Is personal income tax taken from sick leave for pregnancy and childbirth? Are maternity leave taxable?
Are maternity benefits taxed? This issue is relevant for entrepreneurs and accountants who are directly faced with it when calculating payments and filling out forms 2-NDFL and 6-NDFL.
Paragraph 1 of Article 217 of the Tax Code of the Russian Federation clearly states that maternity payments are benefits that are not subject to taxation. It is this provision that is key in the issue of an accountant drawing up a 2-NDFL certificate for an employee receiving maternity benefits.
The 2-NDFL certificate should reflect only those incomes on which income tax is paid. Accordingly, this certificate should not be issued for a woman who went on maternity leave. Blank certificates are not submitted to the tax authorities.
Part-time job
A fairly common situation is when a woman continues to work, but with less workload. It should be noted that in this case she cannot claim to receive two payments (salary and maternity benefits) at the same time. She should choose one of them. If a pregnant employee prefers to receive wages, she is equal to other employees and is subject to the general rules for issuing a 2-NDFL certificate.
If a pregnant woman prefers to receive wages, then the general rules for issuing a 2-NDFL certificate apply to her.
To summarize, it should be said that benefits for pregnancy and childbirth are fully paid by the Social Insurance Fund and are not subject to income tax. Therefore, the accountant should not include these payments in forms 2-NDFL and 6-NDFL. If the employee continues to work in the organization, she is subject to the general procedure for filling out reporting forms.
In accordance with legislative norms, all women without exception who meet certain conditions have the right to receive maternity leave. Such payments are accruals due due to pregnancy and childbirth. One of the most important issues that worries most is the taxation of such payments.
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General concepts
Maternity benefits are accrued only when certain conditions are met. The main purpose of such accruals is to provide financial support for women in case of loss of ability to work due to.
Moreover, there are quite a large number of different nuances associated with both the calculation and receipt of such payments. It is best to familiarize yourself with them in advance.
Personal income tax is a contribution to the state budget. The procedure for calculating it has its own nuances. leaving maternity leave in 2019 is one of the most important issues for young mothers.
The amount of this tax is fixed. The very need for payment, as well as many other points, are reflected in the Tax Code of the Russian Federation.
If possible, you should first understand all the legislative acts regulating the issue of maternity payments.
The main questions should include the following:
- What it is?
- Who falls into the category?
- Where should I contact?
What it is
Personal income tax is abbreviated as personal income tax. Its value is only 13% of the monthly one.
But there is a fairly extensive list of accruals from an official employer that, for various reasons, are not subject to tax. This also applies to maternity payments. This point is reflected in the legislation.
Today, the term “maternity leave” refers to a certain period of paid time during which a woman has the right to be absent from her workplace on completely legal grounds.
Its duration may vary and depends on a large number of different factors. Payment for maternity leave is carried out at the expense of the Social Insurance Fund.
There is a certain list of conditions, the fulfillment of which is strictly necessary in order to go on maternity leave.
It is important to remember that the absence of an official place of employment is grounds for refusal to apply for maternity leave.
The reason for this is that all payments are made at the expense of the Social Insurance Fund. The employer, in turn, first pays all funds at his own expense.
Who falls under the category
Today, sick leave of the type in question (due to pregnancy) can only be assigned if certain conditions are met.
The personal income tax itself in the amount of 13% is also imposed only on those who are citizens of the Russian Federation and officially employed in the country. There are certain conditions under which maternity payments will be accrued.
These primarily include the following:
All other points when assigning this type of payment are not important. At the same time, there are some special situations that are not regulated.
This primarily concerns the following:
In all other cases, there are usually no difficulties with obtaining maternity benefits, as well as subsequent taking them into account when calculating. But there are important legislative provisions that must be taken into account.
These today include the following:
It is important to remember that the algorithm for calculating personal income tax is completely standard, regardless of the place of work of a particular citizen of the Russian Federation.
The situation is similar with maternity leave. Legislative norms regulating this issue apply to all citizens of the Russian Federation without exception.
Where to go
To apply for maternity leave, you will need to contact several different institutions.
