Personal income tax from vacation pay: when to withhold. Personal income tax on vacation pay: is vacation taxable, is it necessary to make insurance contributions? Is personal income tax charged on vacation pay?
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For employees, vacation is a great time, because you are officially on vacation and receive a salary for it. For the employer, vacation means additional paperwork and fulfillment of the duties of a tax agent. He needs to know when to transfer personal income tax from vacation pay, how to fill out a payment order and what options he has.
Every person who gets a job under an employment contract has the right to paid leave.
The standards for providing this guarantee are regulated by Articles 122-128 of the Labor Code of the Russian Federation.
A worker has the right to go on vacation for the first time after six months of work without breaks (without dismissal or return, time off does not interrupt the length of service). By agreement with the manager, the employee may be given the first rest earlier.
In some situations, the boss must give this rest to the employee before accumulating six months of experience:
- before or after maternity leave
- at the request of minor employees
- at the request of the employee who took in the foster child through adoption, if the child is less than 3 months old
Already next year, vacation is granted to the employee at any time of the year, according to the schedule, i.e., only in the first year of work the 6-month rule applies.
In exceptional cases, vacation may be postponed to the next year, but it is prohibited not to provide vacation to employees for more than 2 years in a row.
The standard vacation for a calendar year is 28 days. The worker can divide them at his own discretion, but one of the vacations must be at least 14 consecutive days, the rest can be divided into any number of small vacations.
If an employee is entitled to a vacation of more than 28 days (for example, civil servants with a certain length of service and position), then they may not use the part exceeding 28 days, but receive the cash equivalent for it.
Basic vacation cannot be replaced with money.
In addition to paid leave, workers, for valid reasons, can apply for - the duration of such days off is agreed with the employer.
Paid leave is very important, and according to the Labor Code of the Russian Federation, if an employee is dismissed before using this right, he is paid compensation for unused days of official leave.
Are vacation pay subject to personal income tax?
To answer this question, you need to understand the essence of vacation pay: these are days off on which an employee does not work, but continues to receive a salary. Salary is income. And personal income tax is an income tax.
The Tax Code has an article that lists income that is not subject to income tax, for example, maternity payments, but this list does not include payment for vacations.
The current rate applies - 13%, which the authorities plan to increase to 15% in the near future.
Payment for vacation is calculated on the basis of average daily earnings. This amount is multiplied by the number of calendar days on vacation, including weekends. For example, if a worker’s average daily earnings is 1,500 rubles, and he took a vacation for 14 days, he will receive the following payment: 1,500 rubles x 14 days = 21,000 rubles.
Personal income tax for official work is withheld using the at-source method, which means that the employer, before paying the employee’s salary, withdraws income tax from it. As a result, the employee will receive: 21,000 - 13% = 18,270 rubles, and 2,730 will go to the budget.
When to transfer personal income tax from vacation pay
The employee is relieved of the obligation to independently pay the income tax payment to the budget from his salary. This burden is placed on the employer, whom the Tax Code of the Russian Federation has made a tax agent of the fiscal system.
The employer, before paying salaries to the entire staff, calculates the income payment from each labor remuneration and withholds it, and then transfers wages to employees.
Until 2016, the employer was obliged to transfer personal income tax on vacation pay on the same day that it was paid to the employee.
And since 2016, amendments have been made to the Tax Code of the Russian Federation, and now, in accordance with Article 226 of the code, all companies and individual entrepreneurs with staff withhold income tax before paying vacation pay, and transfer it to the treasury until the end of the month.
Calculation and transfer of personal income tax to the budget
The vacation payment itself is transferred to the employee no later than 3 days before the start of the vacation. As a rule, employees take vacation from Monday; weekends are considered calendar days, which means that vacation pay will arrive approximately on Thursday of the last working week.
The amendment is convenient for the employer. Now the accountant is able to pay taxes at the end of the month for several employees who received vacation pay this month, and also add sick leave tax to the payment order.
To calculate income tax, account 68 from the Chart of Accounts is used, and a “Personal Income Tax” subaccount is opened for it.
