Correct formulation of employee bonuses: what can an employee be rewarded for? List of reasons for payment. Premiums: taxation and clearance

Employers often try to stimulate the performance of their employees through various types of rewards and bonuses.

The article talks about various types such incentives, the conditions for their application, regulatory regulation, reflection in the documents of the organization and in taxation.

Concept

There is no significant difference between a bonus and a remuneration.

Both bonus and reward are considered ways financial incentives workers.

They differ in source and frequency:

• The source of the bonus payment is the system wages. Bonuses are usually paid regularly within monthly payments wages. IN labor relations they are considered an incentive fee for good results, including exceeding work standards or high quality.
• Rewards are made one-time or periodically depending on the results of the employee’s work. The decision is made individually and is not tied to salary payment periods. Most often it is paid annually.

Purpose and essence

The purpose and essence of the award follow from the concept.

A bonus should be understood as a monetary payment for additional or improved results of work, which is paid regularly from the same sources as wages.

Bonuses are used as a factor in moral and material incentives for employees to achieve higher levels of quantity or quality of activity.

They are often used to attract or retain qualified or conscientious employees and improve their morale.

The assignment of bonuses to employees is considered a voluntary decision of the organization's management.

And if management decides to give bonuses to people, then this must be done thoughtfully from both a managerial and legal point of view in the form of appropriate orders, regulations and instructions.

Some aspects of the appointment, including bonus provisions, will be discussed below.

Normative base

The issues of appointments and payment of bonuses are not specified in the legislation. It is based on the provisions and.

Article 129 states that bonuses are considered incentive payments that are included in the salary structure, and according to Article 191, the employer has the right to reward employees for performing their duties. But he is not obliged to appoint them. At the same time, refusing to pay what is deserved seems illogical.

Also, bonuses can be paid for some achievements.

Since laws govern only the general principles of payment, specific situations are usually covered in collective bargaining agreements and local regulations, such as management orders.

Very often, the source of specification is a special regulation issued by an organization or an individual.

Types of bonuses and employee benefits

What are they? Classification

There are three classifications of types of awards:

• by type of merit;
• by frequency;
• by source of payment.

The classification according to merit is presented in the table.

The following awards are distinguished according to frequency:

• One-time. They are paid once;
• Monthly and quarterly. They are received at specified time intervals;
• Annual. Appointed at the end of the year.

According to sources, the following types are distinguished:

• Funded from normal costs. They are included in the standard costs of the organization's traditional activities.
• Recorded against other expenses.
• Accrued from profits.

Please note that there are several types of one-time bonuses.

They are awarded either for high results labor activity, or upon the occurrence of certain events, holidays, etc.

One-time bonuses are often considered synonymous with one-time bonuses. That's why different types one-time bonuses are considered payments tied to certain events, high results or circumstances.

Similarities and differences (comparative table)

Common and unique features of awards issued on the basis different criteria, are indicated in the Table.

General procedure for calculation and registration

The general principle of accrual is indicated in. It provides for the right of the employer to create a bonus system, which is fixed in collective agreements, agreements, and local regulations in accordance with the law.

Bonus payments to federal employees budgetary institutions determined by special methodological instructions. Other organizations are developing collective agreements that establish general provisions. And the procedure itself, indicators, circumstances, as well as the amounts and other aspects of bonuses are described in the regulation on it or part of the general regulation on remuneration.

The mentioned documents are considered local acts. They can also be indicated in employment contracts.

The specific payment of bonuses is regulated by an order for the organization, issued on the basis of the adopted bonus system, which consists of the following:

• quantitative or qualitative indicators of bonuses;
• necessary requirements;
• amounts;
• designations of individual people or groups of recipients;
• appointment time intervals;
• grounds.

Bonus indicators are determined by the characteristics of the organization and the employee.

Features are understood as carrying out actions or behavior, without which a bonus will not be awarded.

For example, compliance with safety regulations.

The amounts can be any. They are determined as a fixed amount or as a percentage of the basic monetary remuneration.

Time depends on the organization of work. The basis is an order or other order for the payment of bonuses.

In what documents should organizations be reflected?

All these documents have already been mentioned above.

Let us recall them in the list:

• methodological instructions for budgetary organizations;
• collective agreements;
• employment contracts;
• orders;
• bonus provisions;
• agreements;
• other papers.

How to reflect it in the bonus regulations?

The regulations on bonuses can be general for all organizations or individual for a division, workshop, or department.

It should contain the following points:

• destination indicators;
• conditions;
• amounts;
• periodicity;
• calculation method;
• disorders that reduce their size;
• various payments that are not subject to bonuses.

• general principles;
• types and indicators of bonuses;
• calculation procedure;
• conclusion.

Attached to the article is a sample bonus regulation adopted by one of Russian organizations. It describes the relevant standards in great detail.