This list includes the following:
There are many different important points. For example, if you apply for registration due to pregnancy in advance, before the 12th week, you will receive a one-time cash payment.
In addition to this benefit, there are quite a large number of others. Information about them is covered in detail in the legislation in force in the Russian Federation.
If there is no official place of work due to recent dismissal or registration at the labor exchange, then you will need to apply directly to the Social Insurance Fund for payment.
The Social Insurance Fund is present in every region of the Russian Federation. You can get acquainted with the location of this institution on the official website of the FSS.
If for some reason it is not possible to visit this fund, you should contact the settlement administration.
Today, there are usually no problems with applying for maternity leave and, accordingly, receiving certain accruals. But sometimes there are some exceptions.
Most often, the problem arises because the employer simply refuses to provide the appropriate payment. In some cases, this will be qualified not only as an administrative violation, but also as a criminal one.
If such problems arise, please contact:
The labor inspectorate must be contacted in cases where the existence of a violation is obvious. If there are any difficulties or nuances, you will need to go to court at the place of registration of the employer.
This way you can avoid a large number of different problems and difficulties. This will significantly speed up the process of reviewing the case; the court has more leverage over any legal entities or enterprises.
Are maternity workers subject to income tax?
Is maternity leave taxable? This is the first question that women who are planning to go on such leave ask themselves. You need to remember a large number of different nuances associated with such a vacation, as well as tax calculations.
The main questions include:
- for working women;
- for unemployed mothers;
- in case of part-time work.
For working women
Money transferred by an employer to its employee is subject to personal income tax at the rate of 13% - but this does not apply to maternity payments. The duration of maternity leave itself (maternity leave) depends on various important factors.
The current vacation duration is:
Maternity leave with twins is several days longer than usual. It is important to remember this fact when calculating the vacation period in the HR department. Since this moment also directly affects the size of the deductions themselves.
Particular attention should be paid to a complete list of all payments that pregnant women are entitled to when they go on maternity leave.
The list of these includes the following:
| Indicators | Description |
| Maternity benefit |
after registration of the vacation itself, sick leave:
|
| If there is early registration in a special medical institution (before the 12th week) | then a fixed lump sum benefit is calculated in the amount of 581 rubles |
| At the birth of one child, a one-time payment of 15,512 rubles is due | for the birth of two, a similar amount is charged for each |
| Benefit for |
|
For unemployed mothers
It often happens that a pregnant woman, for some reason, has no official job at all. In this case, personal income tax will not be charged.
An exception will only occur if registration with the employment service takes place. In such a situation, maternity leave will be accrued. Admission based on salary for the last 2 years of official work experience.
The algorithm for applying for maternity benefits has its own characteristics. Moreover, regardless of where exactly the application will be made, you will need to prepare a mandatory list of documents.
It includes the following:
| Indicators | Description |
| To apply for maternity leave |
|
| To apply for parental leave |
|
In case of part-time work
If there is a part-time job, then payment of personal income tax will also not be necessary. The design algorithm itself does not have any significant differences.
It includes the following main steps:
| Indicators | Description |
| In a medical facility | where registration takes place, sick leave is issued |
| The employee will need to fill out a corresponding application in the name of her employer |
|
| The application must indicate the request | for payment of maternity benefits |
| After completing the application | After receiving all the necessary documents, the HR department employee must issue a special order in the form prescribed by law |
Video: is it worth paying taxes in full?
Special nuances
In 2019, there were no significant changes in the legislation regarding maternity payments. This also applies to taxation.
No transfers to the budget in the form of personal income tax are required. At the same time, the amount of maternity payments increased.
In 2019, the following values were established:
In addition to the points mentioned above, there are some others to consider:
An essential point is the issuance of a certificate in form 2-NDFL. In accordance with current legislation, this document reflects information regarding the amount of tax paid in this case.
If during the period of maternity leave, as well as due to pregnancy and childbirth, there was no income other than maternity leave, then there are no grounds for issuing such a certificate.
