The use of a personal vehicle by an employee during the performance of a labor function is carried out based on the goals of the production need, if the employee's activity is of a traveling nature. In this case, the employer is obliged to calculate the compensation of expenses when using personal vehicles. This provision is enshrined in article 188 of the Labor Code.
Grounds for calculating compensation payments
Use by an employee of a personal vehicle for work purposes must be made out in the form of a written agreement between the employee and the employer. The contract for compensation for the use of personal vehicles may be an additional agreement to the employment contract or a separate written document.
The terms of the contract prescribe the operating rules (period or period of use; duties of the employee that require him to use personal transport; frequency of use of the car and so on). A separate paragraph must indicate the amount of compensation for the use of personal vehicles. It can be calculated within the limits established by legislative norms, or exceed them.
The conditions for compensation for the use of personal vehicles for official purposes, prescribed in the document, depend on the form in which it is drawn up. If a car rental contract is concluded, transfer of the vehicle is based on the act. At the same time, the important terms of the contract are the following: the obligation of the employer to conclude a car insurance contract (for compulsory motor liability insurance) and to carry out all types of repair work.
If the agreement on registration of compensation for the use of personal transport is part of the employment contract or in addition to it, the employer's obligations include only the calculation and payment of funds for traveling work. Driving a car is carried out personally by the employee, repair is also carried out by him independently.
Also, compensation payments for the use of personal vehicles can be fixed in a civil type contract for the provision of transport services. In this case, the parties prescribe a specific period of use of the car and a specific amount of payment.
In some cases, the use of your car in business affairs is one-time. It also requires registration of compensation for the use of personal vehicles to the employee. The main document on the basis of which the payment is calculated and made is the order issued by the employer. The form of the document is arbitrary. It should contain information about the employee and his vehicle, the frequency and amount of compensation payments. The order on the payment of compensation to the employee for the use of personal vehicles is issued on the basis of a calculation carried out by the accounting department at the end of the month.
Types of costs that are compensated to the employee
The norms of the Labor Code stipulate that compensation payments for the use of personal vehicles are made as a replacement with the monetary amount of car wear and maintenance costs. Payments are made for several items. In total, the legislator provides for four types of compensation for the use of personal vehicles:
- Fuels and lubricants and fuel (acquisition);
- carrying out ongoing repairs;
- car wash, payment for parking (if necessary);
- other expenses incurred in the process of using a personal car.
The specified list of expenses to be reimbursed is established taking into account the position of the tax authorities.
With regard to compensation for the use of personal vehicles in terms of payments for fuel and lubricants, it should be noted that the corresponding calculation is made by the employer on the basis of checks provided by the employee. According to legislative norms, expenses for fuel and lubricant materials are to be covered by the employer based on the amount actually spent.
A prerequisite for receiving compensation for the use of personal vehicles is documents. It can be not only checks, but also receipts. When calculating the tax base, the amount of expenses for the purchase of fuels and lubricants is not taken into account. When making payments, accounting is made after determining the mileage and applying the spending standards established by some decisions of the Ministry of Transport and the technical documentation of the vehicle.
When determining the amount of compensation for the use of personal vehicles, the employer is obliged to pay cash only for those costs that are associated with current automobile expenses and deterioration of the car. There is no surcharge for the direct control of the vehicle. All payments for car trips are made within the framework of the employee’s salary.
The amount of cash for payments provided to the employee
Legislation established norms for compensation for the use of personal vehicles. They are taken into account not only for determining the size of payments, but also for calculating the tax base (the amount of profitable tax or single type tax). In this case, upon payment may be made in a larger amount than established by the calculations.
The maximum amount of compensation paid for using personal transport is established by Decree of the Russian Government No. 563 of July 2, 2013. According to the established standards, the following limits are defined for passenger cars:
- If the engine capacity does not exceed two thousand cubic centimeters, the maximum amount of payments is two thousand four hundred rubles.
- If the engine capacity exceeds two thousand cubic centimeters, the maximum amount of payments is three thousand rubles.
If we are talking about the use of personal freight transport, which is used to solve production problems, there is no maximum amount to be paid. The amount of compensation payable is determined by the parties in the agreement on attracting a motor vehicle. The accrual of the contractual amount must be supported by primary expenditure documents confirming the amount of the costs of the owner to operate the vehicle.
Calculation of the amount of compensation payments
Compensation for the use of personal vehicles, which is paid in a fixed form, is calculated taking into account the actual number of days of using the vehicle. When making calculations, the amount of expenses for each day is determined as the result of dividing the total amount paid monthly by the number of days of using the car (working days). Working days are determined on the basis of the production calendar.
To calculate the total compensation for the use of personal vehicles at the end of the month, the daily costs are multiplied by the number of days the vehicle is used. If the agreement on the accrual and payment of funds is drawn up in a fixed amount, then the amount of compensation paid is established according to the presented documents. To confirm that the amount paid to the employee is compensation for the use of personal vehicles under the simplified tax system or the general taxation system, it is necessary to conduct a thorough monthly selection of documents with the necessary composition of elements that would meet the requirements of economic feasibility.
Stages of calculating and receiving compensatory payments
So that there is no doubt that the payments made are not employee income, but a compensation type payment, it is necessary to have a number of supporting documents, as well as correctly execute calculations based on these documents.
If the need to use a motor vehicle for the performance of a labor function arises after the conclusion of an employment contract, the parties draw up a separate written agreement on the transfer of the car, which is an annex to the contract, or a rental contract.
The process of attracting a vehicle to the workflow is carried out in five stages:
- Submission of a written application by an employee;
- provision of necessary documents for a vehicle;
- reaching an agreement with the employer on essential conditions;
- conclusion of an additional agreement (contract);
- drawing up the relevant act on the transfer and acceptance of the car.
