Delivery of employees to work and back: accounting without fear or reproach
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This article from the magazine “MAIN BOOK” is current as of June 22, 2012.
Contents of the magazine No. 13 for 2012 M.G. Sukhovskaya, lawyer
Often, an organization is located where “no steamships or trains go”, or its operating hours are such that it is impossible to get to the beginning of a shift by public transport (or go home after it ends). A typical example where both of these factors are present are stores in megamalls located outside the city, or manufacturing enterprises located in industrial zones.
In these cases, the company has almost the only way to ensure the presence of employees at their workplaces - to organize their transportation to work and back using its own or third-party transport. The accountant’s task is to take into account this delivery in such a way that it is profitable for the company and the inspectors do not find fault. Is this real?
When there should be no complaints
Let's start with the fact that, according to the Ministry of Finance, an organization can take into account the costs of transporting employees only if two conditions are simultaneously met. 26 Art. 270 Tax Code of the Russian Federation; Letter of the Ministry of Finance dated May 20, 2011 No. 03-03-06/4/49.
CONDITION 1. The delivery of employees is caused by technological features of production
In particular, the courts include Resolutions of the FAS VSO dated September 27, 2010 No. A33-18167/2008; FAS MO dated June 17, 2009 No. KA-A40/4234-09; FAS UO dated 02/02/2009 No. Ф09-36/09-С2, dated 12/17/2007 No. Ф09-10398/07-С3:
- <or>the organization’s remoteness from populated areas or public transport stops;
- <or>lack of regular public transport routes or their low capacity and significant traffic intervals;
- <or>continuous or multi-shift work schedule of the organization;
- <or>round-the-clock or long-hour operation of retail facilities (that is, the working day ends late, when transport no longer runs).
The presence of these factors can be confirmed, for example, by the following documents:
- the company work schedule, which indicates the start and end times of each shift;
- technological map confirming the continuous production process;
- a certificate from the local administration or local automobile companies about the availability of routes or their schedules in a specific city, region, or town.
Not long ago, a Moscow court rejected the tax authorities’ arguments about the inexpediency of spending on transporting workers due to the location of construction sites close to the metro and bus stops. At the same time, the court recognized as a technological feature of production the fact that during construction work, workers’ clothes become heavily soiled, while at the construction site they have no place to change clothes and take a shower. And according to the rules of travel on the capital's public transport. 6.4.1, 6.4.11 of the Rules, approved. Decree of the Moscow Government dated September 2, 2008 No. 797-PP; clause 2.11.16 of the Rules, approved. By Decree of the Moscow Government dated September 16, 2008 No. 844-PP, it is prohibited to wear soiled or smelly clothing in transport. The court also took into account the need to simultaneously transport large groups of workers who cannot be transported by public transport Resolution 9 AAS dated November 11, 2011 No. 09AP-28208/2011-AK (left in force by Resolution of the Federal Antimonopoly Service of the Moscow Region dated February 29, 2012 No. A40-50862/11).
CONDITION 2. Delivery is provided for by the labor and (or) collective agreement
Note that in fact, from paragraph 26 of Art. 270 of the Tax Code of the Russian Federation does not directly imply that the costs of transporting workers to work and back can be included in expenses only if both of these conditions are met. The fact that these conditions are alternative, and not cumulative, is also indicated by some courts of Resolution 19 of the AAS of October 17, 2011 No. A08-2729/2011; FAS VSO dated September 27, 2010 No. A33-18167/2008. However, inspectors will certainly be guided by the approach of the Ministry of Finance.
So, if the above conditions are met, tax accounting for delivery costs will look like this.
