Employees of enterprises often turn to management with a request to issue them financial assistance. If a positive decision is made, immediately there is a lot of difficulties related to the procedure for taxing payments of insurance premiums and personal income tax.
There is no precise definition of the term "material assistance" in the legislation. Therefore, they are usually guided by the fact that this is the transfer of cash or any material resources to employees of the enterprise in addition to wages, related to their urgent needs.
Employer is not obliged to provide assistance to employees, but has the right to do so at its own discretion. Often, the possibility of providing financial assistance is indicated in collective or labor agreements in order to improve conditions at the enterprise and increase employee loyalty.
In this case, the possible reasons for payment, terms, amount and additional conditions for receiving funds are prescribed as accurately as possible.
Size and types
Possible purposes for which financial assistance can be provided:
- birth of a child;
- the need for urgent treatment;
- death of family members;
- emergencies - fires, floods.
Assistance can also be paid for holidays or holidays (for example, Power Engineer's Day).
For all employees of the enterprise, including branches, the grounds for providing assistance must be the same. The main requirement for payments is that they should not be stimulating, that is, they should not depend on the results of work, and they should not be of a permanent nature, that is, they should be paid no more than once per reporting year.
There is a rule: one event - one payment per year.
Registration procedure
For the correct registration of financial assistance, it is necessary employee statement. It states the reason for receiving it. The application must be accompanied by documents justifying the purpose of payments: copies of a birth certificate, an invoice from a medical institution, in case of theft of property - a certificate of damage from the police, in case of emergency - a certificate from the Ministry of Emergency Situations of the Russian Federation.
In case of death, a death certificate and documents confirming the relationship with the deceased are required: birth certificates, change of surname, marriage certificates.
You can apply for financial assistance at any time. Assistance with the birth of a child is the only exception: the payment is not subject to income tax if the application is submitted within a year and the limit is not exceeded.
In case of an affirmative decision of the organization's management, on the basis of the application, order. Its form is not unified, but a list of mandatory items has been established:
- Name of the employee to whom the assistance is being paid;
- the purpose of the payment;
- an indication of the supporting documents, with their copies attached;
- payment terms;
- approved amount;
- source of funds.
Sources of payment
The payment can be made at the expense of the payroll fund, at the expense of current profit or profit of previous years. If a decision is made to make a payment from the payroll fund, must be reflected the possibility of financial assistance in the labor and / or collective agreement.
It is better if this is a provision on the procedure for issuing material assistance. In case of its absence, a addendum to an employment contract.
To make a payment from the profits of previous years, it is required minutes of the decision of the general meeting of shareholders (for JSC) or participants (in the case of LLC). Even if the organization has one shareholder (participant), a written decision is mandatory.
Principles of taxation
The amount of financial assistance is not limited, it can be determined for the entire organization by issuing the Regulations, or each case can be considered separately. Often, when paying, they are guided by the maximum amount of assistance that is not taxed.
income tax
No material assistance can be taken into account as expenses that reduce the income tax base. The only exception is the payment for vacation if it is stipulated by a collective or labor agreement, is set as a percentage of wages and depends on the quality of the employee's performance of his duties.
Such financial assistance is labor costs and reduces the tax base (for more details - Letter of the Ministry of Finance of Russia No. 03-03-06/1/43912 dated September 02, 2014).
Insurance premiums
Federal Law No. 212-FZ of July 24, 2009 establishes a list of types of material assistance for which insurance premiums are not charged:
- payments to victims of emergencies and terrorist attacks to compensate them for material losses or for treatment;
- assistance related to the death of family members;
- at birth, adoption of a child, taking him under guardianship, if the payment is less than 50,000 rubles;
- other types of financial assistance paid once and not exceeding 4,000 rubles.
All other types of material assistance, according to the PFR and the FSS, are subject to insurance premiums.
Both parents can use the limit of 50,000 rubles when applying for assistance for the birth of a child, while the limit remains for each. At birth, adoption of several children, the limit is maintained for each of them, that is, at the birth of two children, insurance premiums will not be subject to 100,000 rubles each. for each parent. Basis - Letter of the Ministry of Labor of Russia dated November 20, 2013 No. 17-3 / 1926.
personal income tax
According to the Tax Code, personal income tax is levied on all income, both in cash and in kind.
The list of income that is not subject to personal income tax includes:
An example of calculating personal income tax when paying material assistance: in connection with the birth of a child, an employee of an enterprise with a salary of 70,000 rubles. in January 2016, financial assistance was issued in the amount of 30,000 rubles. A certificate was provided that the employee's wife had already received assistance in the amount of 25,000 rubles.
In the same month, the employee received a gift for the birth of a child in the amount of 10,000 rubles. The total amount of his income for January amounted to 110,000 rubles. (70 + 30 + 10).
Personal income tax in this case is not subject to 25,000 material assistance (50 - 25) and 4,000 of the value of the gift. The taxable amount will be 81,000 rubles. (70 + (30 - 25) + (10 - 4)). Total personal income tax for January will be 10348 rubles. ((81000 - 1400) * 13%, where 1400 is the standard deduction for the first child).
