In some life situations, citizens of the Russian Federation have the right to receive material assistance from the state or organization in which they work, study or be registered. Almost every institution in the country provides for such an item of cash expenditures in the budget. At the same time, entering into legal marriage, leaving for another vacation, giving birth to a child are also associated with such a concept as material assistance. The provision of monetary support of this type is prescribed in the documents of the organization (as a rule, this is a collective agreement or a regulation on remuneration), some points of legislation also speak about this.
Material assistance transferred to the current or former employee, his relative, has its own specifics of formation. A person who wants to receive financial support from his organization must provide the head with a statement drawn up in accordance with all the rules, in which he needs to indicate the reasons that prompted him to seek help.
In this case, the employee also needs to provide copies of documents that are the basis for the issuance of cash support. Such papers include a certificate of the birth of a child or marriage, the death of a close relative, medical certificates and other documents.
Material assistance is transferred to the employee’s account or paid directly from the cash register exclusively after the management of the organization has considered this issue. In this case, a positive response is made out in the form of an order for the company. State organizations have the right to use for payments of this kind the money received from conducting their main business activities, as well as various subsidies and budget funds received from the state.
Full-time students at federal institutions of higher and secondary special education also have the opportunity to contact the management of their college or university for material assistance. The budget of such institutions provides for the availability of additional funds for payments of this kind. Material assistance in such institutions is paid from the scholarship fund, which contains 25% more money than is necessary for the payment of scholarships. It is this excess balance that is the source of additional cash assistance.
Natural disasters, emergencies, loss of the breadwinner, retirement, birth or adoption of a child, low income, terrorist acts - all this is the basis for receiving such payments as material assistance. No taxation on these items. Other reasons, which are also grounds for receiving financial support, are taxed.
Of course, any organization keeps records of such operations. Moreover, for its design, there are special accounting entries. Material assistance may be associated with the following correspondence of accounts (if payments are made from retained earnings):
Dt / 84 - Kt / 70 - accrual of material assistance;
Dt / 84 - Kt / 69 - accrual of insurance premiums;
Dt / 70 - Kt / 68 - withholding tax on personal income (if this type of assistance is taxed);
Dt / 70 - Kt / 50 - payment of cash support from the cashier.