FSS ALLOWANCE IS BACK: WHAT TO DO?
Today there is a disappointing situation with temporary disability benefits from the Social Insurance Fund (FSS). The fund “decently” delays their payment. And what should an employer do? Whether to pay employee benefits at their own expense? How to deal with personal income tax, the Armed Forces and the ERU, filling out the form number 1DF? And if the employee leaves and at the time of his dismissal, the benefit from the Fund has not been received yet? Let’s figure it out.
The working bodies of the Social Insurance Fund are allotted 10 working days after receipt of the Application-Calculation from the employer-insured to verify the Application-Calculation and transfer funding to the Policyholder or provide a reasonable refusal to accept the Application-Calculation Clause 8 of Procedure No. 12. Pay the allowance to the employer after receipt funds specified in the statement-calculation, on a special account, but not later than the time specified in Part 2 of Art. 32 of the Law No. 1105. That is: the employer is obliged to pay sick leave / maternity payers in the next period after their appointment for the payment of wages (clause 1 of part 2 of article 32 of Law No. 1105).
Assume that the deadline for their payment, defined by Law No. 1105, has arrived, but there is no funding? Is it possible (necessary) for the employer to pay sick / maternity from his own pocket?
The employer is obliged to pay the employee only the amount of payment for the first five days of temporary disability at the expense of the enterprise within the deadlines established for the payment of salaries. With regard to benefits from the FSS, nowhere in the legislation does not stipulate the obligation of the employer to pay benefits from his own pocket before receiving funding from the FSS.
And even if the employer does this on his own initiative, he may have problems with reimbursement of expenses incurred: when funds from the SIF are transferred to a special account of the insured, it will be difficult to transfer them to your current account. After all, insurance funds credited to a separate special account of the insured can be used by him exclusively to provide material security to insured persons (clause 2 of article 34 of Law No. 1105). Even if the bank misses the transfer operation (and such cases were in practice), then there will be problems with the FSS, which may consider this operation as inappropriate use of FSS funds.
It turns out that the only thing that should be done in case of a delay in benefits from the Fund is to wait until the Social Insurance Fund transfers them.
The amount of temporary disability allowance paid by the FSS and the first five days of temporary disability paid by the employer, as well as the amount of the maternity allowance are included in the base for the accrual of ERUs (part 1 of article 7 of Law No. 2464).
Payment of ERUs should be made when paying sick leave / maternity leave, but no later than the 20th day (and in the case of a mining company, the 28th day) of the month following the month in which the benefit is paid (paragraph 1 of part 8 of article 9 of Law No. 2464). Note that ERUs are paid from the current account in any case. So there should be no problems with it.
Hospital and maternity wards are reflected in the ERU Report, formed for the month in which these payments were accrued.
The amount of maternity allowance is not subject to any personal income tax or military collection (see para. 165.1.1 of the GCC). Nevertheless, such a payment is reflected in the form No. 1DF for that reporting period (and if the accrual and payment falls on different quarters – for those reporting periods) in which (in which) the amount was actually accrued and paid. Sign of income – “128”.
The amounts of payment of the first five days at the expense of the employer and the temporary disability allowance of a TCU are attributed to wages (pp. 169.4.1 of the TCU). Accordingly, they are subject to personal income tax and military collection. The deadline for payment from accrued but unpaid sick leave is the 30th calendar day following the last day of the month in which the amount of the benefit is accrued (subsection 168.1.5 of the TCU). And this is where the main problem arises.
Under normal circumstances, the individual income tax and income tax from the amount of temporary disability benefits the employer withholds and transfers to the budget from the insurer’s special account at the same time as the employee is paid the benefit. In our case, it is impossible to do this: there is no money on the special account. But the timing of the payment of personal income tax (30 calendar days after the month of accrual) you must comply with, otherwise – fines.
There is only one way out: if the benefit has not been received on the deadline for the payment of personal income tax and military collection, then transfer them from the company’s current account.
After entering the special account of funding from the FSS, pay employee benefits and re-pay personal income tax and aircraft, but with a special account.
As a result, there will be an overpayment on NDFL and VS, which can be credited against future payments on NDFL and VS.
The amount of sick-lists in the form № 1ДФ is shown in the total amount of salary accrued / paid in the corresponding reporting quarter / quarters. Sign of income – “101”.
If the employee has already quit. The employer on the day of the employee’s dismissal must conduct a final settlement with him (Art. 116 of the Labor Code). But funding from the FSS has not been received. Is there a danger that in case of non-payment of benefits from the FSS owed to the employee, you will have to pay the amount in the amount of the average employee’s earnings for the entire period of delay until the day of actual calculation (Article 117 of the Labor Code)? Immediately we hasten to reassure: paying the allowance after dismissal, the employer will not violate the norms of art. 116 Labor Code. The explanation is one thing: the insured person receives the sums of material security from the Fund and at the expense of the Fund (this is not the funds of the enterprise), which means, in this case, the violation of art. 116 of the Labor Code is absent.
Posted by Kristina Vorozhbitova