How to properly pay an advance in 2020-2021 according to the Labor Code
The concept of “advance” is not enshrined in labor legislation. Since the employer is obliged to pay his employees wages every half month, payment for the first half of the month is called an advance.
How are advances paid under the Labor Code of the Russian Federation? Specific terms for payment of wages and advances are not established in the Labor Code of the Russian Federation. The rules for advance payment currently applied (since October 3, 2016) limit the period for issuing money to 15 calendar days from the end of the period for which the salary was accrued (Article 136 of the Labor Code of the Russian Federation). At the same time, the Labor Code does not prohibit making advance payments more often than every half month, for example, 3 times a month (every decade) or 1 time a week. The employer independently establishes the exact dates for payment of income calculated to employees in internal local regulations:
- in the regulations on remuneration;
- collective agreement;
- employment contract.
Thus, according to the current rules for advance payment, the deadline for payment of wages for the first half of the month can be set on one of the days from the 16th to the 30th (31st) day, and for the final payment - from the 1st to the 15th e day of the month (letters of the Ministry of Labor dated 03/12/2019 No. 14-2/ОOG-1663, dated 09/21/2016 No. 14-1/В-911). At the same time, establishing a variable period for transferring income calculated to an employee, for example with the wording “salaries are paid from the 1st to the 10th” or “... no later than the 10th”, is considered a violation of the requirements of the Labor Code, since the employer is obliged to set a specific date of issue (Clause 3 of the letter of the Ministry of Labor dated November 28, 2013 No. 14-2-242).
IMPORTANT! Setting deadlines for paying salaries on the 15th day and advance payments on the 30th is considered inappropriate due to the need to calculate and withhold personal income tax from the advance payment if there are 30 days in a month (i.e. if its payment falls on the last day of the month) .
Let's look at how an advance is paid and when it is necessary to withhold personal income tax from it.
Receiving an advance from the buyer
Since income under the “simplified system” is reflected on a cash basis, the advance received is also recognized as simplified taxation system income at the time of its receipt. This is reflected in accounting.
Example. Advance from the buyer - simplified taxation system - income
In November, Aktiv JSC received an advance payment from Passiv LLC for the upcoming shipment of products. Advance amount – 240,000 rubles.
The products were transferred to the buyer only in January of the following year.
In December, the settlement account of JSC Aktiv received payment from LLC Passiv for products shipped in September. Payment amount – 100,000 rubles.
“Aktiv” works using the simplified tax system, therefore it determines income and expenses using the cash method. The company pays advance tax payments quarterly.
In this case, the accountant will reflect the revenue from the current year’s sales in tax accounting as follows:
- in November – 240,000 rubles;
- in December – 100,000 rubles.
Total - 340,000 rubles. (RUB 240,000 + RUB 100,000). This amount is Aktiva’s income for the fourth quarter.
In accounting, the Asset entries will be as follows:
in September
DEBIT 62 subaccount “Settlements with customers” CREDIT 90-1
– 100,000 rub. – revenue from shipped products is reflected;
In November
DEBIT 51 CREDIT 62 subaccount “Settlements on advances received”
– 240,000 rub. – an advance was received for the upcoming shipment of products;
December
DEBIT 51 CREDIT 62 subaccount “Settlements with customers”
– 100,000 rub. – payment has been received for products shipped in September.
note
When determining the income limit for working on the simplified tax system, advances received by the “simplified person” from their counterparties are taken into account. Since income under the simplified tax system is reflected on a cash basis, their amount increases on the date the money is received in the current account or at the cash desk. Or on the date of receipt of other property.
Let us note that in 2021, the income limit for a “simplified” person, which gives him the right to apply the simplified tax system, is 150 million rubles for the reporting (tax) period without taking into account the deflator coefficient. If this indicator is exceeded, the company loses the right to the simplified tax system.
Is it possible to accept an advance payment paid to the supplier of goods as expenses?
Sasha 06/14/2012 In 1C, in the accounting policy settings on the “STS Expenses” tab, the checkboxes configure how expenses for the purchase of goods are accepted and the “Receipt” and “Payment” checkboxes are not available. That’s right, the program only accepts expenses when the goods have arrived and we have paid for them. And if we have not received the goods yet and we have already paid, then this is not accepted as expenses - the question is WHY? The client is indignant at the program that he found out somewhere and the costs are what he paid to the client and he doesn’t care about postpayment or prepayment. Now the accountant in the documents (prepayments) “Write-off from the current account” selects the type of operation “Other write-off” so that the “KUDiR” button becomes available and manually enters the amount in columns 6 and 7, is this legal? Please help, this is a very urgent matter!!! Thank you!
