Personal income tax in examples: salary, vacation pay, other types of payments

General rules for issuing vacation pay

Vacation pay represents financial support during vacation. Rely on employees who have worked for the company for at least six months. If an employee does not exercise his right to leave and resigns, he is entitled to compensation. The amount of vacation pay depends on the following factors:

• Duration of vacation.
• Average employee salary.
• The period for which the calculation is performed.

The amount of the employee's salary is used to calculate the tax. This amount includes bonuses and various compensations issued for the year preceding the vacation.

IMPORTANT! Both budgetary structures and commercial enterprises and individual entrepreneurs are required to provide annual paid leave to their employees. The amount of vacation pay is calculated based on the official salary.

The procedure for reflecting vacation pay in the calculation of 6-NDFL

Report 6-NDFL is a form with which taxpayers report personal income tax.
In it they must indicate information about the income of employees, calculated and withheld amounts of personal income tax for the reporting period. All employers are required to submit it every quarter.

The form of the report, the procedure for filling out 6 personal income tax and its submission are determined by the order of the Federal Tax Service dated October 14, 2015 No. ММВ-7-11/ [email protected]

At the beginning of 2021, it was amended by order of the Federal Tax Service of Russia dated January 17, 2018 N ММВ-7-11/ [email protected] , which came into force on March 26, 2018.

A report that shows the calculation of personal income tax amounts is submitted quarterly in electronic format, if during the reporting quarter the organization made payments in favor of 25 people or more.

If the organization reports for less than 25 people, then the form can be submitted on paper. The tax amount is filled in in rubles, and the income amount is filled in rubles and kopecks.

Basic rules for calculating personal income tax

The object of taxation is the totality of all vacation payments. According to the provisions of Letter No. 8-306 of the Ministry of Finance, these funds cannot be considered as a component of salary. For this reason, personal income tax on vacation pay is calculated separately from payroll tax.

When to make tax payments?

Vacation pay is issued to the employee three days before his vacation. At the same time, income tax is withheld on the basis of Article 226 of the Tax Code of the Russian Federation. The timing of tax transfer to the treasury depends on how vacation pay is calculated:

• Cash - on the day the funds are issued or the next day . For example, if the money was issued on Friday, the tax is paid on the same day or Monday.
• When withdrawing cash from an organization's account - on the same day . Payment of personal income tax must be carried out on the date of withdrawal of vacation funds from the organization’s account, regardless of when the money will be transferred to the employee.
• Transfer to a bank card or account from a company card or account - on the day of accrual.

IMPORTANT! Some accountants transfer tax before the deadline for issuing vacation pay, when they are recorded in the payroll. This order is considered erroneous.

In 2021, an amendment was made regarding the tax calculation procedure. In particular, now the transfer can be made until the end of the month in which vacation pay was paid.

Let's look at an example

The employee goes on vacation on September 16, 2021. The funds are issued to him in 3 days, that is, on September 13. Personal income tax is transferred to the treasury on the day the money is actually issued. If the responsible persons did not have time to make all the necessary accruals, they can be made until September 30, 2021. The amendment has significantly simplified the work of tax agents. Now you can avoid making payments to employees, maintain accounting and tax records, and transfer personal income tax to the treasury on the same day.

When is tax paid on compensation for unused vacation?

An employee must be granted leave after 6 months of work at the enterprise. If he quits without using his right to leave, compensation is due. It is also considered employee income and therefore subject to tax.

Compensation is issued on the day of dismissal. At the same time, tax is calculated. Funds are transferred to the country's budget on the last day of the month. The compensation paid must be indicated in the 2-NDFL certificate.

Responsibilities of a tax agent

Article 226 of the Tax Code of the Russian Federation obliges organizations and individual entrepreneurs from which an individual received income to withhold and transfer income tax to the budget. Vacation payments are subject to personal income tax at the same rate as wages:

• 13% of income if the worker is recognized as a Russian resident (stayed in the Russian Federation for at least 183 calendar days for 12 consecutive months)
• 30% of income if the employee is a non-resident.

In general, the tax agent transfers the income tax withheld from an individual to the Federal Tax Service at the place of his registration. If an organization has a separate division, then the tax withheld from its employees is transferred to the location of the OP. Individual entrepreneurs who are PSN payers transfer personal income tax on the income of individuals at the place of conduct of the relevant activity. This follows from paragraph 7 of Article 226 of the Tax Code of the Russian Federation.

