The procedure for accruing vacation benefits and payments

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

All kinds of payments are an integral part of the work of accounting. Vacation and temporary disability benefits are ubiquitous. Employees often also want to know how the calculation is done. Therefore, it is necessary not only to understand for yourself what, according to the current legislation, is the correct procedure for calculating vacation benefits for temporary disability regarding 2017. It should also be borne in mind that this directly depends on the legislation of the country in which the calculations and accruals of amounts are made. So, in Russia or Belarus, the calculations will be different, although the general algorithms remain.

Vacations and their varieties

There are several types of vacations that an accountant has to deal with. The main types include:

• Annual basic paid leave. As the name implies, it is given for the year worked. However, the employee can receive the first part, in the amount of fourteen calendar days, after he has worked for at least six months at the enterprise. It does not matter if he changed his position or not. In general, the number of vacation days cannot be less than 28. More is possible. Thus, the procedure for accruing vacation pay in budgetary institutions does not differ from commercial ones, however, the number of vacation days is 56.
• Extra leave. The most common option is additional days for harmfulness. This is the number of days, for example, fourteen, that an employee can count on if his work is associated with dangerous or unhe althy working conditions.
• Free, or administrative leave. This type is of interest only to employees of the personnel department, since payment for it, as can be seen from its name, is not made. It is issued to the employee if he does not have vacation days, but he urgently needs them. Administrative leave can be issued for a month or a couple of days, depending on the need.
• Student leave. According to the Labor Code of the Russian Federation, it relies on those who study part-time, receive education for the first time. At the same time, the session is paid both in higher and secondary educational institutions. There is a strict limit on the number of paid days. So, in the first year, the calendar sum of the days of the session cannot exceed forty-five. Otherwise, days in excess of this norm are not paid by the enterprise. However, they are not absenteeism. That is, on the basis of a certificate-call, an employee has the right to administrative leave for unpaid days in excess of the student leave rate. Also, before defending a diploma, an employee has the right to four paid months. The procedure for accruing vacation pay in 2017 has not changed in this sense.

What is required for an employee to be able to go on vacation?

In order to send an employee on his well-deserved vacation, you need to calculate three parameters:

• Settlement period. This is necessary to calculate the number of days that the employee must rest, and also for this period, wage amounts can be taken for calculation.
• The amount of vacation pay calculated by the accounting officer.
• Tax payments. Vacation pay to an employee is usually transferred minus taxes and other deductions.

Of course, it will take time before an employee can get their holiday pay. However, vacation pay is transferred no later than three days before the start of the vacation. The procedure for calculating and paying vacation pay in this regard is strict. If the employee received the money later, he has the right to write a complaint. As a result, the company will pay a fine.

However, the employee should also remember that the vacation schedule is drawn up in advance, and the vacation application must be signed fourteen days before it begins.

Estimated vacation period

The procedure for calculating vacation pay is closely related to such a concept as a billing period. Roughly speaking, this is the period for which the employee takes vacation. That is, if an employee has worked the prescribed six months, then he has the right to fourteen calendar days of vacation. At the same time, it should be noted that if an employee is involved in hazardous production withfull load, they may need an additional seven days. Thus, the employee is en titled to twenty-one days of paid leave. Also, the calculation will be made on the basis of his salary for these previous six months.

However, if an employee has not taken another year for a long time, more than 12 months, the procedure for calculating and accruing vacation pay is such that the previous year will be taken to calculate the amount of benefits.

Case Study

If an employee Petrov V. V. came to the enterprise on January 1, 2015, and went on vacation only in March 2016, then his billing period will be the interval from January to December 2015. That is, during this time he is en titled to 28 calendar days of vacation, given that he is not involved in hazardous production.

However, despite the billing period, vacation pay for Petrov V. V. will be calculated from wages for the interval from March 2015 to February 2016. Since it is he who precedes the date of his stay on the next vacation. The procedure for accruing vacation pay in 2017 does not change in this regard.

Calculation of vacation pay. Main parameters

Vacation pay is calculated from the employee's salary for the billing period. The number of days worked by him in each month is also taken into account.

According to Russian law, the procedure for calculating vacation pay is such that for each month fully worked by an employee, he is credited with 29.3 days. This is the average number of working days per year, excluding public holidays.

That is, if a person has fully worked the whole year, all twelve months, then the total number of days worked for calculating vacation pay will be: 351.6 days.