Nikolay 06/14/2012 Good day, Alexander! The payer of the simplified tax system has the right to take into account the cost of goods sold as expenses, without waiting for their payment by the buyer. Letter of the Ministry of Finance of Russia dated October 29, 2010 N 03-11-09/95 The Ministry of Finance of Russia explained that taxpayers using the simplified tax system must take into account as expenses the costs of paying for goods intended for for further sale, after the actual transfer of goods to the buyer, regardless of the fact of their payment by the latter. For payers of the simplified tax system who have chosen the object of taxation “income minus expenses”, features have been established for the recognition of expenses for payment for goods purchased for further sale. Such expenses are taken into account as goods are sold (clause 2, clause 2, article 346.17 of the Tax Code of the Russian Federation). Sales means the transfer of ownership of goods on a reimbursable basis (Clause 1, Article 39 of the Tax Code of the Russian Federation). And the date of receipt of income by payers using the simplified tax system is the day of receipt of funds (clause 1 of article 346.17 of the Tax Code of the Russian Federation). Based on these standards, the Russian Ministry of Finance has repeatedly explained that the costs of purchasing goods for further sale can be taken into account only after they have been paid by buyers (Letters dated November 27, 2009 N 03-11-09/384, dated November 12, 2009 N 03-11-06 /2/242 and dated September 16, 2009 N 03-11-06/2/188). The question of at what point payers of the simplified tax system should take into account the cost of purchased goods intended for sale has been repeatedly considered in arbitration courts. However, there was no consensus on this matter. Some courts supported the position of the Ministry of Finance of Russia (Resolutions of the Federal Antimonopoly Service of the Far Eastern District dated 02/08/2010 N F03-100/2010, dated 04/17/2009 N F03-1315/2009). Others came to the conclusion that taxpayers who use the simplified tax system with the object “income minus expenses” can take into account the costs of purchasing goods intended for sale immediately after they are shipped to customers (Resolution of the Federal Antimonopoly Service of the Volga-Vyatka District of September 25, 2009 N A39-4425 /2008, Federal Antimonopoly Service of the East Siberian District dated November 3, 2009 N A10-2005/2009). A similar dispute recently became the subject of consideration by the Supreme Arbitration Court of the Russian Federation (Resolution dated June 29, 2010 N 808/10). The court took the side of the taxpayers and indicated that paragraphs. 2 p. 2 art. 346.17 of the Tax Code of the Russian Federation does not connect the right to include costs for the purchase of goods intended for resale with their payment by buyers. The Financial Department in the Letter under consideration supported the decision of the Presidium of the Supreme Arbitration Court of the Russian Federation. Now payers of the simplified tax system do not have to wait for the receipt of money from buyers in order to write off the cost of goods purchased for resale. To account for such expenses in accordance with paragraphs. 2 p. 2 art. 346.17 of the Tax Code of the Russian Federation, it is enough to pay for the purchased goods to the supplier and ship them to the buyer. THREE CONDITIONS, at a minimum, must be met, the goods must be PAID to the supplier and RECEIVED to the warehouse and TRANSFERRED to the buyer, in your case the goods are only PAID to the supplier, but ADVANCES GIVEN to the supplier are not accepted as expenses even for materials, not to mention goods. .
Nikolay 06/14/2012 It turns out that it’s illegal, wait for the tax office to come and check, this is my opinion….
Sasha 06/14/2012 With your permission, I WILL DOWN and I WILL DOWN TERRIBLY: 1) Why are advances issued to the supplier not accepted as expenses? 2) In 1C, in order for the expenses for the purchase of goods to be included in KUDiR, the following documents must be completed in the following sequence: Receipt of goods and services => Write-off from the current account => Sales of goods and services? Or there are other options, for example: Debit from the current account => Receipt of goods and services. I tried that and it doesn't work? 3) Will the amount of goods sold be included in KUDiR?
