Is the sick leave subject to personal income tax? If it is taxed, then in what time frame should the amount of tax be paid? We will consider these issues later in the article.
Is personal income tax withheld and paid sick leave
The answer to the question of whether to impose personal income tax on sick leave is contained in paragraph 1 of Article 217 of the Tax Code of the Russian Federation. Temporary disability allowance has been excluded from the list of payments not subject to personal income tax. Since the document confirming the employee’s disability is a disability certificate, personal income tax is calculated from the sick leave.
Recall payments that are not subject to personal income tax (clause 1 of Article 217 of the Tax Code of the Russian Federation):
- one-time maternity allowance;
- monthly allowance for child care up to 1.5 years;
- monthly compensation for child care up to 3 years.
Is income tax taken in 2024 from sick leave or not
Are personal income tax sheets taxed? Yes, and the personal income tax rate for this type of payment has not changed: the standard rate in 2024, as before, is 13%, if the amount of income exceeds 5 million rubles per year, its value will already be 15%.
Since the sick leave is subject to personal income tax in full, the tax base for accrual is the amount of temporary disability allowance in full (letter of the Ministry of Finance of the Russian Federation dated 06/17/2009 No. 03-04-06-01/139).
Starting from January 1, 2023, personal income tax deduction from all types of income is carried out in the same way. Although there were differences before the specified date, and quite significant ones. After all, salary income was recognized only at the end of the month, and sick leave – at the time of payment.
In business practice, there are circumstances in which employees working at the enterprise were ill after concluding civil law contracts with them. A reasonable question arises: is personal income tax paid from sick leave for such employees? It should be borne in mind that starting from 2023, employees with whom civil contracts have been concluded must be paid sick leave. But only if certain requirements are met. Read about them here. Accordingly, when making such payments, personal income tax will need to be retained and transferred to the budget.
Is personal income tax accrued on sick leave reimbursed by the FSS (until 2021)
Until 2021, employers in the regions that did not participate in the pilot project accrued and paid for sick leave in full, and then applied for reimbursement to the FSS (in case of illness, the benefit was reimbursed from the 4th day).
Since the law does not and has not divided the payment of sick leave into a taxable personal income tax and a non-taxable part, the answer to the question: is personal income taxable sick leave at the expense of the FSS was affirmative.
What is the period and date of personal income tax deduction set for sick leave and vacation pay
As we have already noted, significant changes have taken place in the procedure for withholding and transferring personal income tax to the budget since 2023. The transfer date depends on the time when the tax was withheld. And it doesn’t matter what kind of income it was – salary, vacation or sick leave.
If the payment and, accordingly, the withholding of tax occurred in the period from the 1st to the 22nd of the current month, then the tax must be transferred to the budget by the 28th of the current month.
If the payment and withholding occurred in the period from the 23rd to the last day of the month, then you need to meet the tax transfer by the 5th of the next month.
A detailed table with the timing of the transfer of tax, depending on the retention period, is found in this article.
About the innovations in the procedure for paying salaries and personal income tax in 2023, see also the materials:
- “Someone will have to increase the percentage of salary advance in 2023”
“Personal income tax from vacation and sick leave in 2024.
Temporary disability allowance – Personal income tax and supplement to average earnings
If, when calculating temporary disability benefits, an additional payment is made to average earnings, then the corresponding personal income tax from sick leave is paid in general (Articles 217, 226 of the Tax Code of the Russian Federation). Both officials and judges came to this conclusion (letters of the Ministry of Finance of the Russian Federation dated 05/06/2009 No. 03-03-06/1/299 , dated 12.02.2009 no. 03-03-06/1/60 , dated 12/24/2008 no. 03-03-06/1/720 , resolution of the Federal Antimonopoly Service of the North-Western District dated 07.07.2008 No. A26-2542/2007).
Thus, to the question posed at the beginning of the article, whether personal income tax is withheld from sick leave, the answer will be unequivocal: undoubtedly, yes.
Results
Sick leave payments, with the exception of maternity benefits, are subject to personal income tax regardless of the source of its payment (employer or SFR). The employer’s personal income tax from the sick leave allowance must be withheld upon payment and transferred to the budget no later than the 28th or 5th, it depends on the period for which income was paid and tax withheld. The Social Fund, when paying benefits for sick days, starting from the 4th day, will withhold and transfer to the budget independently.