Taxes on sick leave in 2016-2017 are paid in accordance with the law. At the beginning of 2017, no changes had occurred in this matter, with the exception of the transfer of the function of administering contributions to the Federal Tax Service.
Is sick leave subject to income tax and are contributions taken from it?
If an employee falls ill, then during his illness he is entitled to a cash benefit, which is paid on a certificate of incapacity for work. This is an official document issued by a medical institution, which confirms the fact of temporary inability to continue working.
This benefit is the employee’s income, but not his salary, therefore no insurance premiums are charged or paid for it (clause 3 of Article 422 of the Tax Code of the Russian Federation). In this regard, another question arises: is personal income tax taken from sick leave?
It depends on the circumstances under which sick leave is issued. Conventionally, there are two situations and two versions of this document, and taxation will be different. Let's consider each case separately.
How is the taxation of different types of sick leave different?
The first case is a benefit that an employee receives due to his own illness, as well as, if necessary, to care for a sick relative. It is not indicated in the list of state subsidies not subject to personal income tax (clause 1 of Article 217 of the Tax Code), therefore tax on such compensation is levied at a rate of 13%.
Read about the specifics of calculating this tax in 2016-2017 here.
The second situation is maternity benefits. Whether tax is withheld from the ballot issued to the expectant mother during maternity leave can be found out from the list of state payments exempt from tax (clause 1 of Article 217 of the Tax Code). This type of benefit is included in the list of non-personal income tax exemptions, which means that no tax is withheld. The calculated benefit without deductions is paid to the employee.
How are taxes and contributions calculated on sick leave under civil contracts in 2016-2017?
In addition to concluding employment contracts with employees, employers often use alternative options for cooperation - under civil law contracts (CLA). Such relationships do not entail a number of obligations and have some fiscal advantages.
In particular, if the employment relationship with the employee is formalized through the GPA, the employer does not pay for sick leave. And Social Security contributions are not collected from payments under such an agreement (subclause 2, clause 3, article 422).
Read more about contributions to funds.
Results
Only personal income tax is taken from the regular disability benefit paid to the employee. Personal income tax is not paid on maternity payments. The GPA agreement does not provide for reimbursement of sick leave.
Temporary disability benefits were removed by the legislator from among the exceptions not subject to taxation: in other words, the employer is obliged to withhold personal income tax from the amount due to the employee who issued sick leave. Read about how to calculate personal income tax in this case, and what changes in the procedure from 01/01/2016.
According to the position of the Ministry of Finance of the Russian Federation, funds withheld on an employee’s sick leave must be transferred to the budget no later than the day of actual receipt of cash from the bank for the payment of income or the day of transfer of income from the accounts of tax agents in the bank to the accounts of the taxpayer or on his instructions to third party bank accounts. In other words, the date of transfer of personal income tax to the authorized body depends on the mechanism for paying sick leave that exists in the organization. If payments are made by non-cash method, then personal income tax should be withheld on the day the funds are credited to the card. If the sick leave is paid in person, then personal income tax is withheld on the day cash is received from the bank to issue benefits to the employee.
Withholding personal income tax from sick leave for newcomers and part-time workers
No one is insured against sudden illness, so not only long-time employees, but also new employees and part-time employees have the right to receive temporary disability benefits. For the first category, sick leave is issued for those days when the person was supposed to begin performing his duties in accordance with the concluded employment contract. If a written contract does not yet exist, but the citizen was actually allowed to work by the employer, then temporary disability benefits will be paid for all days of illness. Consequently, personal income tax will also be withheld for this entire period.
Part-time workers, both external and internal, also have the right to receive sick leave: the medical organization is obliged to issue them the appropriate number of temporary disability certificates. However, this rule only applies to situations where a person has been employed at both places of employment for the last two calendar years. Otherwise, the benefit is assigned only to one of the last employers at the choice of the employee: accordingly, this organization will be the tax agent obligated to withhold personal income tax from sick leave.
How will sick leave be taxed with personal income tax in 2016?
On January 1, 2016, changes to the Tax Code of the Russian Federation come into force, according to which, when paying sick leave benefits, personal income tax will need to be transferred to the budget no later than the last day of the month when the payment took place. The changes will affect both temporary disability benefits and benefits for caring for a sick child.
Sick leave is a document confirming an employee’s excused absence from work.
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It is issued for a number of reasons, the most common of which are illness, necessity or.
Compensation is calculated based on the sick leave certificate.
