Taxation of incentive fees (payments)

A.V. Danilenkov,
PhD in Law, St. Petersburg

1. Remuneration system

Whether or not the value of a valuable gift (including monetary remuneration) is included in the tax base for the unified social tax or income tax depends on the remuneration system.

In explanations tax authorities When describing the remuneration system, until recently, reference was usually made to Art. 129 Labor Code Russian Federation(Labor Code of the Russian Federation) (as amended on May 9, 2005 N 45-FZ), according to which remuneration was understood as a system of relations associated with ensuring that the employer establishes and makes payments to employees for their work in accordance with laws and other regulations legal acts, collective agreements, agreements, local regulations and employment contracts.

Currently under wages(employee remuneration) is understood as remuneration for work depending on the qualifications of the employee, complexity, quantity, quality and conditions of the work performed, as well as compensation payments (additional payments and allowances of a compensatory nature, including for work in conditions deviating from normal, work in special climatic conditions and in territories exposed to radioactive contamination, and other compensation payments) and incentive payments (additional payments and incentive allowances, bonuses and other incentive payments).

The tendency to expand the boundaries of the remuneration system through incentive payments (rewards) not related to the performance of labor functions was also noted in paragraph 5.1 Methodological recommendations according to the procedure for calculating and paying the unified social tax, approved by order of the Ministry of Taxes of Russia dated 07/05/2002 N BG-3-05/344 (lost in force in accordance with the order of the Ministry of Taxes of Russia dated 01/23/2004 N BG-3-05/38@), where payments and other remunerations made in favor of employees, not for the results of labor activity, for example, amounts of prizes, gifts, premiums for participation in sports competitions, shows, competitions, for active participation in public work, etc. were recognized as subject to taxation of the unified social tax. ., only in case, if these employees were associated with the taxpayer by an employment agreement (contract).

At the same time, even during the period of validity of the very imperfect above-mentioned Methodological Recommendations, the territorial bodies of the Ministry of Taxes of Russia sought to ensure consistency and consistency in determining the criteria for the economic justification of expenses - a concept that has a more universal and “tax-intensive” meaning compared to the purely local institution of incentive payments. At the same time, it was possible to avoid a detailed listing of all possible types and subtypes of incentive payments. Thus, in the letter of the Department of Tax Administration of Russia for the city of St. Petersburg dated November 24, 2003 N 02-05/24139, the following was explained: “Taking into account that for profit tax purposes any accruals to employees related to working hours or working conditions are recognized, the organization has the right to take into account expenses that reduce the tax base, bonuses for high production performance, named in the above normative act and included in the employment contract concluded with a specific employee. Employee bonuses dedicated to holidays or anniversaries, cannot be taken into account as a reduction tax base for income tax, since they do not relate to charges related to work hours or working conditions." This approach seems correct, based on the law.

True, an unmotivated high level of frequency of incentive payments, for example, the employer’s desire to show his involvement in all kinds of “red days” of the calendar, can play with the employer himself cruel joke. According to part two of Art. 131 of the Labor Code of the Russian Federation, the share of wages paid in non-monetary form cannot exceed 20% of the total amount wages. Exceeding this limit due to incentives may be qualified by the tax authority as dishonesty of a taxpayer evading payment of the unified social tax.

In practice, situations sometimes arise in which the amounts of incentive remuneration cannot be attributed to expenses related to remuneration, but remain subject to the unified social tax. To prevent such developments, it is advisable for the taxpayer, if there are any doubts about the economic justification (from the point of view of the procedure for calculating and paying income tax) of the corresponding payments, either to seek clarification in advance from the tax authority, or to form special-purpose funds for these purposes [p. 22 art. 270 of the Tax Code of the Russian Federation (TC RF)]. Of course, the risk of double taxation (simultaneously with a single social tax and income tax) should be considered hypothetical. After all, according to paragraph 3 of Art. 236 of the Tax Code of the Russian Federation, in relation to incentive payments, the unified social tax and income tax are quite clearly differentiated on the basis of accrual and payment. However, the possibility of applying tax liability measures for a gross violation of the rules for accounting for income and expenses and taxable objects (Article 120 of the Tax Code of the Russian Federation) or administrative liability for a gross violation of the rules of accounting accounting and presentation of financial statements (Article 15.11 of the Code of the Russian Federation on Administrative Offenses) still cannot be underestimated.

2. Forms of incentive compensation (payments)

From the point of view of tax consequences, the form of remuneration (cash or in kind) does not matter, with the exception of certain features in the procedure for calculating and paying income tax individuals(Article 211 of the Tax Code of the Russian Federation).

Judicial and arbitration practice follows the path of recognizing valuable gifts in cash within the framework of labor relations with the subsidiary application of the provisions of civil and tax legislation [Art. 11 Tax Code of the Russian Federation, art. 128, paragraph 1, art. 572 of the Civil Code of the Russian Federation (Civil Code of the Russian Federation)]. According to Art. 128 of the Civil Code of the Russian Federation, objects of civil rights include things, including money and securities, other property, including property rights; works and services; information; results of intellectual activity, including exclusive rights to them (intellectual property); intangible benefits. As indicated, in particular, by the Federal Antimonopoly Service of the North-Western District in a resolution dated February 13, 2006 in case No. A05-13852/2005-19, money can be the subject of a gift, and therefore, when giving gifts to employees in the form of cash payments, these amounts are not subject to taxation in accordance with paragraph 28 of Art. 217 Tax Code of the Russian Federation.