The first stage is mandatory if the decision to bring an employee to the work process is made after the conclusion of an employment contract with him. If an agreement on the use of the vehicle is reached at the stage of official employment, a separate type of application does not need to be written. The condition will be included in the employment contract.
The second stage includes the provision by the employee of documents confirming the ownership of the car and the right to drive this mode of transport. For this, the employee provides a vehicle passport , a power of attorney to drive the specified vehicle and a driver’s license.
The third stage involves the establishment of conditions that will satisfy both parties to the agreement. At the fourth stage, relations between the employee and the employer are drawn up in the form of a written contract (rental, transfer of a vehicle). The fifth stage contains the preparation of a document (the act of acceptance and transfer of road transport), on the basis of which there is a final consolidation of the relevant relations between the parties.
Driving a car can be carried out by the owner or another person who will be appointed by the employer. Therefore, a contract for the rental of vehicles can be concluded as the transfer of a car with or without a driver. If the condition on who will drive the vehicle is not agreed upon by the parties, the employer may appoint any employee as a driver. In any case, the act of acceptance of the car is signed by the employer and the employee-owner.
Taxation in calculating compensation
The taxation in respect of the sums paid to the employed citizen depends on the type of contract concluded for the use of the employee’s vehicle. Personal income tax with compensation for the use of personal vehicles is charged as follows.
- If the transfer of the vehicle is drawn up as an agreement to an employment contract, taxes are not withheld from compensation amounts. If the amount of money is presented in the form of compensation, it is not subject to personal income tax and no insurance premiums are accrued on it. Compensation payments are not taxed only to the extent that is indicated by the contract and documented (and justified).
- If the transfer of the vehicle is executed as a rental agreement or an agreement of a civil law type, the tax is calculated and withheld from the entire amount received by the owner and transferred to the Federal Tax Service by tax agents. For employers (lessors) who are residents, the tax amount is thirteen percent, for non-residents - thirty percent.
Compensation calculation accounting
In program 1C, compensation for the use of personal vehicles is calculated taking into account the number of days the vehicle is used. In the case when the operation of the vehicle is a constant phenomenon for a long time, it is subject to monthly payment.
The basis for issuing an order on the payment of monetary compensation for the use of an employee’s car is a certificate of calculation at the end of each month. In the field of accounting, the cash flow of the compensation type is recorded in account No. 73.
The profile of the organization and the specific department to which the employee belongs depends on which account the expenses for compensation payments will be allocated. Expenses of this type for accounting purposes are included in the obligatory order in the expense items of the organization “Compensation for the use of personal vehicles” (posting No. 73).
Example of appropriate calculation
An example of compensation payable would be such a calculation.
The company LLC "Areal", specializing in trade, concluded an agreement with the employee of the company on the use of its transport in June 2018. During this month, the vehicle was actually operated for twelve days. Since the car's engine capacity exceeds two thousand cubic centimeters, the maximum amount of payments is three thousand rubles.
The calculation is as follows:
1. Calculation of daily compensation:
3,000 rubles / 22 working days = 136.37 rubles.
2. Calculation of the amount of payment for the month:
136.37 rubles × 12 days of operation = 1,636, 44 rubles.
Since the compensation contract is in the form of an additional agreement to the labor contract, no tax is paid on this amount. Compensation is paid simultaneously with the payment of wages.
Accounting for compensatory payments in calculating the profit of the organization
Each organization that uses the services of the transport involved is entitled to take into account the costs of paying compensation in the cost section, which reduce the basis for calculating income tax.
According to the eleventh subparagraph of the first paragraph 264 of the article of the Tax Code of the Russian Federation, the indicated amounts of money relate to other expenses that are taken into account in taxation. According to the twelfth subparagraph of the first paragraph of Art. 346.16 of the relevant code, compensatory payments are also taken into account when calculating the tax base for a single tax, which is used in the simplified mode.
Features of accounting for compensatory payments are as follows:
- inclusion in the expense items of the costs of operating a passenger mode of transport is made in the amount of expenses, the norms of which are established by law;
- inclusion in the cost items of the operation of a freight mode of transport;
- Compensation for the purchase of fuels and lubricants is not separately included in the tax base, since, according to the IFTS, the costs of paying for fuels and lubricants are exclusively compensatory expenses;
- compensation payments are not included in expense items in case of vehicle downtime;
- confirmation of the fact of the actual operation of the vehicle are the waybills, which are issued when moving the car;
- the items of expenses shall include exclusively the amounts that were actually paid to the owner of the vehicle;
- in order to include costs in the list of expenses, you need a full list of documents confirming the economic feasibility of expenses that allow you to pay the required compensation.
How to challenge accrued compensation amounts
When an audit is carried out by a tax authority, compensation for using personal transport can be deleted from the item of expenses. This is due to the fact that in some cases, during the inspection, the absence of certain documents (calculations, waybills, orders, receipts for the payment of fuels and lubricants, passport for the vehicle and other mandatory written facts) is revealed.
If a dispute arises regarding certain items of expenditure, it shall be settled in a judicial proceeding. The most controversial issue regarding payments related to taxation is the preparation of an agreement with a citizen, which acts by proxy. In this case, the difficulty lies in defining the concept of a personal vehicle.
The employer has the right to withhold tax in the form of personal income tax and charge insurance type contributions to the calculated monetary amounts or not to levy this tax at all, but it is necessary to defend one’s position in court.
Common questions that employers have are the following:
- Is it necessary to indicate the specific amount of compensation for using a personal vehicle in the contract?
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