Who and in what order calculates income tax

If I were an accountant, then without hesitation, I could tell you what income tax on wages is and how to calculate it. But I am a lawyer and I have had difficulties with the calculation of personal income tax several times.

This continued until I had to issue an income tax certificate and make all the necessary deductions and calculations.

Before proceeding with the calculations, I studied the tax code and found out the procedure for calculating the required amount, and also learned about the mechanism for distributing personal income tax in the future. Let's discuss this popular topic and find out how income tax is calculated from wages, according to the existing procedure.

The personal income tax deduction from wages is a standard tax that is levied on all personal income. An important nuance is the fact that the employee himself or his tax agent (employer) makes the payment.

Withholding income tax is the responsibility of the agent. In addition to the necessary calculations, the employer must perform the transfer of income tax.

All calculations are performed only in relation to the funds that the employer transfers to the employee as earnings. He cannot tax other income that a citizen receives not working.

According to Russian laws, at each place of work, in relation to each amount earned, this taxation procedure is applied. In addition to earnings, personal income tax is withheld from sick leave, bonuses, vacations and other benefits.

What tax deductions apply for preferential taxation

When it comes to benefits when calculating personal income tax, it is worth mentioning tax deductions. These amounts are removed from earnings, and income tax is deducted from the remainder. The following options are available as deductions:

• standard (usually 400 rubles) when the employee has children. This amount is assigned to each child;
• property - provided at the place of employment of a citizen, if the employee bought a house with a mortgage or took a loan for the construction of a dwelling;
• social - are used in the training of a citizen on a paid basis.

Any citizen can use his right to receive a deduction only after providing the necessary documentation. As a basis for such withholding, an application is used, as well as a notification issued by the Federal Tax Service.

Usually the last document is provided in relation to property and social deductions. Immediately after the notification message is submitted to the accounting department at the place of employment, income tax will be withheld from the employee's earnings, but already taking into account the existing deductions.

If the benefits were not taken into account, then next year the citizen will be able to apply with documents to the tax office to return the due amount. If funds are not transferred, there is an arrears at the rate of 1/300 of the rate of the Central Bank of the Russian Federation.

More information can be found in the video:

How to calculate tax correctly

To determine the amount of tax, you should act strictly in accordance with the standard algorithm:

• first you need to sum up all income received by a citizen in the form of earnings, including bonuses and other benefits;
• determine the amount of deductions that are due to a particular employee;
• deduct the amount of deductions from the amount of earnings;
• taking into account the status of the worker, determine the tax rate. Usually, we are talking about 13% - personal income tax, which is paid by a resident and 30% - paid by a non-resident;
• the due percentage is deducted from the amount and transferred to the federal budget;
• the employee is given earnings minus the personal income tax already withheld.

This procedure has been in force for a long time and does not cause any complaints and difficulties and officials.

The formula that is used to calculate personal income tax

To calculate the total amount of tax, the standard formula is used:

personal income tax = (ZP-B) * rate, where:

ZP - earnings of a citizen;

B - deductions that are due to a citizen;

the rate is 13 or 30%.

As an example, let's give a specific example: Vasilyeva, an employee, has two children and earns 30 thousand rubles a month and a bonus of 1000 rubles. Let's do the necessary calculations:

((30000+1000) - (1400 * 2)) * 13% = 3666 rubles - the employer is obliged to pay this amount to the state revenue, within three days after the calculations are completed. The employee will receive 31000 - 3666 = 27334 rubles in her hands.

How is the withholding of personal income tax

After calculations and transfers of the mandatory amount to the budget, within the prescribed period, the employer is obliged to submit a specially drawn up report. In this document, a special certificate is drawn up for each employee, which indicates monthly earnings and the calculated tax amounts. Payments and interest rate on tax must be entered.

Instead of totals

The calculation of personal income tax is carried out in relation to the earnings of each employee. The calculation process involves the implementation of a number of mandatory actions that are aimed at determining the amount of personal income tax and transferring funds to the state budget.

Deductions are determined on an individual basis, taking into account the life circumstances of a citizen (number of children or in connection with the purchase of property). The interest rate may vary depending on the status of the employee.