Accounting
accrual:
- Dt 84- at the expense of retained earnings of previous years;
- Dt 91/2- at the expense of current profit;
- Dt 20, 26, 44- at the expense of the wage fund;
- Kt 73- if the assistance is intended for an employee of the organization;
- Kt 76- His family member.
Withholding personal income tax:
- Dt 73, 76 Kt 68- for the amount of personal income tax withheld.
Calculation of insurance premiums:
- Dt 84, 91/2 Kt 69/1,2,3- on the amount of insurance premiums.
Payment of financial assistance:
- Dt 73, 76 Kt 50- if the payment is made from the cash desk;
- Dt 73, 76 Kt 51- if cashless payment is used.
Financial assistance can be issued from the cash desk along with wages according to the general statement, or maybe separately, then its issuance is issued by an account cash warrant.
Additional information on this issue is presented in the video.
I. Shinder, magazine expert
Employees of the institution, students who are in a difficult life situation can be provided financial assistance. It is also paid at the birth of a child, going on vacation, marriage registration and in other cases. The list of grounds for the payment of material assistance, the procedure for its payment and the amount should be provided for by internal local documents. In the article we will consider the procedure for the payment of financial assistance. In addition, we will figure out whether the institution has an obligation to withhold personal income tax from this payment, accrue insurance premiums, and whether it is necessary to take into account the amount of material assistance when calculating income tax.
As mentioned above, the payment of material assistance should be regulated by internal acts, for example, a collective agreement, a regulation on wages.
An employee of an institution (student, former employee or relative) applying for financial assistance must apply to the employer with a written application indicating the reasons that prompted him to apply for financial assistance, and attach, if necessary, documents confirming the reason indicated in the application ( copies of birth, marriage, death certificates, etc.).
The decision to pay an employee (student) material assistance is made by the head of the institution. The decision taken by him to provide material assistance is formalized by order.
The source of payment of material assistance in a state (municipal) institution can be both budget funds, subsidies, and funds received from income-generating activities.
To provide assistance to needy students studying full-time in federal state educational institutions of secondary and higher professional education, additional funds are allocated in the amount of 25% of the scholarship fund provided for in the prescribed manner in the federal budget ( para. 32 of the Model Provision).
Financial assistance, taxes and
Let us consider whether the amounts of material assistance are subject to personal income tax, insurance contributions to extra-budgetary funds, whether they are taken into account when calculating income tax.
Personal income tax. The procedure for calculating and paying personal income tax is regulated ch. 23 "Tax on personal income" Tax Code of the Russian Federation, from paragraph 1 of Art. 210 which follows that when determining the tax base, all employee incomes received by him both in cash and in kind, or the right to dispose of which he has arisen, as well as income in the form of material benefits, determined in accordance with Art. 212 Tax Code of the Russian Federation.
If any deductions are made from the employee's income by order, court decision or other authorities, such deductions do not reduce the tax base.
At the same time in Art. 217 Tax Code of the Russian Federation a list of types of income not subject to personal income tax is given. Yes, according to item 8 of this article, the amounts of lump-sum payments in the form of material assistance made by:
- taxpayers in connection with a natural disaster or other emergency, as well as taxpayers who are family members of persons who died as a result of natural disasters or other extraordinary circumstances, regardless of the source of payment;
- family members of a deceased employee, a retired former employee, or a retired employee, former employee, in connection with the death of a member (s) of his family;
- taxpayers from among the poor and socially unprotected categories of citizens in the form of targeted social assistance provided at the expense of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and extra-budgetary funds in accordance with programs approved annually by the relevant state authorities;
- taxpayers who suffered from terrorist acts on the territory of the Russian Federation, as well as taxpayers who are family members of persons who died as a result of terrorist acts on the territory of the Russian Federation, regardless of the source of payment;
- to employees (parents, adoptive parents, guardians) at the birth (adoption, adoption) of a child, paid within the first year after birth (adoption, adoption), but not more than 50,000 rubles. for every child.
In addition, the amount of material assistance provided by employers to their employees, as well as to their former employees who quit due to retirement due to disability or age, in an amount not exceeding 4,000 rubles, is not subject to personal income tax. during the tax period paragraph 28 of Art. 217 Tax Code of the Russian Federation).
Therefore, when paying financial assistance for other reasons, as well as from amounts exceeding the amounts established above, it is necessary to calculate and withhold personal income tax.
Material assistance to needy students studying full-time in federal state educational institutions of secondary and higher professional education, issued at the expense of the scholarship fund, is subject to personal income tax on a full basis. As stated in letters of the Federal Tax Service of the Russian Federation dated 06.04.2011 No. KE-4-3 / [email protected]"On Personal Income Tax", Ministry of Finance of the Russian Federation dated 26.04.2011 No. 03-04-05/3-301 , grounds for exemption from personal income tax for such material assistance in Art. 217 Tax Code of the Russian Federation not contained.