In this context, a bonus can be considered as one of the types of long-term staff remuneration.

And the employee will know that today and in the foreseeable future the enterprise encourages such and such results of labor or other activities.

Taxation

According to tax law, the payment of bonuses is considered as part of the cost of profit.

In Art. 25 of the Tax Code of the Russian Federation provides a list of purposes for using bonus funds. And Article 225 of this code regulates the reduction of the tax base by the amount of bonuses.

Bonus costs are included in labor costs in the following cases:

• exclusive accrual of bonuses for the results of professional activities;
• a clear indication of the conditions for receiving this remuneration in a collective or employment agreement.

Otherwise, the document relates to Article 270 and is considered as remuneration for activities not provided for by work duties.

Funds for such bonuses are taken from special funds or from net profit.

Conclusion

The types of awards depend on the criteria by which they are classified.

The classification criteria are quite varied. They are determined by sources, frequency and goals.

The last criterion is crucial for determining bonus indicators, calculation methods and taxation.

The procedure for assigning, determining the amount, as well as possible deductions can be specified in a number of documents. For example, in employment contracts, regulations.

Paying a bonus is an employer's way of rewarding an employee. It is bonuses that encourage employees to improve the quality of work and its volume. But this method of encouragement has its own nuances, which we will talk about in the article.

The first thing to understand is the definition.

Concept

Payment of a bonus is a monetary reward for an employee of an enterprise. This amount is calculated on top of the basic salary.

With the help of a bonus, management recognizes an employee who has distinguished himself in his work and encourages him to continue his efforts.

The bonus system is developed by representatives of the labor and salary department or the employee development service. After development, the enterprise management reviews the document and approves it.

The document is called the bonus regulations and is an independent internal regulatory act of the organization or an annex to collective agreements. The main provision can be the basis for developing applications for bonuses of departments.

If the employment contract provides, then you can agree on individual payment of bonuses directly with the employer.

Typically awards are received by:

1. Employees who are in leadership positions. They are encouraged for general work.
2. Management staff. Bonuses are paid for overall work and for the achievements of individual departments. They also receive incentives if individual employees excel.
3. Ordinary workers. They receive payments for the overall work of the unit, which takes into account the individual results of the employee.

Types of awards

Payment of bonuses to employees is based on several elements:

1. Conditions.
2. Bonus indicators.
3. Frequency of payments.
4. Size.
5. Determining the people who are entitled to the bonus.

In addition, types of bonuses are also distinguished. Among which are:

1. Production. Payment of bonuses to employees is carried out for completed job responsibilities or production tasks. Such bonuses are systematic and can be paid once a month or quarter.
2. Incentive. The type of bonus that employees receive in honor of a memorable date or anniversary at the end of the year for good performance, for service, for high-quality execution their duties or because the bonus is approved by the bonus regulations.
3. Individual. The conditions for paying the bonus are such that it is paid to one employee of the organization.
4. Collective. Basically, these are payments for work results that the entire team receives. Before awarding incentives, the performance of the entire department is compared, then the bonus amount is divided among all workers. Naturally, it depends on the salary of each employee. How much an employee has distinguished himself is determined by looking at the time worked, the labor participation rate and basic earnings.
5. Absolute. These are the bonuses that are paid in a certain size.
6. Relative. The amount is determined taking into account premium interest.
7. Systematic. This type of reward is awarded regularly.
8. One-time. These include a bonus for some completed order or task.
9. Are common. They are most often awarded for achievements in work.
10. Special. Just like one-time rewards, they are awarded for a specific task.

Award forms

All bonuses are also divided according to the form of payment. There are only two of them: commodity and money.

Everything is clear with a monetary premium, but a commodity premium means a material gift. For example, it could be a watch, some Appliances, certificate for service, etc.

When is the bonus paid?

According to Article 129 of the Labor Code of our country, the payment of bonuses to employees must be regulated by an internal document of the enterprise. That is, the bonus is not a mandatory payment, but if it is provided, the employee must receive it.

For example, an employer cannot deprive an employee of a bonus for violating discipline. But the law does not provide for a specific plan under which the premium should be paid. Such issues are decided by the employer.

How is the bonus calculated?

If an employee receives a fixed salary for fulfilling his job duties, then he can count on a bonus only if the production plan is fulfilled or a project is completed.

Some organizations issue an order to pay bonuses only if the labor plan is fulfilled well or exceeded.

Collective agreements should regulate all possible cases in which bonuses are paid. All internal documents are signed by each employee, thereby agreeing to the proposed conditions.

In order for the head of an organization to sign an order for the payment of bonuses, he needs to provide information about the employee. This is usually done by department heads. So, to pay the premium you need:

1. Employee information.
2. Specified payment amount. This can be a fixed amount or a percentage of your salary.
3. Information about the project, the results of which a person deserves a bonus.

