Do I need to deduct insurance premiums from vacation pay upon dismissal? What taxes are levied on compensation? Compensation upon dismissal is subject to insurance contributions

Leave compensation upon dismissal is subject to insurance contributions. In 2017, they are paid to tax inspectorates and territorial departments of social insurance. Personal income tax is also withheld from vacation compensation.

Are vacation compensation subject to insurance premiums upon dismissal?

Yes, compensation for leave upon dismissal is subject to insurance premiums in 2017.

Upon dismissal, the employee is paid monetary compensation for all unused vacations. This obligation is provided for in Article 127 of the Labor Code of the Russian Federation. Moreover, all amounts due to the employee must be transferred to him on the last day of work (Article 84.1, 140 of the Labor Code of the Russian Federation).

The amount of compensation for unused vacation upon dismissal is subject to contributions to pension, social and medical insurance (paragraph 6, subparagraph 2, paragraph 1, article 422 of the Tax Code of the Russian Federation). You should also transfer the payment for compulsory social insurance against industrial accidents and occupational diseases (paragraph 6, subparagraph 2, paragraph 1, article 20.2 of the Federal Law of July 24, 1998 No. 125-FZ).

How to pay personal income tax on vacation compensation

Compensation for unused vacation is included in the tax base in accordance with paragraph 3 of Article 217 of the Tax Code of the Russian Federation. The rate here will be 13 percent (clause 1 of Article 224 of the Tax Code of the Russian Federation). The company must withhold the amount of tax at the time of payment of income to the employee (clause 4 of Article 226 of the Tax Code of the Russian Federation). That is, on the day of dismissal.

Should compensation upon dismissal be taken into account in income tax expenses?

Include the amount of compensation for unused vacation in tax accounting as part of labor costs. Such costs must be recognized monthly based on the actually accrued amount (clause 8 of Article 255, clause 4 of Article 272 of the Tax Code of the Russian Federation). And include insurance premiums and personal income tax among other expenses associated with production and sales during the period of their accrual (subclauses 1 and 45 of clause 1 of Article 264 of the Code).

When an employee is dismissed, he is due compensation payments, including compensation for vacation that was not used by the employee. Such compensation is subject to mandatory taxation. The Tax Code and special laws establish what taxes are imposed on compensation for leave upon dismissal.

Accordingly, if an employee quits his job this year and did not use his vacation, then he needs to make a calculation, taking into account compensation for unused vacation. The Labor Code of the Russian Federation establishes that the employer is obliged to provide a working employee with leave, which must be paid, for at least 28 days every year. Compensation for unused vacation is not equal to the non-taxable income of citizens, which is established by Article 217 of the Tax Code of the Russian Federation.

Taxes on compensation for unused vacation upon dismissal

When an employee leaves his position in the current year after going on vacation, he will not receive compensation payments for unused vacation. And, accordingly, they are not paid. In all other cases, not only the main one is taken into account, but also the vacation provided additionally, as a type of guarantee for some persons. It may be provided to certain categories of employees. For example, individuals working in hazardous or hazardous workplaces have more additional vacation days than an office clerk. In accordance with this, compensation is calculated in the event of dismissal of such an employee if he did not use his vacation.

An important nuance: if an employee leaves his job due to a transfer, he should also make compensation payments for the vacation that he did not use. This does not apply to transfers from one branch to another, since the employer remains the same. This rule applies to employees who are transferred within the same holding company. When paying compensation, the employer is obliged to make mandatory tax deductions.

In order to determine the tax base when paying compensation, you need to correctly calculate the days of unused vacation. The full number of days (at least 28) is credited to an employee who has worked at the enterprise for 11 months. In other cases, vacation days are calculated in accordance with the number of months worked. It turns out, on average, 2 days of vacation for every month of work. The number of vacation days is established in the organization for each position separately, but should not be less than the minimum established by law.

What taxes are charged on compensation upon dismissal for unused vacation?

The tax base of deductions includes the personal income tax, which is 13% of the amount of all income of citizens, as well as the following mandatory payments - contributions:

1. to the Pension Fund of the Russian Federation;
2. to the Social Insurance Fund;
3. contribution to the Compulsory Health Insurance Fund;
4. contribution to territorial compulsory health insurance funds.

