Surcharge for traveling nature of work: calculation procedure, rules for registration, accrual and payment

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

At many enterprises, the work of certain categories of employees is traveling. First of all, we are talking about drivers transporting personnel, transporting products, materials and other goods. In the article we will talk about the additional payment for the traveling nature of the work, taxation and accounting of the allowance.

General information

Is travel allowance always required? Let's figure it out.

If the employee's work activity is related to traveling, the employer must compensate for the costs incurred based on the advance report data, as well as upon presentation of tickets and checks. Meanwhile, the legislation provides for another way to recover costs.

Employer may pay a fixed allowance for traveling work. Drivers, as a rule, are quite satisfied with such compensation. The amount of the additional payment is determined by the head of the enterprise andapproved by local document.

Here it should be said that inspectors do not always recognize the allowance for the traveling nature of the work as compensation within the meaning of the provisions of Art. 168.1 TK. If there are no documents confirming the employee's expenses, then the employer may be required to charge additional contributions.

Reimbursement for documents

If the employee provides papers confirming his expenses on the trip, the employer compensates them after the fact. This means that the employee will receive exactly as much as he spent. This option is usually used when employees are sent on long business trips to other regions or abroad. The employer shall reimburse such employees for travel and accommodation costs. At the same time, the employer has to decide whether to withhold personal income tax and contributions to funds from this compensation. Let's answer this question right away.

Compensation costs are included by the employer in the expenses taken into account when calculating income tax. In accordance with paragraph 11 of paragraph 1 of Art. 217 of the Tax Code, there is no need to withhold personal income tax from reimbursement. This rule applies to the entire amount specified in the collective or labor agreement or in another local act of the enterprise. As for insurance premiums, they also do not need to be charged (clause 2, part 1, article 9 212-FZ of 2009-24-07).

Difficulties in practice

It must, however, be said that the FSS and the FIU sometimes believe that the employer is obliged to calculate contributions from the amount of compensation. They justify their position by saying thattraveling nature of the work allowances and payments - these are elements of the salary. The inspectors of funds confirm their arguments with the provisions of Art. 129 of the Labor Code, which defines earnings. As a result, after inspections, the employer is charged with fines and pen alties, and is obliged to charge additional contributions. Such decisions, of course, need to be challenged. The courts in most cases take the side of the employer, citing the following arguments:

1. Reimbursement for work is subject to employer approval.
2. Compensation is necessary to cover the additional expenses of the employee that he incurs during the performance of his labor function.
3. Reimbursement amounts cannot be included in earnings in any way, therefore, there is no need to accrue contributions.

List of supporting documents

Supplement for the traveling nature of the work is charged upon the provision of supporting papers. A specific list of documents is determined and approved by the head of the enterprise. It is advisable to form two lists - for near and long trips. In this case, the requirements of the employer will become clearer.

Employee's travel expenses can be verified:

1. Tickets for metro, bus, trolleybus, etc.
2. Itinerary, waybill, receipts, checks (when using personal transport).

Residential costs are confirmed by documents received upon arrival. This may be a receipt issued by the hotel administrator, a short-term rental agreement.

Answers to additional questions from inspectors aboutsurcharges for the traveling nature of the work can be given by referring to papers certifying the movement of employees. We are talking, in particular, about the list of positions fixed by the local act, the conditions stipulated in the employment contract, memos, magazines, etc. Inspectors should be provided with any papers confirming the trips.

Documentation Features

To ensure the control of the daily movements of employees, it is advisable to create a travel journal. This document may be kept by the head of the relevant department or other responsible employee.

Planning and control of single trips can be done with the help of memos. The employee draws up it in the name of the head. In a memo, the employee indicates the reasons for the trip, goals and objectives. The document must be handed over to the employer for approval.

The regulations in force today do not establish a single form of memos and accounting journals. Accordingly, the management of the enterprise can approve its forms. To introduce documentation into circulation, the director issues an appropriate order.

Nuances

The allowance for traveling nature of work is set depending on:

• travel frequencies;
• duration of business trip;
• difficulty of the task, etc.

You can also take into account the qualifications and work experience of a particular employee. Accordingly, it is not necessary to installone amount for all.

Simplified workflow

As practice shows, it is far from always possible for a seconded employee to keep acquittal papers. It happens that by the reporting date some of the tickets are lost, there are no checks from gas stations, receipts, etc. But without them, the employee will not be reimbursed for expenses. For such cases, a simplified workflow is provided.

The head of the enterprise determines and approves the amount of the allowance for the traveling nature of the work. This amount must include:

1. Average fare on public transport.
2. Paying rent.
3. Unscheduled or minor vehicle repairs.
4. Communication services (mobile phone, fax).

It is advisable to establish a fixed surcharge for the traveling nature of work for drivers, freight forwarders, merchandisers and other employees who perform a labor function outside the enterprise, but within the same locality.

The bonus is also provided if the employee:

• usually spends the same amount on trips;
• does not spend money on accommodation and travel in another region or abroad.

If an employee has an additional payment for the traveling nature of the work, he does not need to collect tickets, checks and other supporting documents. And compensation will be given to him at the end of the month.