If the manager agrees with the candidacy and the amount of the incentive, then he endorses the information. After this, the manager issues a free-form order on the payment of bonuses. The order must have the seal of the enterprise and the signature of the manager.

The company's accountant is appointed responsible for execution. The employee must also be provided with a document for review. If the employee is satisfied with everything, he will sign.

The award is usually given along with wages and under the signature in the statements. After all, incentives are also part of the salary, so they must be indicated in the documents.

Bonus calculation algorithm

1. The leader issues an order.
2. The employee's income tax is deducted from the accrued amount.
3. The employment contract reflects the cases when a bonus is awarded and its amount.
4. Payment of bonuses to employees is carried out according to the list. It is signed by the manager. Payment of the bonus is possible separately from the salary.
5. If individual stable profit, then the bonus is calculated as a percentage. That is, the salary amount is multiplied by the bonus percentage. Income taxes are subtracted from the final figure.
6. If the salary depends on production, then the salary amount is again multiplied by bonus interest and income tax is subtracted.
7. If the premium amount is fixed, then only income tax is deducted from it. Whatever remains is given to the employee as a reward.

Order on payment of bonuses

This is an internal document that indicates the period for issuing the bonus, the type of payment, as well as the general position and reasons for reducing the size of the bonus.

The order is invalid without information about the specialty, department, method and principle of issuing the award. In a large organization, all indicators are described. If the enterprise is small, then three points are enough.

The amount of the bonus is specified in a special section (bonus rules). The document also states responsible person and information about the rules for issuing incentives.

An additional section determines the procedure for calculating incentives for individual work performed or bonuses for some significant date.

Application for the award

The employee does not have to write any statements; the manager does all this. The latter writes a memorandum (if the provision on the payment of bonuses does not establish a special form) or an application for the accrual of a bonus.

The following data is entered into such a document:

1. The header of the document contains information about the manager, information about the boss submitting the form, and the position held by the latter.
2. The title indicates that this is a financial incentive. The details of the person who is entitled to the bonus are also entered. Be sure to indicate the document - memo or performance.
3. The application must include information about the merits that are the reason for the award. The amount of the incentive is also specified here, but this is only if the manager does not set the amount of the payment himself.
4. The last information to be entered into the application is about the person who compiled the document.

How is a one-time bonus paid?

A one-time payment of a bonus is a monetary incentive that is given to an employee to motivate him for further work. quality work. Such a bonus is not regular, so it is not included in wages. To receive a one-time bonus, it is enough to excel in your work, or it can be timed to coincide with some date or event.

One-time bonuses can be included in the settlement system of employee salaries, as well as vacation payments. Everything related to a one-time bonus is spelled out in the internal regulations of the enterprise and the collective agreement.

The procedure for paying bonuses that do not have a regular basis is specified in the following documents:

1. Contract of employment.
2. Collective agreement.
3. Regulations that regulate wages in an enterprise.
4. Other internal documents.

By law, an enterprise has the right to adopt an internal document containing rules for paying bonuses to employees. The main thing is that the internal document does not contradict the basic law. Such a document should highlight next questions:

1. Under what conditions is the bonus issued?
2. Amount of incentive.
3. The procedure for calculating the premium.
4. How the award is given.
5. Persons entitled to a bonus.
6. From what sources will the amount for bonuses be taken?

A special feature of a one-time bonus is its clear calculation. One-time bonus, like any other, is subject to income tax because it is the employee’s income. In addition, the one-time bonus is also reflected in the accounting documentation. The size of the bonus is calculated as a percentage of wages or has a fixed amount. Only the employer decides whether the payment of the bonus will be approved or not.

The salary includes an annual bonus.

If internal documents provide, then an annual bonus is paid at the end of the year. Thus, the annual bonus is paid within fifteen days from the moment it is accrued. During this period, the employer has the right to set any bonus date.

According to the law, this can be:

1. The last calendar or working day of the ending year. The bonus can also be paid along with the salary.
2. The day after the founder accepted internal reporting.
3. The day after the annual reports are submitted.

In case of violation of the deadlines for payment of bonuses, the employer is subject to a fine.

Monthly bonuses

Even from the name you can understand that this incentive is paid every month. Bonuses must be paid no later than the fifteenth. Such a reward system is developed in large organizations, since it is economically difficult for small enterprises. The problem is that even large enterprises are unable to understand the efficiency of work in half a month. For this reason, bonuses are awarded with a delay of several months. But from the point of view of the law, this is a violation, so the employer falls under administrative responsibility.

Quarterly bonuses

If, when paying an annual bonus, there are several options for calculating it, then the quarterly incentive must be issued on time. Namely, no later than the fifteenth day of the month that follows the worked one.

Payments upon dismissal

There is a lot of controversy on this issue. It is necessary to understand the issue so that no unclear points are left.

