Employers - organizations and individual entrepreneurs using the labor of hired workers, acquire the responsibility of a tax agent for personal income tax. Calculation, withholding and transfer of tax must be carried out on time and in full, in accordance with the norms of the Tax Code of the Russian Federation. Meanwhile, many accountants still find it difficult to determine what the differences are between calculated and withheld personal income tax. The reason lies in the wording of the Tax Code articles, according to which there are negligible differences between calculated and withheld taxes.
However, in personal income tax reporting, most often these indicators are not equal to each other. The nuances of using the concepts “calculated tax” and “withheld tax” and filling out tax reporting forms are discussed in the article.
Calculated and withheld income tax
To understand the differences between the two personal income tax amounts, let’s consider each concept separately.
Calculated personal income tax. To fulfill the duties of a tax agent, the employer, before paying the employee wages, is obliged to calculate income tax on this amount. The tax is calculated taking into account deductions and subsequently transferred to the state budget.
Withheld personal income tax. Having calculated the tax, the employer performs one more operation - withholds the calculated amount from the employee’s salary.
The tax is calculated, according to the law, at the time of calculation of wages and equivalent amounts, and the withheld tax is the amount remaining with the employer for the purpose of its subsequent transfer to the budget. It is impossible to withhold tax before the date of actual receipt of income by an individual.
The indicators are interconnected: the tax must first be calculated, then withheld, followed by its transfer.
Current legislation provides for tax calculation no later than the last date of the month of income accrual. If the calculated tax was withheld in the same period, then the figures at the end of this period will be the same. However, this is not always the case. Calculated and withheld income taxes are reflected in separate lines in tax reporting forms, the data of which is subject to reconciliation:
- 2-NDFL;
- 6-NDFL.
The difference between the two values may arise when they are reflected in the specified forms according to the rules of tax legislation. For example: the indicators for calculated and withheld personal income tax (lines 040 and 070 f. 6-NDFL) are not equal to each other if wages accrued in the reporting quarter were issued in the next month falling in the new quarter. In the quarterly report, the withholding line will have a zero value or a value less than calculated (clarifications from the letter of the tax service No. BS-4-11/8609 dated 05/16/16).
Please note that the control ratios for the sixth form do not contain mandatory equality for lines 040 and 070 (letter of the tax service No. BS-4-11/3852 dated 03/10/16).
By the way! The transferred personal income tax is the amount that was actually transferred to the state budget at the end of the month.
What does withheld personal income tax mean?
Withheld personal income tax is the amount of tax that is necessarily withheld from wages and other types of income of individuals. An important point is that tax deductions are made only from the amounts of income actually received. Upon receipt of payments by employees, the employer is obliged to send the amount of tax withholdings by payment order to the Treasury (Article 226, paragraph 1, clause 4 of the Tax Code of the Russian Federation). In 6-NDFL, field 070 specifies the amount of withheld tax liabilities in the total amount for all tax rates. The tax amount is indicated on an accrual basis from the beginning of the reporting period (year).
In the case where the employee’s income is received in the form of material benefits or in kind, withholding personal income tax becomes impossible. But it still must be withheld from any other types of cash receipts. For this calculation, the rule is that according to Article 226, paragraph 2, clause 4 of the Tax Code of the Russian Federation, the amount of deductions cannot exceed 50% of income received in monetary terms. The amount of tax withheld in 6-NDFL is displayed in line 070 only for those payments that were made as of the date of the report.
Code of location (accounting) in 6-NDFL
When the indicators match
Coincidences between calculated and withheld personal income tax are observed in certain cases:
- Vacation payments. According to the tax service (letter of the Federal Tax Service No. BS-4-11 / [email protected] dated 01/08/16 and a number of others), the amounts of vacation pay that were accrued but not paid are not included in the reporting under f. 6-NDFL in the accrual period. They will be included in the calculation during the payment period. Accordingly, during the period of payment of vacation amounts, the calculated and withheld taxes on them in form 6-NDFL will coincide.
