Disability benefits, in common parlance - sick leave, often raises many questions for both the accountant and the employee. Sometimes an employee expects a large amount, but in the end it turns out to be unpleasantly surprised. What is the reason for this? Is personal income tax taken from sick leave?
The sheer amount of disability benefits often does not live up to expectations, and there are a number of reasons for this. Who should beware of sick leave, but to whom is it still beneficial? Let's figure it out together.
Sick leave: features of payment
Why is temporary disability benefit often less than the average employee wage? It is all a matter of calculation. For the calculation of sick leave benefits, two years are taken preceding the current one. This means that the sick leave, which begins in 2017, is paid from the salaries of 2015 and 2016. Here it is already worth wondering, because wages in most cases grow, are indexed, and the employee in 2017 receives larger amounts than in previous years. However, the past years are taken to calculate exactly the sick leave. This is the main reason for the low payout amount.
Moreover, the entire amount of wages is also divided into seven hundred thirty days, that is, the total number of days for the calendar two years. And again, not only workers, but also weekends are taken into account. However, this can be slightly compensated by the fact that all sick days are paid, even if the employee had to rest during this period, for example, during shift work.
It is not profitable to take sick leave for those who have the highest possible wages. So it’s worth to familiarize yourself with the maximum amount of the total wage for the year taken for each specific year. If the total amount of payments from the employee was higher, then he loses in money.
But those who receive a minimum wage can not worry. The minimum amount for sick pay is also regulated. However, depending on the length of service, it can also be reduced.
What else can reduce the amount of benefits?
Personal income tax from sick leave is not the only way to reduce the amount received. The payment of benefits is directly related to the experience of the employee. Moreover, if an employee has officially worked less than five full years, then his benefit amount will be paid in the amount of sixty percent.
When working from five to eight years, the employee can count on 80% of the payment. And only with an experience of eight years, he has the right to 100% payment of sick leave. It should be noted that the total length of service is taken into account, it does not matter whether you have worked at one enterprise before or not.
It is also worth remembering that the sick leave, which is issued to the parent to care for his child, is not completely paid. Over ten days, payment is made in the amount of 50%.
Is personal income tax taken from sick leave?
The answer to this question is one: yes. A sick leave certificate for general illness, injury or caring for a sick family member is paid to the employee and taxed. The explanation for this is in article 217 of the Labor Code. According to this act, payment for days of incapacity for work is the income of a citizen, and therefore, must be taxed on personal income tax.
From the sick leave, which is provided to the employer, however, standard insurance premiums are not charged on it. Because of this, sick leave periods are retained when paying for the next year, but the amounts are removed from the calculation. That is, if the employee was on sick leave for a long time in 2014, then the payment in 2015 and 2016 will be lower. Personal income tax and sick leave in 2014 do not differ from payments in 2017.
Maternity allowance: features
In all situations whether sick leave is subject to personal income tax. No, separately you can highlight the disability sheet that is issued to women on maternity leave. It has a code of 05 and is issued for 140 days.
At the same time, a certificate of registration in the early stages of pregnancy is also attached to the sick leave. Therefore, it is more profitable for women to immediately register. The allowance, although small, but it has a place to be.
Personal income tax from the hospital such a plan is not charged. Accordingly, insurance premiums for this period are not charged.
What other benefits do pregnant women have?
We found out whether personal income tax is withheld from the sick leave directly during pregnancy and childbirth or not. But still, at this point, the advantages of this type of payment do not end there. Those who go on maternity leave should know that their payout amount may be higher than with a simple sick leave.
For example, if a woman leaves the decree on a decree, she has the right to replace those years in which she did not work for the previous ones. The situation is also with the period of sick leave. If in case of a general illness the employee in any case divides his income by 730 days, then when calculating maternity payments, the allowance for sick leave and childcare benefits are deducted. And as the number of days becomes smaller, the payout per day increases.
Thus, personal income tax from sick leave is taken. Moreover, this is done at a standard rate of thirteen percent. The only exception is the maternity allowance, that is, when there is a certificate of incapacity for work with code 05. However, this is not the only minus payment of sick leave at present. And the total amount of benefits often disappoints the employee.