The maximum percentage of retention on the writ of execution: accrual procedure, reduction methods, payment deadlines

Often, accountants who do not yet have enough work experience cannot correctly calculate the percentage of retention from a salary of an employee on the writ of execution. In this regard, the relevant question is “How is retention on the writ of execution?” This article contains an answer to it. Also in it you can learn how to reduce the percentage of retention on the writ of execution.

General Provisions Regarding writ of execution

To begin with, it is worth recalling that the writ of execution is a document containing a court order on the economic compensation of debt by the defendant, which the latter is required to comply with.

If the court decision is not answered within 10 days, the outstanding amount will be regarded as individual debt. Accordingly, the bailiffs will be able to recover him.

To understand what exactly the maximum percentage of deduction on the writ of execution should be applied, it is necessary to study the provisions of the Labor Code (hereinafter TC) of Russia. It is interesting that some financial experts are sure that this percentage is already included in the tax on personal income. In fact, the TC does not contain provisions proving this fact.

Reasons to Hold

There are a number of reasons why a certain percentage can be withheld from a citizen's salary to pay off his debt. These reasons can be sorted into groups depending on what interest retention is initiated for.

1. Withholding due to tax evasion. Funds from the income of a citizen are withheld automatically.
2. Unworked advance payment; erroneously calculated salary; corporate funds spent for other purposes; vacation (if the employee went to work earlier). In this case, withholding of interest on income is initiated by the employer of the citizen.
3. Alimony; damage to the company due to dishonest actions of the employee; damage caused as a result of criminal acts; retention as a criminal punishment. In this case, withholding of interest from the salary for material compensation is based on a court decision.

In the latter case, the decision of the judicial authority may be reflected, for example, in one of the following documents:

• performance list;
• a document issued by an organization that monitors compliance with applicable laws;
• request of a foreign organization, cooperation with which is carried out on the basis of an international agreement between countries (the Russian Federation and the state in whose jurisdiction the foreign organization is located).

A complete list of documents can be found in article 229 of federal law.

Retention of interest by bailiffs or employer

When the court issued a decision obliging the defendant to pay the deduction percentage on the writ of execution from the salary, the latter has the right to appeal it within 10 days. If he doesn’t do this (and does not keep the percentage), he becomes a debtor, and judicial representatives will start collecting funds.

There is another option for making the debtor pay debts: send a request for deduction directly to the accused’s employer, excluding the participation of bailiffs. Then the employer of the debtor is obliged to deduct the percentage of deduction on the writ of execution from the salary.

This action is permitted by law, namely it is regulated by the third part of Section 98 of the Federal Law No. 229.

Retention of interest excluding personal income tax

The process of withholding interest on salaries to pay off debt excluding personal income tax is prescribed in Section 65 of Article 119 of the Federal Law.

It should be clearly understood that the deduction of interest occurs only after the deduction of personal income tax from wages.

Interest Retention Example

Let the company accountant accrue benefits to the employee exceeding the regular amount by 5000.

Then the employer can recover the size of this benefit from the salary, keeping a strictly defined percentage. In this case, it will be 20%, as there is a debt of the employee to the organization.

The employee’s salary without tax is 25,000. If you withhold personal income tax in the amount of 13% (3250), then 21,750 will remain. 20% (4,350) will be deducted from this amount (this is the minimum percentage of deduction on the writ of execution, more about this is written below) to pay off debt. It will not be possible to repay the debt in one month. The balance on it will amount to 650 rubles, which will be withheld from the next salary.

Executive Hold

In order to compensate the debt to the company, a writ of execution is not applied, but in order to repay the debt as a result of a divorce, for example, the judicial authorities will need to prepare this document.

No one is safe from misfortune. Everyone can cause damage to the organization or individual. Although often debts are formed due to intentional administrative or criminal offenses.

The deduction of interest from the salary of a citizen on the writ of execution is regulated by Articles 137 and 138 of the Labor Code.

About the amount of interest

Article 138 of the Labor Code of the Russian Federation regulates the setting of interest, which will be deducted from the debtor's salary. Each case is individual and the amount of retention depends on the situation in question.

It should be noted right away what percentage of deductions on writ of execution is provided for as much as possible: 70%.

The minimum percentage that a court can establish is 20%. Such an interest rate is resorted to when it is necessary to compensate the employee's debt to the company. This debt is not necessarily formed in some illegal way, the cause of its occurrence may be a banal accounting error in calculating salaries.

As the judicial practice shows, the deduction percentage of 50% is most often assigned. The setting of this percentage is regulated by Article 66 of Federal Law No. 119. A similar percentage can be deducted from wages if it is established by an alimony agreement (except for alimony for minors) or a court order as a result of an administrative offense.

If the employer receives a writ of execution, he is not entitled to ignore it. This is against the law. The employer must deduct the required amount from the debtor's salary. Moreover, if as a result of a one-time deduction, the debt was not repaid, the procedure will be repeated until the entire amount has been compensated.

70% of the salary can be deducted only if it is specified in the writ of execution. Although sometimes it is allowed to keep the same percentage for the payment of alimony for minors.