| Taxes/fees | Delivery is made using our own or rented transport | The company uses the services of a third party company |
| Income tax | Costs are accounted for as:
| Costs are taken into account as other expenses sub. 4 paragraphs 2 art. 253, sub. 10, 49 p. 1 art. 264 Tax Code of the Russian Federation |
| Tax under the simplified tax system (“income minus expenses”) | Costs are taken into account as 2 tbsp. 346.16, paragraph 2 of Art. 346.17 Tax Code of the Russian Federation:
| |
| VAT | Not accrued, since delivery costs are deductible when calculating income tax. 2 p. 1 art. 146 of the Tax Code of the Russian Federation Input VAT on the cost of fuels and lubricants, spare parts, as well as from rent is accepted for deduction. 2 tbsp. 171, art. 172 Tax Code of the Russian Federation | Input VAT relating to the cost of delivery services provided by a third party is deductible. 2 tbsp. 171, art. 172 Tax Code of the Russian Federation |
| Personal income tax | Articles 41, 209 of the Tax Code of the Russian Federation are not charged; Letter of the Ministry of Finance dated October 20, 2011 No. 03-03-06/1/680; Resolution of the Federal Antimonopoly Service NWZ dated 02/08/2011 No. A56-12834/2010; Part 1 Art. 7 of the Law of July 24, 2009 No. 212-FZ; clause 1 art. 20.1 of the Law of July 24, 1998 No. 125-FZ, since:
| |
| Insurance contributions to the Pension Fund, Social Insurance Fund, Compulsory Medical Insurance Fund | ||
| Contributions to the Social Insurance Fund for accident insurance | ||
Controversial issues arise regarding the emergence of the object of personal income tax taxation
Financiers only agree that payment by the company of the cost of delivering workers from the collection point (reflected in the provisions of the employment contract with the employee) to the place of work is not subject to personal income tax (Letters of the Ministry of Finance of the Russian Federation dated December 8, 2011 No. 03-04-06/6 -342, dated 02.02.2010 No. 03-04-06/68).
However, according to the regulatory authorities, payment for the delivery of workers from their place of residence to the collection point or to the place of work and back, made at the expense of the employer, is recognized as income received by the employee in kind and is subject to taxation in the generally established manner on the basis of paragraph 1 Clause 2 of Article 211 of the Tax Code of the Russian Federation (Letters of the Ministry of Finance of the Russian Federation dated February 26, 2013 No. 03-04-06/5379, dated June 30, 2011 No. 03-03-06/1/384, Federal Tax Service for Moscow dated 05/29/2008 No. 21-11/ [email protected] ).
But the courts do not share this approach.
Delivery of workers to their place of work
Many have observed a picture where at a certain place people get on a departmental bus and go straight to the checkpoint gate. The costs of such delivery are borne by the organization. How to reflect them in accounting? Can they be taken into account when taxing profits? Does this generate income subject to unified social tax and personal income tax? You will find answers to these questions in this article.
At the appointed hour, a departmental bus arrives at the appointed place, taking the gathered people to work. This kind of picture occurs quite often, doesn’t it? Many companies transport their employees from the collection point to the place of work and back. At the same time, the adoption of such a decision by an enterprise may be due to various reasons.
Sometimes this is due to the specific location and mode of operation of the enterprise. For example, the enterprise is located outside the city or in an industrial area where public transport does not go. Or maybe workers’ shifts start or end at a time when public transport is not working. Then it is impossible to do without official transport - otherwise many workers simply will not get to work.
In other cases, such a measure is not a “vital” necessity. The company simply takes care of its employees, providing them with comfortable conditions on the way to work and back.
The employer’s obligation to transport employees to the place of work and back may be established by a collective and (or) labor agreement or not provided for by such(es).
Most often, employees use the company bus for free. In the event that special bus routes are organized to transport workers, they may be charged (partially or completely) a fare.
Delivery of workers can be carried out by the enterprise’s own vehicle, or the enterprise can use the services of a third-party organization. In both cases, the organization bears costs.
In accounting, the costs of transporting employees to work and back, in our opinion, are always reflected in account 26 “General business expenses” as part of expenses for ordinary activities under the item other expenses.
Tax accounting of expenses for the maintenance and servicing of rotational camps
Expenses for the maintenance of a rotational camp (village), including all housing, communal and social facilities, subsidiary farms and other similar services, are considered other expenses, which for tax purposes are recognized within the limits of the standards for the maintenance of similar facilities and services (clauses 32 clause 1 of article 264 of the Tax Code of the Russian Federation).
If such standards are not approved, the company has the right to apply the procedure for determining the costs of maintaining these facilities, which is in force for similar facilities located in the given territory and subordinate to the above authorities, or in the amount of the actual costs of the taxpayer (Letters of the Ministry of Finance of the Russian Federation dated September 3, 2012 No. 03 -03-06/1/460, dated September 10, 2010, No. 03-03-06/1/583, Federal Tax Service of the Russian Federation for Moscow, dated July 13, 2009, No. 16-15/071480.2 and No. 16-15/ 071475).