Nikolay 06/14/2012 1) The Tax Code of the Russian Federation does not contain an unambiguous answer on this issue. In practice, taxpayers usually reflect prepayment amounts paid to suppliers as expenses not at the time of payment, but on the date of termination of the counterparty’s counter-obligation (when a document is signed confirming the completion of work, provision of services, etc.). And if the delivery and acceptance of work (services) occurs in stages, the specified amounts are included in expenses as such work (services) are accepted. In my opinion, the prepayment (advance payment) transferred to the supplier should be recognized as an expense for the purposes of the simplified tax system at that moment, when you received goods, work, services and this fact is documented (for example, by a certificate of acceptance of completed work). Following a different approach may lead to disputes with tax authorities. Judicial practice on this issue has not yet developed. 2) The procedure may be different: Write-off from the current account (Advance) => Receipt of goods and services => Sales of goods. WHAT DOESN'T WORK? 3) The amount received from customers in INCOME, the cost of goods sold in EXPENSE
Olenka 06/14/2012 Nikolay’s excellent and complete answer explained everything. But I will also add purely logically: how do you write off as expenses something that has not yet generated income? You will have income from the sale of curtains only after you transfer the goods to the buyer. Revenue is recognized even if the buyer makes a post-payment. And explain to the management that first there must be income in accounting, so all these conventions with the recognition of expenses! Received, paid and handed over to the buyer! Everything is logical.
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Publication date: Apr 17, 2013
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Regulatory regulation
The question of determining the moment when an individual entrepreneur receives income on OSNO is problematic:
- The Ministry of Finance believes that Chapter 23 of the Tax Code of the Russian Federation “Tax on personal income” establishes the date of actual receipt of income for calculating personal income tax at the time of receipt of funds at the cash desk or into the account of an individual entrepreneur (clause 1, clause 1, article 223 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of the Russian Federation dated June 30, 2016 N 03-04-05/38420).
- Entrepreneurs consider this approach to be unfair, since it is not always possible to deduct expenses simultaneously with income (clause 1 of Article 221 of the Tax Code of the Russian Federation), and, having received a loss, an individual entrepreneur on OSNO cannot transfer it to the future (clause 4 of Art. 227 Tax Code of the Russian Federation). Some courts support this position, confirming the right of individual entrepreneurs to recognize income and expenses in the accrual period, since otherwise the right of entrepreneurs to recognize expenses is violated (Decision of the Supreme Arbitration Court of the Russian Federation of October 8, 2010 N VAS-9939/10).
In this regard, there are two points of view on the procedure for including individual entrepreneur advances on OSNO in personal income tax:
- income includes all prepayments in the period of receipt;
- proceeds may be included in income at the time of sale.
The entrepreneur decides independently what approach to take in this matter. However, in the second case, disputes with the tax authorities are inevitable, and judicial practice on this issue is ambiguous.
GLAVBUKH-INFO
How does an organization applying the simplified tax system take into account an advance received from the buyer in the amount of 50% of the contract price of a product and the sale of this product in the next quarter?The contractual cost of goods is 120,000 rubles. The goods were purchased by the organization from the supplier at a price of RUB 94,400. (including VAT RUB 14,400). The remainder of the funds for goods sold was received in the month of their transfer to the buyer.
Accounting
The amount of the prepayment received is not recognized as income of the organization and is reflected in accounting as accounts payable (clauses 3, 12 of the Accounting Regulations “Income of the Organization” PBU 9/99, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 32n). In accounting, the crediting of funds to the organization’s bank account is reflected in the debit of account 51 “Current accounts” in correspondence with the credit of account 62 “Settlements with buyers and customers.” The amounts of the received prepayment are accounted for separately on account 62 (Instructions for the application of the Chart of Accounts for accounting of financial and economic activities of organizations, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n).
Revenue is recognized as proceeds from the sale of goods. This income is recognized in accounting in the month of shipment of goods to the buyer (clauses 5, 12 of PBU 9/99). The actual cost of goods sold is taken into account as part of expenses for ordinary activities and forms the cost of sales (clauses 5, 7, 9 of the Accounting Regulations “Organizational Expenses” PBU 10/99, approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 33n) .
