Financial assistance: taxation 2018 and insurance premiums

Financial assistance paid by the policyholder to an employee is subject to contributions for compulsory pension, health insurance and VNIM. However, in cases for which the grounds are listed in the Tax Code of the Russian Federation, one-time financial assistance is exempt from insurance contributions

:

• payment to an employee in connection with the death of a family member;
• to individuals in connection with a natural disaster or other emergency in order to compensate for material damage or harm to their health;
• individuals who suffered from terrorist attacks on the territory of the Russian Federation.

Financial assistance not specified in this list is, as a rule, subject to contributions for compulsory pension, health insurance and VNIM. According to judicial practice, financial assistance, which can be classified as social benefits and does not depend on the qualifications of the employee and the complexity of the work performed, does not need to be subject to insurance contributions.

Normative base

Letter of the Federal Tax Service of the Russian Federation dated 08/18/2011 N AS-4-3/
Letter of the Ministry of Finance of Russia dated 08/27/2012 N 03-04-05/6-1006

Order of the Federal Tax Service of Russia dated September 10, 2015 N ММВ-7-11/ “On approval of codes for types of income and deductions”

Letter of the Ministry of Finance of Russia dated February 17, 2016 N 03-04-05/8718

Letter of the Ministry of Finance of Russia dated December 16, 2014 N 03-04-05/64847

Letter of the Ministry of Finance of Russia dated December 2, 2016 N 03-04-05/71785

Letter of the Ministry of Finance of Russia dated January 20, 2017 N 03-04-06/2414

Ruling of the Supreme Court of the Russian Federation dated August 20, 2015 N 304-KG15-9468 in case N A45-16187/2014

Letter of the Ministry of Finance of Russia dated 02.09.2014 N 03-03-06/1/43912

Letter of the Federal Tax Service of Russia dated December 15, 2016 N BS-4-11/

Tax-free financial assistance 2021

Who can receive financial assistance at work? To give financial assistance or not to give is the right of the employer. Financial assistance may also be paid selectively. During a calendar year, an employee has a non-taxable limit of financial assistance of 4,000 rubles for various purposes. The limit of 4,000 rubles does not depend on the connection in which the money was issued. It could be:

• wedding;
• birthday;
• financial assistance for the anniversary (taxation 2020);
• acquisitions;
• treatment, etc.

Taxation of financial assistance in 2021 and insurance premiums from it vary depending on whether payments exceed 4,000 rubles.

The only exceptions are:

• death of an employee or his relative;
• birth of a child;
• natural disasters and terrorist attacks.

When a subordinate becomes a parent, he can be paid up to 50,000 rubles without calculating insurance premiums. Financial assistance in connection with the death of a family member, compensation for damage due to injury, terrorist attack, emergency or accident are not included in the base for calculating insurance premiums and personal income tax. Thus, taxes on financial assistance and the maximum amount in 2021 remain unchanged for now.

Please note that one-time financial assistance is considered a payment for certain purposes, accrued no more than once a year on one basis, that is, on one order (Letter of the Federal Tax Service of Russia No. AS-4-3/13508). How a person receives the money - all at once or in parts throughout the year - does not matter (Letter of the Ministry of Finance of Russia No. 03-04-05/6-1006).

Financial assistance partially subject to insurance contributions

In some cases, contributions are assessed in excess of the established limit.

• Lump sum payments to each parent related to the birth, adoption of a child, establishment of guardianship, assigned during the first year of the baby’s life (within a year after adoption, establishment of guardianship), in the amount of up to 50,000 rubles, are not subject to insurance premiums. A non-taxable amount is established for each child.

Example

The spouses work in the same organization.
The collective agreement of this company states that upon the birth of a child, the employee is paid financial assistance in the amount of 40,000 rubles. Both spouses wrote an application to receive funds. Is financial assistance given to the father and mother subject to insurance premiums? Despite the fact that the total amount of assistance is 80,000 rubles. exceeded the established limit, the funds are not subject to insurance premiums, since the amount paid at a time to each parent is less than 50,000 rubles.

• Contributions for other financial assistance to an employee in a total amount of up to 4,000 rubles issued during a calendar year are not charged.

Example

In 2021, the employee was given financial assistance twice due to his difficult financial situation: the first time in February in the amount of 2,000 rubles, the second time in June in the amount of 3,000 rubles.
Is financial assistance provided to an employee subject to contributions? The accounting department did not impose fees on the first payment, since the amount issued was less than the limit established by law (2000

In June, the company assessed contributions from the amount of financial assistance that exceeded the limit: (2000 + 3000) – 4000 = 1000 rubles. – the amount of financial assistance subject to contributions.