If more than 70% of the amount is deducted from the salary on the writ of execution without the knowledge of the employee, then the latter can safely go to court, because this contradicts the federal legislation of the Russian Federation.

If the employee himself has expressed a desire to give more than 70% of his salary on account of paying off a debt or paying alimony, he should write a statement stating all the conditions under which more than 70% will be withheld from his earnings.

A decrease in the percentage of deduction on the writ of execution will be described below.

Exceptions

True, with some types of income to retain interest is prohibited. For example, you cannot withhold interest in favor of debt compensation from the amount paid:

• in connection with the death of the breadwinner;
• as compensation for harm to health;
• persons injured as a result of the performance of official duty, as well as family members of these persons in the event of their death.

To find out all types of income from which it is impossible to withhold interest for paying off debt, it is worth examining 101 article 229 of the federal law.

On the problems of calculating the percentage of retention on the executive document

As noted, not all accountants know how to competently work with the writ of execution and what is the maximum percentage of withholding on the writ of execution enshrined in domestic law. Moreover, many also disseminate false information.

In order to stop this, it is worth understanding the following: the deduction of percent deductions on writ of execution from the employee’s salary is made immediately after the employer receives the writ of execution.

Drawing up a writ of execution

The citizen’s intention to recover a certain amount from the debtor in the form of a writ of execution must be duly executed. This document must bear the signature of the plaintiff.

Further, the writ of execution should be handed over to a judicial specialist: personally without intermediaries or via the Internet. A copy of the document in case of loss of the original, is also suitable for transmission to the judiciary.

The fulfillment of the requirements specified in the writ of execution is monitored by a specialist from the judiciary.

Revenue withholding

All types of profits from which deduction is allowed are described in Government Decree No. 841, dated July 18, 1996. In particular, they include:

1. Wage.
2. Money received as a result of advanced training.
3. Income earned for special rank, class, length of service, etc.
4. Bonuses received for overfulfillment of the plan.
5. Amounts received for labor activities in non-standard conditions (at night, in conditions harmful to health, on holidays).
6. Dividends.

Moreover, a percentage is kept from the income of entrepreneurs, as well as the money that citizens received as a result of the execution of the contract.

Retention Order on Executive Order

As soon as the employer has received the writ of execution, he should issue an appropriate order to withhold part of the income of a particular employee, and also send the necessary documentation to the financial department or financial specialist (if he is alone in the company).

The objective of the latter is to calculate how much will be held monthly and to reflect this transaction in the financial statement.

Naturally, the employee should know that a certain percentage is deducted from his income for paying off the debt, according to the order described in the writ of execution.

As you can see, the deduction operation on the executive document is very simple. But what if several documents came to one citizen?

It is important to note that the court may reduce the percentage of deduction on the writ of execution. This is true if the debtor has minor children, dependents, or if he spends a large amount of money on treatment.

If there are several writ

How to deduct deduction percentage on multiple writ of execution?

Each executive document provides for deduction of interest on account of repayment of a certain category of debt. One citizen may have several of these categories. In this case, 111 article 229 of the federal law establishes the following procedure for paying off debts:

1. Financial support for children.
2. Compensation for damage to health or payments related to the death of a single breadwinner.
3. Compensation for non-pecuniary damage.
4. Payments related to care support.
5. Copyright or intellectual property.

Thus, the percentage that is withheld from the citizen’s income, first goes to the payment of alimony, then to compensation for health damage and then on the list. At the same time, no one canceled the maximum percentage of deduction on the writ of execution in the amount of 70%.

Total

This article contains useful information regarding not only the retention of interest on the writ of execution, but also on the retention of part of the income as a whole. To better understand it, it is necessary to repeat the important points in the theses:

1. A writ of execution is a document that contains a court decision, according to which the tenant must withhold part of the interest from the salary of the debtor in repayment of the debt of the plaintiff.
2. The decision of the court must be answered within 10 days, otherwise the citizen will become a debtor and then the case will go under the jurisdiction of the bailiffs.
3. Interest withholding may be withheld for three reasons: non-payment of taxes, non-payment of alimony, improper spending of corporate funds.
4. Interest withholding is deducted after deduction of income tax.
5. There are limits on withholding interest: 20%, 50%, 70%. The maximum percentage of retention on the writ of execution is 70%.
6. The 20% limit is usually applied when it comes to the employee’s debt to the company (for example, if the accountant did not calculate the premium correctly).
7. A 50% limit is most often applied. It is relevant when paying child support, for example.
8. Retention on the writ of execution with a percentage up to the limit of 70% may be completely absent if the debtor himself so desires. The latter informs the employer in the form of a statement about this, and the employer begins to deduct from the debtor's salary more than 70% of the income to pay off the debt.
9. There are a number of types of profit from which it is forbidden to withhold interest. They are described in 101 article 229 of the federal law).
10. Income from which interest is withheld is described in Government Decree No. 841.
11. Art. 111 FZ 229 establishes the procedure for paying off debts under several executive documents.
12. The court can reduce the percentage of deduction on the writ of execution if the debtor has minor children or dependents. Also, a reduction is permissible if the defendant spends large amounts on treatment.

This information is worth remembering to understand the principle of withholding interest on income to pay off debt.