Severance pay with a reduction in taxes and contributions. The procedure and rules for paying severance pay upon dismissal due to staff reduction - taxation. Calculation of insurance premiums for severance pay upon layoffs

When leaving a job, many people wonder whether personal income tax will be withheld from the severance pay during the reduction. Before leaving, it is advisable to understand what this tax is and how it is calculated.

Features of personal income tax calculation

Income tax individuals– this is the amount that is calculated from any income of individuals, residents and non-residents of the Russian Federation.

Knowing the specifics of the tax code, you can accurately calculate what payment to expect from the employer.

In what cases is personal income tax not charged?

There is no taxation on severance pay in the following situations:

1. Closing an organization.
2. Reduction of employees.
3. Conscription of an employee for military service.
4. The employment contract was changed by the manager and does not suit the employee.
5. Proven violation of employee rights.

Confirmation can be found in Article 178 of the Labor Code. May be present additional conditions prescribed by the employer in the employment contract.

When is personal income tax calculated?

Taxes are calculated from severance pay in the following cases:

1. Exceeding the amount of payments of 3 months' earnings of the employee.
2. Dismissal by agreement of both parties.

The benefit is not accrued upon dismissal of an employee of the organization due to his at will. More information .

The amount must be equal to or greater than average earnings former employee.

What is 6-NDFL?

6-NDFL is a new declaration that appeared in 2018. In it, the employer reflects financial reports about its employees.

Document form.

Severance pay, as well as payments for 2 months without work, are not reflected in 6-NDFL. If the amount exceeds the permissible amount, only this fact is indicated.

The amount of wages is reflected in the 1st section, where the amount of income is indicated. Enter the number of people working in the organization. The declaration can be submitted quarterly or annually.

If the form for filling in numbers contains payments that are not carried out by the organization, you should put 0 there. When the document is written, you should number the pages as follows: 001, 004, and so on.

How to calculate tax upon dismissal?

The formula by which you can calculate personal income tax during a reduction: from the full amount of your salary for the last month, you need to calculate non-taxable income and multiply by the tax rate. The resulting amount must be rounded. If the last digit is up to five, then to a lower value; if the number is larger, then to a higher value.

The following nuances should be taken into account:

1. Only working days need to be taken into account, excluding weekends and holidays.
2. Social benefits and bonuses are not taken into account.

In addition, the type of payment does not affect the calculation of taxes.

Is personal income tax withheld from severance pay when laying off employees?

Many people are interested in whether income taxes are withheld when employees are fired. Personal income tax is not charged on compensation, including severance pay. We already have an article about this.

The employee may also receive the following: cash, which will not be subject to personal income tax:

1. All wage before reduction.
2. Compensation for unused vacation. It applies only when the employee’s length of service at a particular enterprise exceeds six months.
3. Compensation is due if the employee is not notified of the layoff in due time.
4. Possible bonuses for Good work or other merits.

In addition, a former employee of the organization has the right to receive severance pay for another two months after leaving. This is only possible if the employee does not find new job and is registered with the labor exchange. These payments are tax-free and due after two months.

The period of service after dismissal must be counted for another 12 months, even if the employee remains unemployed.

For reference! Personal income tax upon dismissal is not calculated only if compensation payments amount to an amount that is less than three employee salaries. If exceeded, the excess money is taxed.

Personal income tax is charged on severance pay if the manager proves the fact of violation by the employee labor discipline. Rest cash payments from the place of work will also be subject to personal income tax.

How is the calculation done?

Wages and severance pay are not subject to deduction for insurance premiums upon dismissal. All compensation payments must be accrued to the employee before leaving during the period from the date of notification of the employee until his dismissal. Money must be paid on the settlement day.

Nuance! The employee must be notified in writing two months before leaving.

An exception is compensation for vacation, if it is unused, for which insurance premiums are calculated.

They are sent to several types of funds:

• medical;
• social;
• pension.