The correspondent account depends on the option of transferring income (vacation pay) to the recipient.
Options:
- through the cash register
- via account
As a result, the accrual of income tax can be displayed by one of the postings:
- Debit 50 Credit 68
- Debit 51 Credit 68
To deduct a payment from an employee's salary, the following correspondence applies:
- Debit 70 Credit 68
Transfer to the budget:
- Debit 68 Credit 51
To transfer to the federal budget, you need to know the personal income tax details, the most important of which is the KBK. The relevance of this budget classification code should be checked regularly.
Payment examples
The new calculation procedure has not yet entered into force, so methods from the Labor Code are used.
The traditional formula remains:
The amendments affected the procedure for determining daily earnings.
How is it determined:
all payments to the employee for billing time / billing time / 29.3
What value is accepted as the estimated time:
- the last 12 months before the month the employee goes on vacation
- or special calculation time - a period of more or less 12 months, when it is impossible to accept the standard format, for example, the employee has had many breaks over the last year, and it is necessary to take a larger period of service for the formula
After recalculation for both periods, the one in which the payment will be more profitable for the employee is selected.
If the employee actually worked for less than 12 months, then the days in the billing period are determined by the formula:
months worked x 29.3 (average number of days per month)
29.3 / number of days in a month x days actually worked
Vasilyeva Daria Ivanovna has been working as an accountant at the Zimaleto company for several years and receives a salary of 55 thousand rubles. She goes on vacation from August 1st to August 29th.
Her average earnings are: 55 thousand x 12 / 12 / 29.3 = 1,877 rubles.
Vacation pay: 1,877 x 29 days of vacation = 54,433 rubles. The tax agent withdraws a percentage from this amount, and the balance must be transferred to Vasilyeva 3 days before August 1.
Grudinin Igor Petrovich works for IP Gordeev as a sales manager. His salary is 30 thousand rubles + bonuses for fulfilling the sales plan in the amount of 10 thousand rubles. Grudinin has been working for Gordeev for only 7 full months and goes on his first vacation from September 1 to 14. He managed to fulfill the sales plan 3 times.
Daily earnings = (30 thousand rubles x 7 months + 10 thousand x 3) / 7 x 29.3 = 1,170 rubles.
Vacation pay = 1,170 x 14 days = 16,380 rubles minus personal income tax will be received by Grudinin 3 days before September 1.
Pavlova Anna Sergeevna is an instructor at a private sports school. Her salary is 35 thousand rubles. She got a job on December 20, 2017 and goes on vacation in mid-August for 2 weeks.
We calculate the average number of days worked for full months (January-July) = 6 months x 29.3 = 175.8 days.
We count the days for December: 29.3 / 31 x 11 = 10.4 days.
Total days: 175.8 + 10.4 = 186.2.
Daily earnings: 35 thousand x 6 / 186.2 = 1,128 rubles.
Vacation money: 1,128 x 14 = 15,792 rubles. We subtract 13%, the remaining amount is transferred to Pavlova.
Rules for filling out bank documents
To transfer personal income tax from vacation payments, you need to fill out a payment order and send it to the bank.
The order is filled out on a strict format form. The number of this form is 0401060.
Indicated:
- Document Number
- date of formation
- personal income tax amount in numbers and letters
- the name of the payer - a legal entity or individual entrepreneur, his official identification details, such as TIN, KPP, current account number
- details of a credit institution (bank)
- below indicate the current KBK, the month in which the employee was given vacation pay
- you need to indicate the name of the payment - personal income tax for the period
- signatures and bank marks
The bank will perform the transaction on the same day or the next if the payment is sent late.
So, personal income tax is withheld on the same day when the payment is transferred to the employee, and the transfer of vacation pay must be made three days before the vacation. And on the last day of the month, income tax is sent to the budget by the employer.
Write your question in the form below
The current labor code obliges employers.
During a well-deserved rest, a person does not perform his work duties, but maintains his average earnings and his position in the organization.
Simply put, vacation pay is an employee’s salary for the time during which he could work, but will actually rest. .
What are the fees?
