In many enterprises, the work of certain categories of employees is of a traveling nature. First of all, we are talking about drivers transporting personnel, transporting products, materials and other goods. In the article we will talk about the surcharge for traveling work, taxation and accounting allowances.
General information
Is always an allowance for traveling work mandatory? Let's get it right.
If the employee’s labor activity is connected with traveling, the employer must compensate for the expenses incurred on the basis of the advance report data, as well as upon presentation of tickets and checks. Meanwhile, the legislation provides for another way of cost recovery.
The tenant may pay a fixed allowance for traveling work. Drivers, as a rule, are quite satisfied with such compensation. The amount of surcharge is determined by the head of the enterprise and approved by a local document.
It should be said here that inspectors do not always recognize the allowance for traveling work as compensation within the meaning of the provisions of Art. 168.1 TC. If there are no documents confirming the costs of the employee, then the tenant may be required to charge additional contributions.
Reimbursement for documents
If the employee provides papers confirming his expenses during the trip, the employer compensates them upon the fact. This means that the employee will receive exactly as much as he spent. This option is usually used when workers are sent on lengthy business trips to other regions or abroad. The employer reimburses such employees for the cost of tickets and the cost of living. At the same time, the employer has to decide whether to withhold personal income tax and contributions to funds from this compensation. We will answer this question right away.
The employer shall include the costs of compensation in the expenses taken into account when calculating income tax. In accordance with paragraph 11 of paragraph 1 of Art. 217 Tax Code, there is no need to withhold personal income tax refund. This rule applies to the entire amount prescribed in a collective or labor contract or in another local act of the enterprise. As for insurance premiums, they also do not need to accrue (paragraph 2 of paragraph 1 of article 9 212-FZ of 07.24.2009).
Difficulty in practice
It must be said, however, that the FSS and the FIU sometimes consider that the employer is obliged to calculate contributions from the amount of compensation. They argue their position with the fact that with the traveling nature of the work, allowances and payments are elements of salary. Confirming their arguments, the auditing funds with the provisions of Art. 129 TC, which defines the earnings. As a result, after inspections, the tenant is charged with fines and penalties, obligated to charge additional fees. Such decisions, of course, need to be challenged. Courts in most cases side with the employer, citing the following arguments:
- Compensation for work is paid with the permission of the employer.
- Compensation is necessary to cover the additional costs of the employee that arise in performing the labor function.
- Compensation amounts cannot be included in earnings in any way; accordingly, it is not necessary to charge contributions.
List of supporting documents
Surcharge for the traveling nature of the work is charged when providing supporting papers. A specific list of documents is determined and approved by the head of the enterprise. It is advisable to form two lists - for short and long trips. In this case, the requirements of the employer will become more clear.
The employee's transportation costs can be confirmed:
- Travel tickets for the metro, bus, trolley, etc.
- Route, waybill, receipts, checks (when using personal transport).
Living expenses are confirmed by documents received at check-in. This may be a receipt issued by the hotel administrator, a short-term rental agreement.
Answers to additional questions of inspectors regarding surcharges for traveling work can be given by referring to papers certifying the movement of employees. This, in particular, about the list of posts fixed by the local act, the conditions provided for in the employment contract, memos, journals, etc. Inspectors should be provided with any papers confirming the journeys.
Documentation Features
To ensure control of the daily movements of employees, it is advisable to create a journal of business trips. This document may be kept by the head of the relevant unit or other responsible employee.
Planning and control of single trips can be carried out using official notes. An employee compiles it in the name of the head. In the memo, the employee indicates the reasons for the trip, goals and objectives. The document must be submitted to the tenant for approval.
The normative acts in force today do not establish a unified form of service notes and accounting journals. Accordingly, company management may approve their forms. To introduce documentation into circulation, the director issues an appropriate order.
Nuances
The allowance for traveling work is set depending on:
- travel frequencies;
- duration of the trip;
- difficulty of the task, etc.
You can also take into account the qualifications and experience of a particular employee. Accordingly, it is not necessary to establish a single amount for all.
Simplified workflow
As practice shows, it is far from always a seconded employee can save exculpatory papers. It happens that by the reporting date some of the tickets are lost, there are no checks from gas stations, receipts, etc. But after all, the employee will not be reimbursed for expenses. For such cases, a simplified workflow is provided.
The head of the enterprise determines and approves the size of the allowance for traveling work. This amount should take into account:
- The average cost of travel by public transport.
- Payment of rental housing.
- Unscheduled or minor vehicle repairs.
- Communication services (mobile phone, fax).
It is advisable to establish a fixed surcharge for traveling work for drivers, forwarders, merchandisers and other employees who perform a labor function outside the enterprise, but within the same area.
A bonus is also provided if the employee:
- usually spends the same amount on trips;
- does not spend money on accommodation and travel in another region or abroad.
If an employee has been charged extra for the traveling nature of work, he does not need to collect tickets, checks and other supporting documents. And he will be given compensation at the end of the month.