ACCOUNTING OUTSOURCING
An employer can rent housing for its employees. In this case, rent for the use of buildings and structures intended to support the livelihoods of workers involved in work on a rotational basis while they are at the work site is taken into account for profit tax purposes on the basis of paragraphs. 10 p. 1 art. 264 of the Tax Code of the Russian Federation (Letters of the Ministry of Finance of the Russian Federation dated September 30, 2012 No. 03-03-06/1/460, dated September 2, 2011 No. 03-04-06/0-197, dated June 30, 2011 No. 03- 03-06/1/384).
Important!
Thus, in the case when a company does not have a rotational camp and rents places in a dormitory, rental costs can also be taken into account in income tax expenses as part of other expenses associated with production and sales, provided they comply with the provisions of Article 252 of the Tax Code RF (Resolution of the AS of the West Siberian District dated November 18, 2015 No. A81-6877/2014).
There are no special features regarding the taxation of the cost of living of employees with personal income tax and insurance contributions.
Payment by the employer for accommodation of employees hired on a rotational basis, provided for in Article 297 of the Labor Code of the Russian Federation, is similar to reimbursement of expenses for employees who rent residential premises, whose work is related to business trips and trips, and is not subject to personal income tax (clause 3 of Article 217 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance of the Russian Federation dated July 19, 2016 No. 03-04-06/42359, dated June 30, 2014 No. 03-04-06/31365, dated March 11, 2010 No. 03-04-06/6-29, Federal Tax Service of the Russian Federation for Moscow dated July 13, 2009 No. 16-15/071475).
SUBSCRIBER LEGAL SERVICES
The cost of living for shift workers is not subject to insurance contributions (clause 2, clause 1, article 422 of the Tax Code of the Russian Federation - from January 1, 2020, clause "and" clause 2, part 1, article 9 of Law No. 212-FZ - until January 1, 2020), incl. and insurance premiums for insurance against accidents and occupational diseases (clause 2, clause 1, article 20.2 of Law No. 125-FZ).
Income tax
Expenses of the organization in accordance with clause 1 of Art. 252 of the Tax Code of the Russian Federation recognizes any justified and documented expenses incurred to carry out activities aimed at generating income, with the exception of expenses directly listed in Art. 270 Tax Code of the Russian Federation.
In accordance with paragraph 26 of Art. 270 of the Tax Code of the Russian Federation, an enterprise has the right to include expenses for travel of employees to the place of work and back using special routes and departmental transport:
- as part of other expenses associated with production and (or) sales on the basis of paragraphs. 49 clause 1 art. 264 of the Tax Code of the Russian Federation, if the delivery of workers is carried out due to technological features of production;
- included in labor costs on the basis of clause 25 of Art. 255 of the Tax Code of the Russian Federation, if the employer’s obligation to pay the employee’s travel is established by an employment and (or) collective agreement.
In other cases, these expenses are not taken into account for profit tax purposes (clause 26, article 270 of the Tax Code of the Russian Federation).
The Tax Code of the Russian Federation does not explain what is meant by technological features of production. Considering that, according to paragraph 7 of Art. 3 of the Tax Code of the Russian Federation, all irremovable doubts and ambiguities of tax legislation are interpreted in favor of the taxpayer; this concept can be interpreted quite broadly.
As an example, consider a nuclear power plant. Due to the specific nature of production, the nuclear power plant is located in an area that is safe for human habitation, i.e. at a considerable distance from populated areas. You can get to it only by official transport or by personal car. Therefore, the costs of transporting workers to the place of work and back for nuclear power plants are determined by the technological features of production.
Technological features include a continuous production cycle, when the enterprise operates around the clock, most often in a multi-shift mode. Moreover, the shift can begin or end at night, when public transport is not functioning. In such a situation, the only way to get to or from work is by personal transport or taxi. However, not all employees have a personal car.
Consequently, the enterprise is forced to bear the costs of transporting employees to and from work or pay them the cost of taxi travel. These costs can be classified as other costs associated with production and sales. The justification for including these costs in expenses can be fixed in the local regulatory act of the enterprise. It should also indicate the operating hours of the service vehicle, its route, etc.
The costs of transporting workers at other times (during public transport operating hours) cannot be considered economically justified, and therefore, the enterprise will not be able to take them into account for profit tax purposes (provided that they are not provided for in a collective and (or) employment agreement).
But what about enterprises located “in settlements” not by virtue of legal requirements, but solely of their own free will?
For example, an organization rents an office or warehouse in an industrial zone or in a populated area that is not served by public transport. Do organizations have the right to expense the costs of transporting employees in this case?
In our opinion, you have the right. After all, the organization incurs expenses due to production needs. Therefore, these expenses are justified.