A dismissed person can only count on a bonus before dismissal. But even then, incentives will be awarded based on the results of the enterprise for any period. For example, this could be the payment of a bonus at the end of the year. That is, the employer cannot issue a bonus while the employee is working, but is obliged to do so after dismissal. Because paying a reduced amount of monetary incentives or not paying at all are actions that violate the law.

It is possible not to pay the entire bonus amount only if the employee worked only half of the pay period. In this case, the bonus amount will be calculated taking into account the time worked.

In many enterprises, it is stated in their internal documents that bonuses are paid in full only if the reason for dismissal is valid. This could be moving, military service, retirement, etc.

If an employer refuses to pay a bonus after dismissing an employee, the latter must contact the boss, because such actions are illegal. When the employer continues to refuse payment, former employee has the right to demand his money through the court. As a result, the employer will be required to pay not only monetary compensation, but also moral damages (if specified in the claim) along with all costs of the trial.

In case of dismissal due to at will The employee must act as follows:

1. Submit a resignation letter to writing, in which it is necessary to indicate the terms of dismissal.
2. The document must be signed by the boss.
3. The application is registered.
4. After registration, a dismissal order is created, which is registered.
5. The employee studies the document.
6. Wages and vacation compensation are calculated.
7. The employee receives work book and signs for its receipt.
8. The employee receives a payslip.

It is important to know that bonuses are calculated depending on their type. But if a person quits due to failure to fulfill his labor responsibilities, then management has the right to refuse to pay him a monetary incentive.

Military bonuses

The payment of bonuses to military personnel is regulated by law, and therefore there are rules for its payment.

1. Contract employees receive monetary incentives. The size of the bonus is equal to three monthly salaries for the year.
2. Payment of the bonus can be made every month or every quarter. It is paid simultaneously with the monetary allowance.
3. When calculating the bonus, the monthly salary of the serviceman, his rank and position are taken into account.
4. The amount of the bonus is set by the Minister of Defense of our country, heads of executive authorities, the Prosecutor General of Russia, and the chairman of the investigative committee.
5. If a serviceman does not serve the full term for which a bonus is awarded, then monetary incentives are paid based on the time actually worked.
6. The bonus is not given to military personnel who serve in units that have their own system of bonuses for exceeding or completing tasks. Also, incentives are not paid to those employees who are located outside the country and provide technical assistance there. When a serviceman is at the disposal of his superiors, he also cannot count on a bonus.
7. If a serviceman dies, then bonuses for the actual performance of duties are paid to the closest relatives. This could be a wife or husband, minor children or their adoptive parents (guardians), parents or people who are dependent on the employee.

The Minister of Defense can only establish the procedure for paying bonuses; the rest is regulated by the government of our country.

What to do if an employer violates the rules for issuing bonuses

It is not uncommon for employers to avoid paying bonuses. They find reasons to withhold incentives by imposing all kinds of fines.

The law prohibits the collection of fines from an employee’s salary, and therefore all fines are imposed on the bonus. If an employee has doubts about the legality of management’s actions, he can go to court for help.

But before taking such a step, it is worth studying all the organization’s documentation. This includes a sample order for the payment of bonuses, an employment contract, and other internal regulations. When studying the documents, it is worth paying attention to such points as the timing of the bonus, to whom it is due, from what sources the bonus is paid, the amount of the incentive, the payment procedure, the reasons for refusal to pay the incentive.

If violations are found, the employer may bear the following liability:

1. Administrative. Such liability implies a fine. There is a nuance: if a person is repeatedly punished for the same offense in the past, then he is prohibited from holding leadership positions for a period of one to three years.
2. The employer pays interest. This happens in case of non-payment of salary on time and other similar violations. The employer is obliged to pay, in addition to the bonus due, interest for each day of delay.

When personal income tax is not charged

Basically, all bonuses are taxable because they are the same as the employee's income. But there are two exceptions when taxes are forgotten:

1. Foreign, Russian, international awards, which are awarded for scientific and technical achievements. In addition, this also includes prizes in the fields of education, literature, art, and culture. Premiums from media outlets that comply with the list of the government of our country are not taxed.
2. Awarding the prize to the highest officials subjects of our country. They are also awarded in the fields of art, science, education, technology, literature, and media.

In addition to income tax, insurance contributions to non-budgetary funds are charged from each premium, as well as to social insurance. The latter is mandatory for all employees and insures against occupational diseases and accidents at work.

Conclusion

In fact, understanding what a bonus is is not so difficult; the main thing is to approach the issue thoroughly.

In most organizations, all benefits due to employees are paid on time. But if suddenly a misunderstanding arises with the employer and it cannot be resolved peacefully, then you need to defend your interests through the court.