Read also:  Application for the remainder of the vacation sample

Employers should take into account that for financial assistance over 4,000, insurance premiums are charged in full.

Example

The organization decided to provide the employee with financial assistance for vacation - in the amount of 80,000 rubles. The accounting department will charge insurance premiums for an amount exceeding 4,000 rubles:

80,000 – 4000 = 76,000 rub. The accounting department will calculate contributions from 76,000 rubles.

When assessing insurance premiums on amounts of financial assistance issued, the limit for its different types is taken into account separately.

Example

During the year, the employee received financial assistance from the organization twice - the first time in connection with the adoption of a child in the amount of 30,000 rubles, the second time - for vacation, in the amount of 20,000 rubles.

Maternity assistance in the amount of 30,000 rubles, issued upon adoption, is not subject to contributions, since its amount is less than the limit of 50,000 rubles.

With financial assistance for vacation in the amount of 20,000 rubles. Only the amount of the annual limit - 4000 rubles - is not taken into account, and the remaining part of the payment is subject to insurance premiums. Contributions will be calculated by the accounting department of the employing company from the excess of the limit:

200 00 – 4000 = 16 000 rub. – financial assistance subject to insurance contributions.

Financial assistance: taxation 2021, insurance premiums

Is financial assistance subject to insurance premiums in 2020? Since financial assistance does not relate to income related to the employee’s performance of his work duties, it cannot be subject to contributions. However, this provision has a number of limitations. That is, the manager cannot pay his employees any amount as financial assistance. Since 2021, issues related to fees for employee insurance are explained in Chapter 34 of the Tax Code of the Russian Federation. Situations when you do not have to pay are contained in Art. 422 codes. Amounts from one-time financial assistance paid under the following circumstances are not calculated:

• the employee received money to compensate for damage caused by a natural disaster or emergency;
• the victim of a terrorist attack on the territory of the Russian Federation was compensated for damage to health;
• the employer helped with money in the event of the death of a member of his family;
• an amount of up to 50,000 rubles was paid as support for the birth of a child. Not only each parent, but also the adoptive parent and guardian have the right to it;
• the amount of financial assistance does not exceed 4,000 rubles during the year.

We remind you that 4000 rub. - this is tax-free financial assistance (2020). If payments are higher, they are subject to insurance premiums. In this case, the goals may be different, for example, for partial compensation of expenses for additional education, to cover the costs of purchasing medicines, for vacation. Note that the situations listed apply to all existing types of compulsory insurance: pension, medical, social, as well as injuries. In addition, they apply to assistance in both in-kind and cash forms. So, 4000 rubles for financial assistance. (taxation 2020) insurance premiums are not charged

Is financial assistance subject to insurance premiums?

Article 422 of the Tax Code of the Russian Federation contains a list of cases when financial assistance is not subject to insurance contributions.
Depending on this, the entire amount of financial assistance or only some part of it is not subject to contributions. So, according to sub. 3 p. 1 art. 422 of the Tax Code of the Russian Federation, regardless of the amount of payment, certain types of financial assistance are completely exempt

Here is financial assistance that is not subject to insurance contributions:

• issued to an employee one-time in connection with the death of a family member ;
• issued to individuals to compensate for damage caused to them by a natural disaster or other emergency ;
• issued to people who suffered from terrorist attacks on the territory of the Russian Federation.

In addition, individuals receiving financial assistance who are not employees of the person who pays this assistance are not insured persons for this payer. Therefore, such payments cannot be subject to insurance premiums .

Financial assistance up to 4000 (taxation 2020)

Let's consider the taxation of financial assistance to an employee in 2021. Is financial assistance subject to personal income tax (2020)? The withholding of personal income tax is indicated in Chapter 23 of the Tax Code of the Russian Federation, and Article 217 of the Tax Code of the Russian Federation specifies whether financial assistance is subject to personal income tax. If you carefully read this article, it will become clear that income tax for individuals is not withheld in the same cases when insurance premiums are not collected. We are talking about the payment of money upon the birth of a child or the death of a family member, amounts up to 4,000 rubles (for any purpose). At the same time, we must remember that the 2-NDFL certificate will have different income codes and deduction codes each time - depending on the type of financial assistance provided and taxation or collection of insurance premiums (Order of the Federal Tax Service of Russia dated September 10, 2015 No. ММВ-7-11/).