According to Art. 230 Tax Code of the Russian Federation institutions are obliged to keep records of income received from them by individuals in the tax period, tax deductions granted to them, calculated and withheld taxes in tax accounting registers developed by the institution independently. In addition, institutions, using accounting data, are also required to submit to the tax authority at the place of their registration information on the income of individuals for the past and the amounts of taxes accrued, withheld and transferred to the budget system of the Russian Federation for this tax period. Such information is submitted annually no later than April 1 of the year following the expired tax period, in the form 2-NDFL "Information on the income of an individual for 200_", given in Appendix 1 to Order of the Federal Tax Service of the Russian Federation No.MMV-7-3/ [email protected] .
Section 3 "Income taxed at a rate of __%" of this form indicates information on income received by individuals in cash and in kind, by months of the tax period, including the amount of material assistance issued by the institution to employees (former employees or relatives) .
Insurance contributions to off-budget funds. The object of taxation by insurance premiums is recognized as payments and other remuneration accrued in favor of individuals in the framework of labor relations and civil law contracts, the subject of which is the performance of work, the provision of services ( paragraph 1 of Art. 7 of the Federal Law of July 24, 2009 No. 212-FZ "On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund" (hereinafter - Federal Law No. 212-FZ)).
AT article 9 Federal Law No.212-FZ the amounts that are not subject to insurance premiums are listed, in particular:
a) the amount of one-time financial assistance provided ( pp. 3 p. 1):
- individuals in connection with a natural disaster or other emergency in order to compensate for material damage caused to them or harm to their health, as well as individuals affected by terrorist acts on the territory of the Russian Federation;
- an employee in connection with the death of a member (members) of his family;
- employees (parents, adoptive parents, guardians) at birth (adoption) of a child, paid during the first year after birth (adoption), but not more than 50,000 rubles. for each child;
b) the amount of material assistance provided by employers to their employees, not exceeding 4,000 rubles. per employee for the billing period ( paragraph 11 of Art. 9).
Material assistance to needy students studying full-time in federal state educational institutions of secondary and higher professional education, issued at the expense of the scholarship fund, is not subject to insurance premiums, since its payment is not carried out as part of an employment relationship with the institution.
Contributions for compulsory social insurance against accidents at work and occupational diseases. Based on the provisions Art. 20.1 of the Federal Law No. 24.07.1998 125-FZ "On Compulsory Social Insurance Against Occupational Accidents and Occupational Diseases" (hereinafter - Federal Law No. 125-FZ), the objects of taxation of insurance premiums are payments and other remuneration paid by policyholders in favor of the insured within the framework of labor relations and civil law contracts, if, in accordance with a civil law contract, the policyholder is obliged to pay insurance premiums to the insurer.
AT Article 20.2 of Federal Law No.125-FZ lists payments of financial assistance issued on the same grounds as indicated in Art. 9 of Federal Law No.212-FZ which are not subject to insurance premiums.
Thus, for material assistance issued to employees on other grounds, and for exceeding the specified amounts, insurance premiums for injuries will be charged.
Financial assistance provided to needy students studying full-time in federal state educational institutions of secondary and higher professional education, at the expense of the scholarship fund, does not accrue insurance premiums, since its payment is not carried out within the framework of labor relations with the institution.
income tax. Paragraph 23 of Art. 270 Tax Code of the Russian Federation it was determined that for the purpose of taxation of profits, expenses in the form of amounts of material assistance to employees are not taken into account.
However, in letters dated 03.07.2012 No. 03-03-06/1/330 , dated 15.05.2012 No. 03-03-10/47 The Ministry of Finance clarified the application of the provisions of this paragraph to lump-sum payments to employees when they are granted annual leave. According to the financial department, such payments, if they are provided for by a collective agreement and depend on the amount of wages (accrued as a percentage of salary) and compliance with labor discipline, that is, they are related to the performance by the employee of his labor function, are an element of the wage system and are not recognized as material help in meaning Art. 270 Tax Code of the Russian Federation.
In doing so, he was guided Art. 255 Tax Code of the Russian Federation, according to which the taxpayer’s labor costs include any accruals to employees in cash and (or) in kind, incentive accruals and allowances, compensatory accruals related to the mode of work or working conditions, bonuses and one-time incentive accruals, expenses associated with the maintenance of these employees, provided for by the norms of the legislation of the Russian Federation, labor agreements (contracts) and (or) collective agreements.
The same conclusion was made in Decree of the Presidium of the Supreme Arbitration Court of the Russian Federation dated November 30, 2010 No.VAS-4350/10. It states that material assistance not included in expenses according to paragraph 23 of Art. 270 Tax Code of the Russian Federation, include payments that are not related to the performance by an individual of his labor function and are aimed at meeting his social needs due to the occurrence of a difficult life situation or the occurrence of a certain event. Such events, in particular, may include harm caused by a natural disaster or other emergency, the death of a family member, the birth or adoption of a child, a serious illness.