Cases where workers can only get to their place of work and back by departmental (special) transport due to the lack of public transport routes are considered by the Russian Ministry of Finance as delivery made due to the technological features of production (see Letters of the Russian Ministry of Finance dated May 11, 2006 N 03-03 -04/1/434, N 03-03-04/1/435).
However, in order to include these costs in expenses, according to the financial department, one more condition must be met: delivery must be provided for in a collective and (or) employment agreement. If this condition is not met, then the enterprise does not have the right to take into account the costs incurred for profit tax purposes (see Letters of the Ministry of Finance of Russia dated May 11, 2006 N 03-03-04/1/434, N 03-03-04/1/435).
In our opinion, the Russian Ministry of Finance is wrong.
The Tax Code of the Russian Federation provides for two independent, mutually independent grounds for including delivery costs in expenses: technological features of production and reflection of the obligation to deliver workers to the place of work and back in the labor and (or) collective agreement.
In order to take costs into account for profit tax purposes, one reason is sufficient. Thus, by stipulating the condition for the delivery of workers to the place of work and back in a collective and (or) labor agreement, the enterprise will be able to take into account the costs incurred as part of labor costs, even if there are no technological features of production.
In a different situation (there are technological features, but the corresponding provision is not fixed in the collective and (or) employment agreement), delivery costs can be taken into account as part of other costs associated with production and sales.
But since the financial department adheres to a different point of view, this position will lead to a dispute with the tax authorities, which the company will have to resolve in court.
Attribution of costs for transporting employees to the place of work and back in accordance with Art. 264 of the Tax Code of the Russian Federation may also become the subject of a dispute with tax authorities because Ch. 25 of the Tax Code of the Russian Federation does not define the concept of “technological features of production”.
In order to avoid a dispute, it is advisable to reflect the condition on the delivery of workers to the place of work and back in the collective and (or) labor agreement.
In this case, the enterprise with a 100 percent guarantee will be able to take into account the costs incurred when calculating income tax.
Delivery to work
Published May 25, 2020 at 09:57
Hello! Labor legislation provides for the employer's obligation to transport employees to and from work only when working on a rotational basis. In other cases, this issue should be regulated only by agreement of the parties. The employer is not obliged to transport employees to and from work if this is not stipulated either in the employment contract or in any other local regulatory act of the enterprise. The employer's responsibilities are spelled out in Article 22 of the Labor Code of the Russian Federation. The employer is obliged to: comply with labor legislation and other regulatory legal acts containing labor law norms, local regulations, terms of the collective agreement, agreements and employment contracts; provide employees with work stipulated by the employment contract; ensure safety and working conditions that comply with state regulatory requirements for labor protection; provide employees with equipment, tools, technical documentation and other means necessary to perform their job duties; provide workers with equal pay for work of equal value; pay the full amount of wages due to employees within the time limits established in accordance with this Code, collective agreement, internal labor regulations, and employment contracts; conduct collective negotiations, as well as conclude a collective agreement in the manner established by this Code; provide employee representatives with complete and reliable information necessary for concluding a collective agreement, agreement and monitoring their implementation; familiarize employees, against signature, with the adopted local regulations directly related to their work activities; timely comply with the instructions of the federal executive body authorized to exercise federal state supervision over compliance with labor legislation and other regulatory legal acts containing labor law norms, other federal executive bodies exercising state control (supervision) in the established field of activity, pay fines imposed for violations of labor legislation and other regulatory legal acts containing labor law norms; consider submissions from the relevant trade union bodies and other representatives elected by employees about identified violations of labor legislation and other acts containing labor law norms, take measures to eliminate the identified violations and report the measures taken to the specified bodies and representatives; create conditions that ensure the participation of employees in the management of the organization in the forms provided for by this Code, other federal laws and the collective agreement; provide for the everyday needs of employees related to the performance of their job duties; carry out compulsory social insurance of employees in the manner established by federal laws; compensate for harm caused to employees in connection with the performance of their labor duties, as well as compensate for moral damage in the manner and on the terms established by this Code, other federal laws and other regulatory legal acts of the Russian Federation; perform other duties provided for by labor legislation, including legislation on special assessment of working conditions, and other regulatory legal acts containing labor law norms, collective agreements, agreements, local regulations and employment contracts.
Unified social tax
According to paragraph 1 of Art. 236 of the Tax Code of the Russian Federation, the object of UST taxation is payments and other remuneration accrued by organizations and entrepreneurs in favor of individuals under employment and civil law contracts, the subject of which is the performance of work, provision of services, as well as under copyright agreements.
