Payroll is a mandatory monthly procedure at each enterprise, where hired employees are registered. This process is inextricably linked with deductions to the tax inspectorate; accordingly, it requires high attention and great responsibility.
Payroll procedure
So, we will analyze how wages and other nuances associated with it are calculated. The main points of this process in our country are regulated by the Labor Code, and the government acts as the guarantor of the relationship between the employer and the employee. This means that careful monitoring and control of timely calculation of employees and compliance by employers with payment deadlines is being carried out. Article 136 of the Labor Code defines the period of payroll - twice a calendar month.
In addition to this rule, each individual institution may have its own Regulations for the payment of employees, but they cannot change for the worse the rights of employees, compared with the criteria approved by the Labor Code. This means that if a company has established by the Internal Regulation on Remuneration of Labor salaries only once a month, then it violates the law and can be held administratively liable. As for certain numbers, they are set by managers at their own discretion, in accordance with the work schedule and collective agreements.
The bulk of the companies pay workers advance payments and salaries, although the Labor Code says directly about the payment of salaries twice a month. When it comes to an advance, it is necessary to clearly stipulate its size and terms of payment, these data should be recorded by an internal local act.
It is worth noting that the amount of the advance, in contrast to the salary, is fixed, that is, it does not obey either the volume of work performed or the number of hours worked. The amount of the advance is set at the discretion of the company and remains unchanged over and over again.
Principles of Payroll
How are salaries calculated? When calculating it, you can use either of the two possible options provided for by law. Each of them has features:
- Payment twice a month. In this case, documentation for accrual is submitted and processed twice a month, and each time it is necessary to pay contributions to the Pension Fund.
- Charges once a month. In this situation, the salary is also calculated twice a month, but the payment consists of the advance part and the salary after deduction of the advance. The first part is not subject to tax deductions.
Documents for payroll
Consider, on the basis of what documents wages are calculated. The basis for its formation are the following documents:
- Order for the reception of an employee. An extract from the order is sent to the accounting department, where on the basis of it an employee’s personal card is formed and a personal account is registered. The document on the employee’s admission displays information about the date on which he was accepted, the amount of salary, allowances due, and so on. If the order was correctly executed and timely submitted to the accounting department, then the salary will be transferred on time.
- Do not know what document accrues wages? The main data that is required is given in the time sheet and staffing table.
- Contract of employment.
- Documents indicating the amount of work done (for piecework).
In addition, there are documents in the presence of which the amount of wages can change both upwards and downwards. They include:
- Service notes of various kinds.
- Employee Bonus Order.
- Collective agreement.
- Regulation on remuneration.
Salary and salary
In order to understand how salaries are calculated according to salary, it is necessary, first of all, to be able to separate the following two concepts:
- Salary is the amount accrued to an employee by an accountant for transferring to a plastic card. It takes into account all allowances, bonuses, tax and other types of deductions for the established actually worked out time period.
- Salary - a small amount paid to an employee as a salary, prescribed in a labor agreement, in other words, a zero rate for calculating subsequent payments. Considering the information about the salary of the employee hired, all the actions for calculating wages are performed on the basis of the approved calculation procedure for one of the possible systems - piecework or time-based.
Time and piecework payment
Quite often in the network you can meet the question: “How are salaries charged in budget organizations and private owners”? In state structures, the system of remuneration of labor and the procedure for calculating wages is determined by law, and in private enterprises - by the founders. But, regardless of the type of organization, payment for labor activities should be made in full accordance with the Labor Code of the Russian Federation. To date, two forms of remuneration have been established:
- Time-based.
- Piecework.
To eliminate errors and simplify the process of calculating the amount of cash payment due to an employee, the adjusted formula is used. Salary is charged for the time actually worked as follows:
- The salary amount is divided by the number of working days on the calendar and multiplied by the number of actually worked days.
- All types of compensation and incentive payments are added to the result.
- Further, income tax and deductions (if necessary) are deducted from the amount received. In accordance with the legislation, more than 20% of the total income cannot be withheld from wages.
When piece-rate wages in the company should be kept personal statistics on production. How are salaries calculated in this case?
- An indicator of the quantity of products or services produced (in accordance with orders) is taken and multiplied by the established prices.
- Possible compensations and incentive charges are added to the result, and rewards for leaving on holidays and non-working days are already added to this amount.
- The percentage of income tax and various withholdings (if any) are subtracted from the total amount. If you are interested in how child support is calculated, then this is done just at this step. Alimony is classified as deduction.
In addition to the basic methods of calculating wages, there are additional ones. In these cases, the formula will differ slightly in component values:
- Commission method. When using the calculation option in the formula, the percentage of the amount of work performed must be added to the amount of surcharges.
- Chord method. The calculation of salary before deduction of income tax and other deductions is carried out on the basis of a listing of the work performed and the established deadlines and the amount of payment.
- How are salaries accrued on variable salaries? In this case, the amount of accruals depends on the revenue made for the specified time period.
Director salary
The director of the organization, like any other employee, must pay a salary.However, quite often there is an opinion that the director is not charged wages, is this so? In accordance with article 136 of the Labor Code, all employees of the enterprise, including managers, must be paid twice a month. The minimum monthly wage cannot be lower than one minimum wage (article 133 of the Labor Code of the Russian Federation).
