Is severance pay subject to insurance contributions?

Dismissing an employee if it is not his initiative is quite difficult. But it is possible if the company agrees to make certain expenses and pay compensation to the employee - the so-called “compensation”. We’ll tell you what amount is best to pay, whether it can be classified as “deductible” expenses, and whether you need to pay taxes on it.

If an employee is not ready to part with his place of work at his own request, then he can resort to terminating the employment contract by agreement of the parties (Article 78 of the Labor Code of the Russian Federation). With this method, it does not even matter who exactly is the initiator of termination. The main thing is that both sides agree to say goodbye to each other. And in order for the employee to agree to this, he is usually offered a certain amount of payment (compensation, bonuses, monetary compensation, severance pay, etc.).

The employer here has two questions at once: what amount needs to be paid and what document should contain the condition for its payment?

Step-by-step instruction

September 05 Kolokoltsev I.F. wrote a letter of resignation at the employee's initiative. On the same day, an order was issued for his dismissal on September 19.

The employee has worked for the Organization since December 26, 2016. Last October, Kolokoltsev was on vacation and fully used his right to annual paid leave of 28 calendar days.

On September 19, Kolokoltsev received the following calculation:

• compensation for unused vacation;
• wages for September.

On the same day, the funds, according to the calculation, were transferred to I.F. Kolokoltsev’s personal card. taking into account the fact that on August 26 he received an advance payment for September in the amount of 16,000 rubles. In addition, personal income tax was paid to the budget.

Step-by-step instructions for creating an example. PDF

Compensation for pensioners

Upon reaching retirement age, every citizen receives the right to receive old-age benefits in the manner prescribed by law. To do this, he needs to contact the Pension Fund with an application for the assignment of payments.

The general procedure for assigning a pension upon dismissal is as follows:

1. The employee submits an application to the Pension Fund. If he wants to resign, another application is sent to the employer, and he is not obliged to comply with the two-week notice period, and reaching retirement age is not grounds for terminating the employment contract.
2. After reviewing the documents, a pension is assigned. Payments are made from the month following the month of application.

Working pensioners also have the right to state benefits, which are regularly indexed. When leaving at their own request in connection with retirement, citizens are entitled to the following:

• Salary.
• Compensation for missed vacation.

If the termination of the contract was a consequence of staff reduction or liquidation of the company, an additional one-time severance pay is paid depending on the average monthly salary. The calculation uses the amount of average income for the year divided by 12 months.

If the dismissed person finds out that his payments were calculated incorrectly, he can request a recalculation from the accounting department.

Regulatory regulation

Providing compensation

Upon termination of the employment relationship, the employee is entitled to compensation for all days of unused vacation during all years of work in the organization (Article 127 of the Labor Code of the Russian Federation).

Leave to employees must be granted annually with preservation of their place of work (position) and average earnings (Article 114, Article 120 of the Labor Code of the Russian Federation).

In some cases, it is possible to replace annual leave with monetary compensation. For employees who continue to work in the organization, payment of compensation is possible only for additional vacation days exceeding 28 calendar days in the working year (Part 1 of Article 126 of the Labor Code of the Russian Federation).

Calculation of compensation upon dismissal

Compensation for unused vacation upon dismissal is calculated using the formula:

Compensation for unused vacation is subject to personal income tax (clause 1 of Article 210 of the Tax Code of the Russian Federation, clause 3 of Article 217 of the Tax Code of the Russian Federation) and insurance contributions (clause 2 of clause 1 of Article 422 of the Tax Code of the Russian Federation).

Number of unused vacation days

If an employee has worked part-time, the number of vacation days due to him is calculated based on the months worked during the working year:

Working year - a full 12 months worked by an employee from the date of his hiring to the date preceding the start of the new working year (clause 1 of the Rules on regular and additional leaves, approved by the People's Commissariat of Labor of the USSR 04/30/1930 N 169, Letter of Rostrud dated 12/18/2012 N 1519-6-1).