The tax base under the Unified Social Tax includes any payments and remuneration, regardless of the form in which these payments are made, in particular, full or partial payment for goods (work, services, property or other rights) intended for an individual employee, including utilities , food, rest, training in his interests (clause 1 of article 237 of the Tax Code of the Russian Federation). That is, theoretically, payments in kind can participate in the formation of the tax base for the unified social tax.
The Ministry of Finance of Russia proposes not to take into account the amount of costs for transporting employees to the place of work and back, which is not established by the collective and (or) labor agreement, for profit tax purposes on the basis of clause 26 of Art. 270 of the Tax Code of the Russian Federation and, accordingly, not to be subject to unified social tax (clause 3 of Article 236 of the Tax Code of the Russian Federation) (see Letter of the Ministry of Finance of Russia dated May 11, 2006 N 03-03-04/1/434).
If the amount of such costs was provided for in the employment contract and taken into account by the enterprise for profit tax purposes as part of labor costs, is it necessary to accrue unified social tax on the cost of delivering employees?
The Russian Ministry of Finance proposes to carry out the watershed as follows.
If an enterprise organizes the delivery of employees to the place of work and back due to production needs (for example, due to the lack of public transport routes at the location of the enterprise), then payment for such delivery cannot be considered a payment intended for the employee and made in his interests (see Letter of the Ministry of Finance of Russia dated April 14, 2006 N 03-05-02-04/46).
If the delivery of workers is the good will of the enterprise and it has reduced taxable profit by the amount of such costs, then the unified social tax must be charged on the cost of such delivery (Letter of the Ministry of Finance of Russia dated May 18, 2006 N 03-05-01-04/110).
In our opinion, one more point needs to be clarified: are these payments personalized?
The fact is that the tax base under the Unified Social Tax is determined separately for each individual (clause 2 of Article 237 of the Tax Code of the Russian Federation). As a rule, payment for transport company services does not depend on the number of workers transported. No records are kept of employees who use the company bus. Consequently, it is impossible to determine the amount of payments made for any period (for example, a month) in favor of a specific employee.
Thus, it is impossible to calculate the tax base for the unified social tax. But this is unlikely to save the organization from a dispute with tax authorities, since they insist that it is necessary to keep personalized records of employees using official transport.
The Supreme Arbitration Court of the Russian Federation has the following position on this issue.
Payment to transport organizations for the delivery of workers to their place of work and back is an enterprise expense associated with the organization of production activities.
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| seregagod |
| please tell me, I go to work from a locality that is located not far from Vitebsk. it is outside the city limits. Are there any deductions for this or, for example, the possibility of paying me for travel, since I have to travel from one locality to another? thank you in advance! |
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| Sergeevna [email hidden] Belarus, Brest Wrote 773 messages Write a private message Reputation: | #2[535484] September 4, 2012, 16:07 |
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If he cannot find another suitable employee within the organization’s location.
And they can even send a personal car with a driver for you... So, it all depends on you!
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| Lisa [email hidden] Belarus, Minsk Wrote 57 messages Write a private message Reputation: | #5[550571] October 29, 2012, 16:18 |
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Delivery of employees
Payments in favor of employees recognized as subject to UST taxation are not made (see Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated February 27, 2006 N 10847/05).
An exception to the general rule is the situation when employees of an enterprise have the opportunity to use documents that serve as the basis for travel on public transport to and from work, and for travel for personal needs. In this case, payment for the services of transport organizations for transporting enterprise employees to and from work must be considered as a payment in favor of employees and subject to the unified social tax (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation of November 29, 2005 N 9532/05).
Reimbursement of travel expenses by force of law
Cases when the employer is obliged to pay for the travel of employees are established by the Labor Code of the Russian Federation. According to Art. 168 of the Labor Code of the Russian Federation, the employer reimburses employees for travel expenses when sent on a business trip. And in accordance with Art. 168.1 of the Labor Code of the Russian Federation, transportation costs associated with business trips are reimbursed to employees whose permanent work is carried out on the road or is traveling in nature. Moreover, employees who, due to official needs, are forced to move within the locality, are also entitled to compensation for travel on public transport.
When an employee moves, by prior agreement with the employer, to work in another area in accordance with Art. 169 of the Labor Code of the Russian Federation, an employee is entitled to compensation for travel to his place of work and new place of residence not only for himself, but also for his family members. And on the basis of Art. 325 of the Labor Code of the Russian Federation, some of our fellow citizens can even go on vacation for free. Such compensation for travel to a place of rest and back within the Russian Federation is provided once every two years to persons working in organizations located in the regions of the Far North and equivalent areas, and annually to employees of federal government bodies and institutions.
