Additional payment up to average earnings on sick leave in 2021

There is such a right

Not all employees have the right to receive sick leave benefits in the amount of 100% of average earnings, since the figure depends on the length of insurance coverage.

For more details, see “100% sick leave: when paid in full.”

And sometimes such benefits are calculated based on the minimum wage. an additional payment for sick leave up to average earnings comes to the aid of such personnel .

For more details, see “Minimum wage in 2016 for calculating sick leave.”

In case of temporary loss of ability to work, the employee is paid sick leave benefits, calculated on the basis of average earnings. The calculation period is taken as two years preceding the year in which the insured event occurred.

The Social Security Fund limits the value at which days of absence are paid. So, in 2021, the maximum income for the billing period is equal to:

670,000 rub. (for 2015) + 718,000 rub. (for 2021) = RUB 1,388,000.
RUB 1.388 million / 730 day (number of days in 2015 + 2021) = 1901.37 rubles/day.

Amounts above these limits are not taken into account when calculating sick leave and are not paid. But the law does not prohibit the employer from making additional payments to the average salary on sick leave for the missing amount.

Remember: providing employees with such additional payment is the right, not the obligation of the employer!

Answers to pressing questions

Question number 1 . Can an enterprise take into account in its expenses to determine the income tax base an additional payment for sick leave up to the average earnings of a citizen of another state?

Answer. An enterprise has the right to pay additional sick leave up to the average salary in accordance with the employment agreement to its employee, regardless of his citizenship.

But such costs cannot be included in expenses when calculating the taxable base for income tax. If a citizen of another state is not an insured person, then he has no right to sickness benefits.

Consequently, such costs are not regulated by Article 255 of the Labor Code of the Russian Federation and are not taken into account as expenses affecting the amount of taxable profit.

Question number 2 . How to calculate the amount of additional payment up to the minimum wage for an employee working part-time.

For an employee, on his own initiative, working days are Monday, Tuesday, Thursday and Friday, and Wednesday, Saturday and Sunday are days off. The company has a five-day work week.

In April 2021, the planned working time was 160 hours, the employee’s salary was 7,000 rubles.

Actually 128 hours worked.

Answer. The employee's salary in accordance with the number of hours worked in April 2021 is:

7000/160*128 = 5600 rubles.

The employee’s salary does not reach the minimum wage established by law as of the reporting date. Consequently, as someone who has worked the full working hours established for the employee individually, he has the right to receive an additional payment to his earnings up to the minimum wage. The additional payment will be calculated in proportion to the time of actual work:

Question No. 3. Will the amounts of additional sick leave up to average earnings be reimbursed from the Social Insurance Fund?

Answer. According to the current legislation regulating the procedure for calculating sickness benefits, the average salary per day cannot be more than the limit determined by regulations for the reporting year.

This means that only the benefit amount calculated based on this limit value, but not the actual income of the insured person, can be repaid from the Social Insurance Fund. The employer can compensate the difference at his own expense.

It should be noted that the additional payment up to the employee’s actual salary is subject to taxation as income in the generally established manner for salaries.

Question No. 4. On December 25, the employee was accrued additional sick leave up to average earnings. The next day, the employee was paid for sick leave and the income tax on this amount was transferred to the budget. How to correctly reflect the accrual of surcharges in the Form 6-NDFL report?

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

Answer. The Income Tax Law stipulates that the amount of personal income tax on the income of an individual taxpayer must be transferred by the employer no later than the next day after the funds are issued to him.

There are no exceptions to this rule for additional payments for sick leave up to average earnings. The additional payment of disability benefits paid in December up to the average salary is reflected in the 6-NDFL report for the current year as follows:

Page 100 – 26.12 – the date of payment of the additional payment is indicated;
Page 110 – 26.12 – the day of personal income tax withholding is reflected;
Page 120 – December 27 – the day of payment of income tax to the budget.

Question No. 5. What taxes should be imposed on the amount of additional payment to sickness benefits up to the average, actual earnings or minimum wage?

