compensation to an employee due to his temporary incapacity for work cannot be called carried out in a general manner..
This is because there are exceptions. A number of temporary disability benefits are not subject to personal income tax.
These include:
Legal aspects
The main legislative acts regulating and regulating aspects considered in the article are presented in the table:
Legislative act | Explanation |
Tax Code of the Russian Federation, the first paragraph of the 217th article | Regulates the procedure for collecting personal income tax from temporary disability benefits |
Federal Law 255 | Regulates the main points of compulsory social insurance of the population |
Federal Law 323 | Contains the main provisions on the protection of the health of citizens of the Russian Federation |
Order of the Ministry of Health 624n | Determines the procedure for issuing and issuing sick leave |
Government Decree 375 | Defines the algorithm for calculating the amount of temporary disability benefits |
Points of interest
A personal income tax of thirteen percent is levied on each hospital benefit, with the exception of payments received by employees while on maternity leave (sick leave).
The benefit amount is calculated as follows:
- the summed salary is taken for the last two years of the insurance work experience of the employee;
- the resulting value is divided by the number of days in the billing period - 730 * (731 for a leap year);
- the result is the average salary of a citizen for one day of work.
He is indexed depending on the length of his experience:
- the indexed average daily salary of an employee is multiplied by the number of days during which the citizen was temporarily disabled;
- the amount received is subject to personal income tax;
- the final amount is issued to the employee as a sick leave benefit.
Is personal income tax subject to sick leave at the expense of the Social Insurance Fund
During the stay of an employee on sick leave due to temporary disability for one reason or another, he is paid daily allowance. Starting from the fourth day - it is charged from the reserves of the Social Insurance Fund.
The classification of this payment is equated to the income of individuals, since in fact the allowance replaces wages (its size is a certain percentage of it). Therefore, income tax is charged on this amount.
The temporary disability benefit in full, with the exception of personal income tax, is paid to the employee on the next date of payment of wages. There are two such days in one calendar month - advance payment and salary payment.
In case of violation of the deadlines, the employee receives the right to file a complaint by sending an appropriate application to one of the following public authorities:
- prosecutor's office;
- labor inspection.
In case of violation of the deadlines, the employer faces liability, which is expressed in the form of paying a fine and compensating employees for lost wages due to forced absenteeism.
What contributions are charged by the employer
From the amount of temporary disability benefits received by the employee, the employer also pays contributions in favor of the citizen's individual personal account in the pension insurance system.
If personal income tax is deducted from the funds issued to an employee who was on sick leave, then the contribution to pension funds is paid from the assets of the organization.
Is it taken in the first three days of disability
Temporary disability benefit, regardless of the type of sick leave, during the first three days is paid from the assets of the employing organization.
Just like the accruals made by the social insurance fund, these payments are subject to personal income tax and are used to make contributions to the pension funds of the company's employees.
Tax Accounting Mechanism
The current legislation of the Russian Federation determines the algorithm for reflecting the tax collection on personal income taken from employee benefits paid to them due to temporary disability.
Tax accounting for employees can be displayed by the employer in a certificate drawn up according to the generally accepted unified form 2-NDFL. Hospital benefit is referred to in this document by the special code 2300.
The reporting documentation sent to the federal tax service by the employer must also contain information on the tax paid on temporary disability benefits.
For its preparation, the tax agent uses the form 6-NDFL. Naturally, this report does not indicate a specific deduction from each hospital allowance of employees of the organization.
The withholding agent indicates the amount of tax levies taken from the income of its employees, which include the described allowance. This information is indicated in the first section of the document, in line number 020.
It should be noted that the 6-personal income tax form indicates the summarized personal income tax withheld from wages, benefits, etc. all employees of the organization (including the leader himself).
The main information in this document is the dates of taking income tax and sending them to the budget of the Federal Tax Service. This information is indicated in the second section of the document, in lines 110 and 120, respectively.
You can check the correctness of reporting in the 6-NDFL form using a package of control values specially developed by the Federal Tax Service.
The employer must remember that for each mistake or inaccuracy he will be assigned a fine in the amount of five hundred rubles per document. Exactly the same penalty is provided for incorrectly specified data in the form of 2-NDFL.
