Every citizen officially working in a company can receive not only salaries, but also various bonuses. They are presented in numerous varieties. Their main purpose is to encourage specialists for a job well done. At the same time, each employer must know what taxes are levied on the bonus in order to timely transfer the necessary payments to the Federal Tax Service.
Types of rewards
They can be paid by employers on various grounds. Such incentives can be expressed not only in cash, but also in kind. This is especially true for organizations specializing in the production of any goods significant to the population.
Bonuses to employees can be paid for different periods of time, on the basis of which the following varieties are distinguished:
- monthly incentives are paid on strictly designated days, with payments usually being the same in size;
- quarterly are calculated on the basis of the performance of the company for three months, and also takes into account the performance of each specialist in the company;
- annuals are listed at the end of the year, and often they are so significant in size that they are called the thirteenth salary.
In addition, one-time incentive payments should be allocated. Such bonuses are awarded to employees who distinguished themselves at work. Usually they are presented with rewards for high performance or achievements. Often companies pay such bonuses for any significant holidays.
Are bonuses taxed? All of the above types of payments are part of the salary of citizens, so they are generally taxed by personal income tax on the basis of Art. 209 Tax Code.
What payments do not pay taxes?
In Art. 217 of the Tax Code list various types of incentives with which employers can not calculate and not pay personal income tax. Therefore, it is possible to find out whether bonuses are taxed only after their purpose and features are determined. Personal income tax is not levied on payments represented by remuneration for any significant achievements in science, culture or other important areas of activity. Such payments can be not only domestic, but also international or foreign.
The tax on premiums that are awarded to senior officials of Russia is not paid.
Additionally, this includes gifts that are provided to employees by the management of the enterprise, but their value should not exceed 4 thousand rubles.
Concept of payment
All types of bonuses are represented by a variable element of employee salaries. They are calculated based on the specific achievements of each specialist over a specific period of time. They usually act as a promotion, appointed monthly, for different holidays or as a result of the work of the enterprise during the year.
The basis for the award is the relevant bonus provision adopted by the company. It is represented by internal company documentation and is usually developed at the request of the organization’s management. With a well-written document, the employer can avoid many negative consequences. Therefore, a bonus provision is required for various purposes:
- lack of claims from the employees of the Federal Tax Service;
- prevention of disputes with full-time employees regarding the correct calculation of various benefits or payments;
- an opportunity to stimulate specialists to achieve high results.
The basic rules for transferring funds are contained in Art. 57 shopping mall.
Payment Terms
It is important for employers to understand not only what taxes the premium is subject to, but also under what conditions it is allowed to pay employees. These conditions include:
- If the director of the company wants to pay bonuses to employees based on the retained earnings for the year, then this issue under Federal Law No. 208 should be decided at a meeting of the founders.
- Some industry agreements provide for the payment of incentives to citizens for their length of service or after the production facilities are put into operation.
- Such a payment must necessarily be prescribed in the employment contract, and also be its essential condition, but its size can change over time, as it is indexed along with the salary, but changes are allowed only to the greater extent on the basis of the provisions of Art. 129 shopping mall.
- If a company has a union, then decisions made regarding the transfer of additional funds to employees are made jointly with its representatives.
Based on Art. 135 TC after accrual of payments, the accountant must draw up a special certificate, and the head of the company issues an order. It includes all citizens who received cash payments. Based on these documents, income tax is paid from the premium of each employee.
Legislative regulation
The procedure for paying funds and paying taxes is regulated by numerous articles of the Customs Code. The main provisions of this and the Tax Code relating to the issue under study include:
- Art. 129 of the Labor Code indicates that the bonus acts as a way of encouraging employees, therefore it is issued in excess of salary;
- Art. 144 TC contains information that the payment may be the motivational method of personnel management;
- Art. 191 TC establishes that funds are paid only for merit;
- Art. 207 of the Tax Code contains data on what taxes are subject to premium;
- Art. 217 of the Tax Code includes information that funds received for achievements in significant areas are not subject to taxation.
