Cash compensation for the vacation is paid to the employee in the event of his dismissal from the company. Such a payment is mandatory and is calculated according to certain rules. Of particular note is the preferential taxation of such a calculation.
In which case the employee is compensated for unused vacation
An employee who has decided to change his place of work, subject to the availability of unclaimed days of vacation, the employer must pay cash compensation. Accountants quite often calculate such a payment, since on the day of dismissal almost everyone has vacation days.
Compensation for unused vacation during dismissal is calculated not on the last day of the month, as it is customary to calculate wages, but on the term of dismissal of an employee. Naturally, such a calculation is also paid on the day the employee leaves. The amount of compensation payments directly depends on the number of days of all accumulated holidays and does not depend on the reason for dismissal.
What taxes are compensatory payments exempted from
Compensation for unused leave upon dismissal is a special income for the employee, therefore such accrual is subject to partial taxation. Under current law, the compensation payment for unused vacation days is exempted from the calculation of insurance contributions to pension and medical funds. Also, the calculation is not included in the tax base of the social insurance fund and is not involved in the calculation of contributions for injury insurance.
In connection with such a privilege, regulatory authorities closely monitor that accrual of compensation is made only in case of partial replacement of excess vacation days or upon dismissal of an employee. In other situations, vacation compensation is not permitted.
What taxes still have to accrue
Starting to calculate the compensation payment, many accountants are wondering whether compensation is taxed upon the dismissal of personal income tax. The Tax Code of the Russian Federation (Article 217 Clause 3) states that such earnings are taxed on income on a common basis, regardless of the reason for which payment was accrued - in connection with the replacement of additional leave or dismissal.
Compensation for unclaimed vacation also falls into the calculation base for income tax. The amount of the calculation is included in full, even if there is a reserve for vacation pay. If the company applies a simplified taxation system with a rate of 15%, then the compensation also falls into the expense item in full (Tax Code, Article 346.16).
How to reflect the tax calculation in the calculation of 6-personal income tax
Despite the fact that the 6-NDFL form contains only a couple of sheets, its completion raises a lot of questions for accountants. Compensation for dismissal in 6 personal income tax is reflected in accordance with the general rules for filling out the form. But in this situation, you should pay close attention to the fact that in the reporting period you will have to enter data on two accruals: wages and compensation for vacation. The difficulty is that these two charges can be calculated and paid at different times. For example, personal income tax when compensating for dismissal is charged on the last working day of the resigning employee (Tax Code, Article 223), and from the salary - according to the results of the month.
Payment for unused vacation is recorded in 6-personal income tax in two sections. In the first, it is indicated in the amount of accrued income on line 020 (tax on lines 040 and 070). In the event that compensation is paid separately from other charges, then it is entered as a separate line in the calculation of 6-personal income tax. In the second section of the calculation for lines 100 and 110, you need to put down exactly the date that reflects the moment of payment of compensation to the employee.
Based on the data entered on the 6-personal income tax form, the 2-personal income tax form will be filled in the future. To do this, the code provides code 4800, and personal income tax upon compensation upon dismissal will be indicated in the total amount of tax.
Date of transfer of personal income tax upon compensation upon dismissal
Since compensation is taxed on income, the necessary amount must be paid to the budget in a timely manner. Compensation payment is not a remuneration, but is accrued to the employee instead of unused vacation, so personal income tax when compensating for dismissal must be transferred on the day the funds are sent to the employee’s account or at the time of cash payment (Tax Code, Article 226).