That is, deductions and deductions should be made when calculating compensation for unused vacation for all specified items for contributions and taxes. The Tax Code gives a clear answer as to what taxes to pay for vacation compensation upon dismissal. There is no need to accrue contributions for compulsory social insurance against industrial accidents on the amount of compensation for unused vacation.

Since the unified social tax was abolished in 2010, the above contributions are paid instead by the enterprise, which pays compensation to the resigning employee.

Based on the norms established by the legislator - Art. 217 Tax Code of the Russian Federation, Art. 9 Federal Law No. 212, there is no need to pay tax on accrued payments and payments for a resigning employee, except for compensation for unused vacation. Therefore, the employer must pay both income tax and mandatory contributions.

Calculation of taxes when calculating compensation for unused vacation upon dismissal

In accordance with Art. 223 of the Tax Code of the Russian Federation, tax contributions to the budget are payable not after the end of the working month, as when paying wages, but at the time the quit employee receives compensation. The date the employee receives income is considered to be:

• day of payment of income, by transfer to the bank account of an individual;
• the day of payment of funds to a former employee at the enterprise’s cash desk;
• the day an employee receives a sum of money at the bank’s cash desk, from the company’s current account, according to a payment order.

Based on this, the company transfers taxes on compensation paid on the same day. If the employee receives money in cash, the employer must pay taxes no later than the next day after the day of actual payment.

Taxes and contributions for compensation upon dismissal, in case of non-use of annual leave, are accrued and paid by organizations and enterprises in favor of an employee who is drawn up in accordance with the law - under an employment contract or a civil one (for the performance of work or the provision of services).

Personal income tax is a tax levied on income paid to an employee; the employer is responsible for withholding it, giving the employee an amount of money minus the tax. The standard personal income tax rate on wage-related income is 13%.

Insurance premiums are charges from employee benefits that are paid by the employer as security for compulsory insurance. The total percentage of contributions is 30%, these amounts have been paid to the tax office since 2017.

Are vacation compensation subject to insurance premiums upon dismissal?

Non-regular vacation days upon dismissal are subject to replacement with compensation payments, calculated based on the average earnings of the dismissed person for the last year.

Leave compensation upon dismissal is subject to insurance contributions in full, regardless of the reason for dismissal.

This conclusion follows from the following normative points:

• Clause 3, Article 8 of the Tax Code of the Russian Federation;
• subparagraph 2p.1 art. 422 of the Tax Code of the Russian Federation;
• subparagraph 2p.1 art. 20.2 of Law 125-FZ.

That is, regardless of who initiates the dismissal, on what basis the contract with the employee is terminated, the percentage of insurance contributions must be calculated from the entire accrued compensation amount and paid to the Federal Tax Service, which has been administering these payments since 2017.

However, contributions do not reduce the amount of compensation paid to the employee. Payment of mandatory insurance amounts is the responsibility of the policyholder, who in this case bears the entire cost.

Even if an employee is dismissed for disciplinary violations, absenteeism, drunkenness or other violations, it is necessary to pay monetary compensation for unused vacation, adding insurance premiums to its amount.

Contributions include the following:

• pensions - 22%;
• medical - 2.9%;
• social - 5.1%;
• VNiM.

The first three are paid to the Federal Tax Service, the last - to the Social Insurance Fund.

The list of payments not subject to insurance premiums in 2017 remained virtually unchanged compared to the list contained in Article 9 of Federal Law No. 212-FZ of July 24, 2009. But there are still some differences.

General list of payments not subject to insurance premiums

The list of payments and remunerations that are not subject to insurance premiums is listed in Article 422 of the Tax Code (until 2017 - in Article 9 of the Law of July 24, 2009 No. 212-FZ). These include, in particular, the following payments.