In this case, a month is considered fully worked if the employee worked half the days or more in it. If less than half a month is worked, it is not counted (clause 35 of the Rules on regular and additional leaves, approved by the People's Commissariat of Labor of the USSR on April 30, 1930 N 169: valid to the extent that does not contradict the Labor Code of the Russian Federation).

In our example, we will calculate the number of days for which the employee is entitled to vacation. Working years of Kolokoltsev I.F.:

• 1 year - from December 26, 2016 to December 25, 2017, 28 cal. days used;
• Year 2 - from December 26, 2017 to December 25, 2018, 28 cal. days used;
• 3rd year - from December 26, 2018 to September 19, 2019, of which worked: 8 full months (from December 26, 2018 to August 25, 2019);
• 25 calendar days of the ninth month of the working year (from 08/26/2019 to 09/19/2019). This is more than half a month: therefore, the ninth month is counted in full.

Calculation of days of unused vacation Kolokoltseva I.F.:

• 28 days / 12 months x 9 months = 21 days

If, as a result of calculating the number of days of unused vacation, a fractional number is obtained, labor legislation does not require rounding it. However, if the employer decides to round the number of vacation days, arithmetic rules cannot be applied: they always round in favor of the employee (Letter of the Ministry of Health and Social Development of the Russian Federation dated December 7, 2005 N 4334-17).

Average daily earnings

The average daily earnings of an employee are calculated based on the salary actually accrued to him and the time actually worked by him for the 12 calendar months preceding his dismissal (Article 139 of the Labor Code of the Russian Federation), according to the formula:

29.3 is the average monthly number of calendar days established by the Government for calculating the average daily earnings for paying vacations and compensation for unused vacations (clause 10 of the Regulations on the specifics of the procedure for calculating average wages, approved by Decree of the Government of the Russian Federation of December 24, 2007 N 922) .

During the specified 12 months, there are periods excluded from the calculation: such when (clause 5 of the Regulations on the specifics of the procedure for calculating average wages, approved by Decree of the Government of the Russian Federation of December 24, 2007 N 922):

• the employee retained his average earnings in accordance with the law, for example, during business trips, vacations;
• the employee did not work due to downtime;
• the employee was absent due to temporary disability or pregnancy and childbirth;
• the employee was on vacation at his own expense and others.

In these cases, the average daily earnings are calculated using the formula:

When calculating compensation for unused vacation or changing the minimum wage in the accrual period, it is necessary to compare the average monthly earnings (to calculate compensation) with the minimum wage: it cannot be lower than the federal minimum wage in force on the date of accrual of compensation (clause 18 of the Regulations, approved by the Decree of the Government of the Russian Federation dated 12/24/2007 N 922).

More information about the compliance of average monthly earnings with the minimum wage

Let us determine the average daily earnings of an employee according to our example, taking into account that in Kolokoltsev’s billing period there are payments and days excluded from the calculation.

Let's calculate the number of days actually worked by the employee during the billing period. Days must be counted in calendar days, taking into account the daily average established by the Government of the Russian Federation (29.3).

• During the billing period, I. F. Kolokoltsev worked for 11 full months. The number of days actually worked during this period was: 11 x 29.3 = 322.3 cal. day

• In October he went on vacation for 28 calendar days, so the number of days of work in October is:
  31 days in October - 28 days of vacation = 3 cal. day

• They must be recalculated taking into account the average monthly number of calendar days:
  29.3 x 3/31 = 2.84 cal. day

• Total days worked in the billing period:
  322,3 + 2,84 = 325.14 cal. days

• The amount of earnings in the billing period is 455,196 rubles.
• Calculation of average daily earnings:
  RUB 455,196 / 325.14 cal. days = 1,400 rub.

Now let's calculate the amount of compensation for unused vacation.

• The number of days of Kolokoltsev’s unused vacation is 21 days .
• Compensation for unused vacation was: 1,400 rubles. x 21 days = 29,400 rub.