Considering the foregoing, lump-sum payments to employees of an institution made for vacation (if they are related to the performance of labor functions) may reduce the tax base for income tax in accordance with Art. 255 Tax Code of the Russian Federation At the same time, the amount of payment of material assistance made on grounds not related to the performance of a labor function is not taken into account when calculating the tax base for income tax.
Accounting
From Instructions on the procedure for applying the budget classification of the Russian Federation approved Order of the Ministry of Finance of the Russian Federation dated December 21, 2011 No.180n, it follows that the cost of financial assistance is charged to subsection 211"Salary" KOSGU.
In accounting, to account for calculations for the payment of material assistance, it is used account 302 11 000 "Payroll" ( paragraph 256 of Instruction No.157n).
It should be noted that the amounts of material assistance do not form goods (works, services), therefore, these amounts must be attributed to score 0 401 20 211 "Payroll Expenses".
In the table we present the correspondence of accounts, which is reflected in the accounting of the accrual and issuance of material assistance:
* Instructions for the use of the Chart of Accounts for Budgetary Accounting approved Order of the Ministry of Finance of the Russian Federation dated 06.12.2010 No.162n.
** Instructions for the use of the Chart of Accounts for accounting of budgetary institutions approved Order of the Ministry of Finance of the Russian Federation of December 16, 2010 No.174n.
*** Instructions for the use of the Chart of Accounts for accounting of autonomous institutions approved Order of the Ministry of Finance of the Russian Federation dated December 23, 2010 No.183n.
Consider, for example, the procedure for recording operations related to the payment of material assistance.
Example
Within a month, the budgetary educational institution made a payment:
a) at the expense of funds from income-generating activities:
- financial assistance to I. N. Kazakov in connection with his retirement in the amount of 6,000 rubles;
- material assistance to Pavlov N.V. in connection with the birth of a child in the amount of 8,000 rubles;
b) at the expense of the scholarship fund (target subsidies) material assistance to student S. R. Gavrilov in the amount of 4,000 rubles.
In the accounting of the institution, the following entries will be made:
Debit |
Credit |
Amount, rub. |
|
The accrual of material assistance to I. N. Kazakov, N. V. Pavlov, S. R. Gavrilov is reflected. |
|||
Personal income tax was withheld from the amount of material assistance paid: |
|||
Kazakov I. N. (from the amount of material assistance that exceeded the limit established by the legislation of the Russian Federation) (6,000 - 4,000) rub. x 13%; |
|||
Gavrilov S. R. (4,000 rubles x 13%) |
|||
The accrual of insurance premiums was made for the amount of material assistance accrued to I. N. Kazakov, which exceeded the limit established by the legislation of the Russian Federation: |
|||
In the FSS (2.9%) (6,000 - 4,000) rub. x 2.9%; |
|||
In FFOMS (5.1%) (6,000 - 4,000) rub. x 5.1%; |
|||
In the Pension Fund for the insurance part of the labor pension (16%) (6,000 - 4,000) rub. x 16%; |
|||
In the Pension Fund of the Russian Federation for the funded part of the labor pension (6%) (6,000 - 4,000) rub. x 6%; |
|||
For injuries (0.2%) (6,000 - 4,000) rub. x 0.2% |
|||
Financial assistance was issued from the cash desk of the institution: |
|||
Kazakov I.N. (6,000 - 260) rubles; |
|||
Pavlov N.V.; |
|||
Gavrilov S. R. (4 000 - 520) rub. |
Standard provision on scholarships and other forms of material support for students of federal state educational institutions of primary vocational education, students of federal state educational institutions of higher and secondary vocational education, graduate students and doctoral students, approved. Decree of the Government of the Russian Federation of June 27, 2001 No. 487.
Order of the Federal Tax Service of the Russian Federation dated November 17, 2010 No. ММВ-7-3/ [email protected]"On approval of the form of information on the income of individuals and recommendations for filling it out, the format of information on the income of individuals in electronic form, directories."
Instructions for the use of the Unified Chart of Accounts for Accounting for State Authorities (Government Bodies), Local Self-Government Bodies, Management Bodies of State Extra-Budget Funds, State Academies of Sciences, State (Municipal) Institutions, approved. Order of the Ministry of Finance of the Russian Federation dated December 1, 2010 No. 157n.
Financial assistance - payment in cash or in kind, which is provided by the organization to employees and members of his family. Typically, financial assistance is paid to employees under certain circumstances. For example, the birth of a child, the death of a family member, a difficult financial situation.
How to apply for financial assistance
The decision on the payment of material assistance is made by the head of the organization (if it is accrued from the expenses of the current year) or the founder (if it is accrued from the profits of previous years). The conditions and amount of payment of financial assistance may be determined by the head (founder) or internal documents of the company. You can find out how to arrange and reflect in accounting the provision of material assistance to an employee or a member of his family at this link.