1. State benefits paid in accordance with federal legislation, laws of constituent entities of the Russian Federation, decisions of representative bodies of local government:

• temporary disability benefits;
• benefits in connection with work injury and occupational disease;
• maternity benefits;
• monthly child care allowance until the child reaches the age of one and a half years;
• unemployment benefits;
• a one-time benefit for women registered in medical institutions in the early stages of pregnancy;
• lump sum benefit for the birth of a child;
• social benefit for funeral, etc.

Please note

Such benefits do not include additional payments to employees prior to actual earnings on sick leave at the expense of the organization, established by the collective agreement.

2. All types of compensation payments established by federal legislation, laws of constituent entities of the Russian Federation, decisions of representative bodies of local self-government within the limits of norms related to:

• with compensation for damage caused by injury or other damage to health (except for moral damage);
• with free provision of living quarters, payment for living quarters and utilities (for education workers, military personnel, judges, prosecutors, rotation workers), food and products (for jobs with hazardous working conditions), fuel or appropriate monetary compensation (for coal industry workers) ;

Please note

All payments exceeding the state norm or established by a collective or labor agreement are subject to insurance contributions. For example, paying the cost of housing for a nonresident employee. Although they are usually called “compensatory”, they are not.

• with payment of the cost, issuance or payment of money in exchange for the required allowance in kind (free food for ship crew members within the limits established by the Decrees of the Government of the Russian Federation dated July 30, 2009 No. 628 and December 7, 2001 No. 861);
• with payment of the cost of food, sports equipment, equipment, sports and dress uniforms, which are received by athletes and employees of physical education and sports organizations for the educational and training process and participation in sports competitions and sports judges during participation in sports competitions;
• with the dismissal of employees (for example, compensation to the head of an organization in the event of termination of an employment contract with him on the basis of clause 2 of Article 278 of the Labor Code of the Russian Federation), with the exception of compensation for unused vacation;

Please note

Upon dismissal by agreement of the parties, severance pay paid to the employee under the terms of the employment contract is subject to insurance contributions (letter of the Ministry of Health and Social Development of the Russian Federation dated May 26, 2010 No. 1343-19).

Amounts of payments in the form of severance pay, average monthly earnings for the period of employment, compensation to the manager, deputy managers and chief accountant of the organization in the part exceeding in general three times the average monthly earnings or six times the average monthly earnings for employees dismissed from organizations located in the regions The Far North and equivalent areas are subject to insurance premiums.

• with reimbursement of expenses for professional training, retraining and advanced training of workers provided for in Chapter 26 of the Labor Code.

Please note

Such payments do not include the average salary paid to an employee for advanced training while away from work (letter of the Ministry of Health and Social Development of the Russian Federation dated May 7, 2010 No. 10-4/325233-19);

• with expenses of an individual in connection with the performance of work, provision of services under civil contracts (for example, reimbursement of travel costs, payment of accommodation to the contractor - if necessary and with documentary evidence);
• with the employment of workers dismissed due to reduction in numbers or staff, reorganization or liquidation of the organization (payments in accordance with Article 178 of the Labor Code of the Russian Federation: severance pay, average monthly earnings for two months of the employment period, average monthly earnings for the third month from the date of dismissal, if two weeks after dismissal, the employee contacted the employment service and was not employed by it during these months);
• with the performance of work duties by an individual, including in connection with moving to work in another area. Exception: cash payments for work under difficult, harmful and (or) dangerous working conditions, except for compensation payments “for milk”; payments in foreign currency in lieu of daily allowances to crew members of ships sailing abroad and payments in foreign currency to crew members of Russian aircraft on international flights; compensation payment for unused vacation, paid in return for part of the main vacation exceeding 28 calendar days (according to Article 126 of the Labor Code of the Russian Federation).

3. Financial assistance:

• to individuals in connection with a natural disaster or other emergency in order to compensate for material damage caused to them or harm to their health, as well as to individuals who suffered from terrorist attacks on the territory of Russia;
• an employee in connection with the death of a member (members) of his family - spouses, parents, children, adoptive parents and adopted children (Article 2 of the Family Code);
• to employees at the birth (adoption) of a child - during the first year after birth (adoption), but not more than 50,000 rubles for each child.

4. Income of members of family (tribal) communities of indigenous peoples of the North from the sale of traditional crafts.