Insurance premiums are calculated by the employer and transferred to the tax office. The data is stored in accounting for reporting and may be useful in the event of litigation between the organization and a former employee.

When calculating the amount of payments you need to be careful. If the employer does not accrue all the money, he faces liability under paragraph 9 of Article 134 of the Labor Code of the Russian Federation. Criminal liability and imprisonment for up to 3 years are possible.

The Labor Code of the Russian Federation provides for several cases when, upon dismissal, an employee must be paid not only wages and salaries, but also additional payments.

For example, upon liquidation of an organization, as well as upon reduction of the number or staff of a company (clause 1.2 of Article 81 of the Labor Code of the Russian Federation), the employee is paid severance pay in the amount of average monthly earnings, and for the period of employment - according to general rule no more than 2 months from the date of dismissal - his average monthly earnings are retained (Article 178 of the Labor Code of the Russian Federation).

In addition to legally established cases, the payment of severance pay may be provided for in an employment or collective agreement, local normative act organization, as well as a separate agreement with the employee (Articles 178, 181 of the Labor Code of the Russian Federation).

As a consequence, the question arises: is severance pay subject to insurance contributions to the Pension Fund, Federal Compulsory Medical Insurance Fund and Social Insurance Fund, including “for injuries”?

The procedure for calculating insurance premiums from severance pay

Severance pay, as well as other compensation (except for ) paid to a dismissed employee, are subject to contributions when their amount exceeds a certain limit (subclause “d”, paragraph 2, part 1, article 9 of the Law of July 24, 2009 No. 212-FZ , paragraph 2 clause 1 article 20.2 of the Law of July 24, 1998 No. 125-FZ). Limits for different categories of employees are shown in the table below.

Note that similar rules apply regarding the taxation of severance pay upon dismissal with personal income tax: the tax is calculated on amounts exceeding the above limits (

In accordance with Art. 255 of the Tax Code of the Russian Federation, severance pay paid to dismissed employees in excess of the norms established by Art. 178 of the Labor Code of the Russian Federation, refers to accruals to employees released in connection with the reorganization or liquidation of the taxpayer, reduction in the number or staff of the taxpayer’s employees, and therefore reduces tax base on corporate income tax.

According to paragraphs. 1 clause 1 art. 223 of the Tax Code of the Russian Federation, when receiving income in cash, the date of actual receipt of income is defined as the day of payment of income, including the transfer of income to the taxpayer’s bank accounts or, on his behalf, to the accounts of third parties. Let us remind you that according to clause 2 of Art. 226 of the Tax Code of the Russian Federation, the organization from which or as a result of relations with which the taxpayer received income is obliged to calculate, withhold from him and pay the amount of tax.

Is severance pay subject to insurance premiums in case of staff reduction? Is personal income tax withheld?

Severance pay for staff reduction is taxed like other monetary compensation. The only exception in this case is the payment for which the dismissed person did not take advantage of the leave. But contributions are accrued only if the amount of payments exceeds the established limit.

The fact is that the average amount of earnings per day is calculated for the day on which the employee worked, and not for the one indicated in the calendar. To correctly calculate the benefit amount, you need to take the wages received 12 months before the employee was fired.

Severance benefits are not subject to contributions

Guarantees and compensation to employees related to termination of an employment contract are established in Chapter 27 of the Labor Code of the Russian Federation. So, according to Art. 178 of the Labor Code of the Russian Federation, upon termination of an employment contract due to a reduction in the number or staff of employees (Clause 2, Part 1, Article 81 of the Labor Code of the Russian Federation), the dismissed employee is paid severance pay in the amount of average monthly earnings, and he is also retained the average monthly earnings for the period of employment , but not more than two months from the date of dismissal (including severance pay). In exceptional cases, the average monthly salary is retained by the dismissed employee for the third month from the date of dismissal by decision of the employment service body, provided that within two weeks after the dismissal the employee applied to this body and was not employed by it. In this case, an employment contract or collective agreement may establish increased amounts of severance pay.