It often happens that despite having the right to maternity leave, a woman continues to work. It should be remembered that it is impossible to calculate maternity benefits and wages at the same time.
This is directly prohibited by the legislation in force in the Russian Federation. The woman will be required to make a choice in favor of any one payment.
This applies to both the main official job and part-time employment.
What is regulated
The fundamental legal document that regulates the calculation of income tax is the Tax Code of the Russian Federation.
The following legislative acts should be considered first:
| Article | Description |
| Who exactly are the payers of personal income tax? | |
| accrual of tax on income the source of which is located outside the Russian Federation | |
| what is subject to taxation | |
| what falls under the tax base in the case under consideration | |
| a complete list of income of individuals not subject to personal income tax in the amount of 13% | |
| tax rate | |
| How do agents calculate taxes? |
My wife’s payment was 170 thousand, they deducted 18. Is this legal, and where to go? Works in a large trading and retail company. Thanks in advance for your answers.
First, try to find out from the company’s accounting department what kind of deduction it was. Since 18 tr. - this is not 13% of 170 tr. Perhaps this is a deduction for another reason. No, no tax is taken from any types of benefits! Of course not)) no, it’s not legal - they don’t take it. They shouldn’t take it, but very cunning employers sometimes take it.
Refund of personal income tax while on maternity leave
In subparagraph 2 of paragraph 1 of Art. 220 of the Tax Code of the Russian Federation provides for the right of a taxpayer to receive a property deduction in the amount spent on the purchase of an apartment in the Russian Federation, in the amount of expenses actually incurred.
A property deduction is provided on the basis of a written application from the taxpayer when submitting a tax return to the tax authorities at the end of the tax period or before the end of the tax period from the employer on the basis of a notification received from the tax authority confirming the right to the deduction.
Simultaneously with the declaration (or to receive a notification), the taxpayer must submit title documents for the acquired property, as well as payment documents.
In other words, the opportunity to receive a property deduction depends on the availability of income taxed at a rate of 13%, and documents confirming ownership of the purchased property and expenses incurred by the taxpayer, and is not related to the taxpayer being on maternity leave.
Thus, you will be able to take advantage of the right to a property deduction related to the purchase of an apartment, starting from the period in which you have income taxed at a rate of 13%, but not earlier than the period when the title documents were received.
Is income tax calculated from the husband if the wife is on maternity leave?
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Are maternity benefits subject to personal income tax?
When sending a pregnant employee on leave, you need not only to correctly calculate the benefit, but also to know exactly whether maternity leave is subject to personal income tax. This will be discussed in this article.
According to labor legislation, a pregnant employee has the right not to go to work seventy days before giving birth and another seventy days after it. During her stay at home, she will receive an allowance, and this time period is called maternity leave or maternity leave, in official terms.
It goes without saying that when making calculations, enterprise managers are interested in whether personal income tax is withheld from maternity leave, as well as other taxes and contributions.
Are maternity workers subject to income tax, and how can I issue a 2-NDFL certificate for an employee going on maternity leave? What changed in this matter in 2014–2015? This is discussed in our article.
Are maternity workers subject to income tax?
Are maternity payments subject to income tax in 2018?
This question worries both the culprit of the event and accountants involved in payroll issues, since mistakes are fraught with fines or even the FSS’s refusal to reimburse accrued payments.
In our country, women in the period 70 days before childbirth and the same amount after (with the exception of complicated pregnancy and childbirth), as well as in the case of any other temporary disability, are subject to compulsory social insurance.
Are maternity payments subject to personal income tax, according to the law?
When planning a family budget for the period of pregnancy and childbirth, as well as subsequent child care, expectant mothers always think about what payments and in what amount they will receive during this period.
At the same time, how and in what amount the benefit will have to be paid to an employee on maternity leave is something that an entrepreneur who independently maintains accounting records needs to think about.
One of the burning questions that interests both expectant mothers and their employers is the question of whether maternity leave is subject to personal income tax? This article will try to answer this.
First you need to understand what is meant by maternity payments.
Taxation of maternity payments?