In this case, the organization applies the simplified tax system, therefore, the actual cost of goods is formed by the price at which they were purchased (including VAT) (clause 5, paragraph 3, clause 6, clause 6 of the Accounting Regulations “Accounting for inventories” PBU 5 /01, approved by Order of the Ministry of Finance of Russia dated 06/09/2001 N 44n, paragraph 2 of Article 346.11, paragraph 3 of paragraph 2 of Article 170 of the Tax Code of the Russian Federation).
When recognized in accounting, the amount of revenue from the sale of goods is reflected in the credit of account 90 “Sales”, subaccount 90-1 “Revenue”, in correspondence with the debit of account 62. At the same time, the cost of goods sold is written off from account 41 “Goods” to the debit of account 90, subaccount 90-2 “Cost of sales” (Instructions for using the Chart of Accounts).
Tax paid when applying the simplified tax system
Proceeds from the sale of goods are recognized as income from sales on the date of receipt of funds (clause 1 of Article 346.15, clause 1 of Article 346.17 of the Tax Code of the Russian Federation). In this case, the organization recognizes as income 50% of the contract value of the goods in the month of receiving the advance payment and the remaining amount in the month of receiving the final payment from the buyer (see on this issue the Decision of the Supreme Arbitration Court of the Russian Federation dated January 20, 2006 N 4294/05).
The procedure for recognizing expenses for this operation will be as follows.
When determining the tax base for the tax paid in connection with the application of the simplified tax system, the costs of paying for the cost of goods (reduced by the amount of “input” VAT) purchased for further sale, as well as costs associated with the acquisition and sale of these goods, are taken into account. Expenses for payment of the cost of goods are recognized on the date of their shipment to the buyer, subject to payment of the cost of goods to the supplier (clause 23, clause 1, article 346.16, clause 2, clause 2, article 346.17 of the Tax Code of the Russian Federation, Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 29, 2010 N 808 /10 in case No. A33-1659/2009, Letter of the Ministry of Finance of Russia dated October 29, 2010 No. 03-11-09/95). That is, expenses for paying the cost of goods are recognized regardless of the fact of payment for goods sold by the buyer.
As noted above, part of the income is recognized by the organization upon receipt of advance payment. On the date the organization receives prepayment, the goods have not yet been shipped to the buyer.
Consequently, the organization recognizes the expense in the form of the cost of the shipped goods on the date of shipment.
As for the VAT amounts on purchased goods, these amounts are also taken into account in
the composition of expenses as expenses are recognized in the form of the cost of goods on the purchase of which this VAT was paid (clause 8, paragraph 1, article 346.16 of the Tax Code of the Russian Federation, Letter of the Ministry of Finance of Russia dated December 2, 2009 N 03-11-06/2/256).
Contents of operations
| Debit | Credit | Sum, rub. | Primary document | |
| Accounting entry in the month of receipt of advance payment | ||||
| Received from buyer 50% prepayment (120,000 x 50%) | 51 | 62 | 60 000 | Bank statement current account |
| Accounting entries for shipment of goods | ||||
| Recognized revenue from sales of goods | 62 | 90-1 | 120 000 | Commodity invoice |
| Actual written off cost of sales goods | 90-2 | 41 | 94 400 | Accounting reference |
| Received from buyer remaining amount for agreement0) | 51 | 62 | 60 000 | Bank statement current account |
——————————— Previously, the Ministry of Finance of Russia (see Letters dated 12.11.2009 N 03-11-06/2/242, dated 16.09.2009 N 03-11-06/2/188, dated 11.06 .2009 N 03-11-09/205, etc.) on this issue had a different point of view, according to which the organization could take into account the costs of paying for the cost of goods only after the buyer had paid for the goods sold.
E.V. Feshchenko Consulting and Analytical Center for Accounting and Taxation
30.08.2013
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What is income for individual entrepreneurs on OSNO
The income of an individual entrepreneur working for OSNO is considered to be proceeds from the sale of work/services/goods, fixed assets, as well as the cost of property received free of charge.
To calculate the tax base for personal income tax, income is recognized upon receipt of funds in the account (cash method).
Some types of income are not subject to personal income tax, for example, state benefits, subsidies, compensation, etc. If income is expressed in foreign currency, then it must be converted into rubles at the exchange rate of the Central Bank of the Russian Federation on the date of recognition of income.
An entrepreneur can receive income not only in cash, but also in kind. Income in kind is determined at market value and is fixed on the date of receipt of the asset received.