You can get around this rule if the director goes on vacation at his own expense. Naturally, this option is suitable for few. Only companies that temporarily suspend their activities can use it, provided that only the head of staff is on staff.
Average monthly salary
The calculation of the average monthly salary may be required in the following cases:
- Compensation payments for unused vacation / accrual of vacation / calculation upon dismissal.
- Traveling.
- Benefits on a sheet of temporary or absolute disability.
- For termination of the employment agreement, reduction of the employee or calculation of severance pay.
- Compensation for downtime due to force majeure or the fault of the employer.
In addition, the average monthly salary can be calculated at the request of banking institutions, the executive service and other authorized organizations. All sorts of remuneration and payments do not apply to average monthly earnings, only what is accrued to the worker in the form of wages, moreover, without tax withholding. So, this amount is not taken into account:
- Help for burial.
- Childcare payout.
- Compensation for disability.
- Maternity allowance.
- One-time assistance for treatment, vacation and more.
- Compensation for travel, mobile communications, food, housing and communal services.
Important! For the correct calculation of the average monthly salary, the indicators of the whole of last year are taken. The amount of benefits and other payments is deducted from the result, then this indicator is divided by the number of months that the employee worked.
Payroll Examples
For example, when calculating the salary of a particular employee, you should use the indicators of all the tax and social benefits that are due and information about the labor costs.
So, if an employee worked for 20 days for a salary of 15 thousand rubles prescribed in the contract for a period of one month consisting of 21 working days, set as a time period for calculating salaries, then in this case, according to the calculation formula, the salary for the worked time is calculated as follows:
- 15000 x 20/21 = 14285 rubles.
- We add to this amount bonus in the amount of 10% of the salary - 14285 + 1500 = 15785 rubles.
- Next, you should determine the deductions due to the employee - pension, social insurance, compulsory health insurance. These payments are transferred to the funds by the employer.
- We deduct 13% income tax from salary. Do not know how to pay income tax on wages? Everything is extremely simple - the amount of salary is multiplied by a tax rate of 13%. Consider our example: 15785 x 0.13 = 2052.05.
If no other deductions are provided in this case, then the employee's salary will be 15785 - 2052.05 = 13732.95 rubles.
Deductions and taxes
The difference between the salary prescribed in the employment contract and actually paid is the sum of all deductions, which are divided into three groups:
- Mandatory - prescribed by order of the judiciary on the basis of writ of execution (alimony, fines, compensation for damages, etc.).
- By order of the head - for violation of labor law or in case of damage to property belonging to the organization.
- At the discretion of the employee himself - for the implementation of cashless payments in solving his social or domestic issues.
How are salaries calculated? In order for the accruals to be accurate and not approximate, the company must have a staff schedule approved by management, and a time sheet must be kept.
Thirteenth Salary
Most likely, each person at least once heard about 13 salaries. The thirteenth salary is the annual payment to the employee, which is formed from the total income of the organization according to the results of the year. Most often, it is charged in the form of promotion before the New Year. As a rule, such payments are usually called bonuses based on the results of the year, but the people nicknamed her 13 salaries, since usually the amount paid is equal to the average monthly salary.
How is 13 wages calculated? The accrual of such bonuses does not govern either the Labor Code or other legislative acts. Accordingly, the process is carried out exclusively at the discretion of the employer. The amount and system of payment of 13 salaries is fixed in the internal local documentation, for example, in the Regulation on bonuses or a collective agreement.
Since salary is not prescribed in legislative acts 13, accounting has no right to carry it out as remuneration. Documented, this payment is reflected in the organization’s local documentation as a bonus based on the results of the year or as employee remuneration depending on qualifications. Moreover, if the thirteenth salary is calculated taking into account the company's profit for the calendar year, then:
- It cannot be counted before the end of the year.
- Taxes and other deductions must be withheld from it, and this amount will be integrated into labor costs in accordance with Article 225 of the Tax Code.
Thirteenth Salary Size
How is 13 wages calculated? Each employer independently decides on the calculation of incentive payments according to the results of the year. As a rule, 13 salaries are paid to military personnel, government employees and employees of large companies, the turnover of which enables managers to reward staff.
The amount of the payment is set at the discretion of the administration, most often the basis is any percentage of the salary or the full amount of the average monthly wage.
How 13 wages are accrued per year
Before calculating the specified payment, it is required to determine how it is prescribed according to the organization’s internal documentation. There may be several options:
- Bonuses for all staff according to the results of the year.
- Incentive payment to individual employees for good achievements, for example, increased company profits.
- Award nominated by highly qualified specialists, etc.
There are several options for accruing 13 salaries, these include:
- Determination of a fixed amount. Suitable in cases where the bonus is paid only to some employees.
- The establishment of a certain percentage or calculated coefficient of the amount of salary for the year. In this case, employees who were employed less than a year ago, as well as everyone, will receive the full bonus.
- Accruals based on average annual earnings. This method is the most troublesome for the financial department, because it requires taking into account the actually worked time and the amount of payments for each month of the year for a particular employee. In this case, those who have worked in an incomplete calendar year will receive 13 salaries in the amount proportional to the hours worked. In addition, with this scheme, it is required to take into account the increase in salary if it was carried out in the current calendar year. That is, when the 13th salary is calculated by the size of the bonus, which is ¼ of the salary that has increased twice a year, then this year its amount will be higher than in the previous one.