- Sick pay, in the taxable part, is reflected in the same way as vacation pay, like dividends: in the period of actual payment. Calculated and withheld taxes on amounts paid in a certain period will be identical in reporting forms.
- Vacation pay can be received by an employee in the form of compensation if he did not use his vacation and wrote a letter of resignation. On the last day of work he will receive the compensation amount. Calculated and withheld taxes in form 6-NDFL during the dismissal period for this employee will be the same (Letter of the Federal Tax Service No. BS-3-11 / [email protected] dated 11/05/16).
- Wages were received by employees in the same period as they were accrued. Accordingly, the calculated and withheld personal income tax for this period will coincide (letter from the tax service No. BS-4-11 / [email protected] dated 04/05/17). This situation often arises on the last working day of the year, when wages are calculated and paid. Note that, on the recommendation of the fiscal authorities, payment of such amounts to the budget should be made on the first working day of the next year (Tax Code of the Russian Federation, Art. 6.1-7).
What does calculated personal income tax mean?
Calculated tax is personal income tax calculations that are made by multiplying the amount of employee income received and the applicable tax rate. It should be noted that the amount of profit received during calculation may be less by the amount of tax deductions (if any are applied to a specific employee). The “amount of calculated tax” is written in field 040, accrued income is written in field 020, and tax deductions are written in field 030.
Thus, cell 040 6-NDFL is calculated using the following expression:
Where CH is the tax rate.
There may be several attachments to the form because income received by employees of an enterprise may be subject to different personal income tax rates. Accordingly, there will be several calculations of taxes calculated and sent to the Treasury. Each calculation is numbered.
It is important to note that form 6-NDFL also contains the following lines:
- accrued income in the form of dividends – “025”;
- calculated tax on income in the form of dividends – “045”.
Field 045 with cells is determined by multiplying the amount of accrued income in the form of dividends and the amount of the tax rate applied to this type of taxable income. Note that the indicated amount of income received in this expression and the amount of calculated income tax are indicated as well, that is, it is included in the total amount of income accrued and in the total amount of calculated personal income tax.
Filling out 6-NDFL for the 1st quarter of 2018
When the tax is not fully withheld
In certain situations, a tax agent is not able to withhold tax from an individual. In this case, the organization notifies that it is impossible to calculate and withhold the tax of the citizen and the Federal Tax Service - until March 1 of the year following receipt of income.
Such tax is reflected on page 080 of the sixth form we are already considering. It is used, for example, if a tax agent made a gift to an individual, while this individual has no other income in cash. This line is also filled in if the individual received a material benefit, but the tax agent did not make cash payments to him, or they are insufficient to cover the tax debt.
You cannot include in the calculation under p. 080 the amount of “carry-over” personal income tax from wages that will be paid in the month following the reporting month. This unwithheld tax will be reflected in the next accounting period. If the incorrect form has already been submitted, you will have to submit an updated 6-NDFL calculation.
If the employer had the opportunity to fulfill the duty of a tax agent for personal income tax, the tax was not withheld and not transferred to the budget, a fine in the amount of 20% of the amount not withheld and not transferred may be imposed on him (Tax Code of the Russian Federation, Article 123).
Results
- When calculating personal income tax, the tax agent (employer) calculates personal income tax on the income of employees. When employees receive income, tax is considered withheld and then must be transferred to the budget.
- To reflect the indicators of calculated and withheld income taxes, lines with the corresponding names are provided in forms 2 and 6-NDFL.
- The values of these indicators when paying income the next month after the accrual period do not coincide. At the same time, a number of income items subject to personal income tax assume that the amounts of calculated and withheld personal income tax for them coincide. This is due to the peculiarities of the established regulations for reflecting indicators in reporting forms. These types of income include vacation pay, sick pay (to the extent subject to personal income tax), etc.
- If the employer is unable to withhold tax from an individual, he records such amounts as a separate line in the sixth personal income tax form. “Carryover”, personal income tax that has not yet been withheld from normal arrears of wages for the month following the reporting month, is not reflected in it.
