Not every employee knows what the payroll fund includes. Meanwhile, employers make a rather impressive amount of various deductions to various funds, thereby reducing the amount of wages that an employee ultimately receives. Let's try to fill in the gaps in knowledge and find out what other deductions besides the PIT are paid by the employer, acting as a tax agent for the specialists hired by him.
What is a PHOT?
This is an abbreviated abbreviation that hides the payroll. This term specialists at the enterprise call all the funds that the organization spends on payments to employees over a period of time. It should be noted that the funds may be in cash or in kind. It is from them that not only salaries are paid to employees, but also mandatory contributions in accordance with the law.
What does the payroll include?
It is worth noting that this is a fairly broad concept, which consists of many points. First of all, these are salaries, bonuses, various surcharges, etc.
The wage fund includes four large categories of costs incurred by an enterprise with hired employees:
- Salary fund.
- Payment for unworked time.
- Incentive payments.
- Additional payments.
Let us discuss each of the points listed above in more detail.
Salary fund
The amount of payments to each employee depends on the amount of funds listed in the Federal Labor Law. What the payroll includes:
- The payment of remuneration not only to full-time employees, but also to those who work part-time.
- Various overtime surcharges.
- Premium payments.
- Payment for one-time services.
- Extra charges in the performance of duties in hazardous conditions.
- The cost of products that were issued to employees at the expense of future salaries.
Payment for unworked time
This is a separate category of payments. It also includes a payroll fund. Payments are made if the employee does not fulfill the duties assigned to him, but at the same time is:
- on maternity, educational or regular leave;
- refresher courses;
- on forced days off (for example, due to downtime of the employer or due to forced reasons);
- on the performance of public duties.
Additional Payments
Not every employee can apply for these funds. As you know, payroll includes sick leave, which also refers to additional payments. This category includes travel, reimbursement, and also in some cases, pension payments.
Incentive payments
As the name implies, these payments are designed to increase employee loyalty to the company. This category includes financial assistance, various bonuses. If gifts are given to employees, their value is also referred to this category.
Difference from the Federal Law
It is worthwhile to understand the difference and not to confuse the payroll, as well as the payroll. In the latter case, the money is allocated exclusively to pay employees. However, in the presence of hired personnel, the corporation bears much greater costs. Thus, the wage fund includes accruals on wages, as well as other payments such as vacation pay, sick leave, etc.
How is the payroll calculated?
This question concerns absolutely everyone who in one way or another deals with hired personnel.It is relevant for both business executives and accountants who are directly involved in the calculation of salaries, insurance premiums, tax fees and other financial matters.
You need to understand that you should not save too much on the wage fund. This will lead to poor salaries, the absence of various additional payments, etc. The result of such an attitude towards employees, as a rule, is not long in coming. The performance indicators and, accordingly, the profit of the enterprise are reduced, staff turnover, poor performance of duties, attempts to appropriate the property of the company, etc. are observed.
It is not difficult to calculate the payroll fund if you know the number of its components and the size of each of them. For example, if the monthly expenses of the company for staff maintenance include the payment of salaries, all kinds of bonuses, if necessary material assistance, as well as vacation pay laid down by law, it is enough to add all the components. The total amount will be a payroll fund at the enterprise.
You need to understand that the number of components included in the payroll may vary. In this case, the order of settlements will also change.
Insurance premiums and taxes
This is a separate question, which is difficult to find a clear answer. The legislation does not provide clear guidance as to whether the payroll includes insurance premiums or not. Moreover, they are among the mandatory payments. For each employee, the employer must make quite impressive contributions to the Pension Fund, as well as the Social Insurance Fund, etc. The total amount is about 30% of the employee’s salary.
Does the payroll include taxes or not? This is an even more subtle question. Let's sort it out in order. So, wages are paid from the payroll. Suppose an employee accrued ten thousand rubles. Thirteen percent of personal income tax is deducted from this amount. Accordingly, instead of ten thousand rubles, an employee will receive eight thousand seven hundred rubles. Thus, the wage fund includes personal income tax, which is not levied on the employer, but on employees. At the same time, the law imposes obligations on the transfer of these funds to the budget on the company, which employs hired personnel.
What taxes does the payroll fund include:
- Insurance contribution to the FIU.
- Health insurance.
- Accident insurance.
- Compulsory social insurance.
Planning
It should be noted that for any business, payroll is an expense item. That is why it is important to pay enough attention to its planning. The wage fund includes deductions for social needs, as well as for the payment of salaries and bonuses. Do not strive to unnecessarily reduce the payroll. Because the absence of bonuses and other payments will entail low motivation of employees and, as a result, poor performance of duties. Ultimately, this reduces the profit of the enterprise, as well as its competitiveness.
The wage fund must meet the interests of not only managers, but also employees. Qualitatively fulfilling their duties, a qualified specialist wants to receive a decent reward for their own work, as well as to have social guarantees in the form of payment of sick leave, vacation allowances, etc.
If there is a shortage of funds, it is recommended to plan the financial policy of the enterprise in such a way as to first fulfill obligations to employees and only then calculate profit. However, the reality is that many managers primarily care about their own income, allowing themselves to delay the payment of wages to employees.
Planning payroll allows you to accurately know its size and based on this information to regulate personnel policy.For example, in connection with a shortage of funds for remuneration, it is necessary to reduce staff or find other ways to reduce enterprise costs
Settlement procedure
First of all, you need to collect information regarding the structure of the enterprise, as well as the number of employees. It is equally important to clarify the average salary and the indicators that you need to focus on, as well as the staffing table, planning conditions and other important data that may one way or another relate to the size of the salary.
Next, you need to determine the time period for which the payroll is calculated, and calculate the average number of employees who will be employed at the enterprise during this period.
Knowing the above indicators, it remains only to calculate the wage fund.
Analysis
This is also an important measure that allows you to identify the reasons why there are actual deviations of payroll indicators from planned ones. It is also important to compare the growth of labor productivity and employee wages.
As a result of such an analysis, a set of measures aimed at changing the situation should be formed.
Why do I need a monthly payroll certificate?
This document is considered mandatory for budgetary structures, but may also be required by commercial enterprises. This happens in the following cases:
- Bank loan processing.
- Carrying out control measures by the Federal Tax Service or insurance funds.
- Confirmation of own intentions when withdrawing cash.
It is worth noting that a certificate of the status of payroll may be drawn up for a month or for another period. What is even more curious, the document can reflect not only the real situation, but also the expected indicators. There is no universal form for this reference, since in fact it may contain different information.