Personal income tax on sick leave in 2021: payment deadlines

In this article we will find out what taxes and contributions are subject to sick leave. Let's figure out what contributions the sheet is subject to in 2021. Let's consider an example of calculation.

Labor legislation guarantees that the employee’s period of incapacity for work will be paid. Compensation is subject to both the sick time of the employee himself and his children if they need to be cared for, as well as benefits for pregnancy and childbirth, and for caring for a close relative. Read also the article: → “Sick leave for individual entrepreneurs in 2021”

On the one hand, sick leave payment resembles wages. On the other hand, compensation for sick time is made from other sources. Therefore, the employer has a question: are amounts accrued on sick leave subject to mandatory taxation and are they subject to any contributions?

Sources of payment of temporary disability benefits

The employee's illness period can be paid from two sources - from the employer's funds or from the social insurance fund.

To accept sick leave for credit, it is necessary that at the time of the onset of illness an employment contract was concluded between the employee and the employer. Periods of absence from work due to injury resulting from unlawful acts are not paid.

Legal aspects

The main legislative acts governing and regulating the aspects discussed in the article are presented in the table:

Taxation of sickness benefits

Since funds received by an employee during a period of illness are one of the types of his income, they become subject to taxation.

What taxes are imposed on temporary disability benefits and what contributions are charged on them depends on:

• The tax regime adopted by the enterprise;
• The case in which incapacity for work occurred (due to illness, pregnancy and childbirth, caring for a sick family member, etc.).

The income of an individual is subject to personal income tax, mandatory contributions to the Pension Fund and insurance contributions. The obligation to withhold personal income tax applies to sickness benefits.

As for insurance premiums, they are not charged. The reason lies in the source of payments. If sick leave is paid at the expense of the Social Insurance Fund, then it is not rational to charge contributions for the fund, which itself paid.

When to transfer income tax from sick leave

When to transfer personal income tax from sick leave in 2021? Before January 1, 2021, the deadlines for paying income tax on employee income were as follows:

• no later than the day of receipt of cash from the bank or transfer to the account of an individual;
• in other cases (for example, when paying income from proceeds) - no later than the day following the day of actual receipt of income.

By Law of May 2, 2015 N 113-FZ, this procedure was changed, and from January 1, 2021, personal income tax on sick leave and vacation pay must be transferred no later than the last day of the month in which such income was paid (Article 226 (6) of the Tax Code of the Russian Federation).

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Sick leave and personal income tax

Income taxes are generally not withheld from state benefits paid. This applies to maternity benefits, unemployment benefits, funeral benefits, adoption benefits, etc. But the obligation to accrue it concerns payments for sick leave and other similar payments.

The personal income tax rate for sickness benefits is determined in accordance with the law.

The obligation to withhold income tax from income received during the period of illness remains regardless of the source from which it is paid. It does not matter who pays for sick leave - the employer or the Social Insurance Fund.

When calculating the amount of personal income tax, sick leave payment is attributed to the month for which it is issued.

For example, a technical maintenance engineer was sick from April 2 to April 19. During this period, a benefit in the amount of 12,000 rubles was accrued. Income for April is 25,000 rubles, including the amount of temporary disability benefits. The employee has no children; he is a resident of the Russian Federation. Let's calculate personal income tax and the amount to be issued in person for April.

Rules for filling out lines in form 6-NDFL

The table below shows a clear example of how sick leave payment can be reflected in Form 6-NDFL. This report is prepared when income tax is collected on such payment.

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Attention! If it coincides with a Saturday or other weekend, the transfer of personal income tax to the Federal Tax Service of the Russian Federation is postponed to the next specific working day (Clause 7, Article 6.1 of the Tax Code of the Russian Federation).

Article 6.1 of the Tax Code of the Russian Federation “Procedure for calculating the deadlines established by the legislation on taxes and fees”

Filling out a report: example

Below is a clear example of how sick leave payments and the corresponding tax payment are reflected in Form 6-NDFL.

After recovery, worker Sidorov A.G. was issued a certificate of incapacity for work for the following period - July 13-26, 2021. Sidorov reported to work on July 27 and immediately gave this document to the accountant.

