Author of the article: Lina Smirnova Last modified: January 2021 34959
In case of illness, an employee working officially is entitled to payment of social benefits based on the sick leave certificate presented. Such payments are made from insurance premiums withheld from his earnings. In this article, we will find out whether insurance premiums are levied on hospital benefits, how funds for their payments are generated, what is the procedure for making payments, and what can affect the taxation of benefits with insurance premiums.
Are sick leave insurance premiums covered by the employer?
According to Art. 183 of the Labor Code, all citizens who are sick and issue a certificate of incapacity for work receive benefits for all days of absence from work. According to the general rules, this payment is not subject to insurance premiums, which is confirmed by the provisions of Art. 422 NK. Therefore, hospital payments do not transfer funds to social, pension or health insurance.
Reference! Such rules apply not only to funds paid by employers, but also to money transferred from the Social Insurance Fund.
The benefit is assigned exclusively to persons who are officially employed citizens, therefore, for them, the employer makes monthly contributions to the Social Insurance Fund. The current rate is 2.9% of earnings.
Therefore, these funds are withdrawn from a citizen’s salary so that in the future, when going on sick leave, the person can receive the optimal amount. The first three days are paid for by the employer, after which Social Insurance Fund funds are used. The benefit received on sick leave is not considered a salary, but is represented by a social payment on which insurance contributions are not charged.
Sick leave taxation 2021 - example of calculations
Let’s assume that the store salesperson was on sick leave from 06/01/18 to 06/08/18. The bulletin was issued in accordance with legal regulations. The accountant calculated the benefit amount for 8 days (calendar) and accrued:
- For the first 3 days – RUB 3,550.00.
- For the remaining 5 days – 5850.00 rubles.
What taxes are charged on sick leave in 2021? There is no need to withhold insurance premiums for medical, pension, social insurance, or “injury”. It is necessary to accrue, withhold, and transfer income tax to the budget. In accounting, the transaction looks like this:
- D 44 K 70 for 3550.00 rub. – the accountant calculated the amount of sickness benefits at the expense of the company.
- D 69.1 K 70 for 5850.00 rub. – the accountant calculated the amount of sickness benefits at the expense of Social Insurance.
- D 70 K 68.2 for 1222.00 rub. – income tax is charged on the entire benefit amount.
- D 70 K 51 for 8178.00 rub. – the company transferred benefits to the employee’s card.
- D 68.1 K 51 for 1222.00 rub. – the company paid personal income tax to the state.
- D 51 K 69.1 for 5850.00 rub. – after an inspection, Social Insurance reimbursed the employer for sick leave expenses.
Conclusion - in this article we looked at what taxes sick leave is subject to in 2021. According to current legal requirements, insurance premiums are not required to be charged on benefit amounts. With regard to income tax, the withholding obligation arises depending on the type of payment. There is no need to pay personal income tax on maternity benefits, but on regular benefits, including care for sick children, it is necessary.
When are insurance premiums transferred from benefits?
Contributions are levied on temporary disability benefits if the benefit amount is above the established maximum. Under such conditions, for the first three days the employer is not only obliged to pay sick leave funds, but also pay a certain amount to the Social Insurance Fund. The current maximum value is 865 thousand rubles.
For example, an accountant receives a salary of 55 thousand rubles. per month. For 2 years of work, the average salary is 1 million 320 thousand rubles.
The calculation is carried out in the following steps:
- average earnings for 3 days is: 1320000/731*3=5417 rubles;
- based on the maximum payment, average earnings should not exceed 6894 rubles;
- therefore, insurance payments are transferred from the difference between these indicators: 6894-5417 = 1477 rubles.
If a hired specialist is a member of a trade union organization, then he is obliged to make monthly appropriate payments. But if a person receives sick leave benefits, then he does not have to worry about reducing this amount.
Trade union dues are levied exclusively on income, and benefits are represented by social payments, so funds are not deducted from them to the Pension Fund or Social Insurance Fund. But on benefits assigned in connection with temporary disability, you have to pay income tax, amounting to 13% of the payment. This fee is the only payment from social benefits, which is of an average size.