Here are some more interesting points:

• According to the Ministry of Finance, monthly financial assistance to a person on maternity leave can be subject to personal income tax, taking into account standard tax deductions, the amounts of which are contained in paragraphs. 4 clause 1 of Article 218 of the Tax Code of the Russian Federation (Letter dated 02/17/2016 No. 03-04-05/8718). In other words, if an employer pays extra every month to a woman on maternity leave, he can reduce the amount of the extra payment by the so-called child deduction. Since this form of support may be a general type of financial assistance, and not a one-time payment in connection with the birth, although one reason is the birth of a baby;
• financial assistance, tax-free in 2021, is provided by the employer to family members of a deceased employee or former employee who previously retired due to disability, age or old age, or to the employee (pensioner) himself if one of his family members has died (Letters from the Ministry of Finance dated 16.12 .2014 No. 03-04-05/64847, dated 12/02/2016 No. 03-04-05/71785);
• if the fact of an emergency or terrorist act is not confirmed, the employer takes personal income tax from compensation (Letter of the Ministry of Finance dated January 20, 2017 No. 03-04-06/2414).

How to reflect receipt of financial assistance in tax reporting?

To understand how and when material assistance is reflected and whether it is subject to personal income tax, an example should be given.
Semenov Yu. G. officially contacted the employer on June 1, 19 with an application for payment of financial assistance in the amount of 50,000 rubles. The manager made a decision on June 4, 19 to transfer funds to the applicant in full. The accounting department made the appropriate accrual, transferred the money to the account and reflected the posting in the tax reporting.

Form 2-NDFL

To reflect financial assistance, personal income tax and insurance contributions, it is necessary to take into account that the amount of up to 4,000 rubles transferred to the employee’s account must have code 2760, and the deduction is shown as 503 (Article No. 217, paragraph No. 28 of the Tax Code of Russia). For financial assistance provided at the birth of a child, the income code will be 2762, the deduction will be 504 - order of the Federal Tax Service No. ММВ-7-11/387.

Non-taxable support, regardless of the volume, is not indicated in form 2-NDFL. For example, the amount does not need to be shown in the certificate issued to the employee if there is a fire in his house. However, the causes of the emergency should not relate to the actions of the employee. The payment is quoted as assistance in connection with the occurrence of emergency circumstances. In this situation, the payment is not subject to reflection, and therefore is not subject to tax.

Support for quitting employees

An interesting question: what to do with insurance deductions from payments to ex-employees. Article 420 of the Tax Code of the Russian Federation will help answer this, which states that contributions are accrued for remuneration under employment agreements or GPC agreements. Since there are no such relationships with those who quit, there is no need to retain anything. At the same time, inspectors may have questions on what basis financial support was provided. Organizations need to keep this point in mind when discussing financial assistance (taxation 2021, insurance premiums).

The procedure for obtaining financial assistance in an organization

To receive money, the employee writes a free-form application. In some cases, he will have to prove his right to financial assistance of 4,000 rubles. (taxation 2021, insurance premiums) and provide relevant documents, such as a birth or death certificate, a certificate of accident, etc. Based on the application, the manager issues an order. Below are samples of documents that can be used when applying to an employer for financial assistance at the birth of a child.

Sample application for financial assistance

Sample order for financial assistance

When financial assistance is subject to insurance premiums

In all other cases not specified in the previous paragraph, financial assistance, if provided to employees, becomes subject to insurance contributions. This norm is contained in subsection. 11 clause 1 art. 422 of the Tax Code of the Russian Federation.

The deadlines for making contributions are as follows: according to clause 3 of Art. 431 of the Tax Code of the Russian Federation, the payer of insurance premiums is obliged to transfer them to the budget no later than the 15th day of the month following the month of accrual.

Example:

The collective agreement of Omega LLC contains a provision according to which employees of the organization have the right to receive financial assistance. The decision to allocate it is the prerogative of the manager, whose order indicates the corresponding amounts.

In February 2021, in accordance with his application, the employee of the enterprise, A.S. Chizhikov, was provided with financial assistance in the amount of 29,000 rubles. for paid treatment of the spouse during pregnancy.

In May 2021, another financial assistance was allocated to him, but already in connection with the birth of a child - in the amount of 30,000 rubles.

As a result, contributions to compulsory social insurance will be charged only from 25,000 rubles. (29,000 – 4,000), since the non-taxable amount in the first case is 4,000 rubles. And financial assistance issued at the birth of a child is not subject to contributions at all, if it does not exceed 50,000 rubles. In this case, it is equal to 30,000 rubles.