Personal income tax
When determining the tax base for personal income tax, all income of an individual received by him both in cash and in kind, as well as income in the form of material benefits (clause 1 of Article 210 of the Tax Code of the Russian Federation) are taken into account.
Income is recognized as an economic benefit in monetary or in-kind form, taken into account if it is possible to assess it and to the extent that such benefit can be assessed, and determined in accordance with Chapter. 23 of the Tax Code of the Russian Federation (Article 41 of the Tax Code of the Russian Federation).
A situation where an employee cannot get to work by any other means of transport other than official ones (a personal car is not taken into account; not everyone has one) should be considered as a production necessity. In this case, the employee does not receive any economic benefit from using company transport. Consequently, he does not have income subject to personal income tax (see Letter of the Ministry of Finance of Russia dated May 11, 2006 N 03-03-04/1/434).
If an employee uses a company bus in a situation where he has an alternative way to get to and from work (for example, a municipal bus runs to the enterprise), then he receives income in kind in the form of the cost of services provided in his interests free of charge. basis (clause 2, clause 2, article 211 of the Tax Code of the Russian Federation).
When an employee receives income in kind, the tax base is calculated as the cost of these services, calculated on the basis of prices determined in a manner similar to the procedure provided for in Art. 40 of the Tax Code of the Russian Federation (clause 1 of Article 211 of the Tax Code of the Russian Federation). The enterprise from which the employee received this income is obliged to calculate, withhold and pay the amount of tax to the budget (clause 1 of Article 226 of the Tax Code of the Russian Federation).
However, the enterprise cannot calculate the amount of income for each employee in this case. Personal income tax is not paid on impersonal payments (clause 8 of the Information Letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 21, 1999 N 42).
In our opinion, this approach is still applicable today because personal income tax, like income tax, is withheld from the income of a specific individual.
However, the Russian Ministry of Finance takes a different point of view on this issue (see Letter dated May 18, 2006 N 03-05-01-04/110).
The financial department believes that the enterprise must organize and maintain personalized records of employees using company transport. This is necessary to determine the amount of delivery payment per employee. It is this amount that it must include in the personal income tax tax base of each employee.
I. Kiryushina
AKDI "Economics and Life"
For most enterprises and organizations in large cities, one of the main tasks is organizing timely delivery of personnel to their place of work. This is especially true for Moscow, where during rush hour there are continuous traffic jams on the main roads, and it is impossible to squeeze in public transport.
Staff delivery options
The choice of method of transporting personnel to work should be based on the number of employees, the income of the enterprise, the ability to organize parking for vehicles, as well as the importance of the work performed by the employee. Therefore, many companies practice the following types of deliveries:
- Purchase of a service bus on the balance of the enterprise, which will allow you to independently organize transportation. However, in this regard, there will be costs for boxing equipment, maintenance, insurance and the purchase of consumables. You will also need to hire an experienced driver from outside, or search among employees. If there are a large number of employees, it is advisable to buy several buses to reduce the time for collection and transportation;
- Providing personal business transport for employees. This option is usually used for the delivery of management personnel who need to travel on business trips, or for valuable employees as an incentive;
- Bus rental.
Personal income tax and insurance premiums: non-shift method
Situation: is it necessary to withhold personal income tax from the cost of transporting employees to their place of work and back? The organization does not use a rotation method, but organizes the delivery of personnel at its own expense.
The answer to this question depends on whether employees can independently get to their place of work and back by public transport or not.
If this is not possible, do not withhold personal income tax from the fare amount. This is due to the fact that in the absence of public transport, the cost of travel for employees to their place of work and back is not an economic benefit (income) of the employee (Article 41 of the Tax Code of the Russian Federation). This opinion is also shared by the Russian Ministry of Finance (letters dated March 6, 2013 No. 03-04-06/6715, dated November 24, 2011 No. 03-03-06/1/778, dated October 20, 2011 No. 03-03 -06/1/680). The courts adhere to a similar point of view (see, for example, decisions of the Federal Antimonopoly Service of the East Siberian District dated July 15, 2008 No. A19-13528/07-30-F02-3200/2008, Northwestern District dated February 18, 2008 No. A21 -3559/2007, Ural District dated January 29, 2008 No. Ф09-9195/07-С2).