6-NDFL and 2-NDFL: little secrets from the Federal Tax Service
As you know, starting from 2021, tax agents submit quarterly new calculations to the tax authorities in form 6-NDFL. The head of the personal income tax department of the department of taxation of personal income and administration of insurance premiums of the Federal Tax Service of Russia, Vladislav Volkov, spoke about the features of the formation of this reporting BUKH.1S
New income and deduction codes in the 2-NDFL certificate
In 2021, personal income tax reporting forms have not changed. But the income and deduction codes have changed. The new codes were approved by order of the Federal Tax Service of the Russian Federation dated November 22, 2021 No. ММВ-7-11/ [email protected] “On introducing changes and additions to the appendices to the order of the Federal Tax Service of Russia dated September 10, 2015 No. ММВ-7-11/ [email protected] “On approval of codes for types of income and deductions.”
The order came into force on December 26, 2016. And information on income in form 2-NDFL for 2021 must be submitted taking into account the new codes.
But if the 2-NDFL form for 2021 contains old codes approved by Order No. ММВ-7-11/ [email protected] , but without taking into account Order No. ММВ-7-11/ [email protected] , then the Federal Tax Service tester program will accept such a certificate, and there will be no penalties. New registers must be maintained using new income and deduction codes.
Form 6-NDFL: some features of filling out
Quarterly reporting in Form 6-NDFL, which has appeared since 2016, is a collection of generalized data on employee income for a particular period and personal income tax withheld from these amounts. Section 1 and section 2 of form 6-NDFL do not correspond with each other, since they perform different functions. Therefore, there are no control relationships between sections 1 and 2 and there cannot be.
Section 1
Line 020 - amount of accrued income
This includes all accrued amounts, with the exception of those amounts that are not subject to taxation in accordance with Article 217 of the Tax Code of the Russian Federation (the same as in 2-NDFL).
An exception may be partially non-taxable income - for example, material assistance or gifts.
There are, however, controversial points. For example, is it worth indicating the amount of the gift not exceeding 4 thousand rubles if such a gift was paid one-time to a former employee? You don’t have to indicate it in either 2-NDFL or 6-NDFL, there won’t be any problems. But if this is an employee with whom the relationship continues, and the gift is given at the beginning of the year, then perhaps it would be better to indicate this. What if there will be more gifts during the year, and the amount will exceed 4 thousand? The excess will already have to be subject to personal income tax.
In relation to wages, the date of actual receipt of income is considered to be the last day of the month in which it is accrued.
Other payments - sick leave, financial assistance, vacations - are taken into account not by accrual, but by direct payment. If an employee goes on vacation in January, but received vacation pay in December, the date of receipt of income refers to December, and the amount of vacation pay for January will be included in the December reporting (in 2-NDFL annual and in 6-NDFL).
The same applies to accountable amounts. If the report for a December business trip was submitted in January, and there is an overexpenditure that is subject to taxation, then the date of receipt of income will be considered the last day of January - the month when the advance report was approved. There is no need to include this amount in December.
The situation is similar with income based on material benefits. How to calculate it, for example, if an interest-free loan was received by an employee in 2015 and is being repaid now? From January 1, 2021, the date of receipt is defined as the last day of the month. Regardless of when the loan was taken out, if we determine income now, it will still be the last day of the month, and not the date of repayment of such a loan.
Line 025 – income in the form of dividends
Many times, tax agents paying only dividends got confused and did not indicate the amount from line 025 in line 020. But 025 is “including”. Therefore, if line 025 is filled, then its value should also be included in 020.
Line 040 - amount of calculated tax
Please note that there is no clear adherence to the formula, such as “the value in line 040 is equal to “020” minus “030” multiplied by the tax rate.” Considering that not all income can be subject to a cumulative rate of 13%, the amount of calculated tax may not be equal to the accrued income minus deductions, multiplied by the rate, because 6-NDFL indicates the total amount of income for all taxpayers and kopecks may appear (taking into account clause 6 of Article 52 of the Tax Code of the Russian Federation).
There are signals that some tax authorities require compliance with such a formula without taking into account errors. It is not right. There is an error inherent in the control ratios.