Errors made when paying CB

Error No. 1. The income of employees who have been working at the enterprise not since the beginning of the calendar year and who have other places of work is summed up without taking into account remunerations received in this period from other employers. A similar approach to determining the income base of employees fired during the year and employed by the same employer is erroneous. The income base calculated by the employer for each employee is formed taking into account the amounts previously received at this enterprise.

Error No. 2. Cases have been established in which a dismissed employee is provided with severance pay. The opinion that all benefits established by the internal documents of the enterprise are exempt from SV taxation is erroneous. Benefits not listed in labor legislation are considered employee income in connection with the performance of work activities and are not exempt from payment of the contribution tax.

Dismissal of an employee

In order to correctly reflect in 1C the operations for calculating final wages and compensation for unused vacation, first of all, it is necessary to fire the employee.

The Dismissal document is created from the section Salaries and Personnel – Personnel Records – Personnel Documents – Create – Dismissal.

Study in detail the dismissal procedure and filling out the document using the example

Which funds are transferred to and what amount?

From this type of profit, contributions are transferred to the following types of funds:

• pension;
• medical;
• social;
• for so-called injuries - money is transferred from occupational pathologies and workplace accidents.

The amount of transfers depends on the type of fund:

• Medical. There is a fixed rate set here, which is 5.1% of the profit.
• Regarding injuries. The amount of transfers depends on the employer’s membership in a certain risk class. The amount is 0.2-8.5 of total income.
• Pension. The state annually sets a maximum amount of earnings from which interest is withheld in favor of the pension fund. So, if a citizen earns less than this value in a year, then the employee is charged 22% towards pension savings. If the salary exceeds the established value, then the amount is 10%.
• Social. The contribution amount is 2.9% of total income. This amount is charged up to a certain profit amount. As soon as the employee’s salary for the year reaches this value, accruals stop.

Calculation of an employee upon dismissal

Settings in 1C for calculating compensation

When installing the 1C program in the database, a predefined accrual type should be automatically created the Accruals : Leave compensation upon dismissal under the code KOT .

If it turns out that this accrual does not exist, then you should enter it into the Accruals from the section Salaries and Personnel - Directories and Settings - Salary Settings - Payroll - Accruals.

Please pay attention to filling out the fields:

Personal income tax section :

• switch - taxable ;
• income code - 2013 - Amount of compensation for unused vacation;
• Income category - Other income from work .

Section Insurance premiums :

• Type of income - Income entirely subject to insurance premiums ;

Section Income tax, type of expense under Art. 255 Tax Code of the Russian Federation :

• switch - taken into account in labor costs under article : - pp. 8, art. 255 of the Tax Code of the Russian Federation - Monetary compensation for unused vacation in accordance with the labor legislation of the Russian Federation;
• The checkbox Included in the basic accruals for calculating the “Regional coefficient” and “Northern bonus” accruals does not need to be set for the Accrual Compensation for unused vacation , since these accruals are already taken into account in the earnings that are used to calculate compensation.

Section Reflection in accounting :

• The method of reflection is not established. In this case, the compensation will be charged to the expense account set in the Expense Accounting the Employees directory for the salary of the employee to whom it is accrued. PDF

Compensation for an employee's unused vacation must be accounted for in the same cost account in which his salary is recorded.

The method of reflection in the Accruals takes precedence over the method specified in the Expense Accounting in the Employees . there is no need to set separate method of reflection in the Compensation for unused vacation (Accrual) .

Compensation for unused vacation is part of the salary, therefore, in accounting accounting, compensation is reflected as part of labor costs (clause 8 of PBU 10/99):

• Dt of the cost account, according to which the employee’s salary is calculated;
• CT “Settlements with personnel for remuneration” (chart of accounts 1C).

In NU, compensation for unused vacation is also taken into account in labor costs (clause 8 of Article 255 of the Tax Code of the Russian Federation) as part of direct or indirect expenses. The attribution of compensation costs to direct or indirect expenses depends on where the basic salary of the dismissed employee is allocated, according to the accounting policy.

In 1C, compensation for unused vacation will be reflected in the salary account specified in the Employees in the Expense Accounting .

