The Law of Ukraine “On the collection andaccounting of theunified contribution for the obligatory state social insurance” dated 08.07.2010, № 2464 (hereinafter – the Law on the USC) was amended of 01.01.201. Read more below about the peculiarities of the USC accruing in unusual situations.
The Art.8 of the Law on the USC of 01.01.2015 provides for: if the base of the USC charging (excluding the remuneration under the civil law contracts) is less than the minimum wage established by the law on the month when the wage (income) is accrued, the USC amount is calculated as the product of the minimum wage established by the law on the month when the wage (income) is accrued, and the USC rate, which is established for relevant category of a taxpayer.
When the wages (incomes) accruing to the individuals from the sources not of their primary employment, the established USC rates should be applied to certain charging base, regardless of its size without use of the base charging coefficient.
It is to be recalled that in the general case the USC is charged on the amount of the accrued wages under the payment types, which include the primary and additional wages and other incentive and compensation payments, including in kind, determined in accordance with the Law of Ukraine “On labor remuneration” of 24.03.1995, № 108/95-VR (Art. 7 of the Law on the USC).
The accountants, auditors and tax consultants have a lot of questions to the amendments made in the Art.8 of the Law on the USC. The SFSU experts decided to explain in its letter of 14.02.2015, № 4979/7 / 99-99-17-03-01-17 a part of the arisen questions.
The taxmen emphasized in the above mentioned letter that in case of dismissal of the employee or acceptance of the employee on the principal place of employment during the month, when the accrued wage for working hours is less than the minimum wage, the USC amount is calculated on the actual accrued wages regardless of its size.
The USC accruing is actually the wage regardless of its size for the part-time employees. According to the SFSU experts, the employer has the right to obtain confirmation about the place of the principal employment from such employee (part-time employee).
If the employee a part of the month was on vacation without pay, resulting the base of the USC charging is less than the minimum wage, the USC amount is calculated as the product of the minimum wage and the USC rate, which is established for relevant category of a taxpayer. If the employee the whole calendar month is on vacation without pay, the USC is not accrued and not incurred because there is no the USC charging base.
The obligation of the USC accrual of the minimum wage for the main job is also provided in cases when the employee worked partial month (was on sick leave, on maternity leave), i.e. in the case of:
- the total amount of accrued income (the amount of wages for working hours and the sick leave) does not exceed the minimum wage of an employee (on primary employment), who has worked a part of the month but the other part he/she has been on the sick leave, the USC amount is to be calculated as the product of the minimum wage and the USC rate, established for the relevant category of a taxpayer, in other words, a need of additional charges to the minimum wage arises;
- an employee (on primary employment) has been on the sick leave during the whole month and the accrued sick pay is less than the minimum wage, the USC is calculated on the basis of the minimum wage;
- the beginning and the end of the sick leave are accounted for by different months, the USC (in the month of the sick leave beginning) is accrued for the actual time worked, because the total income is unknown yet. If after the distribution of the sick pay (temporary disability benefits are relevant to that month for which they are accrued) the total income for the month is less than the minimal wage and the USC rate, established for the relevant category of the taxpayer.
The requirements on the USC accruing that is not less than the minimum amount, do not concern, inter alia:
- the wage of disabled employee, who works in the Company, enterprises or organization, where the 8,41 % rate is applied;
- the wages of employees of enterprises and organization of All-Ukrainian Non-Governmental Organizations of disabled people, including the Ukrainian Society of the Deaf (UkSD) and the Ukrainian Association of the Blind (UkAB), and enterprises and organization of Non-Governmental Organizations of disabled people, which apply the USC rates respectively 5.3% and 5.5% determined charging base of the USC.