In accordance with Art. 180 of the Labor Code of the Russian Federation about the upcoming dismissal due to a reduction in the number or staff of employees, employees are warned by the employer personally and against signature at least two months before the dismissal. However, the employer, with the written consent of the employee, has the right to terminate the employment contract with him before the expiration of the two-month period, paying him additional compensation in the amount of the employee’s average earnings, calculated in proportion to the time remaining before the expiration of the notice of dismissal.

When is severance pay subject to insurance contributions, and how will the situation change?

Let's look at what will change in the situation with severance pay from January 1, 2015. From this point in time, insurance premiums are not subject to certain types of severance pay. Moreover, regardless of the grounds for dismissal upon termination of the employment contract (subparagraph “a”, paragraph 3, article 2, subparagraph “a,” paragraph 1, article 5 of the Law of June 28, 2014 No. 188-FZ). This:

Let's consider the situation: the so-called severance pay upon dismissal by agreement of the parties. Insurance premiums are calculated from such compensation (letter of the Ministry of Labor of Russia dated December 4, 2013 No. 17-3/2038). A benefit that is paid to an employee upon dismissal by agreement of the parties, for example, in connection with retirement due to age or disability, is subject to insurance contributions as a payment made under labor relations. Grounds: part 1 of article 7 Federal Law No. 212-FZ. Some clarification is needed here.

Are severance pay subject to insurance premiums during layoffs in 2019: features and most common mistakes

At present, when the country's economy is experiencing far from the best better times– business is trying to optimize its expenses and ensure not only a decent standard of living, but also outline prospects for the future. Some enterprises are automating production processes, others are increasing demands on employees, and others are simply reducing labor costs, which in all cases leads to a reduction in personnel in the company. In all cases, the manager tries to save the business by optimizing costs. It is necessary to clearly understand that the reduction of employees is nothing more than the termination of an employment contract at the initiative of the employer (Article 81 of the Labor Code of the Russian Federation), therefore, mistakes cannot be made in this matter in order to avoid problems with the law. In this article we will look at whether severance pay is subject to insurance premiums during layoffs.

In general, the personnel reduction procedure is a very costly project for an enterprise, so many managers try to avoid this by asking employees to write a letter of resignation of their own free will, but not all employees succumb to this persuasion, and, in fact, this is wrong. There is another opportunity to avoid quite serious expenses - to offer the employee another, vacant position in the same organization, but here the employee has the right to refuse this offer. In this case, the reduction procedure is inevitable. This article will help the manager avoid serious mistakes when planning and implementing the costs of the staff reduction procedure.

Amounts not subject to insurance premiums

Insurance premiums and other compensation related to the employee’s performance are not subject to labor responsibilities. For example, teaching staff federal government educational institutions(including management) in order to facilitate their provision of book publishing products and periodicals paid monthly financial compensation at the rate of:

In Art. 1 of Law N 4730-1 contains a definition of the border, according to which the state border of the Russian Federation is a line and a vertical surface passing along this line, defining the limits of the state territory (land, water, subsoil and airspace) Russian Federation, i.e. spatial limit of the state sovereignty of our country. Consequently, the state territory of Russia in this case ends not at the airport checkpoint, but when the aircraft crosses the vertical surface of the airspace passing above the line state border RF.

What is severance pay for staff reduction and is it subject to insurance contributions?

There are several possible interpretations of clause 3 of Art. 217 Tax Code of the Russian Federation. According to the Ministry of Finance of Russia (Letter of the Ministry of Finance of the Russian Federation No. 03-04-05/26273 dated July 8, 2013), compensation payments upon dismissal should include compensation for early termination of employment agreements, since such payment is guaranteed. Thus, if an employee was laid off and his contract was terminated early, and after dismissal he did not officially find a job for another three months, then he is credited with four average monthly earnings (for early dissolution, upon dismissal and the next 2 months after the settlement date).