Taxes and contributions with financial assistance
As a general rule, material assistance is subject to personal income tax and insurance premiums. But only from the amount that exceeds 4000 rubles.
When calculating income tax, do not take into account material assistance provided to employees (family members of an employee). These amounts do not relate to economically justified expenses. You can find out how to take into account financial assistance when calculating taxes at this link.
If an organization pays a single tax on income on a simplified tax system, then it is impossible to take into account expenses, including in the form of financial assistance provided to an employee (a family member of an employee). If you use the object "income minus expenses", then the costs can be written off.
Articles on the topic "Material assistance":
Organizations that are located in the regions of the Far North must pay their employees for travel and luggage to and from the place of vacation. In the article, you will learn the rules for paying for travel to and from the place of rest in 2020 in the regions of the Far North. 31784
The taxation of material assistance in 2020 and the payment of insurance premiums depends on whether the amount of payments exceeds 4,000 rubles or not. But there are exceptions when personal income tax with financial assistance will be withheld, and insurance premiums will be charged. 72223
Child benefits from 3 to 7 years will begin to be paid from January 1, 2020. Vladimir Putin gave the corresponding order to the Federal Assembly on January 15. This means that the law will be adopted retroactively in the near future and more Russians will be able to receive new payments. 174960
Reading time: 8 min
In most cases, the final earnings of employees of most modern enterprises include not only the salary or salary established at the conclusion of an employment contract, but also many other additional payments. It can be various allowances and compensations, surcharges and other types of monetary rewards..
One of the types of such additional payments is material assistance for vacation provided in many budgetary institutions. It is worth familiarizing yourself with the procedure for its calculation and design features in more detail.
Dear readers! Each case is individual, so check with our lawyers for information.Calls are free.
Legislative regulation
Since the need to pay financial assistance is established by the federal law of the Russian Federation, its transfer is mandatory for all civil servants.
Workers who may also qualify for assistance include all employees in the public sector, for example:
- health care;
- education;
- culture;
- social assistance;
- science, etc.
To guarantee receipt of assistance, its payment must be provided for in the local regulations of the institution. But even if there is no such provision in the documents, the employee is still entitled to write an application for assistance and submit it to the manager. If the funds of the budget of a particular institution allow the payment to be made, the employer can do this.
This type of assistance is paid once a year upon registration by the employee. If it is issued twice a year, in installments, then assistance is paid when the employee goes on vacation for the first time.
In some cases, difficulties with the payment of assistance may also arise in a situation where the employee leaves for work. Therefore, the safest option is to submit a letter of resignation after the end of the vacation and the payment of financial assistance.
Only after that does he have the right to both registration and payment of vacation, and financial assistance.
Calculation procedure
The specific amount of material assistance depends on the provisions of the internal regulations of the institution. It is usually set proportionally to the following indicators:
- employee's salary;
- tariff rate;
- the size .
Also, the amount of financial assistance may depend on the characteristics of the employee himself (more often 
total work experience in the public sector). The exact terms and conditions are set out in the collective agreement, employment contracts with individual employees or in wage regulations.
For example, for civil servants, the amount of financial assistance is set at the rate of two average monthly salaries. For other employees of the public sector, this value can be from one to three salaries.
The calculation of a specific amount is carried out by the accounting department of the institution. At the same time, only the salary set for the employee is accepted for calculations, excluding bonuses (even if they are mandatory and monthly), additional payments and other monetary compensations.
Taxation
Financial assistance refers to payments that are not related to the commercial or production activities of the company.
However, in this case, the employer cannot reduce the size of the base for calculating income tax by the amount of financial assistance. In other cases, he must make insurance contributions, but only if the amount of payment exceeds 4 thousand rubles.
As for personal income tax, it is also charged and paid only if the amount of material assistance is more than 4 thousand rubles. Moreover, the tax is paid only on the excess amount. For example, if the amount of payment is 5000 rubles, the amount of tax will be equal to:
Personal income tax \u003d (5000 - 4000) * 13% \u003d 130 rubles.
If the relevant contributions and taxes were not transferred to social funds and tax authorities in a timely manner, then it is necessary to accrue them additionally and transfer them after an error is discovered. Otherwise, the employer may be held liable.
The procedure for filing and drawing up an application
The payment of material assistance for vacation, provided for in the internal documentation of the institution, must occur on the basis of a written application from the employee. It is the preparation of this document that is the first stage in processing the payment. 
The legislation does not provide for an established application form for the payment of material assistance, therefore, in most cases, it is drawn up arbitrarily or according to the model provided by the head. The specifics of financial assistance for vacation is that the employee generally has the right not to write a separate application - a request for its payment can be indicated in the application for vacation.
How to make an application?
For example, the main text of the document may be as follows: “I ask you to provide me with annual paid leave from 06/20/16 for 28 calendar days and material assistance in the amount of two salaries provided for by the collective agreement.” However, it is better to check with the employer for more detailed wording.
