One of the most well-known types of guarantees of the social order is the allocation by the enterprise of the so-called material assistance to the employee. Very often, it is an integral part of the “social package” proposed by the employer. But in practice, its receipt is almost always accompanied by many confusing questions on the procedure of payment itself and related taxation.
Let's define the terms
Issues of incentives, bonuses to workers, as well as various financial assistance are found everywhere and sometimes are not at all simple. The Labor Code will help deal with them.
The concept of "remuneration for work" (Article 129 of the Labor Code) includes not only salary, but also compensation, incentive payments, bonuses and other types of incentives. The settlement system is regulated by an employment contract, in accordance with the law, and the type of remuneration practiced by the employer.
Salary Sizes (tariff rates), compensation and incentive allowances, the procedure for bonuses are contained in the collective agreement and other local documents.
In addition, the employer has the opportunity to reward conscientious workers by issuing an unscheduled bonus, declaring gratitude, rewarding with a letter or gift.
What are bonuses and incentive payments
These include some co-payments, allowances and other types of material incentives. They, unlike compensation ones, are not produced for labor under special conditions (for example, with harmful substances) and are not legally limited in size.
If the employment contract says the accrual of bonuses with a certain periodicity, and there are no other conditions for their issuance, therefore, they are considered as part of the labor income and are subject to mandatory payment.
Suppose, when hiring a contract, a clause is provided on the issuance of material assistance for vacation with an indication of the amount. Then, without additional documents, the employer must make this payment. If its size is not specified, you will need a link to the local act (bonus provision), with which the employee is introduced to the signature.
For one-time bonuses, the order of the head with the basis and amount of payment is sufficient.
Help to the worker: what are its nuances?
The concept of “material assistance to an employee” stands somewhat apart in the accrual system.
Let's see what it is. Already from the definition it is clear that one-time material assistance is a form of labor guarantees that is social in nature. It cannot be paid for conscientious work or professional skill. Its purpose is to support the employee in the current unfavorable financial situation.
The grounds on which one-time financial assistance is assigned are, as a rule, unforeseen circumstances involving serious financial costs. This may be causing physical or material damage, events requiring significant expenses (wedding, childbirth, funeral).
Consequently, material assistance does not depend on the results of production or the employee himself. It has a strictly individual character and is paid only upon the personal application of the employee with the application of documents confirming special circumstances. Also, it cannot be regular and serve as compensation for the costs incurred.
The provision of financial assistance is aimed at resolving the problems of employees. References to the possibility of obtaining it are most often included in the regulatory local acts of the enterprise.
But the availability of such an opportunity does not imply the automatic obligation of the employer to issue assistance to everyone on an ongoing basis, turning it into a kind of bonus.
"Material" for vacation
This is her most frequent option. But in order not to regard it as a bonus and not to associate it with the results of labor, the following conditions must be met:
- The reason for the payment of the named amount is the occurrence of events or circumstances (possibly emergency) that are not related to the regular results of the employee’s work.
- Payment of material assistance occurs at the request of the addressee with the mandatory attachment of certificates and other supporting documents.
- Its value is not related to wages.
- The frequency of such assistance does not exist.
Sometimes these conditions are difficult to logically “tie” to annual leave. Employers have to go for all kinds of tricks.
If all points are met, such a payment can be regarded as financial assistance and not subject to personal income tax (provided that the amount does not exceed 4000 rubles per calendar year).
What does not apply to this concept
Regulatory acts may stipulate the possibility of paying assistance to an employee in case of force majeure. If the payment is designated as regular, regardless of the circumstances, it cannot be attributed specifically to material assistance. This is already an element of remuneration subject to taxation. As you know, social payments indicated in the collective agreement are not exempt from taxes.
If, in the manager’s opinion, the reason indicated in the employee’s statement is an unforeseen circumstance, he issues an order indicating the amount of assistance and the term for its payment. There are no legislative restrictions on the purpose and frequency of aid exempted from taxes; this issue is at the discretion of the employer.
And what does the law say?
According to the law, the concept of material assistance includes any transfer of money, as well as medicines, products, clothes or shoes, transport and other material resources to needy people. This is an interpretation National standard RF (GOST R 52495-2005) in terms of social services.
This applies primarily to persons affected by terrorist attacks or natural disasters. But there is no clear interpretation of the provision of it to ordinary workers in the legislation. In the general case, this definition includes damage to health (not the fault of the enterprise), financial troubles on an especially large scale, and, as mentioned above, a significant event, for example, the appearance of a child.
We remind you that the law even in these cases does not oblige the employer to provide assistance to the employee, i.e. this is an absolutely voluntary matter.
Be specific
In the provision on material assistance to the organization, all circumstances of its payment should be spelled out as accurately as possible, vague wordings of the type "for the purpose of social protection" are unacceptable. Otherwise, the tax service will suspect management of trying to underestimate the size of the tax base.
In a large enterprise, the procedure for paying it in the branches must strictly comply with the same as in the central office. Liberties in the interpretation of the main order are unacceptable.
The order for the payment of assistance is issued in the case when the head, having read the employee’s application and having checked the documents, expresses consent. What else should you know?
The order for the enterprise should include the exact amount and term of payment, as well as the full name of the addressee of the assistance, the basis and reference to the regulatory document governing the material assistance system in the organization.
It is also mandatory to indicate the sources (for example, at the expense of profit - current or past years).