Line 050 - amount of fixed advance payment
The line is filled in only if there is a notification from the tax authority to reduce tax by the amount of fixed advance payments.
Line 060 – number of individuals who received income
It is the number of individuals that is summed up, and not the number of 2-NDFL certificates and appendices 2 to the income tax return. That is, if one person has both 2-NDFL and Appendix 2, then in 060 he is reflected as one person, not two.
Line 070 - amount of tax withheld
This, unlike 2-NDFL, includes only those amounts of tax that are actually withheld in the reporting period. If, for example, wages for December were paid in January, then it goes into line 020, but the tax on it does not go into line 070. The tax will be withheld in January and, accordingly, will appear in line 070 only in reporting for the first quarter of 2021.
Accordingly, there is no need to put this amount of tax in line 080. It indicates only those amounts of tax that the agent did not withhold during the tax period.
Since January 2021, changes have been made to the Tax Code - there is a clear definition of the impossibility of withholding during the tax period. If on December 31 it is impossible to withhold tax, for example, from income paid in kind or from material benefits, then 2-NDFL with sign 2 is submitted. From January 1, 2021, such tax will no longer be paid according to the declaration, as was previously the case, but on based on a tax notice sent by the tax authority. That is, the taxpayer no longer has to run with the declaration and pay the tax before July 15, but must wait for the tax notice and pay the tax before December 1. But this applies only to those amounts of tax that the tax agent did not withhold. When selling, for example, property, the old declaration procedure remains.
Section 2
Section 2 of form 6-NDFL is used to control the completeness and timeliness of personal income tax transfers to the budget. That is, its indicators fall into the CRSB. The deadline for transferring the tax and the amount minus the tax returned by the tax agent are controlled.
Line 100 – date of actual receipt of income
Determined in accordance with Art. 223 Tax Code of the Russian Federation.
Line 110 – tax withholding date
This is the date on which the income is directly paid. If the salary for December is paid on January 12, then in line 100 there will be the date of actual receipt of income - December 31, and in 110 - the date of tax withholding - January 12. The tax payment deadline is January 13.
Attention! If the December salary is paid in January, then it is reflected only in the first section of the annual report, in line 020, 030, 040. It is not reflected in line 070, since the tax is not withheld. And in the second section of 6-NDFL it will be reflected in the first quarter of 2017.
If in line 110, for example, the tax withholding date is the 5th, and in the 120th transfer period it is the 6th, then the amount indicated in line 140 should go to the budget from the 5th to the 6th. That is, in the period from 110 to 120 lines. Simple formula. If it is not received within this period, a corresponding arrears will arise. And if it suddenly arrived on the 4th, then it will not apply to this tax.
Drawing up updated calculations for 6-NDFL
Error in gearbox and OKTMO
If in 6-NDFL there is an error in indicating the checkpoint and OKTMO, then there is a temporary procedure for how to submit the updated calculation. It will be necessary to submit an updated report with the same incorrect checkpoints and OKTMO, but with zero values. And submit a new calculation - with the correct checkpoints and OKTMO, and with normal total values. Moreover, if the new 6-NDFL calculation is submitted later than the deadline established by Article 230 of the Tax Code, then, taking into account the provisions of Articles 81 and 111 of the Tax Code, liability does not apply.
Changing the location of the organization
If the location of an organization changes during the year, it is necessary to submit two 6-NDFL calculations. For the period of placement at the previous location - indicating the OKTMO of the previous location and the amounts listed at that location. And a new calculation with a new OKTMO. Both calculations are submitted to the new location, to the new inspection. The procedure is reflected in the letter of the Federal Tax Service dated December 27, 2016 No. BS-4-11/25114.
Reflection of errors in ZUP 3.1 documents
In our example, the error occurred due to an incorrect selection of the Month
in the
Vacation
. Next, she was included in the leave payment sheet and through her influenced the completion of the 6-NDFL calculation.
Let's look at how to do it right. The working methodology in the program "1C: Salary and Personnel Management 8" provides that in the Vacation
In the
Month
, you must indicate the month in which the average earnings were calculated and vacation pay was accrued.