Are vacation pay taxable? Since vacation pay is part of earnings, the employer must include them in the calculation base and when calculating insurance premiums. If he evades this duty, he will be subject to penalties.
Personal income tax
Is vacation subject to personal income tax? Personal income tax from vacation pay is withheld from the salary of an employee on vacation, which amounts to 13% of the total amount.
Tax must be paid on the day the employee receives the funds by transfer to your card or in cash at a bank branch. In the 2-NDFL certificate, vacation pay is assigned an income code of 2012.
Let's say an employee of an enterprise goes on vacation for 28 days, he worked the entire pay period, for which he received 480,000 rubles. Average earnings are determined by the formula: 480,000 rubles: 12 months. : 29 days/month. = 1365.2 rubles/day.
The amount of vacation pay will be: 1365.2 rubles. x 14 = 38225.6 rub. 13% of this amount is 4969.3 rubles, which must be transferred to pay personal income tax.
You will learn about the deadlines for personal income tax payment in the following video:
Contributions to the Pension Fund, FFOMS and Social Insurance Fund
Is the holiday subject to insurance contributions?
Along with income tax, the employer is required to pay insurance contributions to the following organizations:
- Pension Fund.
- Social Insurance Fund.
- Compulsory health insurance fund.
Funds must be paid by the 15th of the following month. If the vacation is taken out in August, contributions from vacation pay are transferred until mid-September.
IMPORTANT. From vacation pay Insurance premiums are not deducted in case of an emergency at work. This is not necessary, since during the rest period the employee will not be at the workplace.
What amounts are not subject to personal income tax?
For some types of payments, payment amounts are not subject to income tax. These include:
- (payments are calculated from the budget and are considered compensation for harm received);
- vacation for the period of sanatorium-resort treatment of occupational diseases and work-related injuries, including travel to the institution (the employer not only compensates for average earnings, but also pays for travel).
The payments that people receive in such cases are social insurance. Accordingly, no contributions are deducted from them.
The employer’s responsibilities include not only providing the employee with paid rest, but also paying personal income tax and insurance contributions on the entire amount of payments.
Income tax in the amount of 13% must be transferred simultaneously with vacation pay, contributions to insurance organizations - before the 15th day of the next month.
Useful video
You will learn about the taxes on vacation pay in the following video:
Accountants are interested in the question: which month’s income should include vacation pay in order to withhold personal income tax. After all, vacations often span two calendar months. Should the amount paid be divided into two parts?
15.05.2014Magazine "Simplified"
On what day should personal income tax be withheld from vacation pay?
The question of which month’s income should include vacation pay is especially relevant if the employee has the right to standard tax deductions. For example, a “children’s” deduction, which is provided until the employee’s income, calculated cumulatively from the beginning of the year, reaches 280,000 rubles. (Subclause 4, Clause 1, Article 218 of the Tax Code of the Russian Federation). From the month in which this amount will be accrued, the deduction is not applied, so it is important for the accountant to monitor exactly when the limit will be exceeded.
Accordingly, if vacation pay for two months is divided into parts, the time when the limit occurs can be delayed. Is it necessary to do this? The Ministry of Finance in a letter dated May 11, 2012 No. 03-04-06/8-134 assures that it is not necessary. For the purpose of calculating personal income tax, vacation pay is fully included in the income of the month in which it is paid.
Example. How can you provide standard deductions for personal income tax when paying vacation pay?
Employee of Zvezda LLC P.I. Peredelkin goes on another paid leave from June 25 to July 8, 2012. His monthly salary is 47,000 rubles. The average daily earnings for vacation pay are 1,600 rubles.
The employee worked 10 days in June and received 23,500 rubles. (RUB 47,000: 20 days × 10 days). P.I. Peredelkin is entitled to a standard “children’s” deduction for personal income tax in the amount of 1,400 rubles. Can an accountant provide it in June?