After making calculations for sick leave, on July 27, 2021, the employee was credited with 24,500 rubles. This money was transferred to the employee’s salary card on the day the monthly salary was issued - August 7, 2017.

All of the above transactions were indicated in the 6-NDFL report for 9 months. 2017 They did it this way:

Additional payment up to average monthly earnings

If, when transferring sick leave money to an employee’s salary card, an additional payment is made up to the average monthly earnings, then income tax is collected in the general manner (Articles 217, 226 of the Tax Code of the Russian Federation).
In this situation, personal income tax is withheld at a rate of 13%. Important! Supplement to average earnings is considered a legal procedure in which, if the employee’s salary level decreases, the employer pays him the required amount. As a result, the employee’s monthly income reaches a specific average value.

Payments for closed sick leave are calculated based on the average monthly salary of a worker for the last 2 years that precede the onset of illness (Part 1, Article 14 of Federal Law No. 255 of December 29, 2006). When calculating such a benefit, it is taken into account that the amount of wages for one year should not exceed the specific maximum amount of various insurance contributions to the Social Insurance Fund.

The provision of additional payment is indicated in the employment contract (agreement) with the employee or in a separate specific regulatory act.

Federal Law of December 29, 2006 No. 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity”

Taxation of sick leave for caring for a disabled child

Often, an employee is paid for a certificate of incapacity for work, which is opened in connection with caring for one or more disabled children. However, many parents do not know whether closed sick leave is subject to personal income tax.

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In Art. 217 of the Tax Code of the Russian Federation reflects a list of payments that are not subject to personal income tax. Sick leave issued when caring for one or more disabled children is not on this list. Accordingly, payments for such certificates of incapacity for work are also subject to taxation.

Maternity benefits and personal income tax

70 days before giving birth, the expectant mother can go on paid maternity leave. Maternity leave lasts 140 calendar days (70 days before childbirth, 70 after). This is documented with a sick leave certificate. This duration is established for a singleton pregnancy. If several babies are expected to be born, the leave is extended by 54 days. In case of complicated childbirth, another 16 days are added to the leave.

Maternity benefits are also available to a parent who adopts a child under 3 months of age. In this case, 70 days are added to the child’s date of birth. If several children are adopted, the leave is 110 days from the date of their birth.

Maternity benefits are calculated based on the average earnings of the expectant mother over the last two years. The state regulates both the minimum and maximum amounts of payments.

Maternity benefits are paid entirely from the Social Insurance Fund. Therefore, income received under this article is not subject to personal income tax.

But one exception should be noted. It is possible that, by agreement between the employee and the employer, the latter wishes to pay an additional portion of the benefit above the limit established by the state. In this case, income tax is necessarily withheld from the difference.

If such an additional payment is formalized as financial assistance for the birth of a child, and its amount does not exceed 50,000 rubles, in accordance with the Tax Code no income tax is withheld.

What the Ministry of Health and the Tax Code of the Russian Federation say

Legislative regulation of issues of compensation for sick leave occurs in two directions.

1. Questions regarding the issuance of a document on temporary disability and its submission to the personnel department of the enterprise in order to receive legal payments are carried out in accordance with the order of the Ministry of Health of the Russian Federation No. 1345 of December 21, 2012.
2. Issues related to taxation when paying compensation for employee disability are resolved in accordance with the provisions of Art. 217 of the Tax Code of the Russian Federation.

The text of the Tax Code clearly states the taxation norm for temporarily disabled employees receiving compensation payments: the taxes provided for by law must be withheld from all amounts received as such (clause 1 of Article 217 of the Tax Code of the Russian Federation). The reason for this decision is that compensation for temporary inability to work, unlike other government payments, is equal to wages.

EXCEPTION! Only one type of sick leave will not be subject to taxation - issued in connection with pregnancy and childbirth or with the adoption of a baby.

Sick leave and unified social tax

If sick leave is within the limit established by the state

Sickness benefits, in terms of repayment from the social insurance fund, are not the basis for calculating the unified social tax. What about the amount paid by the employer?

