In many accounting journals designed forprofessionals, there is a lot of information on how to calculate compensation for unused vacation. At the same time, with the dismissal of employees, as in many other cases, a lot of related issues arise. In this article, we will try to explain in as much detail as possible how payments for an unused annual rest period are calculated, how to calculate taxes and other deductions.
The first step is to clearly understand thatEmployees claiming compensation for unused vacation days are divided into two categories. Firstly, they are employees who leave, and, secondly, employees who continue to perform their duties without care in the planned annual leave.
So, a vacation is a period of time, induring which a person who has worked more than eleven months, rests. In the case where an employee does not use his legal rest or is dismissed, he must receive monetary compensation.
In the legislative acts it is stated that the annualscheduled holidays can not be replaced by monetary compensation for workers, workers in hazardous industries, pregnant women, and persons under the age of eighteen.
At dismissal of the employee who occupiedmanagerial position or working in the field of providing educational services, for example, teachers, educators and the like, a person can expect to compensate for unused leave after only ten months worked.
The employee is transferred to another company? In this case, at his request, compensation for unused vacation can be transferred to the account of the new organization. Moreover, it is possible to receive payments only for part of the vacation, and the rest of the estimated rest time is used for the intended purpose. At the same time, the law specifies that the second part can not be less than two weeks.
At many enterprises there is a so-calleda collective agreement in which any additional points on which compensation for an unused vacation may be given, but the conditions prescribed may not reduce the amount of money prescribed in the legislation.
Compensation for unused vacationis calculated as follows: the number of months worked is multiplied by 2.33, that is, by the number of days of vacation earned for 1 month. The received number is multiplied by the amount earned by the person in one working day. As a result of such calculations, material compensation is obtained.
Causes some questions and compensation forunused vacation contributions for which must be deducted to the pension and other funds. Since payments for unused vacation are considered income of the employee, they are taxed on general grounds, that is, all taxes on personal income must be calculated and deducted. Since payments for unused vacation with the dismissal of an employee are made on his last business day, the taxes are transferred simultaneously with the accrual of monetary compensation.
In the event that the employee is dismissed because ofviolations of labor discipline, for example, coming to work under the influence of alcohol, systematic delays and the like, then such an employee is not entitled to receive annual leave. Note that this does not mean at all that he can not count on material compensation, which must be assessed and paid on time.
As you can see, there are a lot of nuances, each of which must be taken into account when calculating compensation for unused annual leave.