General calculation procedure

In accordance with Part 2 of Art. 168.1 of the Labor Code of the Russian Federation, additional payment for traveling nature of workapproved by the head of the enterprise and fixed in the local act of the enterprise.

The amount of the allowance is determined by the employer independently. The wording in the local act of the enterprise may be as follows: "Establish an additional payment for the traveling nature of the work. The amount of the allowance is 10% of the basic salary." The manager, at his discretion, can set a fixed amount.

When determining the surcharge for the traveling nature of the work, the employer must be guided by:

1. Regulatory acts adopted during the Soviet period. At present, despite the fact that the USSR ceased to exist, many legal documents approved during the years of its existence are valid. Thus, the Decree of the Council of Ministers of the RSFSR of 1978 No. 579 established an additional payment for the traveling nature of work - 20% of the salary. It can be accrued to employees who work in road and river transport. At the same time, only those who travel for 12 or more days receive an additional payment for the traveling nature of the work.
2. Industry and regional agreements. For example, road workers can receive up to a 20% surcharge depending on the number of days spent on the road. The corresponding clause is present in clause 3.6 of the Federal Industry Agreement on Road Facilities.

If the amount of the allowance is not prescribed either in the acts adopted during the Soviet period or in industry (regional) agreements, the manager has the right to determine it at his own discretion.

Some managers mistakenly believe that the body responsible forestablishing the amount of additional payment for the traveling nature of the work, - the Accounts Chamber. It must be said right away that this structure has nothing to do with determining the amount of payments.

Travel work allowance: taxation

When an employer, in an effort to simplify the workflow, compensates for travel expenses by accruing additional payments, the IFTS may have claims. Meanwhile, a fairly stable practice has now developed. Unfortunately, it is not in favor of the employer. The courts and regulatory authorities do not dispute the right of the employer to establish an additional payment. However, they believe that the fixed payment should be subject to personal income tax and contributions to funds. The arguments are as follows.

The law provides for two types of payments. The first includes compensations that act as elements of earnings. They are established due to the fact that a citizen works in special conditions. It is from such compensation that taxes and contributions to funds are withheld. The second type of payment is the reimbursement of expenses incurred by an employee in the performance of a labor function. Contributions and taxes are not withheld from these amounts.

According to many experts, the monthly fixed surcharge cannot be considered as compensation under Art. 168.1 TK. The fact is that the employer does not reimburse the employee for the actual costs incurred. In other words, the amount of compensation does not depend on the amount of expenses.

Supplement to earnings provided forlabor or collective agreement cannot be considered as compensation under Art. 164 TK. This is due to the fact that when it is accrued, the salary of an employee who performs his labor functions on trips increases.

Sun Explanations

At the end of 2015, the Supreme Court took the position of the employer. In its Review of Practice for 2015, the Supreme Court indicated that for tax purposes, the nature of the payment will matter, according to which the amount is among the compensations provided for in Art. 164 TK. According to this rule, compensation is a monetary payment established to reimburse employees for expenses incurred by them in connection with the performance of their labor functions. At the same time, the Supreme Court indicated that the name of the payment has no decisive significance. This may well be an allowance, surcharge, benefit, salary increase, etc.

State authorities, however, do not really want to support the position of the Court. For example, for the Ministry of Labor, a prerequisite for the payment of compensation to an employee is the provision of documents confirming the expenses during the trip. Therefore, enterprises that do not plan to charge taxes and pay contributions to funds from surcharges will have to defend their position in the courts.

Accounting

How to record payments intended to compensate for expenses incurred by employees while on a business trip?

In accordance with the instructions for the chart of accounts of accounting, approved by order of the Ministry of Finance No. 94n dated2000, to summarize information about all settlements with employees of the enterprise, with the exception of wage transactions and settlements with accountable employees, account is used. 73. Information on settlements with personnel in respect of amounts received for operating and administrative expenses is reflected in the account. 71. At the same time, many experts believe that the use of this account will be incorrect if the company does not issue funds for reporting, but reimburses the costs incurred by the employee. Taking this into account, the accountant should make the following entries:

• Dt sch. 20 (26, 44) CT rec. 73 - acceptance for accounting of expenses in the form of reimbursement of the cost of expenses after their confirmation.
• Dt sch. 73 ct sc. 50 - Worker's compensation payment.

If guided by the provisions of Art. 129 of the Labor Code, then additional payments, allowances, including for work in special conditions, are recognized as an element of earnings. Accordingly, the accountant makes the following entries:

• Dt sch. 20 (26, 44) CT rec. 70 - accrual of salary to an employee with a surcharge.
• Dt sch. 70 Kt. 68 - withholding the amount of personal income tax from earnings.
• Dt sch. 20 (26, 44) CT rec. 69 - accrual of insurance premiums.
• Dt sch. 70 Kt. 50 - payment of wages with a surcharge.

According to experts, such a delimitation in accounting will make it easier for the employer to separate the amounts subject to personal income tax and insurance premiums, and funds exempt from taxation.

Conclusion

Simplified workflow is notalways in the hands of the employer. If the employer plans to consider that allowances for traveling work are not elements of the salary, then there is a risk of claims from regulatory authorities. In such cases, it is advisable to study the jurisprudence on this issue in more detail.