Only after a trial will it be possible to get your money, but you should not abuse it. Before taking such a step, it is still worth trying to come to an agreement.

And don’t forget that a bonus is the same income as everyone else. Therefore, you need to pay taxes on it.

On October 3, 2016, a law regarding the timing of salary payments came into force. He made important changes to the issue of bonus payments.

From that moment on, the new version of Art. 136 of the Labor Code of the Russian Federation, according to which wages must be paid no later than the 15th day of the next month. It turns out that wages, for example, for March 2019 must be paid no later than April 15, 2019.

If the bonus payment day falls on a weekend or holiday, then wages must be paid no later than the last working day before this weekend or holiday.

Details about the new salary payment deadlines in 2019 can be found on this page. In this publication, we will find out what has changed in the timing of bonus payments under the new Wage Law in 2019.

Introduction to bonuses

In accordance with current legislation, bonuses are incentive payments that can be made to employees for the proper performance of job duties.

The issue of awarding bonuses is a voluntary decision of the head of the organization or individual entrepreneur. In some cases, bonuses are used to increase the interest of a qualified and/or conscientious employee, regardless of his current work success.

In Art. 135 of the Labor Code of the Russian Federation discloses a general principle for calculating bonuses, providing for the employer’s right to create a bonus system, which is fixed in local acts of individual entrepreneurs or organizations.

In accordance with Art. 129 of the Labor Code of the Russian Federation, bonuses can be included in the salary. In this case, this issue should be reflected in the employment contract or local regulations of the organization.

Thus, the bonus is a full-fledged element of the remuneration system. It follows from this that, simultaneously with changes in the timing of salary payments, the timing of bonus payments has also changed since 2016. Now bonuses must also be paid no later than 15 calendar days from the end of the period for accrual of the corresponding bonus.

Types of awards

This is a fairly extensive question: there are several bases for dividing premiums into types.

Depending on the frequency, it is customary to distinguish the following types bonuses:

1. One-time. Paid in a lump sum upon the occurrence of an event. For example, after reaching certain labor results.
2. Periodic. Paid monthly and quarterly.
3. Annual. Paid once a year.

Depending on the grounds for payment, bonuses are usually divided into two types:

1. Production. Payments are made for the employee’s conscientious performance of his or her job duties or for achieving certain labor results.

2. Non-productive. Not related to performance results. For example, an organization may pay non-production bonuses to parents with many children. They are not included in wages. Therefore, the provisions of the amended Art. 136 of the Labor Code of the Russian Federation do not apply to them. Non-production bonuses can be paid within any period fixed by the employment contract or local regulations.

Now we propose to understand the changes in the timing of payment of bonuses of various types.

Monthly bonuses

In most cases, monthly bonuses are paid based on the results of the month worked. The issuance of a bonus order is usually preceded by an analysis of the employees’ labor efficiency over the past month. Based on the results of this analysis, management makes a decision on paying a bonus to a particular employee.

In accordance with the updated legislation, the time for employers to analyze and think about who to pay a bonus to will be limited. The new deadlines for payment of bonuses from October 2016 are no later than the 15th day of the month following the worked month.

It is already clear that this will create certain difficulties. Especially for those employers who, in the process of analyzing an employee’s work activity, process a large amount of information. Some organizations and individual entrepreneurs pay bonuses to employees after 1-2 months. This is often due to the need to collect various indicators that reflect labor efficiency. In accordance with the new legislation, this is prohibited.

Quarterly bonuses

This type of bonus is fully subject to the provisions of the updated Art. 136 Labor Code of the Russian Federation. This means that from October 3, 2016, quarterly bonuses must be paid no later than the 15th day of the month following the expired quarter.

Thus, quarterly bonuses for the third quarter must be paid no later than October 15, 2016.

Annual bonuses

The annual bonus may also be included in the salary. And often its size even exceeds monthly income. Therefore, this is perhaps the most anticipated bonus for employees.

In accordance with the amended Art. 136 of the Labor Code of the Russian Federation, the annual bonus for 2018 must be paid before January 15, 2019.

Perhaps the issue of paying the annual bonus is the most difficult. After all, in just a few days, employers will need to evaluate the performance of their employees for the entire year, calculate and pay bonuses to them.

Responsibility for violation of deadlines

The new legislation significantly increases the degree of responsibility of employers for failure to pay wages on time. In particular, administrative fines for individual entrepreneurs, organizations and heads of organizations have increased. The amount of compensation for delayed wages has also doubled.

Due to the fact that bonuses are part of the salary, increased responsibility also applies to them. Moreover, administrative fines can be applied for each employee who receives a bonus late.

Changes in local acts

In accordance with Art. 136 of the Labor Code of the Russian Federation, the specific date for payment of wages can be established by one of the following documents:

• employment contract;
• collective agreement;
• internal rules labor regulations;
• bonus regulations.