Financial assistance in tax accounting

In tax accounting, financial assistance is not reflected (clause 1 of article 252, clause 23 of article 270 of the Tax Code of the Russian Federation). The Ministry of Finance made only one exception. Material assistance can be taken into account in labor costs if it is provided for in the company’s internal personnel documents and is related to the performance of job duties (Letter No. 03-03-06/1/43912 dated 09/02/2014). An example is financial assistance for vacation.

Financial assistance, taxation 2018

Personal income tax accrual

Is financial assistance subject to personal income tax? 2021 introduced many amendments and innovations to the legislation. But tax-free financial assistance (2017) remained unchanged.

Financial assistance up to 4000 - taxation 2021 does not provide for inclusion in income to determine the tax base for personal income tax in case of payment on the following grounds:

• payments to employees who quit due to retirement due to disability or age;
• payment for medications.

Please note that payment for medicines is made upon provision of documents confirming the actual costs of purchasing these medicines for medical use. Medicines are prescribed by the attending physician. However, it should be borne in mind that medical aid is paid for for medications prescribed to employees and their relatives (spouses, parents, children, wards under 18 years of age), as well as former employees (age pensioners) and disabled people (clause 28 of article 217 of the Tax Code RF).

Material assistance is subject to personal income tax, but there are cases of payments that are not subject to personal income tax (clause 8 of article 217 of the Tax Code of the Russian Federation):

• family members of a deceased employee or retired former employee;
• an employee or former employee who has retired due to the death of a member of his family;
• in the amount of no more than 50,000 rubles for each child at the birth (adoption or adoption) of a child. Cash is paid during the first year after birth;
• victims in connection with a natural disaster or other emergency circumstances, as well as family members of the person who died during these occurrences;
• a person who has suffered from terrorist attacks on the territory of the Russian Federation, as well as family members of a person who died under these circumstances;
• employee, family members, former employee who has retired, to pay for medical services (clause 10 of article 217 of the Tax Code of the Russian Federation).

Accounting for income tax and simplified taxation purposes

As a general rule, amounts of paid financial assistance are not taken into account in expenses for tax accounting purposes, when taxed with income tax and the simplified tax system (clause 23 of article 270, clause 1 of article 346.16 of the Tax Code of the Russian Federation).

At the same time, in Letters of the Ministry of Finance of Russia dated 09/02/2014 No. 03-03-06/1/43912, dated 10/22/2013 No. 03-03-06/4/44144, explanations are given that financial assistance paid for annual leave is taken into account as part of labor costs.

Important! Labor costs include payments provided for in employment contracts or collective agreements (Article 255 of the Tax Code of the Russian Federation).

Financial assistance to low-income families in 2021

Financial assistance to low-income citizens of the Russian Federation is currently provided in several forms. The most common option is cash payments that the state makes monthly. In addition, there is one-time monetary assistance in the form of a grant for training, a scholarship, assistance for the purchase of basic necessities, assistance in kind (food, medicine, etc.). A low-income family may be exempt from paying all taxes and fees when calculating material assistance in the form of benefits and subsidies.

Children who are raised in a family with low-income status have the right to receive education in higher and secondary educational institutions, taking part in a general competition for applicants. They can also count on help from the state, but for this at least one of the following conditions must be met:

• if the child is raised by only one parent who is recognized as a disabled person of the second or first group;
• if a child from a low-income family has scored the minimum number of points based on the exam results, which allows him to take part in the competition, since the exams are considered to have been passed successfully;
• the age of the child who wishes to enter a higher education institution does not exceed 20 years.

There are a number of innovations specifically for children raised in low-income families:

• out of turn children must be admitted to educational preschool institutions;
• in schools, children must have two meals a day, which are paid for by the state;
• Children should receive both a uniform for school and clothing for sports free of charge;
• Children under 6 years of age can receive the necessary medications for free, but only with a doctor’s prescription.

Parents who are part of a low-income family can count on the following benefits:

• preferential employment;
• lowering the retirement age;
• exemption from paying registration fees;
• obtaining a garden or summer cottage plot out of turn;
• obtaining a mortgage loan on preferential terms.

Financial assistance for pensioners in 2021

Many pensioners are interested in the question of whether the government will repeat the one-time payment of 5,000 rubles, as it did in 2017. No, no such payment is planned. This was a single measure taken by the government in order to compensate for losses from rising prices.

From January 1, 2018, insurance pensions were indexed; the increase was 3.7 percent. In monetary terms, this is approximately 300-500 rubles.

Social pensions, received by those who do not have a single day of work experience (disabled people, disabled children, those who have lost their breadwinner, etc.), have increased by 4.1 percent since 04/01/2018. Depending on the disability group, this ranges from 175 to 500 rubles. Pensioners who are officially employed may not count on indexation in 2021.

