Payroll and Taxes. Care, personal responsibility, quality

Transcription

1 Payroll and Taxes Care, personal responsibility, quality

2 Payroll Accounting The scope of the service includes: a) calculation of wages (accrual/calculation of monthly salary, annual paid vacation or unused vacation at dismissal, accrual/calculation of sick leave allowances, accrual/ calculation of business trip per diem allowances, as well as accounting of income in non-monetary form for correct calculation of taxes). and b) calculation of payroll taxes and insurance contributions: personal income tax (PIT), insurance contributions (the RF Pension Fund, Social Security Fund, Territorial Mandatory Medical Insurance Fund, Federal Mandatory Medical Insurance Fund) General calculation Provide in accordance with an approved schedule all required data and document copies related to payroll calculation, and namely: Decree on hiring/dismissal/vacation. Copies of sick leave certificates. Timesheet. Decree on bonuses and other incentive payments. Availability of approved Regulation on accrual of salary and bonuses, as well as other internal local documents having impact on the structure and calculation of salary is mandatory. Vacation schedule. Decree on sending an employee on a business trip, duty assignment. Copies of civil-legal agreements. Perform calculation of the relevant taxes and insurance contributions. Prepare payment orders for the transfer of salary, taxes and insurance contributions. Provide payroll register indicating all accruals made within the billing month and amount of PIT withheld. Furnish individual pay slips via electronic mail to each employee and the whole payroll sheet via electronic mail/regular mail to the designated employee of the Client. Provide information on the taxes and insurance contributions computed for the billing month and on tax sums and insurance contributions sums payable. Provide register indicating sums payable. Provide information on calculation of average salary for the purposes of calculating vacation, business trip and sick leave allowances. Input the data received into the payroll database. Perform payroll calculation. 2 Payroll and Taxes

3 Calculation of Bonuses Provide a decree on payment of bonus. Input the data received into the payroll database. Perform calculation. bonuses may be calculated and paid in accordance with the salary payment schedule or on a separate payment schedule. Calculate the relevant taxes and insurance contributions. Calculation of monetary compensation Provide a decree on compensation accrual. Input the data received into the payroll database. Perform calculation. monetary compensation may be calculated and paid in accordance with the salary payment schedule or on a separate payment schedule. Calculate the relevant taxes and insurance contributions. Calculation of sick leave allowances Provide a duly filled out sick leave certificate or a copy thereof. Input the sick leave data info the payroll database. Calculate the average salary. Provide the sick leave allowance calculation. Calculation of vacation allowances Furnish the employee s vacation application or confirm in writing the relevant vacation dates indicated in the vacation schedule. Input the vacation data into the payroll database. Calculate the average salary. Furnish the Client with the T-6 form. Settlement at dismissal Furnish the employee s dismissal application or agreement on termination of labor agreement. Furnish information on vacation days unused by the employee. Input the unused vacation information into the payroll database. Perform dismissal calculations. Calculate the average salary. Perform final calculation of all accruals. Calculate Personal Income Tax (PIT). Provide the Client with the data on the payment due to the employee and the sum of PIT payable to the budget. Business trip accounting Furnish a decree on sending an employee on a business trip. Input the business trip information into payroll database. Calculate the average salary. Provide the Client with the form for calculation of the average salary. Payroll and Taxes 3

4 Preparation and filing of tax reporting as well as reporting on insurance contributions accrued and paid Prepare on quarterly basis the following reporting forms: Report to Social Insurance Fund in accordance with 4-ФСС form prior to the 15th day of the month following the end of the reporting period: - before April 15th for the 1st quarter; - before July 15th for the 2nd quarter; - before October 15th for the 3rd quarter; - before January 15th for the 4th quarter (for the reporting year). Report to the territorial body of the RF Pension Fund in accordance with РСВ- 1 ПФР form prior to the 1st day of the second calendar month following the end of the reporting period: - before May 1st for the 1st quarter; - before August 1st for the 2nd quarter; - before November 1st for the 3rd quarter; - before February 1st for the 4th quarter (for the reporting year). Report to Administration for Statistics in accordance with П-4 form prior to the 15th day of the month following the end of the reporting period. Prepare in 2010 on semi-annual basis in accordance with the calculation data the following reporting forms: Personalized reporting to the territorial body of the RF Pension Fund: - before August 1st 2010 for the 1st half-year; - before February 1st 2011 for the 2nd half-year. Prepare on annual basis the following reporting forms: Report according 2-НДФЛ form. For the purposes of submitting the above reporting forms to tax bodies as well as to the RF Pension Fund, GT shall utilize the Taxcom system. The said system is a system of electronic document turnover via Internet. It utilizes cryptographic data protection tools specifically designed to protect information exchange between taxpayers and tax bodies. Starting with the year of 2011, personalized reporting to the territorial body of the RF Pension Fund shall be prepared on quarterly basis. 4 Payroll and Taxes