Maternity benefits are subject to personal income tax in 2018
If an employee applies for maternity benefits, will the amount of payments be subject to personal income tax? You will get the answer to this question in our article. As well as a list of documents that will need to be brought to the accounting department, when to pay the benefit. It is important to know how to reflect accruals in the company’s accounting and reporting.
Cases and conditions for payment of child benefits
In the social sphere, the government provides financial guarantees for women who are preparing to become mothers.
When providing sick leave at her place of work, she is entitled to payment of benefits in the event of pregnancy and childbirth (B&C), which, to some extent, compensates for the loss of income during the period before and after childbirth. In such a situation, the employee should adhere to a certain algorithm of actions in order to process payments without delay:
- Register with a medical institution;
- Provide a job placement certificate at an early date;
- Submit sick leave to work.
In turn, the accountant will need to determine the amount of the benefit and assign it to payment. For this:
- Calculate the average daily earnings based on the two previous years;
- Determine the amount of the benefit: the number of days of incapacity for work multiplied by the average daily earnings.
Important! If the maternity leaver has worked for less than two years, then a certificate from previous places of work will be required. Part-time workers will also need to provide information about income to the employer from whom the woman will receive benefits.
Deadlines for payment of benefits and document flow
Social benefits under BiR are provided to all women of the Russian Federation in accordance with legal norms who have given birth to or adopted a child:
- Working and non-working;
- Full-time students;
- Military personnel.
The place of payment of maternity benefits is determined depending on the status of the mother.
Are maternity workers subject to income tax (NDFL)?
For workers, this is the place of main work or service, and for non-workers (the company has been liquidated), this responsibility is assumed by the social service.
The general period in which a maternity leaver can apply for payment is six months from the date of birth of the baby. After submitting all documents at the end of 10 days, the mother is assigned and paid a benefit in one amount.
To apply for the benefit you will need:
- Application requesting payment;
- Certificate of incapacity for work;
- Information on average earnings for the working period that precedes the event (certificate for 2 years).
It is allowed to send documents as an attachment. If the mother decides to do this, then the letter should include copies of documents and a free-form statement.
Personal income tax and other taxes on the amount of maternity benefits in 2018
The amount of the assigned payment also depends on the woman’s status and her work experience. For military personnel or workers, the amount of compensation is formed from two years of earnings and monetary allowance, respectively. For students (full-time students), the payment is equal to the amount of the scholarship.
The next step after calculating benefits is the issue of taxation. Should personal income tax be withheld? According to the provisions of the Tax Code, all income that brings material benefits is subject to income tax. This means that the amount payable is reduced by the amount of tax. The exception is the amounts that appear in Art. 217NK. No tax is withheld from them.
All social benefits that are involved in the appointment and payment of maternity, child and other similar benefits are paid from the state budget through the Social Insurance Fund. For recipients, these amounts do not create material benefits, but are of a compensatory nature. This means there is no reason to withhold personal income tax.
Is there a limit on the benefit amount?
An important detail should be remembered when calculating B&R benefits. The regulatory framework contains a fixed maximum benefit amount, which the accountant is guided by when calculating. This means that if the employer pays a large amount, the Social Insurance Fund will reimburse the costs only within the limits
established limit.
For BIR benefits for 2017, the maximum amount is set at 718,000 rubles of average earnings per year. If the annual income of a maternity leaver is higher, then the income taken into account is no more than what is approved.
This is explained by the fact that the benefit is in the nature of compensation for average earnings during the period of incapacity. This amount is not the basis for personal income tax because it is not recognized as a material benefit.
At the same time, the Tax Code provides for financial assistance for an employee who gave birth (or parents who adopted a child) in the amount of 50,000 rubles, which is also exempt from income tax.
If management approves other incentive payments to pregnant employees above the maximum limit of average annual earnings and financial assistance, then personal income tax must be withheld from the delta of the excess benefit.
The sequence of reflecting benefits in company accounting
As was said, benefits for pregnancy, child care, lump sum payments at birth paid from the budget through the Social Insurance Fund. All settlements with the fund are accounted for in account 69. Settlements with employees are accumulated on account 70. Let's look at the detailed entries in each operation:
After compensation for social expenses of an enterprise is received from the Social Insurance Fund, it is reflected in the accounting entry: Dt 51 Kt 69.
