Many employees receive a bonus as a reward. Additional funds are provided for quality work, a certain achievement, and experience. And since a fee is levied on wages, many people wonder if the premium is taxed. There are some nuances in this question.
Types of Prizes
What is a premium? This payment is considered optional; therefore, consideration is provided at the discretion of management. The method of payment also depends on the employer. Cancellation of the award or reduction of the amount should be justified.
There are several types of rewards:
- assessment of results: individual and collective;
- form of payment: in the form of money or a gift;
- accrual method: fixed amount or percentage;
- appointment: for high results or the performance of special tasks;
- frequency of payments: regularly, once, for a specific period;
- indicators: for length of service, for the anniversary, for the year.
What is a premium in the modern sense? This is a way to stimulate employees to continue their work in a quality manner, because the motivation of each employee is money. So the employer is interested in subordinates in further success. But keep in mind that the calculation of taxes on the premium is mandatory.
In modern firms, bonuses are awarded for specific merits that have led to improved company performance. Promotions can be associated with specific events, such as the anniversary of the enterprise. Employees also receive remuneration at the end of the year.
The concept
Premiums are regulated by law. Under the Labor Code, an award is considered incentive payment. Together with wages for the performance of duties, it creates wages. Although these payments are not permanent, their managers must provide regularly. Assign them:
- for excellent results, exceeding the norm;
- mastery;
- progress;
- the embodiment of ideas that improve the work of the company.
For whatever success the award of prizes is assigned, it is interesting to know whether the bonus is taxed. Personal income tax is calculated from this type of income. In addition to taxation, the premium falls under insurance premiums.
Premium tax
How is personal income tax calculated on the premium? According to the Tax Code, the day the funds are received is the day they are paid. This is the personal income tax withholding date. This fee is calculated upon payment. The method of providing funds does not matter: they can be issued at the cash desk of the company or transferred to a bank account.
If income tax is calculated, then it is transferred to the treasury. This is required to be done during the day, but it is possible the day after the issuance of money. The fee is not calculated only from those remunerations that are included in the Decree of the Government of the Russian Federation No. 89 of 02/06/2001.
Unearned Award
Is the premium taxed if it is considered unearned? This question is one of urgent, as there is no consensus on this. Rewards are divided into 2 types:
- for labor;
- labor incentives.
The second category includes bonuses on the occasion of various anniversary dates, professional celebrations and opening dates of the enterprise. Is the premium taxed if it is not related to labor functions? From this type of income, the fee and insurance premiums are calculated. If remuneration is paid upon dismissal of an employee, then tax is taken from him.
Legislation
The Tax Code states that a fee is not calculated from an amount of up to 4000 rubles. Therefore, if the premium for the year is within these limits, it is fully issued to its owner. This also applies to winnings, gifts.
But in order not to calculate personal income tax, you need to assign a bonus to an important event, draw up a gift agreement. Income tax is calculated by the accountant when calculating salaries.
Tax benefits
According to the Tax Code, the remuneration should be included in labor costs. This allows you to reduce income tax when paying to the budget. This rule applies to:
- on the general tax system;
- in a simplified form.
Premium insurance premiums calculate income tax, as with personal income tax. Remuneration must be properly documented, which will prevent the appearance of claims by inspectors. According to the rules, the issuance of bonus funds should be spelled out in an employment contract or special provision. The employer must specify the size of remuneration in the pay slip. Also, the amounts are indicated in the certificate 2-PIT.
Tax rates
In tax legislation there are many nuances of charging fees. Tax rates are different depending on the type of income. The main indicator is 13%, since it is paid by many residents. This fee is calculated from salary, remuneration, from the sale of property.
There are cases that 13% are paid by non-residents of the Russian Federation. These include:
- income of foreign citizens;
- salaries of foreigners employed on the basis of a patent;
- incomes of participants in the state program to promote the voluntary resettlement of compatriots in the Russian Federation;
- funds of foreigners and stateless persons who were granted asylum in Russia;
- income from the activities of crew members of ships operating under the flag of the Russian Federation.
Premium income tax is mandatory. This applies to various types of rewards. There are other tax rates - 9, 15, 30, 35%. Each type of fees should be paid in specific situations. The 9% rate is calculated:
- upon receipt of dividends by 2015;
- receipt of interest from bonds;
- receipt of funds by the founders.
These types of income are obtained with the purchase of mortgage participation certificates issued before 2007. A fee of 15% is paid on dividends transferred by Russian institutions to individuals.
A 30% tax is payable on income received by individuals who are not residents. This rate is also provided for funds from securities of Russian companies for which foreign firms have rights.
A 35% fee is not paid in the following cases:
- funds from winnings, prizes, games, if the amount is more than 4000 rubles;
- interest on deposits;
- income in the form of material benefits;
- interest on the use of credit cooperative funds.
Income tax
PIT - collection from all individuals. It is also called income tax. Both terms have one meaning. Individuals are considered citizens of the Russian Federation, foreigners, adults, children, men, women. From the income received, a fee should be taken. This is regulated by the laws of the country.
Individuals are considered as payers of taxes:
- residents
- non-residents.
The first group includes citizens who live in the country over 183 days. This period should not be interrupted when traveling outside the country. Non-residents are considered to be persons who live in the country for less than 183 days. They are foreigners who have come to work, students.
Citizenship is not an important factor in determining taxpayer status. Residents of the Russian Federation are always considered to be military men who served in another country, as well as government officials who travel outside the state.
Why tax is not taken?
Not all fees apply. The Tax Code has a list of income from which it is not calculated:
- allowances and compensation;
- payments for unemployment, pregnancy, childbirth;
- pensions, social benefits;
- donor assistance payments;
- alimony;
- grants;
- Prizes for achievements in science and technology;
- emergency payments;
- incentives for the establishment, disclosure of terrorist attacks;
- charity payments;
- scholarships.
There are also other types of income that are not levied. They are approved by tax law.
Standard deductions
Many types of income can be reduced, as they say, by deduction. This does not apply to rates of 9, 15, 30, 35%. Deductions do not apply to pensions, disability payments, unemployment benefits for child care. The amount of fees is not reduced in the income of entrepreneurs.
There are standard deductions that are due to individuals. Assign them every month. Benefits in the amount of 3,000 rubles were granted to invalids of the Great Patriotic War who survived the Chernobyl accident. Deductions in the amount of 500 rubles are intended for Heroes, war veterans, and disabled people.
Reducing fees for parents and guardians of children:
- 1400 rubles per 1 child;
- 1400 - on the 2nd;
- 3000 - on the 3rd.
The amount of deduction for a disabled child is determined by the person who provides it. Parents, adoptive parents are given 12,000, foster parents - 6,000.
Other deductions
Social deductions are due when the payer has related expenses. They are associated with charity, education, treatment. You can reduce the tax by the amount of donations, the costs of paying for full-time studies. Deductions are also provided for medicines and medical services.
Exist property deductions which are used in the sale of property, housing, land. Also, the rule is used in case of redemption of property for state and municipal needs.
Now there are professional deductions associated with the work direction. Costs are documented. Such benefits are provided to individual entrepreneurs and individuals performing private activities. This applies to taxpayers under civil law contracts, creators of works of science and art.
Since 2015, investment deductions have been in force. They are provided from the sale of securities that have been owned for more than 3 years. Income from investments is considered profit for its owner, therefore, taxes are necessarily calculated from it.
Thus, with bonuses issued to employees, fees are calculated. They are transferred to the federal budget and are used for state needs. Thanks to such fees, many areas of people's lives are developing.