Position 1. The accountant believes that since the vacation falls over two months, the vacation pay should be divided into two parts. The amount accrued for June 25-30 is 9,600 rubles. (1600 rubles × 6 days) - he classified it as remuneration for June. And vacation pay for the period from July 1 to July 8 is 12,800 rubles. (1600 rub. × 8 days) - to accruals for July. Then payments to P.I. Peredelkin, calculated on an accrual basis from January to June 2012, will amount to 268,100 rubles. (47,000 rub. × 5 months + 23,500 rub. + 9,600 rub.).
Since 268,100 rub.< 280 000 руб., бухгалтер предоставил работнику стандартный вычет за июнь в размере 1400 руб.
Position 2. The accountant of Zvezda LLC decided to use the recommendations of the Ministry of Finance. And the entire amount of vacation pay for June and July was attributed to payments for June. Salary P.I. Peredelkina, calculated on an accrual basis from the beginning of the year to June, amounted to 280,900 rubles. (47,000 rubles × 5 months + 23,500 rubles + 1600 rubles × 14 days). Therefore, the accountant did not provide a “children’s” deduction in June.
The example clearly shows that different approaches to accounting for vacation pay affect the amount of tax payments. In the first case, the budget receives a smaller amount of personal income tax than in the second. This benefits the employee - he gets a little more money, but for the employer the risk of tax claims increases. Therefore, use the second method of calculation, especially since this is what the Ministry of Finance advises.
There is another important point to which you need to draw your attention. As you know, vacation pay must be paid three days before the start of the vacation (Article 136 of the Labor Code of the Russian Federation). Therefore, a situation may arise when the vacation falls in one month, and the money was paid in the previous month. For example, money for vacation from June 1 must be paid no later than May 29.
Then, for the purpose of calculating personal income tax, you need to include the entire amount of vacation pay for June as payments for May. Consequently, these vacation pay will be taken into account to determine the possibility of receiving a “children’s” deduction for May, and not June.
Is it necessary to provide a deduction when paying vacation pay?
The next question I would like to talk about is: is it necessary to apply a deduction to vacation pay at the time of payment? Or should I wait until my salary for the month is calculated and then make a deduction based on the total income for the month?
The Ministry of Finance of Russia, in a letter dated November 15, 2011 No. 03-04-06/8-306, indicates that the right to a deduction must be determined and, accordingly, provided immediately when paying vacation pay, without waiting for the end of the month.
On the one hand, this position of the financial department seems to fit logically with the one we described above. After all, if all accrued vacation pay is included in the income of the month in which they are paid, then it is easy to determine the income on an accrual basis from the beginning of the year...
However, there are pitfalls. It may happen that vacation pay, taking into account the salary for the month in which it was paid, will exceed 280,000 rubles. Then it turns out that the employee no longer has the right to a “children’s” deduction, but it was granted. And even if next month the tax is calculated and withheld from the employee, the tax authorities will have a reason to charge penalties, albeit meager ones, for the delay in paying personal income tax.
Therefore, in our opinion, you can adhere to the position of the Ministry of Finance only if you are confident that the employee’s income, calculated cumulatively from the beginning of the year, including vacation pay and the last salary, will not exceed 280,000 rubles. And if there is no such confidence, it is better to wait until the end of the month and provide a “children’s” deduction after the salary is calculated.
You may have a question: do I have the right to ignore the position of the Ministry of Finance? Yes, you have. After all, the financial department in this case expressed its personal position, which was not based on the provisions of the Tax Code of the Russian Federation. There is no direct indication in the Code to provide a deduction at the time of payment of vacation pay. It follows from Article 218 of the Tax Code of the Russian Federation that the tax agent must provide a deduction for each month of the tax period. In this case, the deduction is provided only if the employee is entitled to it. Receiving a “children’s” deduction is directly related to the employee’s income level (no more than 280,000 rubles from the beginning of the year). You can find out whether the limit has been exceeded or not only upon final payment to the employee for the month. That is, after the salary is calculated. Thus, you have the right to wait until the employee’s salary is calculated and only then provide a deduction. Moreover, all ambiguities and contradictions in tax legislation are interpreted in favor of the taxpayer (Clause 7, Article 3 of the Tax Code of the Russian Federation). And the position of the Ministry of Finance, as we found out, can lead to tax risks.