Important: for violation of the tax agent’s obligation to withhold and transfer income tax from wages, vacation pay and other payments, a fine is imposed under Article 123 of the Tax Code of the Russian Federation. The amount of recovery is 20% of the unwithheld or not transferred personal income tax amount.

How to calculate personal income tax?

The most convenient way: use an online personal income tax calculator.

First, the following amounts are deducted from the amount of vacation pay issued:

• Social Security contributions.
• Pension and medical contributions.
• Insurance premiums for occupational injuries and illnesses.

Only after this the tax is deducted. Its rate is 13%.

Calculation of tax on additional vacation days

An employee may request additional paid vacation days. They are also taxed. For each day of vacation, the employee's average salary for the shift is calculated. For example, it is 300 rubles. In this case, for 3 days of additional vacation, vacation pay will be 900 rubles. To calculate the tax, you need to multiply this amount by the rate of 13%. Personal income tax will be 117 rubles.

Calculation example

Ivan Sidorov goes on vacation from June 20 to July 3, 2021. First you need to calculate the amount of his vacation pay. They are determined depending on the size of the salary. Ivan Sidorov receives 47 thousand a month. The average salary per shift is 1,600 rubles. In June, the employee worked 10 shifts. His actual salary for the month was 23,500 rubles. The accountant makes the following calculations:

• 47 thousand rubles * 5 months (time worked in 2021) + 1,600 rubles * 14 (number of vacation days) = 257,400 rubles.
• 1,600 *14 days – 1,400 (standard deduction). The result is multiplied by 13%. Income tax is 2,730 rubles.

The procedure for calculating tax on compensation for unused vacation is similar.

Examples of transferring personal income tax from vacation pay in 2021

Interested in what's new in personal income tax on vacation pay in 2021, what changes? An example of income tax transfer is given using the following data:

The employee wrote an application for leave from June 7, 2021 for 28 calendar days. The vacationer must receive payments no later than three calendar days before the vacation, so the accountant made the payment on June 3, 2021. In this case, personal income tax is paid no later than June 30, but earlier payment will also not be a violation.

Let's change the example a little: the employee goes on vacation from June 1, 2021. In this case, vacation pay must be paid no later than May 29, 2021. As you can see, the payment month is different here, so you must transfer income tax no later than May 31.

In letter dated April 15, 2016 No. 14-1/B-351, the Russian Ministry of Labor spoke on the issue of personal income tax on vacation pay. An example of calculations is associated with a situation where the holiday period falls on a non-working day on June 12. Should it be taken into account in the total duration of vacation? The Department believes that holidays falling during the vacation period are not included in the number of calendar days of vacation. Non-working holidays must be taken into account when calculating the average salary.

Holiday pay accounting

When withholding income tax, the following entries are used:

• DT 68 “Calculations for tax collections.”
• DT 70 “Wages and salaries”.

Accounts numbered 68, 51 can be used for the loan.

Examples

Employee Vasiliev will go on vacation for 28 days from July 2, 2021. His salary was 38,629 rubles. Funds are transferred to the company's reserve account. No deductions are made from vacation pay. Their size will be 5,022 rubles. In this situation, the following wiring is used:

• DT 70 CT 68. Explanation: tax withholding. Amount: 5,022 rubles.
• DT 68 CT 51. Explanation: tax transfer. Amount: 5,022 rubles.

Employee Vasiliev goes on vacation. His salary is 30 thousand rubles. An employee has the right to a tax deduction in the amount of 1,900 rubles. As a result, the amount of vacation pay will be 3,653 rubles. The following wiring is used:

• DT 70 CT 68. Explanation: personal income tax withholding. Amount: 3,653 rubles.
• DT 68 CT 51. Explanation: transfer of the amount to the treasury. Amount: 3,653 rubles.

The information specified in the accounting must be confirmed by primary documentation.

Salary

Let's say an employee's salary is 50,000 rubles . He is a resident of Russia, therefore the personal income tax rate of 13% applies. Its amount is calculated as follows: 50,000 / 100 * 13 = 6,500 rubles.

Thus, the situation with wages and personal income tax for this employee is as follows:

• he is awarded a salary in the amount of 50,000 rubles;
• from this amount personal income tax is withheld in the amount of 6,500 rubles ;
• the employee receives 43,500 rubles (50,00 - 6,500).

The situation changes if the employee has children under 18 years of age. In this case, he has the right to a standard personal income tax deduction in the amount of 1,400 rubles for each child . The deduction is applied to the tax base, that is, wages reduced by the deduction amounts will be subject to personal income tax. For example, if there are two children, the tax will be calculated as follows: (50,000 - 2 * 1,400) / 100 * 13 = 6,136 rubles.