5. Insurance payments (contributions) under contracts:

• voluntary personal insurance of employees, concluded for a period of at least one year, providing for payment by insurers of medical expenses of these insured persons;
• for the provision of medical services to employees, concluded for a period of at least one year with medical organizations that have appropriate licenses to carry out medical activities;
• voluntary personal insurance of employees, concluded exclusively in the event of death of the insured person and (or) harm to the health of the insured person;
• non-state pension provision.

Please note

Insurance premiums under voluntary personal insurance contracts in favor of employee family members and other persons who are not employees of the organization are also not subject to insurance premiums, since they are not made on the basis of employment or civil law contracts and are not subject to insurance premiums.

6. Amounts of contributions paid by the employer in favor of the employee in accordance with Federal Law No. 56-FZ of April 30, 2008 “On additional insurance contributions for funded pensions and state support for the formation of pension savings.” Limit – no more than 12,000 rubles per year per employee.

7. Amounts of employer contributions paid in accordance with the legislation on additional social security (giving the right to a monthly supplement to the pension) of certain categories of employees:

• in the coal industry (directly employed full-time in underground and open-pit mining operations for the extraction of coal and shale and in the construction of mines, longwall miners, miners, jackhammer operators, mining machine operators) - for organizations specified in the decree of the Government of the Russian Federation dated October 11, 2010 No. 798;
• members of flight crews of civil aviation aircraft (the list of positions was approved by Decree of the Government of the Russian Federation of March 14, 2003 No. 155).

8. The cost of travel for employees working and living in the Far North and equivalent areas to the place of vacation and back, as well as the cost of luggage weighing up to 30 kilograms (based on labor and (or) collective agreements). In addition, the cost of travel or airfare for such employees (including the cost of luggage weighing up to 30 kilograms) is not subject to insurance premiums in the event of a vacation abroad.

Please note

When traveling abroad, the cost of travel or flights is not subject to insurance premiums at rates calculated from the place of departure to the checkpoint across the state border of Russia, that is, only in the “there” direction.

9. Amounts paid to individuals by election commissions, referendum commissions, as well as from the election funds of candidates for elective public positions.

10. The cost of uniforms and uniforms issued to employees in accordance with the law, if it is issued to them for temporary use, its value is listed on the organization’s balance sheet, issued for use only at work when performing labor functions and handed over by employees upon dismissal (that is, ownership for clothes remains with the company).

11. The cost of travel benefits provided by law to certain categories of workers: judges - payment of the cost of travel to the place of rest and back; students studying by correspondence at state accredited universities - payment of travel once per academic year to the place of performing laboratory work, taking tests and exams, preparing and defending a diploma project (work).

12. The amount of financial assistance provided by employers to their employees is no more than 4,000 rubles per employee per billing period.

13. Amounts of tuition fees for basic and additional professional educational programs, including for vocational training and retraining of workers (as a rule, at the initiative of the employer).

14. Amounts paid to employees to reimburse the costs of paying interest on borrowed funds received by them for the purchase and (or) construction of residential premises (without restrictions on the amount).

15. Amounts of monetary allowance and other payments received in accordance with the law:

• military personnel;
• members of the rank and file of the internal affairs bodies of Russia, the federal fire service;
• persons in command of the federal courier communications;
• employees of the penal system, customs authorities and authorities for control over the circulation of narcotic drugs and psychotropic substances.

16. Amounts of payments and other remuneration under agreements in favor of foreign citizens and stateless persons temporarily staying on the territory of Russia.

Please note

From January 1, 2015, payments in favor of persons temporarily staying in Russia (except for highly qualified specialists) are subject to pension insurance contributions, regardless of the duration of the employment relationship. Insurance premiums for OSS in case of temporary disability in favor of these employees are calculated at a rate of 1.8%, which, provided that the employer pays these contributions for at least six months, gives them the right to sick leave and to receive benefits (except for disability due to pregnancy and childbirth) .

The tariff for calculating the contribution to compulsory health insurance is equal to the tariff established for Russian citizens to finance an insurance pension, and does not depend on the year of birth of the specified insured persons - foreigners.