Example. How to provide a deduction if vacation pay is paid before salary
Let's use the conditions of the previous example. Vacation pay for June and July was transferred to P.I.’s card. Peredelkina June 19. Zvezda LLC issues wages on the 5th of every month. The salary for June (23,500 rubles) will be issued on July 5, it relates to the employee’s income for June (clause 2 of Article 223 of the Tax Code of the Russian Federation). When to provide an employee with a tax deduction for June: on the day of payment of vacation pay (June 19) or on the day of payment of wages (July 5)?
Position 1. The accountant of Zvezda LLC, on the recommendation of the Ministry of Finance, provides standard deductions from vacation pay if they are accrued before salary. Income P.I. Peredelkina for January - June on the day of payment of vacation pay (June 19) amounted to 257,400 rubles. (47,000 rubles × 5 months + 1600 rubles × 14 days). This amount does not exceed the established limit (280,000 rubles), and the accountant applied a deduction of 1,400 rubles to vacation pay for June. Vacation pay was transferred to the card on June 19, so on the same day the accountant paid personal income tax on it in the amount of 2,730 rubles. [(1600 rubles × 14 days - 1400 rubles) × 13%] including deductions.
On July 5, 23,500 rubles were transferred to the employee’s card. - remuneration for work in June. As a result, the salary from the beginning of the year to June was equal to 280,900 rubles. (RUB 257,400 + RUB 23,500). The right to deduction was lost in June. The accountant paid additional personal income tax to the budget in the amount of 182 rubles. (RUB 1,400 × 13%).
Position 2. The accountant of Zvezda LLC provides standard deductions after all accruals to the employee for the month become known. Therefore, he did not apply the “children’s” deduction for June on the day of payment of vacation pay. On June 19, personal income tax in the amount of 2,912 rubles was paid to the budget from vacation pay. (1600 rubles × 14 days × 13%). After accruing salaries for June in the amount of 23,500 rubles. It became clear to the accountant that the employee was not entitled to a deduction for June: 47,000 rubles. × 5 months + 23,500 rub. + 1600 rub. × 14 days = 280,900 rub. Since the income limit was exceeded, the accountant did not provide the employee with a deduction for June.
The example shows that if “children’s” deductions are provided from vacation pay, as the Ministry of Finance recommends, then it is quite possible that you will have to pay additional tax. Therefore, wait for the final payment to the employee for the current month. And based on the results, see whether you need to make a deduction or not. The employee himself will not lose anything in this calculation. Only he will receive the deduction not at the time of payment of vacation pay, but a little later - when you accrue your pay. Moreover, he will have no questions about why you “took away” part of his salary for additional personal income tax (for an illegally granted deduction from vacation pay).
It is worth remembering here that only the right to “children’s” deductions depends on the income of employees. But other types of standard deductions established by paragraphs 1 and 2 of Article 218 of the Tax Code of the Russian Federation for certain categories of citizens - Chernobyl victims, military personnel, Afghans - do not depend on the income they receive. Therefore, by paying vacation pay to this category of citizens and withholding personal income tax, you can safely adhere to the position of the Ministry of Finance.
Deduction of personal income tax from advance payment
Another question that inevitably arises: is it necessary to provide a deduction for advances? Here the answer is clear - no. After all, personal income tax from the advance payment is transferred at the time of final payment to the employee for the month, usually at the beginning of the next month (Clause 2 of Article 223 of the Tax Code of the Russian Federation). And since the personal income tax base is not formed at the time of payment of the advance, then the employee does not have the right to deduction.
Well, what if in any month an employee receives only vacation pay, but no salary? Do I need to provide a deduction for this month from vacation pay? Certainly. After all, a tax rate of 13% is levied on vacation pay, as well as on salary. This means that Article 218 of the Tax Code of the Russian Federation, which regulates the procedure for providing standard deductions for personal income tax, is fully applicable to it. But again, the main condition for applying “children’s” deductions must be observed - from the beginning of the year to the month of payment of vacation pay, income should not exceed 280,000 rubles. So it’s still better to wait until the end of the month and then use the deduction. What if management decides to give a bonus to an employee?