Advance report under the simplified tax system income minus expenses
When preparing advance reports using the simplified taxation system, income minus expenses, you must remember such an important rule for recognizing expenses as - expenses on an advance report are recognized in the absence of debt to the accountable person, that is, if the accountable person has provided a report for an amount exceeding the amount issued and thus If an overexpenditure has occurred, the debt paid rule is not met and the costs are not recognized. The amount of expense for such an advance report will be recognized only for the amount issued; the amount of overexpenditure will be recognized when the debt to the accountable person is repaid. But the rules for recognizing expenses for services, goods and materials also apply. Let's look at this situation using an example. The organization gave its employee 50,000 rubles as a report on 02/02/2020, as shown in the figure:
Next, an advance report was provided for the purchase of goods in the amount of 35,100 rubles.
Please note that the registers are formed in accordance with the rules for recognizing expenses for goods acquired for the purpose of resale, and since the amount of the advance report does not exceed the amount issued to the accountable person, expenses for the acquisition of these goods will be recognized after their sale or write-off.
You can read more about the recognition rules in our instructions.
Also, on March 15, 2020, the accountable person provided a report for purchased goods and for payment of debt to the supplier in the total amount of 61,000 rubles with an overexpenditure according to the report in the amount of 46,100 rubles.
The following registers are formed, recording business transactions under this document, and since the amount of the paid sub-report amounted to 14,900 rubles (carryover balance from the previous report), we see that it was for this amount that the rules for recognizing expenses for purchased goods were met, namely, received in organization and paid to the supplier and the last rule remains - write-off or sale. For other goods and the supplier's debt, the rules will be fulfilled after the overexpenditure has been paid according to the advance report.
The organization issued a report on 04/02/2020 in the amount of 50,000 rubles. This issue repaid the overexpenditure on the advance report in the amount of 46,100 rubles.
When paying for the overexpenditure on the advance report, the payment rule was fulfilled and the goods moved to the last stage of recognition (the last 7 lines of registers), and the first line of the registers shows the fulfillment of the last recognition rule for the service paid by the accountable person as part of the debt to the supplier.
Based on the last completed rule for recognizing expenses for services, a KUDiR record was created in the amount of 5,500 rubles.
The organization sold part of the goods on 04/05/2020, purchased according to the advance report, the lines highlighted in the figure.
Registers have been created to recognize expenses for these goods.
KUDiR records have been generated:
So, let’s summarize this issue - the main thing to remember is that when goods are received according to an advance report, payment of the amount of the advance report is also important, since debt for overexpenditure does not result in compliance with the rule of payment for goods (despite the fact that we do not owe the supplier and the goods have been paid for, but payment here is determined by the fact of issuing funds to the accountable person).
Deadlines for payment of advance payments
Please note - due to the coronavirus pandemic, for some individual entrepreneurs and organizations the deadlines for paying taxes and filing reports may be postponed, brief information in the summary table from the Federal Tax Service, details are described in this article.
Article 346.21 of the Tax Code of the Russian Federation establishes the deadlines for making advance payments under the simplified tax system in 2021. Taking into account the postponement due to weekends, these are the following dates:
- no later than April 26 for the first quarter;
- no later than July 26th for the half-year;
- no later than October 25th for nine months.
If these deadlines are violated, a penalty in the amount of 1/300 of the refinancing rate of the Central Bank of the Russian Federation is charged for each day of delay. There is no penalty for late payment of advances, because the deadline for paying the tax itself expires only on March 31 for an LLC and April 30 for an individual entrepreneur. But if you are late to pay the balance of tax before these dates, then a penalty of 20% of the unpaid amount will be imposed.
There is no need to submit any documents confirming the correctness of advance payments to the Federal Tax Service; simply reflect these amounts in KUDiR and keep the documents confirming payment. Information about these amounts based on the results of the reporting periods must also be indicated in the annual declaration.
Novation of an obligation to supply goods into a loan obligation
It happens that a “simplified” buyer, having received an advance payment for the upcoming delivery of goods, cannot fulfill the terms of the contract for its shipment. In this case, the parties often resort to concluding an agreement on novation of the obligation to supply goods into a loan obligation. As a result of the novation, the obligation under the supply contract is terminated, and the amount of the prepayment received is recognized as a loan.
