When to pay personal income tax on vacation pay in 2021

New rules for paying personal income tax

If the final day of the month is Saturday or Sunday, then the due date moves to the very first working day of the next month. Not only the salary itself is taxed, but also the vacation pay issued. What rules apply to vacation pay:

1. The duty of a tax agent is fulfilled by the employer or the employee who received the income. If the requirements specified in the Tax Code are not fulfilled, then the specified person will be held liable.
2. Payment transfer time. It is necessary to take into account the deadline for paying personal income tax.

These rules apply to all payments to employees. Payment of personal income tax from vacation pay 2021 is confirmed by documents. For this purpose, form 6-NDFL is provided. It reflects the individual’s income, interest rate, final collection amount and other indicators. This form must be drawn up and sent to the authorities by the citizen himself, who independently pays the fee, or by the accounting department involved in this.

Examples of transferring personal income tax from vacation pay in 2021

Interested in what's new in personal income tax on vacation pay in 2021, what changes? An example of income tax transfer is given using the following data:

The employee wrote an application for leave from June 7, 2021 for 28 calendar days. The vacationer must receive payments no later than three calendar days before the vacation, so the accountant made the payment on June 3, 2021. In this case, personal income tax is paid no later than June 30, but earlier payment will also not be a violation.

Let's change the example a little: the employee goes on vacation from June 1, 2021. In this case, vacation pay must be paid no later than May 29, 2021. As you can see, the payment month is different here, so you must transfer income tax no later than May 31.

In letter dated April 15, 2016 No. 14-1/B-351, the Russian Ministry of Labor spoke on the issue of personal income tax on vacation pay. An example of calculations is associated with a situation where the holiday period falls on a non-working day on June 12. Should it be taken into account in the total duration of vacation? The Department believes that holidays falling during the vacation period are not included in the number of calendar days of vacation. Non-working holidays must be taken into account when calculating the average salary.

DEADLINES FOR PAYMENT OF NDFL BY TAX AGENT

Next, we will note when a tax agent should pay personal income tax in 2021 in the most common situations.

• Advance and salary for the second half of the month - the day following the day of payment of salary for the second half of the month.
• Bonus – the day following the day of its payment.
• Vacation pay is the last day of the month in which they are paid.
• Sick leave is the last day of the month in which they are paid.
• Payments upon dismissal, including compensation for unused vacation and salary - the day following the last day of work.
• LLC dividends – the day following the day of their payment.
• Payments under GPC agreements (contract, provision of services) - the day following the day of payment of any income under the agreement, including advance payment.
• Material assistance and other cash income - the day following the day of payment.
• The material benefit from saving on interest is the day following the next cash payment after calculating the personal income tax from the financial benefit.

If personal income tax payment deadlines are violated in 2021, penalties will be charged for each day of delay. To avoid such costs, it is important to be aware of payment dates and adhere to them. See the table for the deadlines for paying personal income tax on different types of income of individuals: wages, vacation pay, sick leave benefits and other payments.

Responsibilities of a tax agent

Article 226 of the Tax Code of the Russian Federation obliges organizations and individual entrepreneurs from which an individual received income to withhold and transfer income tax to the budget. Vacation payments are subject to personal income tax at the same rate as wages:

• 13% of income if the worker is recognized as a Russian resident (stayed in the Russian Federation for at least 183 calendar days for 12 consecutive months)
• 30% of income if the employee is a non-resident.

In general, the tax agent transfers the income tax withheld from an individual to the Federal Tax Service at the place of his registration. If an organization has a separate division, then the tax withheld from its employees is transferred to the location of the OP. Individual entrepreneurs who are PSN payers transfer personal income tax on the income of individuals at the place of conduct of the relevant activity. This follows from paragraph 7 of Article 226 of the Tax Code of the Russian Federation.

Important: for violation of the tax agent’s obligation to withhold and transfer income tax from wages, vacation pay and other payments, a fine is imposed under Article 123 of the Tax Code of the Russian Federation. The amount of recovery is 20% of the unwithheld or not transferred personal income tax amount.