Learn in more detail the definition of salary accounting methods (main postings)

Calculation of an employee upon dismissal

Compensation calculation is not automated in 1C and is reflected in the Payroll document in the Salaries and Personnel section - Salary - All accruals - Create button - Payroll calculation.

The document states:

• Salary for - the last month of work of the employee.
• from — the employee’s last day of work.

By clicking the Add , you must select the employee with whom the settlement is being made. The program will calculate wages based on the employee’s salary and the time worked by him on the date of dismissal.

Accrue button to select Accrual Compensation for unused vacation and indicate the calculated amount. The calculation of compensation must be done independently, for example, in an Excel table.

All amounts accrued to an employee can be viewed and, if necessary, adjusted in the Accruals , which opens by clicking on the link in the Accrued .

In the Accrual Payment Date column for accrual of Salary Payment is set automatically as the last day of the accrual month and cannot be adjusted.

To calculate Compensation for unused vacation, the payment date will be automatically set according to the date of the Payroll .

• Personal income tax - the amount of calculated personal income tax.

personal income tax link in the personal displays the calculation of personal income tax on an accrual basis for the employee for the current tax period.

The date of actual receipt of income in the form of wages, including compensation for unused vacation, is considered to be the last day of work for which income was accrued to the resigning employee (paragraph 2, paragraph 2, article 223 of the Tax Code of the Russian Federation).

In the personal income tax Salary Accrual document, the date will be recorded Date column

• actual receipt of income for both types of accrual - in the Dismissal Date Dismissal document . PDF
• personal income tax withholding - according to the date of the Payroll , which accrues wages and compensation.

Postings according to the document

The document generates transactions:

• Dt Kt - salary calculation for the last month of work;
• Dt Kt - calculation of compensation for unused vacation;
• Dt Kt 68.01 - calculation of personal income tax on the amount of wages and compensation;
• Dt Kt 69.01 - calculation of contributions to the Social Insurance Fund;
• Dt Kt 69.03.1 - calculation of contributions to the FFOMS;
• Dt Kt 69.11 - calculation of contributions to NS and PZ;
• Dr Kt 69.02.7 - calculation of contributions to the Pension Fund.

Despite the fact that the Salary Accrual was issued on the last day of the employee’s work, the calculation of salaries and contributions in the BU and NU accounts in 1C is carried out on the last day of the month.

Documenting

The organization must approve the forms of primary documents, including for calculating payments upon dismissal. As a basis, you can take form T-61 “Note-calculation upon termination (termination) of an employment contract with an employee (dismissal)” (approved by Resolution of the State Statistics Committee of the Russian Federation dated January 5, 2004 N 1).

• Excel
• PDF

Income tax return

In our example, the salary of I.F. Kolokoltsev is taken into account on account 26 “General business expenses” and in tax accounting refers to indirect (other) expenses.

In the income tax return, the costs of wages and compensation for unused vacation, as well as insurance premiums accrued from them, will be reflected in indirect expenses only after the Closing of accounts 20, 23, 25, 26 is carried out in the Closing of the month procedure: PDF

• Sheet 02 Appendix No. 2 page 040 “Indirect costs - total”: wages;
• compensation for unused vacation;
• insurance premiums;

See also What to do so that page 041 is filled in automatically

Dismissal due to health reasons

If an employee has completely lost his ability to work or must be transferred to another position in accordance with medical indications, but refused this, the employer may dismiss him on the basis of Art. 81 Labor Code of the Russian Federation.

If the employment relationship is terminated for the above reasons, the employee is entitled to the following:

• Payment of wages.
• Compensation for missed vacation.
• Severance pay for 2 weeks based on average earnings.

The procedure for dismissal for health reasons begins with the employer submitting a notice. It must indicate the availability of suitable positions. If the employee does not agree to the transfer, a written refusal will be required from him, and only then the manager has the right to terminate the employment contract.