Answer. Such additional payments, as well as disability benefits themselves, are subject to personal income tax under tax law.

As with benefits, additional payments are subject to a tax rate of 13% or 30% depending on whether the taxpayer is a resident or not. Additional payments are also subject to taxation for insurance premiums, in contrast to the amount of disability benefits.

In addition, for the amount of additional payment for sick leave, you need to charge contributions for injuries, but for the amount of the sick leave itself it is not necessary.

Some organizations pay their employees temporary disability benefits higher than the amounts accrued by the Social Insurance Fund. What this entails and how to arrange an additional payment up to the average salary on sick leave , you will learn from our publication.

How to register correctly

When an enterprise makes additional payments to employees up to the average salary on sick leave in the event of their temporary loss of ability to work, this condition must be included in local regulations, an employment or collective agreement. Since the legislation does not regulate the rules regarding this issue, the employer independently determines:

the circle of persons who are entitled to compensation (it is not necessary to pay funds to all personnel);
procedure for calculating the amount of funds to be paid additionally.

Additional payment up to the minimum wage for part-time workers

The procedure for additional payment up to the minimum wage, including for part-time workers, deserves special attention. If the employee’s salary, as well as sick pay, does not reach the minimum wage, the employer is obliged to compensate the difference.

The Labor Code stipulates that part-time workers are paid in proportion to the time worked. Additional payment of sick leave up to the minimum wage follows the same principle. The procedure for such additional payment must be reflected in the employer’s internal regulations governing wage calculations.

The provisions of these documents are brought to the attention of the employee against signature.

The additional payment is issued by order of the enterprise.

Calculations with the budget

If the documents are completed correctly, the additional payment up to the average salary on sick leave can be taken into account in income tax expenses as wages. This requires:

comply with the conditions discussed above;
issue an order on the basis of which such additional payments should be made.

Since the surcharges in question do not come from the government, they are subject to income tax. Its calculation occurs in the general manner.

For more information, see “Paying income tax on sick leave.”

Also, the employer must deduct contributions to extra-budgetary funds from the amount of the supplement up to average earnings.

EXAMPLE S. Mikhailov, who works in and is a tax resident of the Russian Federation, took out sick leave on September 26, 2016. He returned to work on October 6, 2016. The average salary of an employee over the past two years per day was 2,250 rubles. Insurance experience – 7 years. The company's collective agreement provides for additional payment for sick leave up to average earnings . What actions need to be taken?

Solution

Since Mikhailov has 7 years of insurance experience, he is entitled to compensation in the amount of 80% of his salary.
The amount of funds allocated to him without additional payments will be: 1901.37 × 80% × 10 days = 15,210.96 rubles.
Compensation, taking into account the terms of the collective agreement, is equal to:
2250 × 10 days = 22,500 rubles.
The amount of additional payment due to him will be:
22 500 – 15 210,96 = 7289,04.
We charge tax on the amount that we provide additionally:
7289.04 × 13% = 947.6 rubles. – we withhold this amount of personal income tax from the additional payment for sick leave up to average earnings .

The legislation does not regulate up to what maximum amount or period of additional payment can be made. And despite the fact that earnings can be fixed by salary, actual products produced, etc. The main thing is that the rules for calculating additional payment up to the average earnings on sick leave are specifically reflected in regulatory documents or the employment contract with the employee.

Additional payment of maternity benefits

If the collective and labor agreement stipulates the employee’s opportunity to receive an additional payment up to the average salary for such benefits, then these costs can also be included in labor costs.

The procedure for determining the average salary must be reflected in the local regulations of the employer. If this is not reflected in the documents of the business entity, then the average earnings can be determined in accordance with the current regulations governing the procedure for its calculation.

The Tax Code of the Russian Federation determines that an economic agent has the right to classify expenses for additional payments to maternity benefits up to average earnings as income tax expenses.

Expert opinion

Semenov Alexander Vladimirovich

Legal consultant with 10 years of experience. Specializes in the field of civil law. Member of the Bar Association.