Common Questions
Question 1: The woman brought a sick leave certificate to receive benefits under the BiR, but at the moment her leave, which was granted to her to care for her 1.5-year-old child, has not expired. In this case, is she entitled to the assigned BiR allowance?
The coincidence of time between maternity leave and new births is not uncommon. The law prohibits the payment of two child benefits at once. The solution for the woman in labor is to refuse one of the vacations. The accountant will need to calculate the preliminary amount of the B&R benefit that will be paid to the woman. If it loses in size relative to child benefits when caring for 1.5 children, the last vacation may not be interrupted.
By law, a woman giving birth is given the right to choose, because child care benefits are 40% of average earnings, and according to BiR - 100%. The employee should write an application to replace the last two years (without income) with those in which her salary was calculated.
Question 2: An individual entrepreneur goes on leave for the BiR. The two-year calculation period includes the time when the woman in labor worked under an employment contract. Who will pay her BiR benefits in this case?
If an individual entrepreneur goes on maternity leave, then you should apply for benefits to the Social Insurance Fund at the place of registration. The right to choose 2 years for calculating payments is granted only to working women under an employment contract. For individual entrepreneurs, such prerogatives are not provided for by law.
This means that the calculation is based on the minimum wage, which as of July 1, 2018 is 7,800 rubles. The calculation of the amount will be as follows: provided that the vacation lasts 140 calendar days: 7,800: 31 x 140 = 35,225 rubles.
Important! The minimum wage value is taken at the moment when the employment and labor holiday begins.
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Personal income tax in 2018 from sick leave for pregnancy and childbirth
General information about personal income tax
The term “personal income tax” is an abbreviation for the concept of “personal income tax.” In accounting practice, this tax is taken from all income received, which will be the object of such a taxation procedure. It is calculated for each reporting period and paid to the state budget. Calculations and payments must be made by the personal income tax payer, who is the tax agent or the employee himself.
Let's look at what basic profit the personal income tax is taken from:
- Wage.
- Various types of rewards.
- Gifts (including prizes).
- Payments due for temporary disability (sick leave).
- Sold property.
Read also: Personal income tax on salary advances
In general situations of income generation, the personal income tax interest rate for transfer to the state budget is established by the tax legislation of our state - 13%. But in some cases, both its reduction (up to 9%) and its increase (up to 35%) are provided - Tax Code, Article No. 224:
- Reduced rate – 9% (taken from dividend payments that are transferred to all participants in the authorized capital of a company).
- The standard rate is 13% (in almost all cases).
- Increased rate:
- 30% (income of non-residents is taxed);
- 35% (set for individuals who received profit as a result of a win/prize, etc.).
Also, the tax legislation of our country names those who must pay personal income tax on profits received:
- tax residents who receive their income from sources not only in the territory, but also outside it (a mandatory condition is staying in the territory of our country for more than 183 days) - Tax Code, Article No. 207;
- non-residents who have income from sources located within our country.
Although this payment is called personal income tax, it is deducted:
- both legal entities and individual entrepreneurs who act as employers and withhold this tax from the wages of their workers;
- Individual entrepreneurs who have income from their business activities.
And, of course, the individuals themselves, if they received income on their own, therefore tax agents did not withhold personal income tax from it.
Nuances of personal income tax payments
What nuances should you know in order to accurately calculate and make personal income tax payments?
Experts advise paying attention to the following points:
- The tax reporting period is 1 year - Tax Code, Article No. 216 and Article No. 55, paragraph 1.
- After the end of the reporting period, to calculate personal income tax, it is necessary to determine:
- tax base;
- the amount of tax to be paid.
- Payers have every right to apply tax deductions - Tax Code, articles No. 218-221.
- For those who carry out calculations on their own, it is mandatory to submit declaration documentation to the local tax service - Tax Code, articles No. 227-229.