Therefore, the transfer of this amount to the employee, along with vacation pay, must occur without fail, regardless of whether he asked for it in writing or not.
Basic rules for making an application:
- the applicant must indicate not only his name and surname, but also the position and place of work (for example, a specific structural unit);
- the document is drawn up in the name of the head of the institution, the chief accountant or the chairman of the trade union (this is determined by the internal documents of the organization);
- after the main text, the date of preparation of the document and the signature of the employee are put.
After the application is considered by the responsible person, who decides whether to pay assistance or refuse it. If, as a result of the consideration, a positive decision was made, then the order for payment is transferred to the accounting department. After the calculations have been made, assistance is paid in the manner prescribed for vacation pay, that is, at least three days before the start
O. ANTOSHINA, Associate Professor, PhD in Economics,
N. TITKOVA, Lecturer, All-Russian State Tax Academy of the Ministry of Finance of Russia
Financial assistance refers to payments of a non-productive nature and is not related to the results of the organization's activities. It can be provided both to its current and former employees, and to third parties for various reasons. The reasons for the payment of material assistance may be: taking another vacation, holidays, health improvement, compensation for damage caused by any emergency, death of an employee's family member, etc.
According to some, material assistance is paid to all or most employees (for example, when going on regular vacation) and refers to lump-sum incentive payments. According to others, it is provided under special circumstances to individual employees or other persons upon their application (for example, for the purchase of medicines, burial, other household needs) and is a social payment.
Due to the variety of possible grounds for the payment of material assistance, accountants have questions related to their accounting and taxation. Consider the reflection of the payment of material assistance to employees in accounting and tax accounting for organizations that apply the general taxation system.
The amount of assistance is set by the head of the enterprise. It is determined in absolute terms or in an amount that is a multiple of the official salary, depending on each specific situation and the financial capabilities of the organization. The procedure for providing material assistance may be provided for in a collective or labor agreement.
The source of payment of material assistance is income from the current activities of the organization. The decision on its payment is made by order of the head of the organization. Depending on whether the possibility of providing material assistance is specified in the employment contract with the employee or not:
- the payment of material assistance will be recognized as an expense for wages in accordance with Art. 255 of the Tax Code of the Russian Federation (if it is provided for by the terms of the contract, for example, financial assistance for vacation);
- the payment of assistance will be recognized as a non-operating expense and accounted for on account 91-2 “Other expenses” (if it is not specified in the employment contract).
Since material assistance is not a remuneration for work and does not relate to incentive and compensation payments, regional coefficients and percentage allowances established for persons working in the Far North and areas equated to them are not applied to it.
In practice, a situation may arise when an employee is paid material assistance for some reason, but at the same time, alimony must be withheld from the employee’s income. The types of payments from which alimony is withheld are determined by the List of types of wages and other income from which alimony is withheld for minor children, approved by Decree of the Government of the Russian Federation of July 18, 1996 No. 51). In particular, alimony is withheld from the amount of assistance, with the exception of assistance provided in connection with a natural disaster, fire, theft of property, injury, death of a person obliged to pay alimony, or his close relatives. Also, alimony is not withheld from material assistance in connection with the birth of a child, marriage registration (clause “l”, clause 2 of the List).
When documenting the payment of material assistance to employees, difficulties arise due to the lack of a unified form. Based on paragraph 2 of Art. 9 of the Federal Law "On Accounting" documents, the form of which is not provided for in the albums of unified forms of primary accounting documentation, can be accepted for accounting, provided that all the necessary details are available. Therefore, the accounting department has the right to accrue material assistance if an appropriate order is received containing the following mandatory details:
- Title of the document;
- date of preparation of the document;
- the name of the organization on behalf of which the document is drawn up;
- the content of the business transaction;
- business transaction meters in physical and monetary terms;
- the names of the positions of persons responsible for the business transaction and the correctness of its execution, and their personal signatures.
Unified social tax
The object of UST taxation is recognized as payments and other remuneration accrued by taxpayers in favor of individuals under labor and civil law contracts, the subject of which is the performance of work, the provision of services (with the exception of remuneration paid to individual entrepreneurs), as well as under copyright agreements (clause 1 article 236 of the Tax Code of the Russian Federation).
We remind you that the concept of "wage" is defined in Art. 129 of the Labor Code of the Russian Federation: this is a system of relations related to ensuring the establishment and implementation by the employer of payments to employees for their work in accordance with laws, other regulatory legal acts, collective agreements, agreements, local regulations and labor contracts. The salary of each employee depends on his qualifications, the complexity of the work performed, the quantity and quality of labor expended (Article 132 of the Labor Code of the Russian Federation).
The payment of material assistance to employees is not included in labor costs for the following reasons:
- it is not directly related to the performance by employees of their job duties;
- this payment is not related to the activities of the organization aimed at generating income, therefore, does not reduce the tax base for income tax. At the same time, pp. 21 and 23 st. 270 of the Tax Code of the Russian Federation establishes that when determining the tax base, expenses in the form of amounts of material assistance to employees, as well as expenses for any types of remuneration provided in addition to remuneration paid on the basis of employment contracts, are not taken into account.