General accrual procedure
In accordance with Part 2 of Art. 168.1 of the Labor Code of the Russian Federation, the surcharge for the traveling nature of work is approved by the head of the enterprise and is fixed in the local act of the enterprise.
The amount of the premium is determined by the tenant independently. The wording in the local act of the enterprise may be as follows: "Set a surcharge for the traveling nature of the work. The amount of the premium is 10% of the basic salary." The manager, at his discretion, can also establish a fixed amount.
When determining the surcharge for the traveling nature of the work, the tenant must be guided by:
- Normative acts adopted during the Soviet period. Currently, despite the fact that the USSR ceased to exist, many legal documents approved during the years of its existence are valid. So, the Decree of the Council of Ministers of the RSFSR of 1978 No. 579 established an additional payment for the traveling nature of work - 20% of the salary. It can be charged to employees who work in road and river transport. At the same time, only those who travel 12 or more days receive an additional payment for the traveling nature of the work.
- Sectoral and regional agreements. For example, road workers can receive up to 20% of the premium depending on the number of days spent traveling. The corresponding clause is present in clause 3.6 of the Federal Industrial Agreement on Road Facilities.
If the size of the premium is not specified either in the acts adopted during the Soviet period or in industry (regional) agreements, the head has the right to determine it at his discretion.
Some managers mistakenly believe that the body responsible for determining the amount of surcharge for traveling work is the Accounts Chamber. It must be said right away that this structure has nothing to do with determining the size of payments.
Travel allowance: taxation
When the employer, in an effort to simplify the workflow, compensates for travel expenses by calculating additional payments, the IFTS may have complaints. Meanwhile, at present a fairly stable practice has developed. Unfortunately, it is not in favor of the employer. Courts and regulatory authorities do not dispute the employer's right to establish surcharges. However, they believe that a fixed payment should be subject to personal income tax and contributions to funds. The arguments are as follows.
The law provides for two types of payments. The first includes compensation, acting as elements of earnings. They are established due to the fact that a citizen works in special conditions. It is from such compensations that taxes and contributions to funds are withheld. The second type of payment is reimbursement of expenses incurred by an employee in the performance of a labor function. With these amounts, withholding of contributions and tax is not made.
According to many experts, the monthly fixed surcharge cannot be considered as compensation provided for by Art. 168.1 TC. The fact is that the employer does not reimburse the employee for the actual costs incurred. In other words, the amount of compensation does not depend on the amount of expenses.
The allowance for earnings stipulated by the labor or collective agreement cannot be considered as compensation provided for by Art. 164 shopping mall. This is due to the fact that when it is accrued, the salary of an employee performing his labor functions on trips increases.
Aircraft Explanations
At the end of 2015, the Supreme Court took the position of the employer. In its Review of Practice for 2015, the Armed Forces indicated that for the purpose of taxation, the nature of the payment will be significant, according to which the amount relates to the number of compensations provided for in 164 shopping mall. According to this norm, compensation is a cash payment established for reimbursement to employees of the expenses incurred by them in connection with the performance of their labor functions. At the same time, the Sun indicated that the name of the payment does not have a determining value. This may well be a bonus, surcharge, benefit, salary increase, etc.
However, state bodies do not really want to support the position of the Court. For example, for the Ministry of Labor, a prerequisite for the payment of compensation to an employee is the provision of documents confirming expenses during the trip. Therefore, enterprises that do not plan to assess taxes and pay contributions to funds from premiums will have to defend their position in the courts.
Accounting
How to reflect payments intended to compensate for expenses incurred by employees while on a business trip?
In accordance with the instructions to the chart of accounts of accounting, approved by order of the Ministry of Finance No. 94n of 2000, to summarize the information on all settlements with the employees of the enterprise, with the exception of payroll operations and settlements with accountable employees, the account is used. 73. Information on settlements with personnel on the amounts received for operating and administrative expenses is reflected in the account. 71. At the same time, many experts believe that the use of this account will be incorrect if the company does not issue funds for the report, but reimburses the costs incurred by the employee. Taking this into account, the accountant should make the following entries:
- Dt. 20 (26, 44) Ct. 73 - adoption of cost accounting in the form of reimbursement of the cost of expenses after their confirmation.
- Dt. 73 ctch 50 - payment of compensation to the employee.
If guided by the provisions of Article 129 TC, then surcharges, allowances, including for work in special conditions, are recognized as an element of earnings. Accordingly, the accountant makes the following entries:
- Dt. 20 (26, 44) Ct. 70 - payroll employee bonus.
- Dt. 70 ctch 68 - withholding personal income tax from earnings.
- Dt. 20 (26, 44) Ct. 69 - calculation of insurance premiums.
- Dt. 70 ctch 50 - payroll with allowance.
According to experts, such a delimitation in accounting will make it easier for the employer to separate the amounts taxed by personal income tax and insurance contributions, and the funds exempted from taxation.
Conclusion
Simplified workflow is not always in the hands of the employer. If the employer plans to consider that allowances for traveling work are not elements of salary, then there is a risk of claims from the regulatory authorities. In such cases, it is advisable to study judicial practice in more detail on this issue.