The amounts of such additional payments are subject to income tax. Unified social tax is calculated for them. Local regulations of the tax agent in the field of labor legislation may establish an additional payment not only up to average earnings, but also up to:

official salary. Bonuses and any allowances are not taken into account;
actual earnings, that is, up to the salary that would have been received by the employee if he had worked for a full month;
any fixed value that can be set the same for all employees of the enterprise, regardless of salary and job responsibilities. The amount of the additional payment depends on the employer’s financial ability to compensate for the employee’s material losses during illness.

Accounting for income tax expenses

When calculating income tax, a company reduces the income received by the amount of expenses incurred. The latter also includes labor costs. These, in particular, include other types of costs that are incurred in favor of the employee and are provided for by the labor (collective) agreement (clause 25 of Article 255 of the Tax Code of the Russian Federation).

It is important to know. Expenses deducted from taxable income must be justified and documented. This is the requirement of paragraph 1 of Art. 252 of the Tax Code.

This means that the company has the right to take into account the amounts of additional payments to employees before actual earnings for the period of their temporary disability as part of expenses that reduce taxable profit. A prerequisite is that such payments must be provided for in the labor and (or) collective agreement.

The situation is completely different if the regulation on remuneration and bonuses for employees in force in the organization stipulates that, by decision of the employer, on the basis of an order or instruction, employees may be given additional payments to temporary disability benefits, but neither the labor nor the collective agreement will make the above additional payments not provided. Then the company does not have the right to take into account these payments in labor costs in accordance with clause 25 of Art. 255 of the Tax Code in order to calculate income tax.

Payment of sick leave in 2021: percentage of length of service

The percentage of length of service has a direct impact on the amount of sick leave payment. Let's look at specific examples of how to calculate an employee's length of service and the amount of temporary disability benefits due to him in 2021.

activities of an individual as an individual entrepreneur, private notary, detective or security guard after 01/01/2003, if social security contributions were paid during these periods, as well as periods before 01/01/2001;
working as a lawyer after 01/01/2003, if social security contributions were paid during these periods, as well as periods before 01/01/2001;
work on a collective farm or production cooperative after 01/01/2003, if social security contributions were paid during these periods, as well as periods before 01/01/2001;
execution of powers of a deputy of the State Duma and the Federation Council;
filling government positions in constituent entities of the Russian Federation, as well as municipal positions filled on a permanent basis;
the activities of a clergyman, if social security contributions were paid during these periods;
paid work of the convicted person in the period after November 1, 2001.

We recommend reading: Subsidies for pensioners in Orenburg

Accounting

In accounting, the amount of additional payment before actual earnings is reflected in the same way as the amount of the temporary disability benefit itself. That is, the cost of paying temporary disability benefits for the first three days of illness, including the amount of additional payments, the company can take into account as part of the expenses for ordinary activities. This allows clause 5 of PBU 10/99 “Expenses of the organization” (approved by Order of the Ministry of Finance of Russia dated May 6, 1999 N 33n).

To summarize information on settlements with employees for wages (including payment of benefits), account 70 “Settlements with personnel for wages” is intended. The benefit accrued at the expense of the employer (for the first three days of illness) is reflected in the debit of the production cost accounts (20 “Main production”, 25 “General production expenses”, 26 “General expenses”, etc.) in correspondence with account credit 70.

The accrual of benefits from the funds of the Social Insurance Fund of the Russian Federation is reflected in the credit of account 70 in correspondence with the debit of account 69 “Calculations for social insurance and security”.

Algorithm for calculating average earnings for calculating benefits on sick leave in 2021

It is worth paying attention to those points that do not relate to the grounds for refusing to accept a certificate. This is putting a stamp on places with information, spaces between initials. Minor technical defects of this nature do not affect the readability of information and therefore do not require correction.

You do not need to enter information in all fields. Each party fills out its own sections and only those information that are true and required according to the case of disability. The sick leave form can be downloaded here.