Deductions from wages: interest, examples of calculation of deductions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Not all employees know what deductions from wages are made by their employers. Some naively believe that all collections in favor of the state are limited solely to the payment of personal income tax in the amount of 13%. However, in reality, the total amount of deductions from wages is several times higher. Let's find out how much employees actually pay to the state budget.

Deductions from wages

For some, this type of income may be the only one. Agree, it is unfair that many employees do not know how much deductions the employer actually pays. After all, it is he who performs the function of a tax agent. From the point of view of legislation, wages are profit, therefore, taxes established by the state must be paid from it.

The state receives about forty percent of the income of any employee. Surprised? After all, this amount significantly exceeds the personal income tax, but at the same time, as a rule, they are silent about these fees. The employer acts as a tax agent for hired personnel and theoretically makes these deductions from their own income. But in fact, the payments of all deductions are shifted to each employee separately.

Formally, social contributions from wages are not called taxes. They are considered mandatory for payment by all legal entities. These funds should not be deducted from employees' salaries. The legislation obliges employers to pay these funds at their own expense. For this reason, it is not uncommon for employees to be hired informally to avoid paying hefty deductions. However, you need to understand that these actions are illegal.

Interest

Let's finally find out what payroll deductions go to government funds.

The well-known personal income tax, which is thirteen percent, is required to be paid. If ten thousand rubles were accrued to an employee, then 1,300 rubles of them will have to be paid in favor of the state. However, before transferring the salary to the employee, the employer makes three more types of deductions, which not everyone knows about:

• Contributions to the Pension Fund.
• Contributions to the Social Insurance Fund (FSS).
• Contributions to the Federal Compulsory Medical Insurance Fund (FFOMS).

Let's learn more about each type of deductions.

Individual income tax

It is worth noting that it is not always thirteen percent. This rate is valid only for residents of the Russian Federation. For non-residents, slightly different conditions apply. The rate in this case is already thirty percent. When calculating personal income tax, absolutely all income received by an employee, namely salaries, bonuses, etc., must be taken into account. A similar procedure for calculating personal income tax applies to employees who are hired by the employer on the terms of a contract.

An important nuance is that every employee who regularly pays personal income tax in favor of the state has the right to claim a tax deduction under certain conditions. For example, if there are two minor children, the amount on which personal income tax will be charged should be reduced by two thousand eight hundred rubles. Thus, with a salary of ten thousand rubles, personal income tax should not be charged on the entire amount, but on seven thousand two hundred rubles.

Also, those who pay for medicines, expensive treatment and purchase real estate also have the right to a deduction. In this way, it is possible to recover part of the tax deductions from wages. This is quite a broad topic, so it is not covered in detail within the scope of this article.

Pension contributions from wages

This is the most important and most impressive category. Its size is twenty-two percent. Thus, if an employee earns all the same ten thousand rubles, his employer must transfertwo thousand two hundred rubles to the Pension Fund.

It is also worth noting that before the economic crisis that occurred in 2014, all deductions were divided into two categories. Employers transferred sixteen percent to the insurance part of the pension, that is, to payments to current pensioners. Six percent was the funded part of the pension, which the employee could dispose of at his own discretion. Of course, the state did not allow cashing out these funds, but the employee had a choice: to leave the funds in the Pension Fund or transfer them to another organization that would increase savings. However, this opportunity has been frozen. Now, instead of cash, employees are awarded points, which the state offers to exchange for pension payments in the future.

Social Security Fund

This is the smallest category. The percentage of deductions from wages is 2.9. Thus, with a salary of ten thousand rubles, an employee transfers only two hundred and ninety rubles to the FSS. These funds are spent on payments during the decree period, as well as on sick leave. If the employee falls under one of the conditions, the Social Insurance Fund will compensate him for the funds that were previously paid by the employer.

Federal Compulsory He alth Insurance Fund

Deductions are 5.1%. If an employee is paid ten thousand rubles, then the employer transfers five hundred and ten rubles to the FFOMS. These are medical expenses. Thanks to the implementation of these contributions, the state maintains the he althcare system, and for citizens this means some guarantees. Everyone who has a compulsory medical insurance policy has the right, enshrined in law, to receive medical assistance if necessary.

Examples of calculation of deductions

All figures seem rather abstract, if you do not consider them on a specific example. Let's try to determine what contributions to the funds will be made from wages at the level of 20 thousand rubles.

personal income tax (13%) - 2,600 rubles. These funds are deducted from the amount accrued to the employee.

All other amounts come from the employer's fund. Since he acts as a tax agent, the employee may not be aware of the payment of other funds.

Pension contributions (22%). In our example, in monetary terms, they will amount to 4,400 rubles.

FFOMS (5.1%). These are medical bills. From the salary in our example, they amount to 1,020 rubles.

FSS (2.9%). In our example, 580 rubles.

Total, with a salary of 20 thousand rubles, an employee is transferred 17,400 rubles. Also, in addition to 2,600 rubles of personal income tax, the employer additionally transfers 6,000 rubles to various funds.

Now you know how much payroll deductions are made not only from the employee's salary, but also from the employer's profits.

Payment period

Legislation establishes requirements not onlyto the amount of contributions paid. Equally important is the frequency with which they should be carried out. So, contributions to the Pension Fund, as well as the FFOMS, must be made monthly until the fifteenth day of the month following the reporting month in which wages were accrued.

If this number falls on a holiday or weekend, it is permissible to transfer funds on the next business day following it. If you delay the date established by law, unassessed contributions are recognized as arrears and must be collected from the employer. Control is exercised by the Federal Tax Service.

Despite the fact that the employer transfers wages in two installments, tax deductions must be made once a month. In this case, the full amount for the month is used in the calculations.

If you sum up all the payments, it turns out that this is a rather impressive figure. For this reason, employers often follow the old pattern, paying employees a small official salary, and the rest of the salary is paid in cash so as not to pay taxes. In this case, the employee may lose part of the funds for social guarantees, for example, for the payment of sick leave or maternity, since they will depend on the amount transferred to the funds.