How to pay salaries in private entrepreneurs

An individual entrepreneur (IP) does not pay his own salary, since all the profit is his personal means. But when the first workers appear at an individual entrepreneur, the question inevitably arises of how to properly pay salaries.

Instruction manual

1

The calculation of salary is based on the form and size of remuneration, which is fixed in the employment contract. It is necessary to determine the number of hours or days worked (with the time-based system) or the volume of services rendered, goods sold (with the piecework system).

2

If necessary, various allowances are added to the employee’s salary. For example, based on the climatic conditions of the region and working conditions. Also, the IP has the right to accrue an employee bonus for good work results.

3

After the size of the salary has been calculated, the individual entrepreneur can proceed with payments. The calculated salary must be divided into two parts - advance payment and final payment. An advance can be paid in a fixed amount (for example, 5 thousand rubles) or from the account of the volume of work performed. The procedure and terms for the payment of salaries should be documented.

4

You can give out salaries in cash according to the statement, under the signature of the employee. In Russia, there is a unified form of statements, which was approved by the State Statistics Committee in 2004. Another option is to transfer salaries to the employee’s personal bank account.

With any payment option, the individual entrepreneur must provide each employee with a pay sheet, which reflects the parameters for calculating his salary.

5

Of all income (including salary and bonus), 13% (30% for non-residents) must be transferred to the personal income tax budget. IP acts in this case as a tax agent. In the hands of employees, salaries are given excluding personal income tax. Moreover, the transfer of personal income tax is made only 1 time per month - on the day of payment of the final payment.

6

Other deductions on the writ of execution may also be made from the employee’s salary - alimony, other penalties, etc., but not more than 70% of the salary amount.

7

Also, the individual entrepreneur is obliged, from his own means, to make deductions for the employee in the FIU and FSS. On average, the amount of taxes to extra-budgetary funds is about 30%.

note

Salary should not be lower than the minimum wage - 5 554 p. in 2014. Moreover, in a number of regions their own minimum wage may be established.