5 Preparation of payment orders related to payment of salary and taxes Payment orders shall be prepared not less than twice a month which corresponds to the salary payment schedule in accordance with the RF legislation as well as the Client s internal policy. In case of a dismissal settlement, the relevant payment order shall be prepared not later than the last working day of the Client s employee being dismissed. Payment order for personal income tax shall be prepared not later than the salary payment day. Payment orders for insurance contributions to the RF Pension Fund and Social Security Fund shall be prepared not later than the 15th day after the relevant pay day. Through Bank-client system Prepare the payment order in the bank-client system. Forward a notification to the Client along with the register of payment orders prepared. Authorize payments in the bankclient system. Without Bank-client system Prepare the payment order. Forward the payment order to the designated employee of the Client electronically in.pdf format. Print out the payment orders. Sign the payment orders and put the seal. Forward the payment orders to the bank. Payroll and Taxes 5

6 Preparing the calculation data file in accordance with the Client s format Furnish GT with the standard file format adopted for accounting purposes by the Client. Update on a monthly basis the data on calculations made, in accordance with the Client s accepted practice. 6 Payroll and Taxes

7 Pension Fund Insurance Card When hiring an employee without a pension card, the Client shall have to obtain the said card for the employee. Furnish GT with a written request if such service is needed. Inform the Client on the instances when new employees need pension cards. Fill out a questionnaire for the employee (form АДВ-1) and the relevant check-list (form АДВ-6) at the Client s request. File the filled out forms with the Pension Fund. Receive the pension card and forward it to the Client. Payroll and Taxes 7

8 Mandatory Medical Insurance Agreement Furnish GT with a written request if such service is needed. Draw up an agreement to be signed between the Fund and the Client. Prepare lists of employees subject to mandatory medical insurance. Receive medical insurance policies and forward them to the Client. 8 Payroll and Taxes

9 Tax/Insurance contributions reconciliations Furnish GT with a written request if such service is needed. Draw up an application to the Federal Tax Service Inspectorate, the RF Pension Fund or Social Security Fund requesting a reconciliation to be performed. Prepare a register of the taxes/insurance contributions calculated and paid. Deliver the prepared documents on the appointed day via courier service to the tax inspectorate, the RF Pension Fund or Social Security Fund for reconciliation purposes. Receive the reconciliation act and forward it to the Client. Payroll and Taxes 9

10 Involvement in tax inspections Involvement in audit reviews Forward to GT a notification requesting documents necessary for tax inspection purposes. Prepare copies of the documents in accordance with the requirements of the tax inspectorate, the RF Pension Fund or Social Security Fund. Draw up a transfer-and-acceptance act for the documents. Forward the documents to the Client or submit directly to the tax inspectorate, the RF Pension Fund or Social Security Fund. Designate a specialist responsible for direct interface with the tax inspectorate in case of any questions on the part of the Client or the tax inspectorate. Furnish GT with a written request for the documents required for an audit review. Prepare copies of the documents as requested by the Client and the auditors. Prepare a transfer-and-acceptance act on the documents requested. Forward the requested documents to the Client s office. Payroll Database Set-up Furnish GT with a written request for such service. Set-up the base in accordance with the Client s request. Post data in the payroll database. Perform test calculation. Transfer the tested payroll database to the Client. 10 Payroll and Taxes

11 Review of calculations of payroll and payroll taxes Furnish GT with a written request for conducting a review of payroll and payroll taxes calculation. Request from the Client documents necessary for conducing review in accordance with the Client s requestв. Create a database for performing calculations related to the documents provided. Post documents to the database for calculation. Perform calculation of payroll and the relevant taxes. Perform reconciliation of the data received as a result of the review with the data provide by the Client. After the review is over, prepare a review report including recommendations as to further steps to be taken. Payroll and Taxes 11

12 Grant Thornton ZAO. All rights reserved. Grant Thornton Russia is the member of Grant Thornton International Ltd (Grant Thornton International). The member firms are not a worldwide partnership. Services are delivered by the firms independently. 32A Khoroshevskoye shosse, Moscow,123007, Russia T , F A Fontanka Naberezhnaya, St. Petersburg, , Russia T , F grant.thornton@gtrus.com