In addition, Art. 238 of the Tax Code of the Russian Federation defines the grounds on which material assistance, regardless of the source of payment, is not subject to UST. These are the amounts of one-time financial assistance provided by the organization:
- individuals in connection with a natural disaster or other emergency in order to compensate for material damage caused to them or harm to their health, as well as individuals affected by terrorist acts on the territory of the Russian Federation;
- family members of the deceased employee or the employee in connection with the death of a member (members) of his family.
Insurance contributions to the Pension Fund
From the amount of material assistance paid to employees, contributions to the Pension Fund will not be charged, since in accordance with Art. 10 of the Federal Law of December 15, 2001 No. 167-FZ “On Compulsory Pension Insurance in the Russian Federation”, the object of taxation of insurance premiums and the basis for their calculation are the object of taxation and the tax base for the UST. Since material assistance is one of the payments of a social nature and cannot be considered as part of wages, its exemption from taxation corresponds to the principles of pension insurance: a labor pension should be formed primarily through payments, the amount of which is determined depending on the qualifications of the employee, complexity, number , the quality and conditions of their work.
Contributions for insurance against accidents and occupational diseases
When calculating and paying insurance premiums for accidents at work and occupational diseases, you must be guided by:
- Federal Law No. 125-FZ of July 24, 1998 (as amended on December 1, 2004) “On Compulsory Social Insurance against Industrial Accidents and Occupational Diseases”;
- Decree of the Government of the Russian Federation of March 2, 2000 No. 184 (as amended of April 11, 2005 No. 207) “On Approval of the Rules for the Calculation, Accounting and Spending of Funds for the Implementation of Compulsory Social Insurance against Industrial Accidents and Occupational Diseases” (hereinafter - Rules);
- The list of payments for which insurance contributions to the Social Insurance Fund of the Russian Federation are not charged, approved by Decree of the Government of the Russian Federation dated July 7, 1999 No. 765 (hereinafter - the List).
For material assistance issued to employees of the organization, the payments named in the List are exempt from taxation:
- material assistance provided to employees in connection with emergency circumstances in order to compensate for harm caused to the health and property of citizens, on the basis of decisions of state authorities and local governments, foreign states, as well as governmental and non-governmental interstate organizations established in accordance with international treaties of the Russian Federation Federations (clause 7);
- financial assistance issued to employees in connection with a natural disaster, fire, theft of property, injury, as well as in connection with the death of an employee or his close relatives (clause 8).
However, in this situation, the employees of the FSS of the Russian Federation insist that such contributions for material assistance should be accrued, since the list of payments for which they are not accrued is closed. A similar opinion is shared by some courts, in particular, the FAS of the Far Eastern District in its decision of November 26, 2003 No. Ф03-А16 / 03-2 / 2806.
However, there is an opposite point of view, which is based on the following grounds:
- the basis for calculating insurance premiums for compulsory social insurance against accidents at work and occupational diseases is the wages (income) accrued for all reasons;
- material assistance paid to employees does not apply to such income, since these payments are not provided for by the wage system and are not taken into account when calculating average earnings for the purpose of paying insurance compensation (Article 139 of the Labor Code of the Russian Federation). At the same time, these payments are provided without taking into account the results of the work of specific employees;
- expenses for payments in the form of material assistance amounts are not taken into account when determining the tax base, i.e. are made not at the expense of the wage fund, but at the expense of net profit.
Consequently, in the current situation, the organization will have to decide on its own whether or not to accrue insurance premiums for compulsory social insurance against industrial accidents and occupational diseases for material assistance. In the second case, it is highly likely that you will have to defend your position in court.
Personal Income Tax
Article 217 of the Tax Code of the Russian Federation contains a closed list of income paid to employees that is not taxed, in particular:
- one-time material assistance in connection with a natural disaster or other emergency in order to compensate for material damage or harm to health caused to them on the basis of a decision of the authorities;
- one-time material assistance provided to an employee in connection with the death of a member of his family or family members of a deceased employee;
- one-time material assistance to victims of terrorist acts on the territory of Russia, regardless of the source of payment;
- the amount of financial assistance not exceeding 4000 rubles. per year (for example, for vacation, due to a difficult financial situation, for former employees who have retired, etc.).
Note! Since January 1, 2006, the amount of material assistance not subject to personal income tax has increased from 2000 rubles. up to 4000 rub. (in accordance with Federal Law No. 71-FZ of June 30, 2005).
The amount of financial assistance within 4000 rubles. per year, issued to both working and former employees who quit due to retirement due to disability or age, are not included in the personal income tax base (clause 28, article 217 of the Tax Code of the Russian Federation). Personal income tax must be withheld only from the amount of material assistance over 4000 rubles. in year.
