Interest-free loan to an employee: registration procedure, tax consequences, postings

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

The practice of obtaining the status of a lender and a borrower by an employer and an employee is now quite common. This is beneficial because it helps to save on interest for an individual. For the enterprise, this creates a significant advantage, attracting the best personnel, and becomes one of the factors for increasing competitiveness. True, not everything is so simple. You need to know the rules for issuing money on credit, as well as the correct execution of the process.

Relevance of the issue

Many business leaders sooner or later think about whether it is possible to issue an interest-free loan to an employee. The fact is that a situation in which money suddenly became necessary can develop in the life of any person. The classic option is to contact a credit office or ask for help at a pawnshop. They are available to many, but disadvantageous due to the high interest rate. For a person, it is much more pleasant and convenient to receive money without overpayments at the time of return. The employer has the right to meet the needs of the employed and give him the desired amount. Usually, the decision does not require much time, is not accompanied by the calculation of interest, and the conditions for providing money are softer than in the case of working with banks.

In order for an interest-free loan to an employee of an organization not to end in problems for one of the parties or both, it is necessary to declare the work by an agreement in which all the details are fixed. The contract is the basis for lending money. It specifies age limits. It must be understood that this loan format is completely legal, but only after signing by all interested parties becomes legally significant.

Features

In order for an interest-free loan from the founder to be legal and correct, an agreement must be made in writing. The current legislation clearly stipulates the need to draw up an agreement on paper. If a person asks a firm for money to spend on purchasing a home, he can receive the amounts received from the total net profit. Of course, you have to pay taxes first. By the way, in our country, most often a loan of this format is offered to employees of the Ministry of Emergency Situations. It is both an incentive and a means of support. In some enterprises, they lend money to employees without interest in order to keep them in the service as long as possible. This is practiced only when the frame is really valuable.

About terminology

Is the type under consideration is the issuance of a loan to an employee from the cash desk, and what is generally hidden under the concept to which the material is devoted? To deal withWith this, one should turn to the formulations of the laws that regulate our everyday life. By law, an interest-free loan is established as the transfer of a certain financial mass to a person to achieve various goals. At the same time, the employee does not have to pay interest for the use of money entrusted to him. The employer has the right to set a small percentage, but it cannot be more significant than the official inflation rate in the country.

Not always an interest-free loan from the founder looks like money. You can transfer property if it is in the possession of the enterprise. The legislation stipulates the maximum amount that is given to an employee: 50 minimum wages or less. The money obtained in this way cannot be spent on commercial activities. Refunds are allowed both in parts and the entire amount at once. The legislation stipulates the possibility of settling debts at an earlier date than was established by the original agreement. The recipient of funds is obliged to pay tax on the amount that was given to him. The firm does not need to pay taxes on the money it receives back from the borrower. This is due to the fact that there is no interest that would provide the company with a profitable component.

All according to the law

There are two options for giving money to a person. You can give him the amount directly from the cashier. The second option is a transfer to a person's bank account. Many modern companies have long introduced the practice of paying wages to the bank card of the employed. If the system is suchwith a positive decision, the loan is also paid without using cash.

All procedures accompanying such a process are established by the current legislation. The general rules for directly processing the process can be found in the 42nd article of the block of laws on the tax policy of the state. When concluding a transaction, one must not conflict with other aspects and requirements of the Tax Code. Since the loan is not accompanied by the payment of interest, it is important to take into account the provisions of Art. 809 of the Civil Code of the Russian Federation. The laws do not establish any restrictions or prohibitions on the transfer of money to employees without paying interest. At the same time, it is important to properly organize the process and carefully record it in the accounting documentation.

Tax details

Current legislation obliges to draw up a written agreement. The requirements of normative acts are such that when formulating an agreement, it is necessary to fix in detail and clearly, without using ambiguous wording, the absence of interest in favor of the enterprise. Only in this case, the company will not have to pay taxes after lending money to a person.

Personal income tax and an interest-free loan to an employee are closely related, since the second automatically entails the obligation to pay the first. The money can be used to purchase real estate. In this case, an individual has the right to apply to the Federal Tax Service or to the accounting department of the enterprise in which he is employed in order to issue a property deduction. Article 809 of the code regulating civil relations within our country gives the right to provide employees withcommodity or cash loans - at the discretion of the parties concluding the agreement. Article 812 of the same set of laws establishes the possibility of challenging the concluded agreement. This is allowed only if a person can provide evidence that he did not receive the money provided for under the contract. If there are phenomena proving this fact, we can talk about the loss of validity of the contract.

About conditions

In order to correctly conclude an agreement dedicated to an interest-free loan, you must first assess whether the financial situation of the enterprise, in principle, allows the provision of money to a person under such a program. It allows you to give out money if the goods, funds that a person requests are directed to achieve a specific goal. All money provided in this way must be returned within the terms agreed in advance and fixed in the agreement. In some cases, some material item is provided. The condition for its return will be the preservation of the previous state. This fact is fixed in the contract prescribed before the transfer of the product.