There are many types of taxation, and sick leaves are no exception. Income tax is also withheld from him, and the procedure itself is carefully regulated by the legislation of the Russian Federation. However, the peculiarities of withholding personal income tax from sick leave should be taken into account in order to prevent critical errors.
When is sick leave taxable?
In accordance with paragraph 1 of Article 217 of the Tax Code of the Russian Federation, payment for temporary disability is not exempt from withholding personal income tax. That is, the amount of the benefit must be subject to taxation in the general manner.
This also applies to sick leave for child care and applies to all other types of sick leaves paid by the employer.
However, personal income tax does not need to be withheld if (referred to as "sick leave BiR"). This is the only exception, because from the point of view of legislation, BiR is equated with a social benefit. Therefore, it is not taxed, and the scheme of these payments does not matter: immediately or in installments.
On the other hand, personal income tax does not need to be paid if:
- The sick leave is not formalized.
When an employee falls ill, he goes to the doctor and undergoes treatment. The employer will pay for the sick leave for the first 3 days on his own, and for the rest of the time - at the expense of the Social Insurance Fund.
Then the employee brings a sick leave, and personal income tax is already deducted from him. If any item from this chain disappears (fraud with the presence of an illness, lack of sick leave, etc.), this will entail serious legal consequences, clarification of circumstances and, of course, you will not have to pay any taxes. At least until the issue is resolved.
- GPA concluded.
Work carried out under the scheme of civil law contracts is a completely different situation. An employment contract is not concluded between the employer and the contractor, which means that other laws of the Russian Federation begin to operate.
In a working relationship of this nature, the employer is not required to pay sick leave: this type of income is not taken into account by law (Federal Law No. 255). Therefore, it will be impossible to withhold personal income tax from a legal point of view.
Withholding personal income tax from sick leave
In case of incapacity for work, personal income tax must be charged on the entire amount of payments. Since benefits are paid by the employer and the FSS at the same time, both of these entities are tax agents.
Sick leave for caring for a family member will be paid exclusively by the FSS.
The personal income tax rate remains standard until now - 13% of the amount of income of an individual. Interest is calculated according to formula:
income / 100 * 13.
Sick leave funds are issued on the day the advance payment or wages are received (clauses 1, 4 of article 226 of the Tax Code of the Russian Federation). At this point, the employee will receive benefits with the tax already calculated and withheld. First, the amount of benefits from the employer will be transferred within 3 days, after which the FSS will transfer its part.
The main obligation of the employer is to provide a sick leave to the FSS no later than 10 days from the date of its receipt. After checking, the FSS will pay the remaining amount to the employee.
If the calculation is made with errors, the employee has the legal right to appeal the amount of benefits. To do this, you must contact the labor inspectorate, the prosecutor's office or the court. But before doing this, it is important to understand and clarify the main reasons why accrual errors occurred.
It would be wiser to familiarize yourself with the correct paperwork in advance, because it is impossible to correct them in the end. It will be necessary to appear again at the medical commission, deal with errors in filling out, calculating the amount of benefits, etc.
Timing of the procedure
The accountant withholds personal income tax from the sick leave when calculating the amount of the benefit. Clause 6 of Article 226 of the Tax Code of the Russian Federation indicates the exact date when personal income tax must be transferred to the budget, namely no later than the last day of the month during which the employee received disability benefits (sick leave).
It is also worth remembering: although personal income tax is withheld for sick leave, this is not an obligation for the employer to carry out (pension, social, etc.) on the amount of the benefit.
Any sick leave is subject to personal income tax in the general manner, unless it is related to pregnancy and childbirth. Properly completed documents will allow you to avoid talking with the labor inspectorate and re-issuing them. Otherwise, there are no differences in this procedure compared to the previous year.
PIT is an abbreviation that stands for "personal income tax". His rate is 13%. The fee is levied on income that comes to the payer in various ways. There is also a list of income from which this fee is not charged.
A sick leave certificate, also called a sick leave certificate, is a document drawn up in a state-defined form. It is issued in a number of cases. The illness of the recipient is only one of them, as it is also given to pregnant women and healthy family members of the sick child who temporarily interrupt work to care for him.