The document itself can only be issued by medical institutions that have the appropriate license.
So, to obtain it, you can contact public hospitals and private clinics, dental offices and hospitals with a narrow profile of work (for example, neurological).
Onset of disability
Loss of ability to work is recorded at an appointment with a doctor - if there are signs of the disease.
There are several reasons for issuing sick leave:
- disease;
- pregnancy and childbirth;
- staying in quarantine;
- the need for follow-up treatment in inpatient or sanatorium conditions;
- caring for a child or other sick family member.
The fact of incapacity for work is reflected in the sick leave certificate. It does not indicate the diagnosis, since it constitutes a medical secret; only the corresponding code is entered.
Additionally, the document indicates the duration of sick leave, on the basis of which compensation is calculated.
Payment Features
Carried out on the basis of a sick leave certificate. The first three days of forced leave are compensated by the employer, the remaining days - by the Social Insurance Fund.
The law provides for cases when the entire sick leave is paid from the Social Insurance Fund, for example, pregnancy and childbirth.
To receive payment, a sheet of temporary loss of ability to work and all necessary certificates are submitted to the employer and the Social Insurance Fund along with the application.
The documentation is reviewed within 10 days, after which funds are accrued along with the advance payment or wages. Tax is withheld from them in advance.
Is it subject to personal income tax?
Is income tax collected on sick leave? Yes, in 2019 its rate is 13%. It is charged when calculating compensation to the employee.
It is important that the employee can receive payment within six months from the end of sick leave, since the validity period of the temporary disability certificate is 6 months.
Normative base
The regulatory framework for the issue of paying taxes on sick leave is the articles of the Tax Code of the Russian Federation. Yes, Art. 217 of the Code establishes cases in which taxes and payments will be charged on benefits issued due to temporary loss of ability to work.
Federal Law No. 323 provides for the specifics of the application of temporary disability certificates, which ensure the protection of the health of citizens.
Order of the Ministry of Health No. 624 establishes the rules for the preparation and issuance of leaflets.
RF PP No. 375 regulates issues related to the registration of sick leave in connection with pregnancy, childbirth and child care.
Taxes on sick leave in 2019
The benefit paid in connection with temporary loss of ability to work is considered as a source of wages, therefore tax and insurance contributions are calculated on it.
Taxes on sick leave in 2019:
- income tax;
- mandatory payments to the Pension Fund of the Russian Federation and the Social Insurance Fund;
- payments for social needs.
Taxes are assessed on the employee's benefits in the same manner as they are levied on the wages paid to him
Income
Is income tax charged? Yes, payment of which is made in accordance with sick leave.
This is due to the following provisions:
- compensation payments replace wages and therefore are a source of income;
- the benefit is paid not from the state budget, but by the employer and the Social Insurance Fund, it follows that the tax for the first 3 days of the employee’s absence from the workplace is paid by the management, the rest - by the Social Insurance Fund;
- the employee does not personally participate in the payment of income tax, since the benefit, like wages, is reduced by the amount of personal income tax before payment.
Similar rules have been in force throughout the Russian Federation since 2007.
Employees of the accounting department and the Social Insurance Fund must reflect the payment of income tax in their reports and mark it with the appropriate code 2300.
For pregnancy and childbirth
In accordance with current legislation, taxes are not levied on sick leave if the basis for its receipt was pregnancy and childbirth.
In this case, after leaving, the employee submits a certificate of incapacity for work and several certificates to the employer, after which she will be able to receive compensation in full within 10 days, since this source of income does not constitute a taxable base.
For child care
If sick leave is issued due to the need to care for a child, then taxes and mandatory payments will be withheld from the compensation received.
It follows from this that such a source of tax falls into the tax base.
The employee himself will not have to worry about the need to deduct taxes - the accounting department staff at the place of work or the Social Insurance Fund will do this for him.
Calculation procedure
due to forced leave:
- The employee's salary for the previous two years is calculated. To do this, you may need a certificate of income from a previous place of work if the citizen has recently started a new position.
- The average daily wage is determined. To do this, income for 2 years is divided by 730 (the number of days in two years).
- The result obtained is multiplied by the number of days on sick leave. The value is compared with the minimum and maximum amount that can be received on sick leave.
The calculation of payments under this document has a lot of features. For example, you can replace one or two years used for calculation with earlier ones if in one or two of them the employee was on leave due to pregnancy and childbirth.