It follows from this that from the moment the new law comes into force (October 3, 2016), any of these documents must reflect the date on which wages and bonuses are paid (which is part of the salary).

The Ministry of Labor, in its letter b/n dated September 21, 2016, assured that if in local act on bonuses, a specific date for payment of bonuses will be indicated based on the results for a certain period (for example, based on the results of work for the year, the payment of bonuses is carried out on March 12 of the year following the reporting year), then this will not constitute a violation Labor Code RF.

Thus, the best option will specify in the Regulations on bonuses specific terms for each type of bonus: monthly, quarterly, annual.

Terms for accrual of bonuses

In the Regulations on Bonuses, it is necessary to include a section entitled “Terms for Accrual of Bonuses” and, similar to the deadlines for payment of bonuses, indicate specific dates when bonuses should be accrued. For example:

• the monthly bonus is accrued no later than the 5th day of the month following the last month worked;
• the quarterly bonus is accrued no later than the 10th day of the month following the last worked quarter;
• the annual bonus must be accrued no later than 10 days after the approval of the annual financial statements;
• Non-production bonuses can be accrued and paid at any time. New order Bonus payments do not apply to non-production bonuses. Let us clarify this point. The fact is, according to Article 129 of the Labor Code of the Russian Federation, wages are remuneration for work. As mentioned above, bonuses are included in wages. But non-production bonuses (for example, monthly bonuses for employees with children) are not related to the work achievements of these employees. Therefore, non-production bonuses are not integral part salaries. That is why the provisions of new Article 136 of the Labor Code of the Russian Federation do not apply to the payment of non-production bonuses. The main thing is to determine in the local act the period for payment of non-production bonuses.

Sources of payment of bonuses

There are several sources from which it is possible to allocate funds for bonuses to employees:

• accrual of bonuses from profits;
• attributing bonuses to other expenses;
• inclusion of bonuses in the standard costs of the organization's activities.

Bonuses can be included in labor costs if two conditions are met:

• the presence of a local act that clearly outlines the terms of remuneration in the form of bonuses;
• accrual of bonuses based on professional performance results.

The article was edited in accordance with current legislation 12/25/2018

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Performance bonus paid when the employee achieves certain results related to work activities. The criteria that are taken into account when calculating bonuses, the amount of payments, and the procedure for their implementation will be discussed in the article.

General provisions on bonuses for achieving work results

The prize is component wages, as expressly stated in Part 1 of Art. 129 Labor Code of the Russian Federation. However, payments are not made in all cases, but only when employees conscientiously perform their duties or achieve outstanding success at work (Part 1 of Article 191 of the Labor Code of the Russian Federation).

Bonus payments for outstanding work results are made either:

• on the basis of an order from the management of the organization, which decided to reward one or more employees;
• based on the decision of management, forced to pay bonuses due to the presence of relevant regulations in force at the enterprise and compliance of employees with the criteria specified therein.

Such acts may be collective agreements, agreements, or local acts.

Most often, the procedure for paying bonuses for achievements in the service is enshrined in the Regulations on Bonuses, which is a local act.

This provision may contain information about:

• bonus criteria, for example, specific indicators, if achieved, the employee is paid a bonus;
• list of persons entitled to the award. For example, there may be requirements for work experience, positions, etc.;
• frequency of payments, for example: no more than once a year, quarter, month.

The decision on bonuses in all cases is formalized by order of the employer, which can be drawn up either in the form established by Resolution of the State Statistics Committee of January 5, 2004 No. 1, or in any form.

Criteria for awarding bonuses based on performance and possible wording

When paying bonuses based on performance results (for a year, month, quarter), various criteria may be applied, which are either specified in the Regulations on bonuses or other normative act operating in the organization, or determined by management.

The criteria may be the following:

Criterion	Characteristics of the criterion
Quantitative	The release of a certain amount of products or the achievement of other quantitative indicators of labor by an employee if the organization is not engaged in production of products
Qualitative	The quality of manufactured products or a quality indicator of another materialized result of labor
According to performance indicators	Fulfillment of certain indicators that are essential for a particular type of activity. For example, implementation of the plan for all areas of activity in total
According to the employee’s employment during off-hours	For example, a bonus may be paid if an employee worked overtime, worked overtime, holidays, etc.
For disciplinary action	If an employee comes to work on time, his behavior complies with the Discipline Regulations in force in the organization, then he may be paid a bonus
Economic	Saving organizational resources, for example, performing a certain amount of work at lower costs
Based on the number of mistakes made by the employee	No errors that led to negative consequences may serve as a basis for the payment of bonuses
According to the complexity of the work performed	If an employee performed work of increased complexity relative to other employees, he may be paid a bonus
By any other criteria	There are no restrictions on the number of criteria, but they must be somehow related to the employee’s work activity

The wording can be arbitrary, but its content must correspond to the criterion by which the employee has achieved outstanding performance. For example, “for exceeding the production plan by 100 units for the period from 02/01/2018 to 03/01/2018.”