It is this document that serves as confirmation that this employee was absent from his workplace with good reason. And, of course, its key importance is that it gives the right to disability benefits. The sheet is issued in any institution that has the right to operate a medical profile in accordance with the license.
Who pays
It has been established that a hospital employee is paid by default at the expense of the employer for the first three days of incapacity for work. All further period of incapacity for work paid from the funds of the Social Insurance Fund. This allowance is required to be assigned to the employee within ten calendar days after he brought the sick leave to the employer. Further, it must be paid at the same time as the payment of wages following the date on which this appointment was made.
A similar procedure applies to other types of sick leave. The exception is the child allowance. In this case, the obligation of the company to provide funds for the first three days is not provided. The FSS pays the entire term, starting from the first day.
The above procedure does not apply in a number of regions that have joined the FSS pilot project. In these subjects of the Federation, the procedure for deducting the fee is as follows:
- for the first three days of incapacity for work, sick leave funds are provided by the company, which also withholds personal income tax in the standard way;
- at the same time, from the allowance for other days of disability following the third, the FSS branch pays tax to the state directly, this structure only sends the allowance itself to the enterprise minus the tax, which the branch then sends to the budget
At the same time, for payments for the entire period following the first three days, the employer does not become a tax agent. His duty is only to transfer the entire amount received to the employee.
Do I need to pay VAT
It has been established that from sick leave to pay personal income tax in the general case need. This is due to the fact that in the Tax Code, the allowance assigned on the basis of a sick leave is not included in the list of those for which exemption from personal income tax is provided.
The cases for which the general rule applies are as follows:
- the employee was injured or ill, did not work for a certain period and issued a sick leave;
- the employee cared for a sick child, did not work for a certain period and issued a sick leave;
- the employee was in quarantine and because of this did not go to work.
At the same time, there are two cases that deviate from the general rule, namely:
- woman's pregnancy and childbirth;
- adoption by adoptive parents.
In these cases, sick leave is issued, but this fee is not charged from him. If the employer makes additional payments in excess of the funds that he is obliged to transfer in the last two cases, then personal income tax is unconditionally charged from such optional payments at the established rate of 13%.
Features of paying income when paying with the Social Insurance Fund
The Social Insurance Fund pays sick leave expenses for the entire time the employee is disabled, with the exception of only the first three days, for which, as indicated above, the employer pays.
At the same time, the employer also makes the calculation from the amount that is paid from the FSS, and he also deducts it when directly paying benefits to the employee.
Calculation example
The calculation of personal income tax from sick leave is relatively simple, since it is only 13%. In other words, the recipient is subject to a tax defined as follows:
Example: if the allowance received under this document amounted to 50,000 rubles, then the amount of tax payable from it is:
H \u003d 50,000 * 13% \u003d 6500 rubles.
At the same time, it does not make sense to distinguish between the part of the amount that is due to the employee for the first three days, and for the remaining time spent on sick leave. In both cases, the rate is 13%.
In pilot regions, where the employer pays tax on his own amount, and the FSS pays tax on his own, in relation to which the employer is not a tax agent, both organizations calculate 13% of the payments made by each of them.
Term and date of retention
It is determined that the deduction of this collection of the organization made when the amount of the employee's benefit is paid. In other words, the employee immediately receives an amount 13% less than the original amount of benefits.
At the same time, it is stipulated that the company charges the specified part in the same way both from the allowance related to the first three days, which is paid by it directly, and from the funds attributable to the entire other period of disability, which are transferred from the FSS.
The procedure is valid in regions that have not joined the pilot project. On the contrary, in the last the employing company is not related to the taxation of the part received from the Social Insurance Fund.
In the future, the amount of tax may be at the disposal of the organization until the expiration of the month during which the allowance was paid to the employee. Not later than its last date, the tax must be transferred to the state. Previously, these funds had to be given to the state immediately.
At the same time, it does not matter how the amount was received by the employee - in cash or by bank transfer through a bank.
Thus, in most cases when an employee receives sick pay is subject to personal income tax. Its transfer is undertaken by the state or the employer. If we are talking about a region that has joined the pilot project - Social Insurance Fund.
This video contains all the information about the latest changes in the payment of personal income tax.