There are some peculiarities when taxing severance pay at additional rates. Pay attention to the calculation of insurance pension contributions at such rates for an employee who is dismissed due to staff reduction, but he was employed in work that gives him the right to early retirement.

Is severance pay subject to insurance contributions?

All employee salaries are subject to insurance contributions: Pension Fund, health and social insurance fund. This also applies to compensation for unused vacation. But what if there is a liquidation of an enterprise or a reduction in staff? Are severance pay subject to insurance contributions in this case?

• in connection with changes in the employment contract, for example, when there is a change in management;
• relocation of a company or transfer of an employee if the latter does not agree;
• for health reasons, if the employee can no longer perform his work duties;
• liquidation of an enterprise (institution or organization);
• reduction or mismatch of qualifications of employees;
• reinstatement of the worker who previously performed these duties, etc. The full list can be found in 178 Labor Code of the Russian Federation

Calculation of severance pay - we compensate for “moral damage” upon dismissal

On the question of whether severance pay paid by decision of management is subject to personal income tax, the opinions of the Ministry of Finance and the Federal Tax Service were divided. According to the instructions of the Ministry of Finance, severance pay for any reason (in accordance with Labor Code it was paid or by decision of the manager, under a collective agreement) is not subject to personal income tax within the limit (3 times or 6 times the average earnings). Basis - letter of the Ministry of Finance dated April 10, 2012 No. 03-04-06/6-105.

When an employee leaves the organization, he has the right to receive everything that the company “owes” him. Usually this is wages for the last month of work and, if there are unused vacation days, compensation for unused vacation. If an employee resigns of his own free will, then usually the amount of payments is limited to this.

How to calculate severance pay during layoffs

But in order to receive benefits for the period of employment (the second and third months after dismissal), you must provide work book, indicating a lack of employment. Work under a contract performed by a dismissed person during this period is not grounds for deprivation compensation payments.

In accordance with labor legislation, upon dismissal, an employee has the right to count on certain payments from his employer. As a rule, in case of voluntary dismissal, the amount of such payments consists of wages accrued for the last month worked and compensation for unused vacation (if there are unused vacation days). However, situations arise when the employee is due additional compensation payments. The most common situations of this kind include staff reduction or liquidation of an enterprise. In this article you will learn how to calculate severance pay when an employee is laid off.

In the article:

Some organizations pay their employees severance pay upon dismissal. Many people ask whether this income is subject to taxes, and in particular personal income tax? The amount of social tax will depend on various factors.

Is severance pay subject to personal income tax?

Severance pay in case of dismissal is paid only in some cases. Before answering the question of whether severance pay is subject to personal income tax, let’s try to figure out in what cases it is paid to a resigning employee. All grounds are described in the Labor Code, namely in article number 178. These grounds include the following:

• There is a reduction in staff or the enterprise is subject to complete liquidation.
• The employee is called up for military service or alternative civilian service.
• Refusal by an employee to be transferred to another location when the transfer is based on a medical finding or when the employer cannot provide a new place of employment.
• The dismissed employee is replaced by an employee who previously held this position.
• An employee's refusal to continue serving due to certain conditions labor contract were changed.
• Recognition of the employee as incompetent for this work activity.

This benefit must also be paid in a situation where the employment contract was terminated due to a violation of the rules through no fault of the employee.

Now let’s figure out in what cases severance pay is subject to personal income tax. This tax must be paid by all persons who are engaged in any labor activity on the territory of the Russian Federation. The payment process is usually carried out by the employer, as it is usually recognized by the withholding agent. Persons who lead private practice, must independently compose tax return and pay tax.

Is severance pay subject to personal income tax upon dismissal?