Which periods are subtracted from the calculation

The procedure for accruing vacation pay followed by accountants assumes that periods in which an employee:

• was on another vacation;
• received maternity benefit;
• received temporary disability benefits;
• was on a business trip;
• took formal administrative leave.

Examples of calculating vacation pay

Employee Petrov V. V., who worked at the enterprise for the year preceding the vacation, worked in full all months except January 2016. During this period, he took a sheet for temporary disability for ten calendar days.

Thus, the accountant must calculate vacation pay as follows: for eleven months Petrov V. V. worked 322.3 calendar days.

For January, he worked out: (31-10)29, 3. The amount received is divided by 31 calendar days. Total - 19.85. That is, the number of days worked by the employee for the billing period was 342.15 days.

Amounts not taken into account for holiday pay

The procedure for accruing benefits, vacation pay, assumes that not all amounts are included incalculation. So, the following types of payments are usually removed:

• Payment for those periods that are not taken into account. That is, if the employee was on a business trip, then both the days of the trip and the amounts paid for being on it are not taken into account.
• Material assistance to an employee, that is, those payments that are designed to improve the financial situation of an employee, or to stimulate his work. So, here you can include material assistance for the birth of a child or on the eighth of March.
• One-time bonuses. For example, a bonus for the day of energy for those who are associated with this holiday.

Example of calculating vacation pay. Amounts

Employee Petrov V. V. receives a salary of 30,000 rubles every month. However, in December 2015, he received a New Year's bonus in the amount of 5,000 rubles. This type of payment is not taken into account in the calculation, since this contradicts the procedure for calculating vacation pay, so the salary that is taken to calculate Petrov V. V's allowance is 30,00012 months. Total: 360,000 rubles.

The amount of vacation pay for an employee for one day is: 360000/342, 15=1052 rubles 17 kopecks.

For 28 calendar days, Petrov V. V will receive 29460 rubles. 76 kopecks

However, the employee will receive the amount minus 13 percent, as this is a tax on the income of this person. The procedure for accruing and accounting for vacation pay assumes that for each of these actions, the accountant will subsequently draw up the corresponding entry.

Temporary Disability Benefit

Calculationbenefits for temporary disability or sick leave has a different form. So, the calculation takes into account the previous two years, regardless of whether the employee worked at that time or not. So, the employee Petrov V. V., in the absence of work experience and, accordingly, wages, will have the minimum amount of disability.

So, when going on sick leave in January 2016, 2014 and 2015 are taken. The worker had a salary in 2015 alone of 360,000 for the entire period. However, this amount will be divided by 730 days.

Thus, the amount of payment for one day will be: 360000/730=493 rubles 15 kopecks.

However, the employee's seniority also plays a role. So, if an employee has an experience of up to five years, then he is paid only 60 percent of the accrued, that is, 295 rubles 89 kopecks. Of course, taxes are also removed from this amount.

Interesting facts about temporary disability benefits

Temporary Disability Benefit can be received within six months from the date of onset of illness. This does not mean that the employee who gave the sick leave to the employer will have to wait so long. No, he has the right to present this document within six months, and they do not have the right to refuse him.

As for the terms of payment, now, since 2015, a pilot project of the Social Insurance Fund has come into force in most regions. According to him, the employer, after receiving a sick leave, has five calendar days to send data on it to social insurance.

Bin turn, this organization checks the correctness of the sheet and calculations within ten days, and then two days for the transfer. On average, an employee waits for their money for about two weeks. More often they are transferred earlier than this date.

It is also worth remembering that women who have just returned from parental leave have the right to choose for themselves how long to take wages. Namely: if in the year that is taken into account there is at least one day of being on maternity benefit, then this year can be replaced by another. This is done to ensure that women are not infringed on their rights.

Other accounting methods: countries

You can often hear questions from novice accountants regarding the procedure for calculating vacation pay in Belarus or other countries. Everything here is individual and depends on the legislation in force in a given country.

In this case, similar algorithms are used. However, a different calculation of the number of vacation days is taken. Also, 29.7 days are taken as the average number of days, and not 29.3. Otherwise, the algorithm is similar. The average salary per month is divided by the average number of days per month. The total is multiplied by the number of vacation days.

Calculation of vacation pay and temporary disability benefits are the things that every accounting worker faces. You should rely directly on the current legislation of the country in which the organization operates. However, there are handy formulas to help with the calculations.