- For tax agents, special document forms have been developed in which all the necessary information about workers and their income is entered - Tax Code, Articles No. 24 (clause 4) and No. 230 (clause 2).
When the time comes to pay benefits to an employee in a position, the accounting department is faced with the question of whether to subject it to personal income tax. In order to clarify, let us clarify a number of important points.
Social package for mothers
The fact of having a child in itself is a very costly undertaking, both financially and psycho-physiologically. Naturally, many people want to continue the family line. And most would like to foresee all the nuances in advance. However, this does not always work out. Thus, financial assistance from the state rarely goes unclaimed.
Our state pays considerable attention to issues of pregnancy and motherhood, as well as paternity. And therefore, today, within the framework of this line, several types of material payments related to pregnancy and childbirth are provided. Namely:
- a one-time benefit for those registered in medical institutions at an early stage of gestation;
- benefits for women during pregnancy and childbirth;
- one-time benefit for the birth of a child;
- monthly allowance for child care.
Basic benefit
If a woman has a document in her hands confirming her temporary disability, which is issued to the expectant mother in labor for a period of 140 days, then the state pays maternity benefits (hereinafter referred to as PPBR) immediately for the entire period of this leave.
It is noteworthy that the law also takes into account non-standard situations. So, 140 days are allotted to a woman who is expecting one child. She is given a sheet 70 days before the expected date of birth. If twins or more are expected, then sick leave is issued 84 days before birth. Then the total amount of rest days that will be indicated in it will be 194 days.
If the pregnancy is singleton and the woman had a difficult birth, her sick leave is extended for another 16 days to be on the safe side.
In situations where a couple decides to adopt a baby less than three months old, one of the spouses is also entitled to PPBR. The right to it arises from the day the final documents of the adoption procedure are signed until the expiration of 70 calendar days from the date of birth of the child. In addition, new parents themselves choose which of them will receive this benefit. If we are talking about the adoption of several children, then from the day they are legally linked to new parents, a period of 110 calendar days is calculated.
In cases where maternity and childcare leave overlap in one period, a woman cannot manage two benefits at once. At the same time, the state gives her the right to choose a larger payment. To do this, you need to fill out a separate paper in the accounting department.
How much is the benefit for pregnant women?
The size of the PPBR is equal to one hundred percent of average earnings. That is, all payments for which insurance contributions to the Social Insurance Fund were calculated over the past two-year period are taken into account. However, not everything is so simple: the standards for the minimum and maximum amount of this benefit are also taken into account.
The maximum amount of PPBR that a mother can receive at the birth of one baby was calculated for the period of 2015 and amounted to 228,603.20 rubles. For 2016, the amount has increased and is already equal to 248,164 rubles.
If we are talking about difficult childbirth, then the days of incapacity for work will be proportionately increased - up to 156. So, in 2015, the mother could receive PPBR in the maximum amount of 254,729.28 rubles and can receive in 2016 up to 276,525.60 rubles.
In turn, to calculate the smallest amount of PPBR, they use the minimum wage, which is established by the state at the time when sick leave is supposed to be issued. And funds from the Social Insurance Fund are the only source of funding for this benefit. This is what makes it different from regular sick leave.
Who is eligible for benefits?
Insured persons can count on PPBR. First of all, these are Russian citizens, for whom insurance in the Social Insurance Fund is mandatory due to the conclusion of an employment contract. The same applies to foreigners and stateless persons.
Foreigners and stateless persons temporarily staying in the Russian Federation will receive PPBR in cases where the employer (company or individual entrepreneur) has transferred insurance premiums for them in the last six months before the start of maternity leave.
As for the so-called “private owners” who work for themselves, they will receive PPBR if two conditions are met:
- voluntarily formalized relations with the Social Insurance Fund;
- insurance premiums were paid in full.
Benefits and income tax
To understand whether PPBR is subject to personal income tax or not, you need the Tax Code of the Russian Federation. Article 217 lists income that is not subject to these taxes. Paragraph 1 indicates that this benefit bypasses personal income tax. Thus, the answer to the question whether benefits up to 1.5 years are subject to income tax is obvious.