It should be borne in mind that in the Tax Code of the Russian Federation there is no answer to the question of who exactly should be considered family members. According to Art. 2 of the Family Code of the Russian Federation, family members include spouses, parents and children (adoptive parents, adopted children). In this case, the fact of joint or separate residence does not matter. Paragraph 1 of Art. 11 of the Tax Code of the Russian Federation provides that the institutions, concepts and terms of civil, family and other branches of the legislation of the Russian Federation used in this Code are applied in the sense in which they are used in these branches of legislation, unless otherwise provided by the Tax Code of the Russian Federation.
Thus, material assistance provided to relatives (spouse, parents and children) of a deceased employee of an organization is not subject to personal income tax on the basis of clause 8 of Art. 217 of the Tax Code of the Russian Federation.
In order to confirm the right to exemption from personal income tax material assistance provided on the grounds named in Art. 217 of the Tax Code of the Russian Federation, the relevant documents must be attached to the application for its provision:
- in the event of the death of an employee or a member of his family - a copy of the death certificate of the employee or a member of his family, and, if necessary, copies of documents confirming kinship: marriage or birth certificate;
- the fact of the onset of an emergency must be confirmed by decisions of state authorities, certificates from the dez, SES, etc. An emergency is a situation that has developed in a certain territory as a result of an accident, a natural hazard, a catastrophe, a natural or other disaster that may or have caused human casualties, damage to human health or the natural environment, significant material losses and violation of the living conditions of people;
- a document confirming the fact of terrorist acts on the territory of the Russian Federation is, for example, a certificate from the Ministry of Internal Affairs, etc.
If financial assistance is paid to former employees of the organization - pensioners, then they are entitled to receive standard tax deductions, provided that before the end of the year they submit a corresponding application to the accounting department of the organization (clause 3 of article 218 of the Tax Code of the Russian Federation). In the event that financial assistance is paid monthly during a calendar year, deductions begin to be provided from the beginning of the tax period. In addition, the total amount of material assistance is reduced by a non-taxable amount of 4,000 rubles.
According to paragraph 8 of Art. 217 of the Tax Code of the Russian Federation, the amounts of one-time material assistance provided to taxpayers from among the poor and socially unprotected categories of citizens are exempted from personal income tax in the form of targeted social assistance (in cash and in kind) provided at the expense of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and off-budget funds in accordance with the programs approved annually by the relevant state authorities.
In accounting, personal income tax withheld from the amount of material assistance exceeding 4,000 rubles is reflected in the entry:
Dt 70 (76), Kt 68, sub-account "Calculations on personal income tax".
Organizations - tax agents that are the source of payment of income specified in paragraph 28 of Art. 217 of the Tax Code of the Russian Federation, must keep records of such income, regardless of their amount, and submit information about these incomes to the tax authority at the place of registration in the form No. 2-NDFL. When filling out tax returns, organizations indicate the entire amount of such income for each of the grounds for the tax period and a tax deduction in an amount not exceeding 4,000 rubles. for each of the bases. Thus, if financial assistance is paid to former employees of the organization in an amount not exceeding 4,000 rubles, the organization must provide information on the income paid to the tax authorities in the form No. 2-NDFL.
income tax
On the basis of paragraphs. 21 and 23 st. 270 of the Tax Code of the Russian Federation, material assistance to employees of the organization, regardless of the purpose of its issuance, is not included in the expenses of the organization and is not taken into account for the purposes of taxation of profits. It does not matter whether the payment of material assistance is provided for by the labor (collective) agreement or not.
Therefore, in order to avoid discrepancies between accounting and tax accounting, it is inappropriate to include the provision of material assistance in documents regulating the system of remuneration of employees.
The expenses of the organization related to the provision of material assistance to former employees also do not reduce taxable profit, since, in accordance with paragraph 16 of Art. 270 of the Tax Code of the Russian Federation, when determining the tax base for income tax, expenses in the form of the value of property transferred free of charge (works, services, property rights, including money and securities) and expenses associated with such a transfer are not taken into account.
For clarity, the obligations arising from the payment of taxes in connection with the provision of material assistance to employees are presented in the table.
Grounds for payment financial assistance | Types of taxes and contributions paid | |||||
Contributions to the FIU | Contributions for insurance against accidents and occupational diseases | income tax | ||||
Financial assistance is paid to an employee of the organization | ||||||
| In connection with the death of family members of the employee | ||||||
| From the amount of more than 4000 rubles. | ||||||
| Other reasons (surcharge for vacation, treatment, other household needs) | From the amount of more than 4000 rubles. | |||||
Financial assistance is paid to a person who is not an employee of the organization | ||||||
| In connection with the death of an employee, family members | ||||||
| Victims of terrorist acts on the territory of the Russian Federation | ||||||
| Due to a natural disaster or other emergency (except by decision of public authorities) | ||||||
| Other reasons (treatment, other household needs) | ||||||
| Former employees who left due to retirement or disability | From the amount of more than 4000 rubles. | |||||