TABLE WITH THE MAIN DATES FOR TRANSFERING PIT TRANSFERS IN 2019

TABLE WITH ALL DATES FOR PAYMENT OF NDFL IN 2021

Type of incomeWhen to recognize incomeWhen to withhold taxWhen to transfer personal income taxBasis

Transfers from rolling holidays

It is necessary to consider situations when vacation is transferable. Such a vacation begins in one month and ends in the next. Withholding is carried out on the day the money is issued to the employee. In this case, there is no need to transfer payment in the month in which the vacation began. By law, you can pay the fee on the last day of the month in which the citizen finished his vacation. Conditions: An employee of the company was granted annual leave. It will begin on April 13, and payments will be made on April 10. The payment amount is 30,000. How to calculate:

1. Tax deductions= 13%*30000=3900.
2. The employee is paid 26,100, tax is deducted from the original amount.
3. Personal income tax was calculated on April 10, which means the day of transfer to the tax authorities will be April 30 - the last day of the month.

How to fill out form 6-NDFL

The document must be filled out in accordance with all the rules. If errors are made, the tax authorities will refuse to accept the form and the tax will not be paid. It is mandatory to fill out the title page, the first section with general indicators, the second section with the date and amount of the accrued tax. General rules that should be followed when filling out the sample 6-NDFL:

• information is filled in from left to right, cells are not skipped, data is written in each of them;
• if you do not need to enter information in any field, then be sure to put a dash;
• It is prohibited to print the form on both sides;
• the form is in A4 format, into which data can be entered by hand or printed on a computer;
• if the tax agent fills out the sheet by hand, then this must be done in blue, black or purple ink;
• the font used when entering text should be 16-18.

142.93.135.90Even minor errors, errors or corrections can affect the tax office’s decision whether to accept a document or not. Delay in payment of tax and submission of the report will result in the accrual of penalties and fines. Example of when to pay personal income tax on vacation pay in 2019: An accountant calculated vacation payments for an employee who will go on vacation on March 22. The amount is 25,000. The accountant paid the funds on March 18. Income tax is withheld on the same day. The deadline for paying the taxes that the accountant will transfer is March 31.

When to transfer taxes to the budget

Before amendments were made to Article 226 (6) of the Tax Code of the Russian Federation, there was one general principle for the transfer of personal income tax by tax agents:

• no later than the day of issue when receiving cash at a bank cash desk or transferring it to an individual’s account;
• no later than the next day after the date of actual receipt of income, if they were paid in another way, for example, from cash proceeds.

Difficulties in the question of when to transfer personal income tax from vacation pay were explained by the fact that the legislation did not clearly define this point. The fact is that the norms of the Labor Code include vacation pay as part of the employee’s salary. Thus, Article 136 of the Labor Code of the Russian Federation “Procedure, place and timing of payment of wages” determines that payment for vacation is made no later than three days before its start.

However, the fact that vacation pay belongs to the category of employee remuneration does not mean that the deadlines for transferring personal income tax from vacation pay to the Tax Code of the Russian Federation are given in paragraph 2 of Article 223. This provision applies only to the withholding of tax from wages, but not vacation pay. In particular, this opinion is contained in the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated 02/07/2012 No. 11709/11 in case No. A68-14429/2009.

Now there should be no discrepancies when to pay personal income tax on vacation pay in 2021. Law No. 113-FZ of May 2, 2015 establishes that the transfer of personal income tax from payments to an employee must occur within the following deadlines.

Thus, to the question of when to pay personal income tax on vacation pay in 2021, there is a clear answer: no later than the end of the month in which they were paid . The timing of the transfer of personal income tax from vacation pay this year allows the accountant to pay income tax from several employees at once. This is especially true in the summer, when people go on vacation en masse. In addition, personal income tax on sick leave can be paid in one payment order with income tax on vacation pay if they were paid in the same month.

Please note: Law No. 113-FZ of May 2, 2015 only changed the deadline for paying personal income tax on vacation pay in 2021, i.e. transferring it to the budget. And the calculation and withholding of income tax on vacation pay, as before, occurs upon their actual payment (Article 226 (4) of the Tax Code of the Russian Federation).