17. Payments for business trips both within and outside the territory of Russia:

• daily allowance (in the amount established by the collective agreement). From January 1, 2017, it is possible not to pay insurance premiums only for an amount of no more than 700 rubles for business trips within Russia and for an amount of no more than 2,500 rubles for foreign business trips (clause 2 of Article 422 of the Tax Code of the Russian Federation);
• actually incurred and documented travel expenses to and from the destination;
• fees for airport services (except for VIP lounge services);
• commission fees;
• expenses for travel to the airport or train station at places of departure, destination, transfers;
• baggage costs;
• expenses for renting residential premises;
• expenses for payment of communication services;
• fees for processing and registering a service passport;
• visa fees;
• expenses for exchange transactions with cash foreign currency.

Please note

Expenses for renting accommodation during a business trip are subject to insurance premiums if the employee does not provide documents confirming payment for accommodation.

18. Payments to prosecutors, investigators, judges of federal courts and justices of the peace in terms of contributions to compulsory pension insurance.

19. Payments in favor of full-time students in educational institutions of secondary vocational and higher vocational education for activities carried out in a student group under labor or civil contracts, in terms of contributions to compulsory pension insurance.

Please note

The student team must be included in the register (federal or regional) of youth and children's associations that enjoy state support.

20. Remuneration under civil law contracts, including under an author’s order agreement, an agreement on the alienation of the exclusive right to works of science, literature, art, a publishing license agreement, a license agreement on granting the right to use a work of science, literature, art in terms of contributions to OSS in case of temporary disability and in connection with maternity.

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Is accrued compensation for unused additional or main leave always subject to insurance premiums or are there exceptions?

This means that from this compensation must be accrued for payment all required amounts for insurance coverage:

• 22% — pension contributions;
• 5.1% - medical;
• 2.9% — social;
• from 0.2%- injuries.

Vacation compensation is subject to contributions as in the case of its payment for additional days, and in the case of appointment for all unused time upon dismissal.

The only case when there is no need to calculate insurance premiums, only payments to the relatives of the deceased employee are made. In this case, there is no need for insurance contributions due to the absence of an insured person.

Deadlines for payment for additional leave

Compensation can be assigned during work those employees who are entitled to additional days of paid leave for various reasons, for example, for an irregular work schedule, being a minor, for their status as a teacher, or for other reasons.

Often time that exceeds 28 can be based on employee.

Important! The exception is rest for harmful and dangerous working conditions for a minimum of 7 days; this time cannot be exchanged for money; a person must take such additional leave without any replacement.

As for other additional vacation days, as well as those provided for work in excess of 7 per year, they can be replaced with a cash payment at the request of the employee. It is the working person who must take the initiative to replace and write a statement to management.

The employer has the right to approve the employee’s wishes, draw up and provide compensation for additional days, or refuse, sending him on vacation.

If the extra time is compensated by money, then the accrued amount is subject to insurance premiums.

Transfer deadline - no later than the 15th day of the month, following the monthly period for which the income was paid. This is stated in paragraph 4 of Article 22 of Law 125-FZ, as amended. from 07/29/2017.

Transfer day upon dismissal

A similar rule applies to cases of compensation upon dismissal.

Payments from employees are made on the last working day. And insurance premiums from compensation paid for unused vacation are transferred no later than the 15th day of the next month.

Example

Conditions:

The employee quits on February 14, 2018, on this day he was paid a salary and compensation for the part of vacation not taken off in the amount of 13,500.

Deductions are made from the pre-tax amount.

Solution:

1. Pension = 13500 * 22% = 2970.
2. Medical = 13500 * 5.1% = 688.5.
3. Disability and motherhood = 13500 * 2.9% = 391.5.
4. Injuries = 13500 * 0.2% = 27.
5. The total amount of contributions to be paid to the Federal Tax Service = 2970 + 688.5 + 391.5 = 4050 - transfer deadline - until 03/15/2018 inclusive.
6. Amount to be paid to the Social Insurance Fund = 27 - payment deadline - until 03/15/2018 inclusive.

Useful video

How is compensation for unused vacation calculated? watch the instructions in the video.