Bonus based on monthly performance (monthly)

As the name of this type of bonus suggests, it is paid based on the employee’s performance for one calendar month.

The procedure for bonuses, as already mentioned, can be prescribed in the internal acts of the organization. If there are no such acts, then the employer is free to determine for himself whether to pay bonuses or not, how, and in what amount to do so.

As a rule, the algorithm of actions is as follows:

1. The provisions of internal regulations are studied.
2. A list of employees who deserve bonuses is determined.
3. Using criteria established in the organization, or at the discretion of management, the amount of bonuses for each employee is determined.
4. An order is issued. If one employee is awarded, in form T-11, and if several, in form T-11a.
5. Employees and performers are familiarized with the order.
6. The document is sent to the accounting department for calculating bonuses.

The letter of the Ministry of Labor of Russia dated September 21, 2016 N 14-1/B-911 states that monthly bonuses can be paid in the month following the reporting month, after assessing all employee performance indicators. For example, for August, the premium may be paid in September. It is not prohibited to establish a different order. For example, payment can be made directly in the month in which the results are achieved, or in any subsequent month.

Bonus based on annual performance

Bonuses based on the results of work over a one-year period are awarded annually (every year), or based on the results of work for a specific, single year. The peculiarity of this type of bonus is that giving bonuses to employees before the expiration of the one-year period is problematic, since this requires calculating all labor indicators over a long period of time (if the organization has established criteria for such calculations).

In this regard, the payment of the annual bonus is already in the new, next year is not a violation of Part 6 of Art. 136 Labor Code of the Russian Federation. This position was also supported by the Ministry of Labor in letter dated September 23, 2016 No. 14-1/OOG-8532. Bonuses can be paid in any month after the reporting year.

The criteria and payment procedure may well coincide with the indicators already indicated above for monthly bonuses. The only difference is the period being assessed and the amount of payments. It is assumed that the annual premium should be larger than the monthly one, although in practice this is not always observed. It’s not for nothing that many people call the annual bonus payment 13 salaries.

The bonus amount can be:

• fixed (for example, 20,000 rubles);
• be determined by point system(the number of points for a particular indicator is established in a local act, collective agreement, or agreement).
• calculated as a percentage of salary or salary.

Thus, a bonus based on performance can be paid in the manner established by internal documents, or at the discretion of management. We described the list of criteria and the procedure for determining the size of bonuses in the article.

Payment of bonuses at the end of the year carried out by the employer if there are grounds for this. In the article, we covered many issues related to the payment of annual bonuses, including the procedure for their accrual and calculation, and the criteria for bonuses.

What is a year-end bonus?

An annual bonus is an incentive payment that is paid to employees by the employer for the conscientious performance of their work duties during the past year or the one approaching the end of the year.

The Labor Code of the Russian Federation does not contain provisions that would oblige management to pay bonuses. Thus, according to general rule, the employer has no obligation to pay bonuses at the end of the year or any other time period. However, such an obligation can be established both by an employment contract with a specific employee and by internal regulations in force in the organization. We will tell you more about this in the relevant part of the article.

Grounds for payment of annual bonus

The grounds for bonuses may vary. The letter of the Ministry of Labor of Russia dated September 21, 2016 No. 14-1/B-911 states that bonuses are awarded for labor results, achievement of certain indicators, after their assessment by the employer. Accordingly, bonuses are related to the work activities of a specific employee or department. This is what distinguishes awards from financial assistance, which can be accrued regardless of the results of employees’ work.

Despite the above clarifications of the Ministry of Labor of the Russian Federation, bonuses can also be paid on holidays, for example, an employee’s anniversary, since the Labor Code of the Russian Federation does not directly prohibit this. An annual bonus can be paid even without the employee’s obvious achievements in his career.

The list of grounds for paying bonuses at the end of the year is not limited by law (they can be anything). This gives the employer some freedom in choosing the reason for payment.

In particular, the grounds for annual bonuses may be:

1. High quantitative indicators of work activity, for example, fulfilling a plan, creating a certain amount of material assets, providing a certain amount of services, etc.
2. Good quality indicators. This is compliance of manufactured products with standards, GOST, SNiP, etc., or the absence of complaints about the quality of products or services provided by customers.
3. Impeccable discipline records. For example, lack disciplinary sanctions from the employee/employees during the year, compliance by employees with internal labor regulations, etc.
4. The complexity of the work being performed. Performing particularly complex and responsible tasks by employees throughout the year.