If an employee has been working for less than two years and does not present a certificate of income from his previous place of work, then the calculation is carried out taking into account the established
How is personal income tax withheld from sick leave in 2019? The answer to this question interests both employees of enterprises and the administration of each organization.
Taxation changes frequently and you need to keep up to keep up to date with changes to current regulations. Let's look at the nuances of calculating this tax on sick leave in more detail.
Is this tax withheld from hospital payments?
The Russian state has taken care of its working citizens and provides them with the right to receive benefits while they are on sick leave. The company pays only the first 3 days for the period of temporary disability, and the rest of the period is compensated by money from the Social Insurance Fund. At the legislative level, such rights of workers are set out in Art. 39 of the Constitution of the Russian Federation, Art. 183 TK.
Employer obligated to charge and pay 13% of each member and employee for the period when the employee was unable to perform his work duties due to illness. This is stated in Article 217 of the Tax Code of the Russian Federation. The legislative act describes what types of insurance amounts are provided that are not subject to deductions to state budget funds, but also states the phrase: “except for sick leave payments, as well as benefits for caring for a sick child.” Therefore, in this case, the enterprise, by law, makes personal income tax deductions when paying for the period of illness of its employee or when he provided care during the treatment of his young offspring.
Tax withholding procedure
Cash payments due to an employee on sick leave for incapacity for work, subject to settlement and withholding Personal income tax in 2019 according to the same principle as before. The changes affected only tax payment deadlines– no later than the last date of the month in which the employee received the benefit. It does not matter how the worker received them: by transfer to a salary card in a bank or in cash at the company’s cash desk. The employer's actions must comply with clause 6 of Art. 226 Tax Code of the Russian Federation.
Organizations that carry out their activities with the involvement of hired workers in the territories of the constituent entities of the Russian Federation participating in the FSS pilot project do not have to worry about payments and deductions of personal income tax on sick leave. The money there is paid directly by the FSS branches, which is why they are the tax agents for the calculation and payment of personal income tax.
Contributions to the tax service from cash benefits accrued during the period the employee is on sick leave are made in accordance with code 2300. All this is done on the basis of Appendix No. 3 to the order of the Federal Tax Service No. MMV-7-3/611@. The approved codes must be entered in the 2-NDFL certificate document. The tax code for disability benefits remains unchanged. You can find out more information about 2019 in Appendix No. 1 to the Order of the Federal Tax Service dated September 10, 2015 No. ММВ-7-11/387@.
For information on the timing of the transfer of this tax, see the following video:
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Calculation procedure
To calculate the amount of benefits during an employee’s treatment, you need to know the percentage depending on the length of service, which affects the amount of payment.
The accrual of the amount of benefit and tax for the period of incapacity is determined sequentially at these stages:
The calculation is made within 10 days after the sick leave is received by the enterprise administration. The payment will be made in the coming days along with the issuance of salaries.
Sick leave for pregnancy and childbirth
The benefit, which is calculated and paid to the expectant mother for pregnancy and childbirth according to the sick leave certificate provided by her, is not a subject to a tax no taxes, including personal income tax. This provision is justified in Art. 217 Tax Code of the Russian Federation.
Benefit calculation be made using the same method as for paying sick leave, but interest depending on the length of insurance coverage is not taken into account. The resulting payment amount, when multiplied by the average daily salary by the number of days, must be given to the expectant mother in full (100%) before the birth. However, when making calculations, you need to compare the average daily earnings with its maximum amount and select the smaller of these values (Article 14 of the Federal Law of December 29, 2006 No. 255-FZ).
Sometimes the employer may pay extra a pregnant woman above the established standards in order to achieve the level of average earnings. If this is carried out at the enterprise, then personal income tax must be withheld from this allowance, because such an additional payment to the benefit is standardized. Keep in mind that sometimes the amount paid to the parent (adoptive parent) is not subject to personal income tax. But only if it is registered as a separate financial assistance of up to 50 thousand rubles per child in connection with his birth. This provision is specified in paragraph 8 of Article 217 of the Tax Code of Russia.
To hold No personal income tax was paid From the amount of financial assistance, certain rules must be observed:
- the payment was made within a calendar year from the date of birth of the child;
- one of the parents provides a document confirming that his spouse did not receive assistance at his place of work.
The amount of assistance may consist of two partial payments received by each parent from their employers, but their total amount should not exceed 50 thousand rubles.
The document confirming the non-receipt of assistance or only part of it will be a 2-NDFL certificate from the spouse’s place of work.