Accounting assistance
It can be transferred by bank transfer to the account indicated by the employee, it can be issued in cash from the cash desk of the enterprise.In this case, it is permissible to accrue it together with the salary and enter it in the statement, or there is a separate issue on a cash warrant.
In the accounting system, material assistance to an employee passes on a loan bills 73, referred to as "settlements with staff for other operations." Another thing is when it comes to strangers.
Material assistance to the employee’s relatives or former employee (for funerals or expensive treatment) is accounted for in account 76 (“settlements with various debtors and creditors”).
The debit depends on the source of payment:
- debit of account 84 - if the payment is due to the sums of profit of previous years;
- debit of account 91 - when paid out of current profit.
Contributions to Mandatory Social Funds
According to the letters and instructions of the Ministry of Health and Social Development of Russia, only that assistance involves the calculation of insurance premiums, which is carried out in the framework of labor relations of the organization and its employee. The same is exempted from contributions, which is:
- former employee (after the date of dismissal);
- relative’s death;
- material assistance in connection with natural disasters and other emergency situations.
Also, contributions for the amounts paid to the mother and father (and separately, if both work at the enterprise) for the birth of a child provided before the baby's one-year-old age are not charged. The size should not exceed 50,000 rubles.
As mentioned above, assistance not exceeding 4,000 rubles is not subject to tax and contributions. per person per calendar year.
How is personal income tax calculated
Is personal income tax paid? The following varieties of it are not subject to it:
- “material” for the birth of a child (if payment is made in the first year of life, and the amount is within 50,000 rubles);
- assistance provided to a retired person disability pension (in this case, it should also not be more than 4000 rubles);
- financial support in case of expensive treatment, in connection with vacation, study or difficult family financial situation. In all these cases, the upper limit of the non-taxable amount is the same four thousand rubles during the year;
- financial assistance to an employee in connection with the death of a family member or relatives of a deceased colleague (the organization’s documents must clearly indicate the permissible degree of relationship).
The amount of support to those who are dismissed on a common basis is subject to personal income tax.
Material assistance: taxation
Will it be correct to calculate income tax when it comes to financial assistance? Art. 270 of the Tax Code of the Russian Federation regards it as a social payment that does not fall under the category of labor costs. That is why it is not taken into account when calculating this tax.
But if the company will position regular vacation payments as financial assistance, they will be assigned to the payment system, included in expenses and taken into account when calculating tax.
Is ESN taken with help ...
The object of taxation in this case is remuneration and payment under contracts (civil law and labor) for the performance of work or the provision of services. The concept of material assistance considered in this article does not apply to any of the mentioned categories, since it is not related either to the fulfillment of a labor obligation by an employee or to the activities of an organization. Amounts cannot be taken into account when determining profit.
Thus, the object of taxation of the unified social tax is absent. The reasons for this statement are set out in more detail in Art. 238 Tax Code of the Russian Federation.
Regarding contributions to the FIU. They will also not be charged on the basis of Art. 10 ФЗ N 167-ФЗ dated 12/15/01. This article establishes the base for pension contributions identical to the UST tax base. This procedure was adopted on the basis of the principle of pension insurance - a pension is formed at the expense of labor payments.
... and other fees?
When assessing contributions from occupational diseases and accidents, you should be guided primarily by law No. 125-FZ of 07.24.98.(as amended on December 1, 2004) determining the procedure and rules for calculating such contributions and the list of payments from which they are exempted. According to these documents, payments to those who are not in labor relations with the organization (for example, relatives or former employees) are completely and completely excluded from the taxable base.
The assistance given to employees is not subject to accounting, according to the list of situations-reasons for its payment. This, for example, fire, natural disaster, theft, mutilation, death of a close relative or the employee himself and a number of others.
Theoretically, for other (not included in the list) types of insurance claims, contributions should be accrued, which the FSS specialists insist on. They motivate this by the fact that the list of "exemptions" is closed and contains a finite number of points. But such a statement is in clear contradiction with the provision on accounting exclusively for the amount of labor income.
As a rule, the final conclusion on this topic is to be taken every time in the field. Sometimes such disputes have to be settled in the courtroom.
A similar list of non-taxable income is contained in Article 217 of the Tax Code.
It happens that an employee in need of help does not know in what form it is right to ask for it. And even when the question is previously agreed with the authorities, there are ambiguities. How to correctly prepare an application for financial assistance to an employee? We will try to give a sample. It will be only approximate, since each case is individual.
Material Assistance Application Form
First of all, this document, like any statement, is obliged to have in the heading information to whom and from whom it is addressed. For this, the position, full name of the head, full name of the enterprise (organization) is indicated in the upper right corner, below is the name of the applicant and his position.
In the center further - the heading (Application).
The text, as a rule, begins with the words "I ask for financial assistance ...", and then follow the detailed reasons for the appeal. Their presentation should be concise, concise, without artistic embellishments and emotions, reflecting the essence of the matter.
If there are documents confirming the event-reason for the appeal, they should be listed in order with the attached copies. For example, in the event of the birth of a child or the death of a relative, appropriate evidence will be required.
At the bottom of the application is a date with the signature of the applicant.
What can I claim?
The text is allowed to indicate the desired amount of money. But this does not mean at all that the employer must pay it. The named figure will serve as a guide, and he will determine the final amount of material assistance.
If the boss makes a positive decision (agrees to satisfy the request), he will be issued an order indicating the exact amount. On the basis of what the employee has the right to receive this money at the cash desk of the organization.