Procedure for paying bonuses at the end of the year

The procedure for paying annual bonuses under the Labor Code of the Russian Federation and other acts containing norms labor law, not installed. At the same time, by virtue of Art. 57, part 2 art. 135 of the Labor Code of the Russian Federation, the procedure for making incentive payments (including annual bonuses) can be regulated:

1. Employment contract.
2. Collective agreement.
3. Agreement.
4. Local act.

Thus, each organization may adopt various internal acts regulating the procedure for bonuses to employees. In addition, the text of employment contracts with employees may specify the procedure and conditions for the payment of annual bonuses. Most often, organizations have Regulations on bonuses, which are adopted in the form of local acts and approved by order of the employer.

Such provisions may contain:

• grounds for bonuses based on the results of the year;
• terms of payment of the annual bonus;
• conditions for making payments (criteria, coefficients, list of indicators, etc.);
• a method for calculating the amount of bonuses, or an indication of a fixed amount that the employer can or is obliged to pay;
• conditions for depriving the bonus and reducing its size.

It is possible that the procedure for awarding bonuses at the end of the year is not fixed in the organization and is not specified in employment contracts with employees. In this case, the employer himself decides whether to make payments or not.

Calculation of the annual premium amount, annual premium amount

There are many methods for calculating bonuses based on annual performance results. As a rule, calculations are made for the entire organization as a whole, or for individual structural units. This allows you to simplify the calculation process and not have to calculate the amount of bonuses for each specific employee.

The amount of annual bonuses can be set:

• in a fixed amount (for example, 5,000 rubles);
• as a percentage of wages or salary (for example, 10% of the salary, the amount of which is 20,000 rubles);
• depending on the organization’s revenue for the past year (for example, net profit of 10,000,000 rubles entails the payment of an annual bonus for each employee in the amount of 10,000 rubles, and profit of 20,000,000 rubles - a bonus payment of 20,000 rubles);
• depending on the quantity of products produced (for example, 100 machines were produced in a year, which entails the payment of an annual bonus to all employees or a specific department in the amount of 10,000 rubles).

The bonus amount based on the results of work for the year can be calculated using the following algorithm:

1. An analysis of the results of labor activity for the annual period is carried out.
2. It is determined who will receive the bonus and who will not. For example, some employees do not have any penalties and will be paid a bonus, while some do, and therefore do not deserve a bonus.
3. The final payment amount is calculated. It is possible to use various coefficients, formulas, criteria to increase bonuses or reduce their size.

Order on payment of bonus at the end of the year

Bonuses based on the results of the year cannot be paid in any order. In order for everything to be legal, it is necessary to issue an order on bonuses.

The order can be issued in forms No. T-11 (for one employee) and T-11a (for several employees at once). It is not prohibited to use a free form of order by developing it yourself.

The order may contain the following information:

1. Name of the organization (full and abbreviated, if available).
2. Order number.
3. Date of preparation of the document.
4. Employee personnel number.
5. FULL NAME. employee.
6. The structural unit in which the employee works.
7. Employee position.
8. Basis for bonuses.
9. Amount of bonus payment.
10. A link to a document that contains the bonus procedure (if available).
11. Information about the head of the organization (full name, position).
12. Information about the employee’s familiarization with the order (full name, signature).
13. Date of acquaintance.

A sample order for the payment of an annual bonus to one employee can be downloaded.

A sample order for the payment of an annual bonus to several employees can be downloaded.

Calculation and payment of bonuses based on the results of work for the year

The accrual of bonuses is carried out by the accounting department. The bonus is accrued in the month in which the bonus order was issued. Accrual and payment of bonuses based on the results of the year (current) is allowed in the next year. This is due to the fact that it is necessary to evaluate the performance of the past year, which can only be done after its end. The internal acts of the organization may establish a month or a specific date for payment, for example, March of the year following the current one. This position is consistent with the explanations given in Letter of the Ministry of Labor of the Russian Federation dated September 23, 2016 No. 14-1/OOG-8532.

The wiring is as follows:

The income code in the 2-NDFL certificate is 2002.

Premiums are subject to insurance premiums. In addition, they are included in labor costs. If used general system taxation (OSN) - on the date of accrual, and with the simplified system (STS) - on the date of payment of bonuses to the employee.

For example, if an order to pay a bonus based on the results of 2018 was issued in the same 2018, in accounting and tax accounting the bonus should be included in expenses for 2018. When calculating personal income tax and insurance premiums, the bonus must be included in the employee’s income for 2018.

Bonuses for a holiday, for example, for the New Year, should not be taken into account in the tax expenses of the organization (regardless of the taxation system), as follows from the Letter of the Ministry of Finance dated 07/09/2014 N 03-03-06/1/33167.

Thus, the procedure for paying bonuses at the end of the year can be fixed in the internal acts of the organization containing labor law norms. If there are none, and the bonus payment procedure is also not specified in the employment contracts with employees, the employer decides for himself whether to pay the bonus or not.

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