Additionally, you should study the provisions of regional acts and internal documentation of each company. With a lump sum are taxes withheld or not? It depends on the purpose and features of this payment. If it is not presented with an award for significant achievements in science or technology, then personal income tax must be paid from it.
The nuances of calculating and paying income tax
Almost all types of bonuses are represented by the official income of citizens, therefore, they must be paid income tax. For its calculation, on the basis of Art. 209 of the Tax Code, the general procedure applies.
If the company transfers funds to citizens monthly, taking into account the production results of employees, the management issues an order based on which the bonus is tied to the performance indicators of employees.
To calculate the tax required to determine 13% of the amount paid. In this case, an additional bonus is paid in 6-personal income tax. If the accountant for some reason does not indicate this information in this document, then he and the whole company will be held administratively liable.
Payment of insurance premiums
What taxes are premiums subject to? In most cases, it is required to pay personal income tax from it, but in addition, companies must calculate and transfer insurance premiums for employees. This is due to the fact that any official transfers of funds to employees paid on the basis of an employment contract are subject to payments to various extrabudgetary funds at the request of the provisions of Federal Law No. 212.
Insurance premiums are transferred even if the incentive is presented in kind. Deductions are sent to the PF, FSS and MHIF. The procedure is implemented on the day when the company's management issues an order for bonus payments to employees. Therefore, the transfer of funds to funds directly on the day the award is issued is a violation on the part of the company's accountant.
If a premium is paid with which it is not required to pay income tax, then insurance payments are not transferred from it.
Nuances of Contributions
Initially, the head of the company issues a bonus order, which lists all employees receiving payments from the organization. Next, the accountant a month, when funds are actually paid to citizens, calculates and deducts personal income tax and insurance premiums.
If funds are taken from retained earnings, account D84 is applied. If other sources are used, then D91-2 is used.
How is the tax for a one-time bonus determined?
Quite often in companies, for various achievements in the process of carrying out activities, one-time incentives are assigned to employees. The tax is also calculated and paid for them.
The premium amount under such conditions is subject to insurance premiums.
Such requirements apply not only to those payments that are associated with good performance, but also to bonuses dedicated to various celebrations in the company.
Is it possible to reduce the amount of tax?
There is no information in the Tax Code due to which it is possible to reduce the amount of taxes or insurance premiums charged on the income of officially employed citizens. But employers themselves can use some tricks.
If a payment is scheduled for a significant event, then it can be issued in the form of a gift from which it is not required to pay personal income tax. But the value of such a gift cannot exceed 4 thousand rubles.
In order not to transfer insurance premiums from gifts, the relationship between the company and employees should be formalized by concluding a civil law contract. Such features of taxation are due to the fact that, according to Art. 420 of the Tax Code, the income received by a citizen on the basis of the GPC agreement, by which the title to any property passes, is not subject to insurance premiums. Therefore, the employer with employees simply concludes a competent gift contract in writing, for which the requirements of Art. 574 Civil Code.
Reporting Rules
The company must report to the Federal Tax Service on all payments made to employees. This includes not only salary, but also bonus. Therefore, it is included in the financial statements. Firms must report to the inspectorate regarding the payment of salaries and other payments to employees, therefore, the premium is included in the 6-personal income tax.
Errors in calculations or documents are the basis for bringing the organization and officials to administrative or criminal liability. The employees themselves, if they find violations, can complain to the labor inspectorate or court.
Conclusion
Bonuses are considered a specific way to reward employees. They can be presented in cash or in kind. At the same time, employers should be well versed in what taxes are taxed on these payments. They must not only correctly calculate and withhold personal income tax, but also transfer insurance premiums for employees.
There are some types of bonuses that are not subject to income tax. It is not required to pay it with gifts, the cost of which does not exceed 4 thousand rubles. Therefore, companies often use these nuances of taxation to reduce personal income tax.