Since borrowed funds received are not taken into account as income (clause 1, clause 1.1, article 346.15, clause 10, clause 1, article 251 of the Tax Code of the Russian Federation), the received amounts are not subject to “simplified” tax (resolution of the Federal Antimonopoly Service of the North Caucasus District dated 4 June 2013 in case No. A61-1274/2012).
Is an advance considered income?
The procedure for determining income by organizations using the simplified tax system is provided for in Article 346.15 of the Tax Code of the Russian Federation. According to this article, when determining the object of taxation, organizations take into account income from the sale of goods (work, services), the sale of property and property rights, determined in accordance with Article 249 of the Tax Code of the Russian Federation, and non-operating income, determined in accordance with Article 250 of the Tax Code of the Russian Federation. When determining the object of taxation, the income listed in Article 251 of the Tax Code of the Russian Federation is not taken into account. Let's look at this in more detail.
In accordance with paragraph 1 of paragraph 1 of Article 251 of the Tax Code of the Russian Federation, advances are not taken into account among taxable income by organizations that recognize income on an accrual basis.
But does it follow from this formulation that for those who calculate taxable profit using the cash method or have switched to the “simplified” method, the advance is income?
We believe that such a conclusion cannot be drawn, since the fact that paragraph 1 of clause 1 of Article 251 of the Tax Code of the Russian Federation does not indicate taxpayers who recognize income on a cash basis does not mean that an advance by such taxpayers should automatically be recognized as income.
In this case, it is obvious that the conclusion made by the officials in the above letters clearly contradicts the definitions of income given in Article 249 of the Tax Code of the Russian Federation and the provisions of Article 273 of the Tax Code of the Russian Federation. Paragraph 2 of Article 249 of the Tax Code of the Russian Federation stipulates that receipts associated with payments for goods sold (work, services) or property rights are recognized depending on the chosen method. According to Article 346.17 of the Tax Code of the Russian Federation, income under “simplified taxation” is recognized on the cash basis, which is determined in accordance with Article 273 of the Tax Code of the Russian Federation.
Firstly, Article 249 of the Tax Code of the Russian Federation states that income is revenue from goods sold (work, services) or property rights. But the organization receives the advance even before the sale, so it is impossible to recognize the advance as income on the basis of this article.
Secondly, within the meaning of clause 2 of Article 273 of the Tax Code of the Russian Federation, income is recognized on the day when the debt to the organization is repaid by its debtor. Note that debt as such arises only if the goods were first shipped and then payment was received. But by transferring an advance payment (advance payment), the partner does not repay his debt for the goods shipped (work performed, services rendered), therefore the transferred amounts cannot be considered taxable income.
Thirdly, the advance also does not fit the definition of non-operating income, which is named in Article 250 of the Tax Code of the Russian Federation.
In our opinion, an advance is not income also on the grounds that income is recognized as an economic benefit in monetary or in-kind form that can be assessed (Article 41 of the Tax Code of the Russian Federation). And in this case it is obvious that the organization does not receive any economic benefit.
Therefore, the requirements and explanations of the Ministry of Taxes and the Ministry of Finance of Russia regarding the inclusion of the prepayment received by the “simplified” people in the tax base for the single tax, to put it mildly, contradict common sense.
But nevertheless, officials of ministries and departments continue to firmly stand their ground.
Moreover, the Ministry of Finance of Russia believes that the prepayment returned to the organization should increase the tax base for the single tax on the day these funds are received in the bank account or cash register of the organization, since this type of income is not named in Article 251 of the Tax Code of the Russian Federation (Letter dated 12.05.2004 N 04-02-05/2/21).
It should be noted that, despite the obvious contradictions between the tax legislation and the position of the main financial departments of the country, few people decide to argue with the tax authorities, perhaps also for the reason that the single tax on prepayment will still have to be paid, but only a little later, after implementation implementation.
That is, in this case, a dispute with the tax authorities may arise regarding the moment of payment of the single tax, and not the amount of tax.
We note the fact that arbitration practice on the issue of advances has not been formed to date.
Advance amount
In practice, you can find several ways to calculate salary advances:
- the company calculates the advance based on days worked;
- the company calculates the advance as a percentage of the established salary;
- the company sets a fixed advance amount in rubles.