The laws establish the fact that the employer has no right to require a person to pay him interest on a debt. The fact of the transfer of funds must be recorded. For this, a contract is formed, a receipt is drawn up. If there is some specific purpose for which money is given, a person has the right to spend what he has received only and strictly on it. He is not allowed to spend the money on anything else. Any third party expenses areviolation of the terms of the agreement.

Let's make a deal?

The listed rules correspond to Art. 809 of the Civil Code of the Russian Federation and other regulations governing the procedure for providing money to the needy. These standards are basic. When concluding an agreement, they must be guided by them so that the official paper meets the law. In each individual case, there may be a need for additional, special items, due to the peculiarities of cooperation between the employer and the employee. In this case, additional clauses can be added to the agreement. The main rule for introducing adjustments is their coordination with the requirements and rules of law established in our country.

Step by step and regulation

In order for everything to be legal and legal, it is necessary to draw up an agreement fixing an interest-free loan. In general, the entire process of providing money to a person by agreement can be divided into several successive steps. First, a person draws up an application, sends it to the owner of the company. In the text of the document, a person requests a certain amount, specifying the reasons for which he needs money. It is very important to specify exactly how much money a person needs. The head reviews the application and makes a decision on it. If it turns out to be positive, the employee is called to a meeting in order to agree on the provisions and conditions for concluding an agreement. The responsible person prepares the necessary documentation accompanying the process of lending money.

When compilingagreement, it is necessary to record in the document personal information about the person asking for money, and the general data of the enterprise providing the requested money. The head or other employee who is entrusted with such responsibility signs the agreement, fixes the fact of signing by setting the seal of the enterprise. This is a relatively simple procedure, especially in the case when management has nothing against giving money to hired people.

Accounting subtleties

In order for the procedure to be organized correctly, and the company not to violate laws and regulations, you need to know what the postings should be like in such a situation. The loan disbursement must be reflected in the accounting records. First wiring: D73.1 K50. It allows you to fix the fact that the person received the money, and the basis for this was an agreement to provide funds on credit. If it was decided to conclude an agreement with the accrual of interest within the refinancing rate, a posting should be arranged in the form D73.1 K 91.1. If this point is neglected, it will not be possible to officially present the loan as interest-free. Having de alt with the transactions dedicated to issuing a loan, you should pay attention to repayment. It forms as D50, D51 K73.1.

If the actual provision of funds by the company has become possible, then we are talking about a valuable staff, a responsible employee who is important for the company. This requires the accounting department to handle all postings particularly responsibly, as improperly formatting the process will cause problems with tax structures. With incorrectorganization of the process in accounting, the company will be forced to pay taxes, despite the fact that the program belongs to interest-free.

About consequences and taxes

In the case of an interest-free loan to an employee, the tax consequences are considered especially favorable, since if the work is done correctly, the company should not pay taxes. This is due to the lack of profit due to interest - they simply do not exist. The employee, in turn, receives income, because he saves on paying interest that would have to be transferred to any third-party credit institution. Accordingly, the laws provide for the need to pay taxes on the income that he receives by borrowing money from the company in which he works. Personal income tax is used to calculate and formalize the tax burden. Tax - 13%. Responsibility for withholding rests with the tax agent, that is, the enterprise in which the person is employed. The same company is a person who transfers money to a person. The company must withhold tax amounts from wages. Allowed maximum retention is half of a person's monthly income.

What is the money for?

In order for an interest-free loan to an employee to be issued correctly, you need to take into account the purposes for which the money is intended to be spent. All such person must indicate in the application, which asks to provide finance in debt. Most often in practice, people ask for money to buy a house or a car. You can ask the company for a loan in order to have funds for the treatment of a rare disease orreceiving education in a higher educational institution. You can ask for money for a vacation if you plan to travel outside your native country, relax at sea.

Often, an agreement that fixes an interest-free loan to an employee contains in detail how and where the person will spend the money allocated to her. The enterprise gives a person a loan, without obliging to pay interest, a targeted loan. This program obliges to spend everything received strictly on what the person asked for initially. The employer may receive official information on the expenditure of funds for other purposes and needs. Such data are sufficient grounds for early termination of the agreement. In this case, the management of the enterprise has the right to demand that the person return everything that she owes before the agreed time.

Design rules

To get an interest-free loan, an employee needs to fill out an application. It is sent to the leader. For writing, use A4 sheet without additional inscriptions. In the upper right corner, write the full name and title of the manager's position, then their name and position. The name of the document (application) is fixed in the center. This is followed by the main block, in which a request for a loan is recorded. Here they write exactly how much is needed, for what purposes it will be spent, in what period it will be returned. It also fixes the conditions for the return of an interest-free loan.

An employee can specify, for example, that he will return everything at once when the deadlinewill come to an end, or that it will repay some part of the loan received every month. The final moment is the signing and fixing the date of the documentation.