Attention! If sick leave is issued for pregnancy and childbirth, then not only insurance payments, but also personal income tax are not collected from them.
Insurance premiums are charged in the following situations:
- Calculation of benefits in the amount of 100% for an employee who does not have the required length of service. Such an initiative on the part of the employer acts as an accrual of additional income. Therefore, all required government payments are collected from the excess. For example, if a citizen’s work experience is less than 5 years, then the benefit amount is 60% of earnings. But the head of the company can, on his own initiative, increase the payment to 100%. But if you exceed the amount, you have to pay insurance premiums equal to 2.9%. From the 4th day, funds are transferred from the Social Insurance Fund. Typically, such a decision to increase benefits is made by the employer for valuable employees who have little experience but bring high profits to the company. The state does not provide for additional payments, therefore, for such a decision, company managers are required to pay insurance premiums.
- The Social Insurance Fund denies the employee benefits. This decision often arises due to illiterate documentation on the part of the employer. Sometimes there are problems coordinating payments with government agency representatives. The heads of organizations that care about the health of their hired specialists decide to assign them a payment at their own expense. But such transfers do not act as social benefits and are therefore recognized as income. They have to contribute funds to various state funds and the Federal Tax Service.
An employer obliged to transfer insurance premiums from sick pay must take into account the deadlines established by law, otherwise the director of the company will be held administratively liable. Therefore, money is paid before the 15th of the next month. At the same time, the payment order is retained, which serves as evidence of the fulfillment of obligations by the employer.
Sick leave due to illness
If a certificate of incapacity for work is issued to an employee due to his illness, injury or the need to care for a sick family member, then payment for it is subject to personal income tax. This tax must be calculated and withheld from the entire benefit amount. That is, before transferring benefits to the employee, personal income tax is deducted from sick pay. And the employee is paid benefits minus personal income tax. That is, for example, if the benefit is 10,000 rubles, then you need to pay out 8,700 (10,000 - 1,300). Since personal income tax is 13 percent of the sick leave amount.
The rules are:
- Calculate personal income tax on benefits at a rate of 13% on the date of actual receipt of income by the employee (clause 1, article 224, clause 3, article 226 of the Tax Code of the Russian Federation). The date of actual receipt of sick leave income is the date of payment of benefits, that is, the date of transfer of funds to the employee’s bank account or the date of issuance of cash to the employee from the cash register (clause 1, clause 1, article 223 of the Tax Code of the Russian Federation).
- Withhold personal income tax upon actual payment of the benefit, and transfer the tax to the budget no later than the last day of the month in which the benefit was paid (clauses 4, 6 of Article 226 of the Tax Code of the Russian Federation).
- If the employer is a participant in the FSS pilot project, then the FSS of the Russian Federation will withhold personal income tax from its part of the benefit independently, since it pays it itself.
The amount of sick leave is reflected in the 2-NDFL certificate with income code 2300 (clause 6.7 of the Procedure for filling out the 2-NDFL certificate).
Will the insurance payment change when benefits are transferred?
Company managers save if the payment amount does not exceed the established limit. If the amount exceeds this figure, then you will have to transfer insurance premiums from the excess.
According to Art. 430 of the Tax Code of the Social Insurance Fund compensates the heads of enterprises for the amounts spent on transferring money to employees on sick leave.
But there are exceptions in which it is impossible to reduce insurance transfers by the employer.
These include situations:
- a certificate of incapacity for work is issued on the basis of an injury received by a citizen during the performance of work duties;
- the benefit is paid on the basis of an illness acquired while working in dangerous or harmful conditions;
- the company operates using OSNO, and the employee works in two directions, and in one such direction it is required to pay tax according to UTII.
Therefore, when receiving compensation, the chosen tax regime and the reasons for the employee’s illness are taken into account.
Income tax and sick leave
For income tax purposes, include the benefit paid at the expense of the employer in other expenses associated with production and sales in the period of benefit accrual (clause 48.1, clause 1, article 264, clause 1, article 272 of the Tax Code of the Russian Federation).
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Taxes on sick leave in 2016-2017 are paid in accordance with the law. At the beginning of 2021, no changes have occurred in this matter, with the exception of the transfer of the function of administering contributions to the Federal Tax Service.
