Is the sick leave subject to personal income tax in 2017

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

Sick leave is intended not only to assure the employer that this or that employee did not skip work, but was absent due to a serious illness. The fact is that only this document gives the authorities the right to pay in the absence of an employee. This raises a completely logical question: "Is the sick leave subject to personal income tax?" Let's take a closer look.

Is sick leave taxable

To answer this question, you need to refer to Article 217 of the Tax Code. In the period up to 2007, this type of benefit was indeed not subject to any tax payments, but 10 years ago this type of document was deleted from the list. Now the question of whether the sick leave is subject to personal income tax can only be answered positively.

Today, the tax is calculated from the entire amount of the sick leave. Thus, citizens must pay income tax even if they have a certificate in their hands confirming the temporary incapacity of the employee.

However, there is one exception to this law. If the sick leave was issued to a woman during pregnancy, then in this caseshe will not have to guess whether the sick leave is subject to personal income tax, since expecting a child is not a disease. Accordingly, you will not have to pay tax for such absence from work.

Why sick leave is now taxed

By and large, any sick pay is intended to partially compensate for the salary at the time of the employee's absence. Since wages are a type of income, sick leave compensation was also equated to this type of money.

It is also worth noting that similar measures apply to employees who care for sick children. In this case, the answer to the question of whether the sick leave is subject to personal income tax will also be positive. This is also logical. After all, a sick child is also the reason for absence from work, and, accordingly, payments.

If we talk about the amount of tax, then the same as in previous years, it is 13% of the total amount of payments. At the same time, the employer withholds this part immediately when paying sick leave. However, this does not affect the total contributions to the pension fund.

How it's calculated

Starting from 2009 to 2015, whether the sick leave is subject to personal income tax was one of the most pressing topics. In fact, everything is simple. As in 2009, today the personal income tax rate remains the same (13%). At the same time, the income tax of an employee (that is, an individual) on a sick leave is calculated based on the total amount of payments that he received during hisdisability.

However, it is worth considering the fact that the first 5 days that an employee is on sick leave are paid by his superiors. The rest of the illness is compensated from the financial insurance fund. Therefore, tax payments are usually split.

Interestingly, until this year, according to the law, the employer had to pay only the first 3 days of absence of a sick employee.

After how long the temporary disability benefit is issued

As a rule, a certificate of illness is issued for up to 2 weeks. However, according to the law, the doctor has the right to issue a certificate for a period of up to 30 days. If an employee cannot go to work for a longer period (due to an operation or severe injury), then the documents must be submitted for a medical examination. This commission may decide to extend the duration of treatment up to 1 year.

If sick leave is issued to care for a sick child, then his age is taken into account. If the baby is less than 7 years old, then the parent has the right to care for him for the entire duration of the illness. Provided that the child is between 7 and 15 years old, the employee has the right to be absent from work for up to 15 days.

Knowing whether the sick leave is subject to personal income tax and insurance premiums, you can count on legal compensation.