If employees can independently get to their place of work and back by public transport, personal income tax must be withheld from the cost of transporting employees. According to regulatory agencies, the cost of free delivery of employees at the initiative of the organization is their income received in kind (letters of the Ministry of Finance of Russia dated October 12, 2011 No. 03-04-05/6-728, dated July 17, 2007 No. 03- 04-06-01/247 and Federal Tax Service of Russia dated September 24, 2010 No. ШС-37-3/11928). It must be included in the tax base for personal income tax (clause 1 of article 210, clause 2 of article 211 of the Tax Code of the Russian Federation). Employees receive income regardless of whether their delivery is provided for by the labor (collective) agreement or not. The organization is obliged to withhold tax at the expense of any cash payments in favor of the employee (clause 4 of Article 226 of the Tax Code of the Russian Federation).
However, the obligations of a tax agent for personal income tax arise for an organization only if it can determine the amount of income received by each employee (clause 8 of the information letter of the Presidium of the Supreme Arbitration Court of the Russian Federation dated June 21, 1999 No. 42). Thus, in order to withhold personal income tax, the organization must take into account its costs for transporting personnel on a daily basis and distribute them among each employee brought to work on a given day. In letter dated July 17, 2007 No. 03-04-06-01/247, the Russian Ministry of Finance recommends determining the amount of such income based on the total cost of travel and data from the work time sheet (other similar documents).
An exception to this general case is the following situation. If an organization provides free transportation to work and back for disabled people who are unable to get to work and back on their own, such services can be classified as measures for the rehabilitation of disabled people (Article 9 of Law No. 181-FZ of November 24, 1995). At the same time, the cost of services for the rehabilitation of disabled people paid for by organizations is not subject to personal income tax (clause 22 of article 217 of the Tax Code of the Russian Federation). Thus, the organization does not have the obligation to withhold personal income tax when paying for transportation of disabled people to their place of work and back. A similar conclusion is contained in the letter of the Federal Tax Service of Russia for Moscow dated November 16, 2007 No. 28-11/109498.
Situation: is it necessary to charge insurance premiums for the cost of transporting employees to their place of work and back at the expense of the organization? The organization does not use a rotation method.
The answer to this question depends on whether or not the transportation of employees to and from work is determined by the technological features of production.
If the need for delivery is due to the technological features of production (i.e., employees have no other way to get to their place of work and back), it cannot be considered as a free service provided in the interests of employees. It does not matter whether the organization’s obligation to transport employees to the place of work and back is stipulated in the labor (collective) agreement or not. In this case, the cost of transportation does not fall under the criteria of the amounts taken into account in the calculation base for insurance premiums (Part 1, Article 7 of the Law of July 24, 2009 No. 212-FZ, Clause 1 of Article 20.1 of the Law of July 24, 1998 No. 125-FZ). Consequently, the object of taxation by insurance premiums does not arise in this situation.
If an organization delivers employees to their place of work on its own initiative in the absence of technological production features, then include the cost of delivery in the calculation base for insurance premiums. Calculate contributions even if the organization’s obligation to transport employees to their place of work is not specified in the labor (collective) agreement. After all, the cost of transportation services provided solely in the interests of employees is not included in the list of amounts not subject to insurance premiums. In addition, transportation of employees to their place of work occurs within the framework of the employment relationship. This conclusion follows from Part 1 of Article 7 and Article 9 of the Law of July 24, 2009 No. 212-FZ, paragraph 1 of Article 20.1 and Article 20.2 of the Law of July 24, 1998 No. 125-FZ. The correctness of this approach is confirmed in the letter of the Ministry of Labor of Russia dated May 13, 2014 No. 17-4/OOG-367 and the letter of the Federal Social Insurance Fund of Russia dated April 14, 2020 No. 02-09-11/06-5250. The judges agree with the officials (see Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation dated May 10, 2011 No. 17950/10). For more information about calculating contributions to compulsory pension (social, medical) insurance from the cost of services provided to an employee, but not specified in employment contracts, see What payments should be paid for compulsory pension (social, medical) insurance.
Delivery of an employee to the workplace
This option is not cheap, but the delivery is carried out by professionals, and the carrier company is responsible for the quality of delivery and the technical condition of the vehicles. For the enterprise, this option is the most profitable;
When is delivery by company transport profitable?