The result is the following:

• the employee is paid a salary of 50,000 rubles;
• the amount of personal income tax taking into account the standard deduction is 6,136 rubles ;
• the employee receives 43,864 rubles.

Transfer of personal income tax to the budget from income in the form of wages is made no later than the day following its payment.

Fixation of vacation pay in 2-NDFL

Vacation pay is subject to taxation. Therefore, they must appear in the 2-NDFL certificate as the employee’s income. Displayed in the month in which the funds were actually issued to the employee. For them you need to provide a separate line with code 2012.

Fixing compensation for unused vacation in 2-NDFL

When displaying compensation on a tax certificate, you must use the code. There is no special number for the payments in question. The following codes are allowed:

• 4800 (payment of compensation upon dismissal).
• 2000 (income related to wages).
• 2012 (vacation pay).

IMPORTANT! According to the explanations of the Federal Tax Service, code 2012 should be used. However, the use of other numbers will not be considered a serious error.

Correct reflection of vacation pay in accounting and tax documentation allows you to avoid problems during audits.

The legislative framework

The right of each employee to annual leave is determined by the Labor Code of the Russian Federation, in particular Chapter 19 of the Labor Code of the Russian Federation. And the procedure for paying vacation pay is regulated by Art. 116 Labor Code of the Russian Federation. The calculation and deduction of accrued vacation and other payments to an employee, as well as the transfer of personal income tax to the budget are regulated by Chapter 23 of the Tax Code of the Russian Federation. This chapter defines the categories of personal income tax payers, the procedure for determining the taxable base, tax rates, a list of taxable and non-taxable payments, deductions used in calculating personal income tax, as well as the procedure for its determination and payment.

Russian companies or entrepreneurs paying income to taxpayers must determine personal income tax on this income and transfer it to the budget. These companies and individual entrepreneurs in this case are tax agents.

What is personal income tax?

Personal Income Tax stands for “Personal Income Tax”. The name makes it clear that this tax is imposed on individuals, and specifically on any citizen who has any form of income .

Moreover, income can be not only in the form of wages, but also, for example, from the sale or rental of real estate.

Your employer, in accordance with tax law, must perform the functions of your tax agent, that is, collect part of the funds from you and transfer them to the budget in the form of taxes . Thus, the employer in this sense does most of the paperwork for you.

If you do not have an employer and you have other sources of income - for example, by renting out property, then you are your own tax agent and must submit a tax return to the inspectorate yourself.

Delay in filing a declaration will result in a fine , but subsequent filing cannot be avoided.

Unified declaration form: 3-NDFL, it must be submitted at the end of the annual tax period, that is, before the end of April thirtieth of the next year.

Tax deduction from vacation pay

The use of tax deductions when calculating income tax on vacation pay is one of the most insidious aspects in the procedure for calculating the amounts due for payment.

Since a standard or social deduction is applied on a monthly basis, the fixed amount of such a deduction reduces the tax base only in the period in which the payment to the employee occurred. Here's an example:

In May 2021, the storekeeper of Prioritet LLC, P.V. Volodin, was accrued vacation pay from 05/16/2021 to 06/14/2021 in the amount of RUB 20,950.00. Moreover, for the period from 05/01/2021 to 05/15/2021, the employee’s earnings amounted to 10,400.00 rubles. The child tax deduction used by Volodin P.V. is equal to 1,400 rubles. Let's calculate the personal income tax payable:

Salary tax: (10,400.00 – 1,400.00) × 13% = RUB 1,170.00.

Tax on vacation pay: 20,950.00 × 13% = 2,723.50 rubles.

Total personal income tax: 1,170.00 + 2,723.50 = 3,893.50 rubles.

ATTENTION! According to clause 6 of Article 52 of the Tax Code of the Russian Federation, personal income tax is paid in full rubles. An amount of less than 50 kopecks is discarded, and 50 kopecks or more is rounded up to half a ruble. Thus, the total amount of tax to be transferred according to the example will be 3,894 rubles.

Of this amount, the first part of the tax (RUB 1,170.00) must be transferred - if the salary payment is due by the 10th day of the next month - by 06/11/2021 inclusive, and the second part - by 05/31/2021.

Personal income tax when recalling an employee from vacation

There are often cases when an employee on vacation is called back to work. By law, recall from vacation must be formalized by order based on the employee’s consent. The order must reflect the use of the remainder of the employee’s vacation and notify him under signature or transfer the remainder of the vacation to the next year.