One of the most frequently asked questions is whether severance pay is subject to personal income tax upon dismissal? The answer in this case cannot be unambiguous, since it depends on many factors. Dismissal can be carried out by agreement between the employee and the employer or in the event of layoffs. In the first case, personal income tax will be levied on benefits in the following cases:

• If the amount of the benefit exceeds the employee's salary for three months.
• If the amount of the benefit exceeds the employee's earnings for the last 6 months, in the event that we're talking about about labor activity in the regions of the Far North, or in adjacent regions.

If the benefit includes the salary for the last working month, then it must also be subject to personal income tax. This rule will not apply if the employee did not quit of his own free will.

All payments related to the dismissal of employees are not subject to taxation, except in one case. This tax will apply to the benefits of an employee who was terminated due to misconduct. In this case, the employer will have to prove the fact of violations of labor discipline by the employee.

Is severance pay subject to personal income tax upon layoff?

Many people wonder whether severance pay is subject to personal income tax during layoffs? A situation may arise that the company is going to be liquidated and then the employee may be laid off. Since the employee lost his job through no fault of his own, he is entitled to compensation in the form of benefits. The amount of the benefit is determined based on what salary the employee received, how many working days he had and other nuances. It is worth noting that such benefits are not subject to personal income tax.

A redundant employee should know one more thing important nuance. If, after being laid off, he has not found another job, he may demand payment of benefits for the next 2 months after dismissal. These payments will also not be taxed.

In order to receive benefits for 2 months after dismissal, the employee must register with the labor exchange. If a new job has not been found for him within 2 months, then only in this case will he receive additional payments.

In addition to benefits, a laid-off employee can receive other payments not subject to personal income tax, such as:

• Salary for the period from the last payment until the employee was laid off.
• If annual leave was not used, then compensation is due. It is worth remembering that vacation is only available to those employees who have worked at the company for at least six months.
• The employee may also be paid a bonus for a job well done. It is worth noting that the law does not establish a maximum benefit amount, however minimum size will need to be adhered to.
• If an employee was laid off before he was warned about this, then he is entitled to additional compensation.

Many employees who have been warned about the liquidation of the company are wondering what the amount of severance pay will be.

To calculate, you will need to use the following formula: Benefit amount = RD * SDZ.

In order to make the calculation, you will need to understand the abbreviations of the formula. RD in this case means the number of working days worked after the last salary was calculated. SDZ – stands for the average daily salary of an employee. In order to calculate the average daily salary, the following formula is used: SDZ = ZP / OD, where ZP is the salary for billing period along with various bonuses. Typically the billing period is 12 months. OD stands for number of days worked.

In order to calculate severance pay as accurately as possible, the following nuances must be observed:

• Only working days are taken into account, while holidays and weekends are not taken into account.
• Social benefits are also not taken into account.
• The calculation will be performed in the same way, regardless of what type of payment was used.

Video: Severance pay upon dismissal

Payment of what insurance premiums, taxes, personal income tax and in what cases is necessary when dismissing or laying off an employee - this is briefly discussed in the next video review.

When terminating an employment contract on this basis, the employer is required to comply with the procedure provided for labor legislation. Failure by the employer to comply with at least one of established by law measures for the dismissal of employees, provided for in Article 84.1 of the Labor Code, may be grounds for the court to declare the dismissal illegal and lead to the employee’s reinstatement at work.

On the day of dismissal, the employer is obliged to pay the laid-off employee all amounts due to him from the employer (Article 84.1, Article 140 of the Labor Code).

Firstly, wages for the time actually worked in the month of dismissal.
Secondly, compensation for all unused vacations (if any). Article 127 of the Labor Code provides that upon dismissal, an employee is paid monetary compensation for all unused vacations. This rule applies regardless of the grounds for termination of the employment contract. Note that if an employee is dismissed due to staff reduction before the end of the working year for which he has already received annual paid leave, deduction for days not worked no leave is provided (part two of Article 137 of the Labor Code).