Transportation by transport at the expense of the enterprise is profitable if:
- The geographical location does not allow access to the place by public transport;
- Staff hours extend beyond the scope of public transport;
- Many employees live in the same area and the cost of their travel to work is comparable to or higher than the cost of gasoline;
- It is necessary to reduce the number of late arrivals, or vice versa – to encourage staff.
Organizational delivery issues
When using a taxi or a personal car, you only need to determine the length of the journey and fuel consumption, according to which you will pay. You can organize service delivery by bus as follows:
- Employees responsible for personnel are charged with finding out the place of residence of each employee. Then divide the personnel into groups based on the minimum distance they live from each other, and then, through a survey, find out a convenient place for them to gather;
- Agree the bus route with the driver;
- Make a clear movement schedule.
Conclusion
Delivery of personnel is a responsible undertaking, since it is necessary to take into account financial costs, select and use a suitable vehicle, take into account the wishes of employees, draw up a schedule and organize the entire process. With proper consideration of all these factors, work at an enterprise can become clearly planned, efficient and productive, since all employees will arrive at the workplace on time, without wasting time traveling on public transport and standing idle in traffic jams.
Travel expenses as part of remuneration and as a necessity
First of all, it should be noted that employee travel costs can be of two types:
- Those that are prescribed in the internal regulations of the organization and enshrined in the employment contract. With this approach, travel costs are included in wages and are part of it. Such expenses include the cost of traveling on public transport, in the form of financial assistance to a strictly limited circle of employees
- The delivery of employees to their place of work can be organized by the employer himself. Let's give a simple example. The work shop is located in a hard-to-reach place outside the city, public transport does not go there, and the nearest stop is very far from the place of work. In connection with this, the employer purchased a bus and transports workers to their place of work. If the employer does not have his own transport, then you can enter into an agreement with a company that will carry out such transportation
In the case when compensation for travel is included in the salary, it is a full part of income and the amount should be subject to salary taxes.
Order for delivery of employees to the place of work and back sample
For corporate clients, our Transport Company Prestige can offer special terms of cooperation that allow us to optimize the company’s transport costs while maintaining its image and mobility.
The current situation in the labor market forces employers to care about the comfort of their employees. This applies to both the work schedule and the method of delivering them to the workplace. Not all businesses have suitable vehicles. Delivery of employees to their place of work and back from TC "Prestige" will help in resolving this issue.
Our Transport Company Prestige has been operating in the transportation market for more than ten years. Thanks to the high quality of services provided by our company, we have established ourselves well and gained a foothold in the market.
Why should you choose?
Our company has the technical capabilities to transport people in urban areas.
Choosing TC "Prestige" as your partner will provide:
- Delivery of employees to their workplaces without delay.
- Safety of workers while traveling to and from work.
- You don't have to spend money on expanding your fleet.
- We begin our duties the next day after signing the contract.
- All vehicles belong to the comfort series.
- A 24-hour dispatch service constantly monitors the order fulfillment process with the Era-Glonass system.
- Individual manager for your organization.
- Wide selection of vehicles: cars, minibuses, buses.
- Possibility of concluding contracts with deferred payments.
- A convenient type of payment for you, we work both with and without VAT.
Delivery of employees is a responsible task. We have a large fleet of vehicles to carry it out. Vehicles are owned by the company. All vehicles undergo constant maintenance at specialized service stations. Drivers undergo pre-trip and post-trip medical examinations.
Drivers with a huge volume of work are allowed to drive a vehicle. Each of them has vast experience in passenger transportation and many thousands of kilometers of roads. An individual manager is assigned to your organization. His responsibilities include quality control over the fulfillment of all contractual obligations. Disputes arising during the work are resolved instantly.
The dispatch service optimizes routes. Due to this, the cost of services is reduced. The agreement provides for unforeseen situations. If necessary, the car is replaced. For the convenience of your employees, colored plates with the company logo are attached to the buses. Delivery of employees from TC "Prestige" is carried out according to a proven algorithm.
A potential client sends an APPLICATION for this service to our office. It must indicate:
- the number of employees
- frequency and time of travel
- destination and departure point
- contact information
Our manager will contact you shortly and offer the client; several vehicles will determine the most convenient route and the optimal cost of transporting your employees. 24-hour contract support and a professional approach to its implementation guarantee the punctuality and safety of your employees. We guarantee timely delivery of transport and delivery to work, and necessary business meetings.
Only technically serviceable vehicles are provided, equipped and equipped in accordance with the requirements of GOST No. 25479-91, current legislation on road safety, and rules for the transportation of passengers.
We can offer corporate clients any type of payment!