Imposition of insurance premiums on maternity benefits
If an employee becomes pregnant, then before the birth of the baby she has the right to go on maternity leave, receiving sick leave payments. Insurance premiums and personal income tax are not charged from this amount. This is provided for by the provisions of Art. 217 NK.
No other taxes or contributions are charged on the B&R benefit. Therefore, if for some reason the employer takes extraneous funds from the payment, the employee can contact the labor inspectorate to bring the violator to justice.
Are temporary disability benefits subject to insurance taxation in the Pension Fund of Russia or not?
Are insurance premiums paid with b/l? According to paragraph 1 of Article 422 of the Tax Code of the Russian Federation, all state benefits are not subject to insurance taxation.
Since compensation for temporary disability is not wages (the employee does not work during sick leave), there is no need to deduct additional funds from it for insurance needs.
These insurance contributions are not subject to both the first three days, which are paid at the expense of the employer, and the remaining period , provided by the Social Insurance Fund. The category of state contributions for temporary disability also includes maternity benefits, which are exempt from insurance charges.
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In what cases are they charged?
If the employee’s actual salary exceeds the amount of the maximum base for insurance contributions to the Social Insurance Fund, then insurance premiums will be calculated on the “surplus” that the employer pays in excess of the established maximum.
The fact is that the compensation provided to an employee during sick leave is calculated based on the amount of money earned over the previous two years before the insured event. If wages for a two-year period exceed average earnings, then either the amount of temporary disability payments will be less.
In such cases, the employer can pay up to the average salary from his own funds, and a percentage of this additional payment will have to be paid to the Social Insurance Fund. This practice is due to the fact that the amount that the employer pays as an additional payment does not fall under the category of state benefits, therefore, according to clause 1 of Art.
420 of the Tax Code, contributions to extra-budgetary funds must be accrued.
A similar situation can occur if compensation is calculated incorrectly, the ballot is filled out incorrectly, or the necessary documents are missing. Payments under these circumstances are not recognized as benefits, therefore, all necessary deductions are collected from them (Letter of the Federal Tax Service dated September 22, 2017 No. ED-4-15/19093).
Common Mistakes
If the head of a company or accountant makes mistakes when filling out a sick leave certificate, this leads to an incorrect calculation of the payment. They arise due to various factors, for example, an accountant may make an arithmetic error, and software failures often occur.
If such errors are detected, recalculation must be carried out. This leads to underpayment or overpayment. If the employee did not receive a certain amount, then he is paid the due funds. In this case, the amount is divided into two parts, since one is appointed by the employer, and the second is issued by representatives of the Social Insurance Fund. After recalculation, the money is paid on the day you receive your salary.
Important! Attention! company, so he additionally transfers compensation to the employee for each day of delay.
If it turns out that the employee received more funds than he was entitled to, he will have to return the excess. But if the error occurred due to the fault of the employer, then the citizen may refuse to return the money. If he agrees with the manager’s demand, then he draws up a written permission to withhold a specific amount from the salary.
How is the taxation of different types of sick leave different?
The first case is a benefit that an employee receives due to his own illness, as well as, if necessary, to care for a sick relative. It is not indicated in the list of state subsidies not subject to personal income tax (clause 1 of Article 217 of the Tax Code), therefore tax on such compensation is levied at a rate of 13%.
Read about the specifics of calculating this tax in 2016-2017 in this article.
The second situation is maternity benefits. Whether tax is withheld from the ballot issued to the expectant mother during maternity leave can be found out from the list of state payments exempt from tax (clause 1 of Article 217 of the Tax Code). This type of benefit is included in the list of non-personal income tax exemptions, which means that no tax is withheld. The calculated benefit without deductions is paid to the employee.
Results
Only personal income tax is taken from the regular disability benefit paid to the employee. Personal income tax is not paid on maternity payments. The GPA agreement does not provide for reimbursement of sick leave.
Compared to 2021, the taxation of sick leave in 2018 did not change. Monetary compensation for periods of incapacity is paid both in the event of illness of the employee himself and in the case of caring for sick relatives. Let's figure out what taxes are imposed on sick leave - an example of calculations is at the end of the article.