In such a situation, the amount of vacation pay paid is higher than expected, that is, it must be recalculated. For the days of vacation when the employee works, he will be paid a salary, and the employee’s excessively accrued vacation pay will be returned from his salary.

So, just like upon dismissal, personal income tax will be charged on vacation pay, which in most cases has already been listed and will need to be recalculated. In this case, the employee remains to work and the registration is offset as a result of recalculation. The tax agent issues a reversal of previously accrued vacation pay and personal income tax, and wages will be accrued for the days worked and personal income tax will be calculated .

Are vacation pay for various purposes subject to taxes?

In addition to the right to annual paid leave of standard duration, labor and social security legislation provides for other types of paid leave. Depending on the classification (purpose) of leave, the rules for assessing payments due to the employee with taxes and contributions also change:

Thus, we can clearly determine the general principle of taxation of vacation payments:

• If the vacation was paid by the employer, then the amount of vacation pay is subject to taxes and contributions.
• If the payment was made at the expense of the Social Insurance Fund, then payments for vacation are not subject to taxes.

ATTENTION! Since 2021, all regions have joined the FSS pilot project. And all benefits, with the exception of the first three days of sick leave and funeral assistance, paid by the employer, are paid by the Social Insurance Fund directly to the employee. See here for details.

Read more about the calculation and payment of insurance premiums from workers' vacation pay in this material.

NOTE! From April 2021, reduced insurance premium rates are in effect.

ConsultantPlus experts explained how to correctly apply reduced tariffs. Get free trial access to the K+ legal system and proceed to recommendations and calculation examples.

What is indicated in field “107” of the payment order

From September 10, 2021, a new standard form of payment order is in effect.
It was approved by Bank of Russia Regulation No. 762-P dated June 29, 2021. And the rules for filling out the tax fields of the payment slip were adjusted by Order of the Ministry of Finance dated September 14, 2020 No. 199n, which came into force on October 1, 2021. In detail “107” of the payment order, you must indicate the value of the tax period indicator, which has 10 characters, eight of which have a semantic meaning, and two are separating characters and are filled with a dot - “.”.

Indicator “107” of the payment order is used to indicate the frequency of payment of the tax payment or the specific date of payment of the tax payment. The frequency of payment can be monthly, quarterly, semi-annually or annually.

Read about what form of payment to use in calculations from September 10, 2021 in the “Practical Encyclopedia of an Accountant” berator.

The first two digits of the tax period indicator are intended to determine the frequency of tax payments established by the legislation on taxes and fees, which is indicated as follows:

• “MS” – monthly payments;
• “QV” – quarterly payments;
• “PL” – semi-annual payments;
• “GD” – annual payments.

In the 4th and 5th digits of the tax period indicator, for monthly payments you need to enter the month number of the current reporting year, for quarterly payments - the quarter number, for semi-annual payments - the half-year number.

Also on topic:

What you need to remember about paying personal income tax when paying for sick leave

The Russian Ministry of Finance explained how to determine the day of receipt of the bonus for personal income tax purposes

How to fill out detail “107” in a personal income tax payment slip?

Answers to common questions

Question No. 1 : Some organizations pay financial assistance in addition to vacation pay. Should it be considered income and personal income tax withheld from it?

Answer : According to Art. 217 of the Tax Code of the Russian Federation, any material assistance issued to employees is not subject to personal income tax when paying up to 4,000 rubles in total per year.

Question No. 2 : Is it necessary to charge personal income tax on vacation pay to non-residents?

Answer : Non-residents also receive income on which personal income tax must be withheld at 30%. The exception is citizens of the EAEU, refugees and non-residents - highly qualified specialists, whose personal income tax rate is 13%.

Results

So, in the article we figured out whether income tax is taken from vacation pay. Yes, it is taken, since vacation pay is not included in the list of income exempt from personal income tax. We also found out when to pay personal income tax on vacation pay in 2021. No later than the last day of the month in which the corresponding payments were made to the employee. If the end of the month falls on a weekend, then the transfer to the state treasury can be delayed until the next working day without sanctions.

Please note that late payment of income for vacation, failure to withhold tax from it, and delay in transferring personal income tax to the budget are punishable. In the first case, there is a violation of labor laws, in the others - tax laws. Fines and penalties negatively affect the financial condition of the enterprise. To avoid them, it is necessary to comply with the requirements established by law and monitor changes occurring in it.

Sources:

• Tax Code of the Russian Federation
• Labor Code of the Russian Federation
• Code of Administrative Offenses of the Russian Federation

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