If the person leaving is a military serviceman, then, in addition to wages, benefits and money for the days of remaining leave, he is entitled to additional compensation, provided that the injury or disability was received during his service.

According to the legislation of the Russian Federation, to calculate the total amounts, you need to know the procedure and formulas - they are relevant for all citizens, regardless of place of employment.

Payment of personal income tax to the budget

Personal income tax on compensation for unused vacation is paid no later than the day following the day it is paid to the employee (clause 6 of Article 226 of the Tax Code of the Russian Federation).

Payment of personal income tax to the budget is reflected in the document Write-off from the current account transaction type Tax payment in the Bank and cash desk section - Bank - Bank statements - Write-off button.

The document states:

• Transaction type - Tax payment ;
• Tax - personal income tax when performing the duties of a tax agent ;
• Type of liability - Tax ;
• for - September 2019 , the month of income accrual (payments upon dismissal).

Learn more about reflecting personal income tax payments to the budget

Postings according to the document

The document generates the posting:

• Dt 68.01 Kt - payment of personal income tax to the budget for September.

The procedure for calculating personal income tax on dismissal payments

The amounts that are paid to an employee in the event of dismissal can be divided into taxable and non-taxable with income tax (NDFL).

Taxable include :

• all accruals to the employee for time worked and work performed;
• payment of unused vacation days.

There is no need to charge personal income tax on severance pay within the established limit and some types of compensation payments (Article 217 of the Labor Code of the Russian Federation).

The process of determining the tax base includes:

1. Identification of taxable and non-taxable charges.
2. Summation of only taxable accruals.
3. Application of deductions to the amount of taxable charges.

The tax is calculated using the formula:

6-NDFL

Tax amounts are calculated by tax agents on the date of actual receipt of income on an accrual basis from the beginning of the tax period (clause 3 of Article 226 of the Tax Code of the Russian Federation). In the reporting, the date of receipt of income is reflected on page 100 of Section 2 of Form 6-NDFL. Its definition depends on the type of income. For compensation for unused vacation and other amounts upon dismissal, income will be received on the day it is paid to the taxpayer (clause 1, clause 1, article 223 of the Tax Code of the Russian Federation).

In 1C, for our example, the date of actual receipt of income is indicated in the Date of the document Write-off from the current account . PDF

In Form 6-NDFL, the accrual and payment of annual leave is reflected in:

Section 1 “Generalized indicators”:

• line 020 - 55,400, amount of accrued income;
• pp. 040 - 7 202, amount of calculated tax;
• pp. 070 - 7 202, amount of tax withheld.

Section 2 “Dates and amounts of income actually received and withheld personal income tax”: PDF

• page 100 - 09.19.2019, date of actual receipt of income;
• page 110 - 09/19/2019, tax withholding date.
• page 120 - 09/20/2019, tax payment deadline.
• pp. 130 - 55,400, the amount of income actually received.
• pp. 140 - 7,202, amount of tax withheld.

Insurance premium deductions

In 2021, deductions of insurance premiums (IC) are carried out in accordance with Chapter. 34 Tax Code of the Russian Federation. Control over the accuracy of accruals, transfers and reporting is carried out by the Federal Tax Service. Contributions for injury prevention are made to the Social Insurance Fund account. Transfer of contributions to the budget for the billing (monthly) period is carried out simultaneously for all amounts accrued for the enterprise.

When calculating contributions for a dismissed employee, previously accrued benefits are taken into account on an accrual basis. Summing up income from the beginning of the calendar year makes it possible to determine whether the maximum base value has been reached for individual contributions. Limits that determine contribution rates are established for contributions to compulsory pension and social insurance (OPS and OSS). The limits are recalculated annually.

The amount of contributions paid to the Social Insurance Fund for the prevention of injuries and occupational diseases is determined by the main type of activity of the enterprise. There is no limit on the amount of income received by the employee by the date of dismissal for deductions. The tax period established for calculating contributions is a calendar year.

Checking mutual settlements

Mutual settlements with an employee

You can check mutual settlements with an employee using the report Balance sheet for the account “Settlements with personnel for wages” in the Reports section - Standard reports - Account balance sheet.

