When planning the family budget for the period of pregnancy and childbirth, as well as subsequent child care, expectant mothers always think about what payments and in what amount they will receive during this period. At the same time, how and in what amount you will have to pay benefits to an employee on maternity leave, you need to think about the entrepreneur who independently maintains accounting records. One of the topical issues that interests both expectant mothers and their employers is the question of whether maternity personal income tax is subject to? This article will try to answer it.
What are maternity payments?
First you need to understand what is meant by maternity payments. The state, declaring care for mothers and their offspring, provides two types of benefits to women during the period of motherhood. Some of them also apply to certain other categories of workers. Here are the perks:
- holidays,
- cash benefits.
A woman who is expecting a child has the legal right to maternity leave. After his birth, she is also entitled to receive parental leave provided for by Russian law and remain in it until the child is three years old. Instead, another family member who can take care of the child can receive the same leave. These holidays are called maternity leave. And benefits that are paid to employees who are on such holidays are called maternity payments.
The state has provided the following types of benefits that are paid while on maternity leave:
- on pregnancy and childbirth,
- for child care.
As can be seen from their names, each of the benefits refers to a specific type of vacation. At the same time, it should be borne in mind that the period for paying these benefits may not coincide with the period the employee is on such leave. So care allowance is paid only until the moment when the child is one and a half years old. In the future, a woman can continue to be on vacation, but she will no longer receive benefits.
The amount of maternity payments
Now having decided what maternity payments are, you need to know in what amount they are paid. The allowance that a woman is entitled to during maternity leave is calculated from the amount of 100% of her average earnings. This benefit is paid as a lump sum. In turn, the child care allowance is calculated in proportion to the average earnings.
As you can see, all types of benefits are calculated on the basis of the employee's salary. But, as you know, income tax is withheld from the employee's wages. In this situation, the question arises: “Is personal income tax withheld from maternity or not?”. Let's consider this further.
What does the law say about whether personal income tax is subject to maternity?
What income is subject to personal income tax, as well, is established in the Tax Code of the Russian Federation. In particular, the following types of income are classified as taxable income:
- wages and other remuneration for the employee's performance of labor duties,
- income from the sale of real estate, shares, bonds, other securities,
- dividends,
- insurance payments and so on.
A complete list of income that, according to the law, is subject to income tax, is established by Article 208 of the Tax Code of the Russian Federation. In turn, article 217 of the same document establishes which incomes are not subject to personal income tax. This includes:
- government benefits,
- payments related to compensation for harm,
- pensions
- payments that are associated with the dismissal of employees, with the exception of compensation for unused vacation.
- other payments.
In this list, maternity benefits refer to state benefits. At the same time, the law separately states that the maternity benefit is not subject to personal income tax. With regard to benefits that are provided in the case of child care and which are paid until the child reaches the age of 1.5 years, there is no separate mention. But since this benefit refers to state benefits, it is also not subject to personal income tax. Thus, to the frequently asked question: “Are maternity personal income taxes taxed?” with great confidence we can answer that they are not taxed. Moreover, both payments during maternity leave, and during the period of leave provided for by law, in which the employee is in connection with caring for a child under 1.5 years old.