Calculation of advance payment in proportion to time worked
Regulatory authorities consider this method of calculation to be optimal and most reliable. This position, in particular, was expressed by the Ministry of Labor in its letter dated 02/03/2016 No. 14-1/10/B-660 and Rostrud in its letter dated 09/08/2006 No. 1557-6.
Advance calculation formula:
Advance = salary: standard working time x actual time worked for the first half of the month
Depending on the procedure for calculating and paying the advance at a particular enterprise, this formula may include the amount of additional payments for the first half of the month.
When calculating the advance in proportion to the time worked, the accountant may have problems if, for example, the employee gets sick in the second half of the month. Personal income tax should be withheld upon final payment to the employee for the month. If the employee is absent from work for the second part of the month, there will be nothing to withhold tax from. Therefore, experts recommend using a correction factor of 0.87 when calculating the advance payment.
Example. The employee's salary is 25,000 rubles. There are 20 working days in a month, 10 of which occur in the first half of the month. In the second half of the month, the employee was on leave without pay for 9 days. Thus, a total of 11 days were worked in a month (20 – 9).
Let's calculate the advance. 25,000: 20 x 10 x 0.87 = 10,875 rubles.
Let's calculate your monthly salary. 25,000: 20 x 11 = 13,750 rubles.
Personal income tax will be: 13,750 x 13% = 1,788 rubles.
The accountant will be able to fully withhold tax when paying salaries for the month. As a result, the employee will receive 1,087 rubles (13,750 – 10,875 – 1,788).
If a correction factor is not applied in this case, it will not be possible to fully withhold personal income tax.
Calculation without coefficient 0.87 under the same conditions.
Let's calculate the advance. 25,000: 20 x 10 = 12,500 rubles.
Let's calculate your monthly salary. 25,000: 20 x 11 = 13,750 rubles.
Personal income tax will be: 13,750 x 13% = 1,788 rubles.
Salary due to the employee for the second half of the month: 13,750 – 12,500 = 1,250 rubles.
As can be seen from the calculation, the amount of personal income tax exceeds the remaining salary (1,788 > 1,250). The accountant will not be able to withhold the full tax amount.
Calculation of advance payment as a percentage of salary
This method is most often used to calculate an advance payment. If you set the correct percentage, the advance amount will not contradict the law.
Many companies pay 40% of the salary. Indeed, this approach allows you to get the most accurate advance amount. It is important to note that when paying an advance, employers do not withhold personal income tax. Therefore, if you set an advance at 50% of the salary, the second part of the salary minus tax will be less than the advance. The Ministry of Health and Social Development believes that both parts of the salary should be approximately the same size (letter dated February 25, 2009 No. 22-2-709).
When calculating the advance as a percentage of the salary, it is necessary to take into account the actual days worked. If an employee was absent from work for the first half of the month (for example, on vacation), he is not entitled to an advance.
Fixed advance amount
The advance cannot be the same for all employees. Salary depends primarily on the qualifications of the employee, the amount of work, job responsibilities, etc. (Article 132 of the Labor Code of the Russian Federation). In addition, the advance must be commensurate with the days worked.
If the company sets a fixed advance amount in rubles, the advance will have to be paid even when the employee is on vacation, on sick leave or absent from work for other reasons. This method will be contrary to the law.
Responsibility for non-issuance or late payment of advance payment
Payment of an advance after the deadline established by local regulations (or failure to pay an advance at all) is subject to Art. 142 of the Labor Code of the Russian Federation, according to which the employer and officials bear administrative responsibility under clause 6 of Art. 5.27 Code of Administrative Offences:
- from 1,000 to 5,000 rub. for individual entrepreneurs;
- from 10,000 to 20,000 rub. for officials of the employer;
- from 30,000 to 50,000 rub. for legal entities.
IMPORTANT! The employer will be fined for failure to pay the advance even if he has a written application from the employee to pay wages once a month, since this approach contradicts Art. 136 Labor Code of the Russian Federation.
In addition, for late payment of wages, including advance payments, the employer will bear financial liability in the form of compensation for each day of delay in the amount of 1/150 of the Central Bank key rate (Article 236 of the Labor Code of the Russian Federation).
Find out how to calculate compensation for delayed wages in ConsultantPlus. Get free demo access to K+ and go to the Ready Solution to find out all the details of this procedure.