The Tax Code establishes that the amount of sickness benefit paid at the expense of the employer is not subject to UST taxation. These amounts do not include contributions for insurance against industrial accidents.

If sickness benefit is brought up to average earnings

The maximum amount of sick leave paid from the social insurance fund is limited and is established for a year by legislative acts. Often the average salary of the insured person exceeds this limit. The employer can pay for sick leave within the limits established by law, taking into account the employee’s length of insurance, or can make an additional payment up to the amount of his average earnings. Is it necessary to subject the unified social tax to the amounts of additional payments?

What amount is personal income tax calculated from?

Currently, a pilot project is underway in Russia, within the framework of which policyholders from some regions only submit documents to calculate temporary disability benefits, but do not calculate it themselves. The procedure and sequence of joining the constituent entities of the Russian Federation to the project is presented in Government Decree No. 294 dated April 21, 2011. Is income tax taken from sick leave according to the new rules?

All employers, without exception, pay only the first three days of the period of temporary disability of their employees. It is from this amount that the organization must withhold personal income tax. All funds paid by the regional branch of the Social Insurance Fund do not need to be subject to duties to the employer. The officials themselves will do this. If necessary, they will also issue a certificate of income and the amount withheld from it to be presented at the place of request, for example, to the Federal Tax Service.

Thus, when paying out sick leave:

• entirely by the employer - personal income tax will be calculated and withheld by the employer;
• as part of the pilot project: for the first three days, which are paid by the employer, personal income tax is withheld by the employer. From that part of the benefit paid by the Social Insurance Fund, personal income tax will be withheld by the Social Insurance Fund.

Reflection of taxation of benefits on accounts: postings

Part of the sick leave paid at the expense of the employer is reflected in accounting as expenses:

• Dt20, 23.25, 26, 44 Kt70.

For sick leave amounts to be financed from the Social Insurance Fund, an entry is made:

• Dt69 Kt70.

Withholding income tax from sickness benefits:

• Dt70 Kt68.

Issuance of benefit amounts in hand:

• Dt70 K50, 51.

Reimbursement of employer expenses for payment of benefits from the Social Insurance Fund:

• Dt51 Kt69.

Accrual of UST on benefits income:

• Dt20, 23, 25, 26, 44 Kt69.

FSS pilot project

If the social insurance pilot project has not yet been launched in the region where the company operates in 2021, the territorial social insurance department will reimburse the employer for sick leave without deducting personal income tax. And then the employing company, as a tax agent, withholds tax from the total amount of the benefit:

• paid at your own expense (for the first three days);
• reimbursed from the FSS budget.

Also see “ FSS pilot project in 2021: which regions ”.

Is sick leave subject to personal income tax?

The Tax Code of Russia can answer the question posed in the topic of our article. It defines two lists relating to the tax levied on the income of individuals:

• income received by a citizen, from which a portion is required to be transferred to the state budget;
• income excluded from the list of “guilty” payments.

Is it necessary to pay the state personal income tax on sick leave as well, or can this be avoided?

According to the indicated lists, the benefit paid on sick leave to an employee who is on vacation due to the onset of temporary disability is excluded from the list of non-taxable income, and therefore, we can confidently answer the question we initially identified: yes, sick leave is subject to personal income tax.

Please note: here are some payments for which women working and living in Russia who become mothers also receive sick leave:

• a one-time benefit paid due to pregnancy and subsequent childbirth;
• monthly payment for child care , which accrues to the mother to provide the child with everything necessary, credited to the family account until the child reaches one and a half years old;
• compensation for caring for a child up to three years old, also accrued monthly.

Extract from the Tax Code of the Russian Federation Article 217. Income not subject to taxation

Despite the fact that in order to receive the above payments, sick leave is also a document of title, the state does not levy taxes on them, since all possible funds should be spent on providing the child with everything necessary.

A sick leave certificate is a document confirming the right of the expectant mother to benefits corresponding to her position; however, no tax will be charged on these payments, because they are assigned for the maintenance of the baby