Thirdly, severance pay in the amount of average monthly earnings. From Article 178 of the Labor Code it follows that the employee is paid:

• on the day of dismissal - severance pay in the amount of average earnings;
• if during the second month from the date of dismissal the employee does not find a job - the average earnings for that month;
• If within two weeks from the date of dismissal the employee applied to the employment service and was not employed by him within three months from the date of dismissal, then in exceptional cases, by decision of the employment agency, the employee is paid the average salary for this third month.

The notice must indicate the specific date of dismissal. Moreover, by virtue of part three of Article 180 of the Labor Code, the employer, with the written consent of the employee, has the right to terminate the employment contract with him before the expiration of the period specified in part two of the same article of the Labor Code, paying him additional compensation in the amount of the employee’s average earnings, calculated in proportion to the time remaining until expiration of notice of dismissal.

Personal income tax

Subclause 6 of clause 1 of Art. 208 of the Tax Code determines that remuneration for the performance of labor or other duties, work performed, service rendered, or the commission of an action in the Russian Federation for tax purposes refers to income received from sources in the Russian Federation.
Thus, wages for the time actually worked in the month of dismissal are the employee’s income, subject to personal income tax at a rate of 13% (Article 224 of the Tax Code).

According to paragraphs. 1, paragraph 1, Article 223 of the Tax Code, when receiving income in cash, the date of actual receipt of income is defined as the day of payment of income, including the transfer of income to the taxpayer’s bank accounts or, on his behalf, to the accounts of third parties. Let us recall that according to paragraph 2 of Article 226 of the Tax Code, the organization from which or as a result of relations with which the taxpayer received income is obliged to calculate, withhold from him and pay the amount of tax.

As for compensation payments due to an employee upon staff reduction, in accordance with paragraph 3 of Article 217, all types of personal income tax are not subject to personal income tax. established by law RF, legislative acts subjects of the Russian Federation, decisions of representative bodies local government compensation payments (within the limits established in accordance with the legislation of the Russian Federation), related, in particular, to the dismissal of an employee.

They, in particular, indicate that compensation payments related to the dismissal of an employee, paid in accordance with Article 178 of the Labor Code, are not subject to personal income tax, namely:

• average monthly earnings for the period of employment.

However, if an employee upon dismissal due to staff reduction is paid severance pay in increased amounts, then the amount of severance pay that exceeds the amount established by the article. 178 of the Labor Code, is subject to personal income tax.

Additional compensation paid to the employee in the amount of average earnings in proportion to the time remaining before the expiration of the notice period for dismissal is subject to clause 3 of Article 217 of the Tax Code.

As for compensation for unused vacations, then this type compensation is excluded from the list of non-taxable compensation payments related to the dismissal of employees (paragraph six of clause 3 of Article 217 of the Tax Code). Consequently, monetary compensation for unused vacation paid to an employee is subject to personal income tax in accordance with the generally established procedure.

Insurance contributions to the Pension Fund of the Russian Federation, the Federal Social Insurance Fund of the Russian Federation and the Compulsory Medical Insurance Fund

The object of taxation with insurance premiums for organizations and individual entrepreneurs payments and other remuneration accrued by them in favor of individuals for employment contracts and civil law agreements, the subject of which is the performance of work, the provision of services, as well as under copyright contracts, agreements on the alienation of the exclusive right to works of science, literature, art, publishing license agreements, license agreements on granting the right to use works of science, literature, art (Part 1 of Article 7 of Federal Law No. 212-FZ).

Accordingly, wages for the time actually worked in the month of dismissal are subject to insurance contributions on a general basis.

Thus, taking into account that this norm is similar to paragraph 3 of Article 217 of the Tax Code, we believe that, as in the case of personal income tax, such payments as:

• severance pay in the amount of average monthly earnings;
• average monthly earnings for the period of employment;
• additional compensation paid to the employee in the amount of average earnings in proportion to the time remaining before the expiration of the notice period for dismissal.

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