Personal income tax on vacation pay - the deadline for transfer is now clearly established by the Tax Code. Moreover, it does not coincide with the deadline for paying salary taxes. How vacation pay is taxed with personal income tax, when you need to withhold tax from it and when to transfer it to the budget, what difficulties arise in determining the payment deadline, find out from our article.
Are vacation pay subject to personal income tax?
All employee income paid to them by an organization or individual entrepreneur must be subject to personal income tax. Cash paid as vacation pay is also counted as income. They are not included in the list of income exempt from taxation. Consequently, vacation pay is subject to personal income tax. The employer acts as a tax agent and is obliged to withhold personal income tax and transfer it to the budget.
Materials from a special section of our website will help you understand the nuances of vacation.
Difficulties in the question of when to transfer personal income tax from vacation pay
Such difficulties in this matter occurred before 2016, since the moment of transfer of personal income tax on them was not established by law.
Tax Code in sub. 1 clause 1 art. 223 determines that the actual moment of receipt of income in cash should be recognized as the day when the payment was made. In relation to current accounts, this is the day on which funds are transferred to the taxpayer’s account or to third parties.
But there is one more rule: when paying for labor, the date of receipt of income is the last day of the month in which this income was accrued. This rule is contained in paragraph 2 of the same article of the Tax Code of the Russian Federation.
Clause 6 of Art. also added to the difficulties in accurately determining the moment. 226 of the Tax Code of the Russian Federation as amended until 2016. It stated that the tax agent must transfer the withheld personal income tax no later than the day on which the money for payment of income is received from the bank or transferred to the taxpayer’s account. If the situation is different, then the tax agent is obliged to transfer personal income tax to the budget the next day after the taxpayer receives income.
Is personal income tax charged on vacation pay and transferred to the budget no later than the day following the payment of income?
This system was used until 2016. Then the Ministry of Finance and the Federal Tax Service insisted in a number of letters that the next day after payday should be considered the deadline for paying income tax. Moreover, their point of view was supported by the courts. This position was based on the fact that clause 6 of Art. 226 of the Tax Code of the Russian Federation provided for the obligation of tax agents to transfer personal income tax no later than the day following the day of receipt of money from the bank intended for payment of income.
When answering the question of when to pay personal income tax on vacation pay, the entire argument boiled down to proving the validity of the statement that the date of payment of vacation pay is the date of payment of income. This thesis is substantiated in most detail in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 02/07/2012 No. 11709/11 in case No. A68-14429/2009. The judges took into account the provisions of the Labor Code, which include vacation pay as part of the employee’s salary. However, despite this, they found no basis for classifying this earnings as income for which personal income tax must be paid within the time limits specified in paragraph 2 of Art. 223 of the Tax Code of the Russian Federation (at the end of the month). That is, from the point of view of the court, personal income tax from vacation pay had to be withheld on the day the money was paid to the employee and transferred to the budget on the same day or the next.
Learn about the nuances of reflecting vacation pay in 6-NDFL from this material.
Is personal income tax withheld from vacation pay on the last day of the month?
Finally, the issue of the deadline for paying personal income tax on vacation pay was closed by the current wording of clause 6 of Art. 226 Tax Code of the Russian Federation. Now it directly states that tax on vacation pay (and also personal income tax on sick leave) should be transferred until the end of the month in which they were paid.
Note! We are talking specifically about paying personal income tax, and not about withholding it from the amounts paid. Tax is withheld when paying money to an employee. But the payment can not be made immediately, but postponed until the last day of the month.
And more details about the deadline for transferring tax in the calculation of 6-NDFL are described in this article.
Results
Transfers to the personal income tax budget from vacation pay to tax agents must be made no later than the last day of the month in which these vacation pay are paid to employees. This is stated in paragraph 6 of Art. 226 Tax Code of the Russian Federation.
Previously, officials from the Ministry of Finance and the Federal Tax Service expressed a different position on this issue, according to which it was necessary to transfer the calculated and withheld personal income tax to the budget on the day the funds were paid to the employee or the next day.