It is logical to generate the report on the date of dismissal: in our example it is September 19. However, entries in accounting for calculating compensation and wages upon dismissal in the account “Settlements with personnel for wages” were generated only on September 30. Therefore, the report must be generated on this date.

The report shows that there is no debt to the dismissed employee at the end of the month.

Mutual settlements with the budget for personal income tax

To check the calculations with the budget for personal income tax, you can generate the report Analysis of account 68.01 “Personal income tax when performing the duties of a tax agent” in the section Reports - Standard reports - Account analysis.

In our example, payment of compensation and wages was carried out on September 19, the deadline for transferring personal income tax was September 20, i.e. the day following the day of payment. But in the accounting system, under the credit of account 68.01 “Personal income tax when performing the duties of a tax agent,” personal income tax, like wages, was accrued on September 30.

The absence of a final balance in account 68.01 “Personal income tax when performing the duties of a tax agent” means that there is no debt to pay personal income tax to the budget.

The accountant is used to this report, but it does not give an up-to-date picture of mutual settlements with the budget for personal income tax, since data on withheld and transferred personal income tax is accumulated in personal income tax registers, and not in accounting accounts. Therefore, we recommend that you use the report Control of personal income tax payment deadlines . In our opinion, it is more informative.

Control of personal income tax payment deadlines

To check the calculations with the budget for personal income tax, as well as the deadlines for payment, you can generate a report Control of deadlines for personal income tax payment in the section Salaries and personnel - Salary - Salary reports - Control of deadlines for personal income tax payment.

In our example, payment of compensation and wages was carried out on September 19, the deadline for transferring personal income tax was September 20, i.e. the day following the day of payment. We will generate a report for the period September 19-20 for Kolokoltsev I.F. To generate the necessary data, use the Settings to set:

• View - Advanced .

Selections tab by clicking the Add selection :

• Field - Individual ;
• Condition - Equal to ;
• Meaning - Kolokoltsev Ivan Fomich ;
• — In the header of the report.

Fields and sorting tab - do not change the existing settings.

Structure tab on the Add :

• Grouped fields - Recorder , check the box.

After completing the setup of the Personal Income Tax Payment Deadline Control , you must click the Close and generate . The program will generate a report.

• Write-off from the current account dated 09.19.2019 N 5 - a document of payment to the employee of amounts upon dismissal, established the deadline for paying the debt to the budget - 09.20.2019.
• Write-off from the current account dated September 19, 2019 N 6 - personal income tax payment document, repaid the debt to pay tax to the budget.

The absence of a final balance on the personal income tax payment due date indicates that personal income tax was paid to the budget on time.

Test yourself! Take a test on this topic using the link >>

See also:

• Salary settings in 1C
• Payroll
• Accrual of vacation pay

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Deadlines for transferring insurance premiums

The final payment to the employee is made on the last working day, which is also the day of dismissal. Regardless of the date of the last payment, the transfer of SV to the budget is subject to general rules. Payment of the SV is made simultaneously with all contributions accrued for the remuneration of the enterprise's employees. The procedure for settlement with the budget is defined in Art. 431 Tax Code of the Russian Federation. Basic rules for paying contributions to the budget:

• Transfer of insurance premiums is carried out on the 15th day of the month inclusive. If the payment date coincides with a weekend or holiday, payment is made on the first subsequent business day.
• The amounts of contributions accrued on taxable payments to employees calculated for the previous month are subject to payment.
• Transfers are made for each type of contribution, indicating in the payment order the purpose, amount, BCC and other data that allows the payment to be identified.
• The amount of contributions is transferred without rounding, in rubles and kopecks.

Payments to separate divisions of the enterprise are made depending on the specific structure. Branches that calculate contributions for employee benefits transfer the amounts themselves. If the branch does not have the authority to make settlements and payment transactions, deductions are made by the head office. For divisions operating abroad, payments are also made by the enterprise at the place of main accounting.