Financial assistance to large families in 2021

Today the state provides large families with:

• material support for the construction of a house;
• benefits for obtaining housing using social rent;
• land;
• subsidies for payment of utility bills;
• targeted benefits.

In the coming year, 2021, benefits will be provided as before. Assistance will be provided to each family subject to the same conditions:

• presentation of a certificate of large families issued by social security authorities;
• age of children (set separately by regions);
• if parents do not shirk their responsibilities.

Financial assistance to military personnel in 2021

Financial assistance to military personnel is accrued in the amount of their salary after submitting a report to the superior. If assistance is not received, it is accrued at the end of the year along with wages. The payment is issued based on the signing of the order by the commander. Financial assistance to military personnel is paid:

• when going on vacation;
• at the birth of a child;
• in case of wedding;
• in the event of the death of a relative;
• when the employee’s financial situation is difficult.

Financial assistance is calculated based on the following components on the 1st day of the last month of the year: monthly salary, taking into account military rank; monthly salary based on position.

FAQ

Financial assistance 4000 rub. - income code in certificate 2-NDFL

Financial assistance paid in connection with the death of an employee or a member of his family is not subject to personal income tax, therefore, it does not need to be reflected in the 2-NDFL certificate.

Financial assistance paid for other reasons is reflected in 2-NDFL in full amount according to the codes:

• 2762 - at the birth of a child;
• 2760 - for treatment, anniversary, for other reasons.

At the same time, a deduction for financial assistance is indicated with the following codes:

• 508 - at the birth of a child (maximum 50,000 rubles);
• 503 - for other reasons (RUB 4,000).

Financial assistance 4000 rub. and income tax

Material assistance is not included in the enterprise’s expenses when calculating profit tax (clause 23, article 270 of the Tax Code of the Russian Federation). But insurance premiums calculated on the amount of financial assistance exceeding 4,000 rubles can be included in other expenses associated with production and sales (clauses 1, 45, clause 1, article 264 of the Tax Code of the Russian Federation)

How to make postings in 1C 8.3

Financial assistance is reflected by the posting: Debit 91 Credit 73 (76). To reflect it in 1C 8.3 you need to:

1. Set up the additional accrual “Financial Assistance” in the “Salaries and Personnel Management” section.

2. Then, in the “Methods of reflecting wages in accounting” section, create a method for reflecting financial assistance and write down the corresponding entries.

3. Select the correct method of reflecting the previously created additional accrual on the “Accounting and UTII” tab.

Income code and deduction code in 2021

Financial assistance 4000 under the simplified tax system “Income minus expenses”

When applying the simplified tax system, financial assistance cannot be taken into account in expenses (clause 2 of article 346.16 of the Tax Code of the Russian Federation).

How many times a year can financial assistance be given in 4000

The number of financial assistance payments to one employee is not limited in any way. But you need to keep in mind that the deduction is only provided in the amount of 4,000 per year for all payments. For example: Ivanov I.I. financial assistance paid:

• in March - 2000 rubles;
• in June - 5,000 rubles;
• in August - 1000 rubles.

Material assistance paid in March will not be subject to personal income tax; in June, 3,000 rubles will need to be taxed. (that is, the balance of the annual deduction in the amount of 2000 rubles has been provided), and financial assistance in August will be taxed in full.

Financial assistance 4000 rub. in 6-personal income tax from 2021, tax-free

Financial assistance is reflected in 6-NDFL as follows:

Financial assistance 4000 rub. when calculating sick leave

When calculating average earnings, only material assistance for which insurance premiums were calculated is taken into account. The following are not included in the calculation of the amount of financial assistance:

• in connection with death;
• in connection with the birth of a child in the amount of 50,000 rubles;
• financial assistance for other reasons in the amount of 4,000 rubles. for every year.

Insurance premiums

Is financial assistance subject to insurance contributions or not? The answer to this question is contained in paragraphs. 3 and 11 clause 1 art. 422 of the Tax Code of the Russian Federation.

Financial assistance is not subject to insurance premiums if a lump sum payment is made:

• in connection with a natural disaster or other emergency in order to compensate for damage or injury to health;
• victims of terrorist attacks on the territory of the Russian Federation;
• in connection with the death of a member (members) of his family;
• upon the birth (adoption) of a child, the establishment of guardianship of a child - in the amount of no more than 50,000 rubles for each child in the first year after birth or adoption;
• others, not exceeding 4,000 rubles during a calendar year.