Some employers have a burning desire to make their employees additional payments to the PPBR in excess of the norm. In order to, as it were, compensate for the lack of the previous average earnings during their time in the service. So: in such cases, personal income tax cannot be avoided. He needs to be deducted from such additional payments.
But it is not all that bad. It is possible to legally optimize this tax for payment to the budget. After all, the additional payment can be formalized as financial assistance on the occasion of the birth or adoption of a child on the basis of clause 8 of Art. 217 Tax Code of the Russian Federation. Please note here that the amount up to 50,000 rubles per baby is not subject to personal income tax. Employers who want to help their family can use this opportunity at their own discretion, while acting entirely within the framework of tax law.
When sending a pregnant employee on leave, you need not only to correctly calculate the benefit, but also to know exactly whether maternity leave is subject to personal income tax. This will be discussed in this article.
What is maternity leave
According to labor law, a pregnant employee has the right not to go to work seventy days before giving birth and another seventy days after it. During her stay at home, she will receive an allowance, and this period of time is called maternity leave or maternity leave, in official terms.
It goes without saying that when making calculations, enterprise managers are interested in whether personal income tax is withheld from maternity leave, as well as other taxes and contributions. The same question, of course, worries employees who are going on vacation - after all, it is much more pleasant to receive the entire accrued amount in your hands in full, without any deductions.
Payment for temporary disability due to pregnancy and childbirth
Before asking yourself whether maternity leave is subject to personal income tax in 2018, it would be good to know exactly how maternity leave payments are calculated and calculated in 2018. In total, payment for this period is made in the same way as payment for the most ordinary annual calendar leave, only it is called an allowance and is issued from the Social Insurance Fund.
This happens because, although maternity leave is a vacation, it is documented as a period of temporary disability - and this is the sphere of activity and responsibility of the Social Insurance Fund. Calculations, as having complete information, are made by employers and provide only the final result to the Fund. Therefore, they are required to figure out whether maternity leave is taxed, even though, according to the new legal requirements, a calculation sheet is provided along with the final figure, on which all calculations are fully described.
Payment order
Just like regular calendar paid rest from work, the period of release from work duties for pregnancy and childbirth is paid according to the average daily earnings - you need to know this before calculating taxes on maternity leave.
In the same way, all payments subject to taxes and contributions during the billing period are summed up and divided by the number of days worked over the last two years. The calculation period does not include all time periods when the employee received partial earnings or full earnings, but not subject to taxes and insurance contributions.
If in the previous two years the employee worked at a different company from which she is going on maternity leave, she must bring a certificate of income for calculations. By the way, if an employee is registered and works at several enterprises, she can apply for benefits at all places of her work. Of course, the question of whether personal income tax is charged on maternity leave will then have to be decided by all its employers.
Taxation of employee income
Let's remember, before we find out whether income tax is paid on maternity leave, what kind of taxes an ordinary employee of an ordinary organization pays. According to the law, each tax resident pays from the income received:
- personal income tax;
- insurance contributions to the Social Insurance Fund;
- contributions to the Pension Fund;
- insurance premiums against occupational diseases or accidents at work.
It is from insurance payments that a fund is formed, from which temporary disability is then paid, including the period of time during pregnancy and childbirth.
Taxation of maternity payments
The list of types of income of individuals that are not subject to taxation (according to Article 217 of the Tax Code) includes benefits for temporary disability due to pregnancy and childbirth. According to the Ministry of Finance's explanation of how maternity benefits are taxed, it also turns out that this type of government benefit is not subject to taxation. Of course, such benefits are not included in the enterprise's expenses.
Tax deduction on maternity leave
A tax deduction is an amount by which the tax base can be reduced. For example, taxpayers who care for minor children may be entitled to certain benefits in this regard. That is, a woman on maternity leave also moves into this category of taxpayers. She will be able to apply for a tax deduction immediately upon returning to work, when she will again receive income subject to personal income tax.
We hope this article helped to fully understand the issue of how exactly maternity leave is subject to personal income tax.
