Personal income tax calculation: everything an employer needs to know

What is personal income tax

Personal income tax is a tax that an individual pays on their income. But when it comes to salary or other payments from the employer, it is he who is obligedTax Code of the Russian Federation, article 24. Tax agents withhold the required percentage from the amount that it gives to the employee and transfer it to the state.

What income do you need to withhold personal income tax?

Tax exempt many cash receiptsbut they are mostly not employer-related. It is necessary to withhold personal income tax from salaries, bonuses, vacation pay, royalties, and disability accruals if the employee went on sick leave.

The exceptions usually include various benefits and material assistance. If you are paying an employee money under some non-standard article, it is better to check with the lawTax Code of the Russian Federation, article 217.

At what rate to calculate personal income tax

The employer in the vast majority of cases deals with a rate of 13%

Tax Code of the Russian Federation, article 224. Tax rates.

30% is supposed to be charged from non-residents, that is, from those who have spent 183 days or more abroad in a year. But there is also an exception. It concerns foreigners working on a patent, highly qualified specialists who arrived to work under a contract, those who moved to Russia under the resettlement program compatriots, crew members of Russian ships, refugees and persons who have received temporary asylum, as well as residents of the countries of the Eurasian Economic Union: Armenia, Belarus, Kazakhstan and Kyrgyzstan. A 13% rate is also applied to the income of such people.

How the tax base is calculated

The base is considered a cumulative total. This is necessary due to the fact that Personal income tax paid in full rubles, no kopecks. If you do the calculations for each month separately, an underpayment may occur - a penny, but for the tax authorities this also matters.

Let's say an employee is charged 43,745 rubles a month. 13% of this amount - 5,686.85 rubles. The tax office goes to 5,687 rubles. The following rules apply here: if a number ends in 0.1–0.4, it is rounded down; if by 0.6-0.9 - into a larger one. Where to move from 0.5, you decide for yourself.

If you considered the tax not a cumulative total, then every month you would have an overpayment of 15 kopecks. Instead, in February, you add 43,745 for January, 43,745 for February, and you add 13% of the total. And then you take away what you have already paid.

(43 745 + 43 745) × 13% − 5 687 = 5 686,7

The number again turns out to be not whole, it will have to be rounded, but the meaning is clear: with each next payment, you will neutralize the overpayment.

What are tax deductions and how to apply them

A tax deduction is a part of the income with which the state permits not to pay personal income tax. One of the options for its registration is through an employer. The employee must prove the right to deduct with documents.

There are quite a few deductions, and each has nuances. To understand, it is better to read the separate article Life hacker about them.

The most common standard tax deduction for children: 1,400 rubles per month for the first and second child, 3,000 for the third and each subsequent. It is valid until the annual income reaches 350 thousand.

Let's say your employee with a salary of 43,745 rubles has one child for whom he wants to receive a deduction. He can do this from January to August - in September his income will exceed 350 thousand. The deduction is subtracted from the amount income, and tax is calculated from the balance.

(43 745 − 1 400) × 13% = 5 504,85

If an employee came in the middle of the year, it is necessary to request from him a 2-personal income tax certificate from the previous place of work in order to understand whether he still has the right to deductions.

When to keep personal income tax

This is done at the lastTax Code of the Russian Federation, article 223. Date of actual receipt of income day of every month.

Let's take the same employee with a salary of 43,745 rubles. On June 20, he received an advance payment of 18 thousand rubles. On June 30, the tax base and personal income tax are calculated from it. And on July 5, he received his salary for June, from which the advance and withholding tax were deducted.

Although personal income tax is calculated and paid once a month, the employer can choose one of two ways:

• pay the advance in full, and deduct personal income tax from the second part of the salary;
• both parts of the salary should be reduced by personal income tax.

Personal income tax from vacation pay and disability benefits is withheld on the day they are paid. If a man resigns, the tax must be calculated on the last working day.

When to transfer personal income tax

The money must be transferred to the tax office no later than the next day after the employee receives income. For example, if the salary was issued on July 5, then the deadline for the transfer of personal income tax is July 6. Vacation tax and disability benefits must be transferred no later than the last calendar day of the month.

Where to transfer personal income tax

If we are talking about entrepreneur with employees, it depends on the tax regime. Individual entrepreneur on OSNO, USN and ESHN transfers money to the tax office at the place of registration. SP on UTII or PSN - at the place of registration. If an entrepreneur operates in several taxation systems and employees are employed in different areas, then the contributions for them are sent to different inspectorates.

Organizations pay personal income tax to the tax authority, where they are registered. Separate subdivisions transfer money to "their" tax office. An exception is made if the divisions are located on the territory of one municipality. Then you can choose one inspection, but this intention must be notified to the Federal Tax Service.

How to report on the payment of personal income tax

There are two types of reporting:

• 2 ‑ NDFL - employee income statement. Submitted to the Federal Tax Service once a year until March 1.
• 6 ‑ personal income tax - calculation of amounts calculated and withheld by the employer. For the first quarter, it is submitted until April 30, six months before July 31, for three quarters - until October 31 and for a year - until March 1.

Employers with 10 or more employees are required toRF Tax Code, article 230 submit reports electronic.