A similar legal position is given in the letter of the Ministry of Finance of Russia dated 07/08/2004 N 03-05-06/176.

In accordance with part four of Art. 22 of the Labor Code of the Russian Federation, the employer has the right to reward the employee for conscientious and efficient work. Moreover, as an essential condition employment contract The legislator mentions only the terms of remuneration (including the size of the tariff rate or official salary of the employee, additional payments, allowances and incentive payments) (part eleven of article 57 of the Labor Code of the Russian Federation). Based on the literal interpretation of this norm, only monetary forms of payments should be provided as essential working conditions. According to part two of Art. 131 of the Labor Code of the Russian Federation in accordance with a collective agreement or employment contract upon written request of the employee remuneration may be made in other forms that do not contradict the legislation of the Russian Federation and international treaties of the Russian Federation. In this case, the share of wages paid in non-monetary form cannot exceed 20% of the total wages.

Based on the above, in our opinion, a valuable gift in kind cannot be considered as an element of the remuneration system and does not form an object of taxation by the unified social tax, since:

The gift agreement assumes gratuitousness. So, according to paragraph 1 of Art. 572 of the Civil Code of the Russian Federation, under a gift agreement, one party (donor) free of charge transfers or undertakes to transfer to the other party (the donee) a thing in ownership or a property right (claim) to himself or to a third party, or releases or undertakes to release it from a property obligation to himself or to a third party. If there is a counter transfer of a thing or right or a counter obligation, the contract is not recognized as a donation. The employment contract provides for counter-provisions in the form of the employee’s obligations to personally perform a certain job function and to comply with the internal labor regulations in force in the organization (Article 56 of the Labor Code of the Russian Federation). The Department of Tax and Customs Tariff Policy of the Ministry of Finance of Russia, in letter dated 07/08/2004 N 03-05-06/176, allows the application of the provisions of the Civil Code of the Russian Federation, normalizing the gift agreement, to incentive payments (remunerations) within the framework of labor relations (Chapter 32 of the Civil Code of the Russian Federation);

Application of the threshold of non-monetary payments to a valuable gift in accordance with part two of Art. 131 of the Labor Code of the Russian Federation would unreasonably restrict the employer’s right to provide an employee with a valuable gift, the value of which exceeds 20% of the total salary.

Certain doubts are also raised by the possibility of classifying irregular bonuses (cash gifts) that are not related to the achievement of certain production indicators and not provided for by local legal acts of the employer as elements of remuneration. This is explained by the fact that a valuable gift is defined as one of the types of incentives for employees conscientious labor (along with bonus, certificate of honor, gratitude and nomination for the title of the best in the profession - part one of Art. 191 Labor Code of the Russian Federation). According to part four of Art. 22 of the Labor Code of the Russian Federation for the recognition of specific remuneration reward for work it is necessary that it carries a double semantic and normative-value load as an act of approval on the part of the employer who is not only conscientious, but also efficient work employee. A valuable gift serves as a measure of the employer’s assessment of efficiency the employee’s labor, but only the latter’s compliance with the position held, as well as the degree of law-abidingness of the recipient employee with the internal labor regulations. Since the conscientious performance by the employee of his labor duties assigned to him by the employment contract is in itself included in the employee’s responsibilities (paragraph one of part two of Article 21 of the Labor Code of the Russian Federation), securing the employee’s right to receive a valuable gift in the employment contract can hardly be considered as establishing element of the wage system.

Let us consider more or less established approaches in the practice of judicial and departmental law enforcement to the tax “delimitation” of bonuses, gifts and other similar payments (remunerations) between income tax, unified social tax and other tax payments.

3. Taxation

3.1. Income tax

To include the cost of bonuses (cash or in kind) as expenses related to wages, the following conditions must be met:

1) the right of an employee (including a manager) to receive incentives must be based on an employment agreement (contract) and/or a collective agreement. This position is set out, in particular, in letters of the Ministry of Taxes of Russia dated 03/20/2003 N 05-1-11/127-K269 “On the Unified Social Tax”, Department of Taxation Administration of Russia for Moscow dated 02/24/2003 N 28-11/11043, Department of Tax Administration of Russia for Moscow dated 02/24/2003 N 28-11/11043 Russia for the city of St. Petersburg dated November 24, 2003 N 02-05/24139. For example, in a letter from the Department of Tax Administration of Russia for the city of St. Petersburg, the following is explained: “If the employment contract concluded with a specific employee does not include certain accruals provided for in the above documents (collective agreement and (or) local regulations), or there are no references to them, then such accruals cannot be taken into account for profit tax purposes.”

In addition, it is also advisable to indicate the specific amount of the incentive payment in the employment agreement (contract) and/or collective agreement (see the resolution of the Federal Antimonopoly Service of the North-Western District dated June 19, 2006 in case No. A56-25980/2005). To make incentive payments more “systematic”, it would not be superfluous to prescribe the appropriate type of incentive in such a local regulatory act as the internal labor regulations of the organization (part four of Article 189 of the Labor Code of the Russian Federation);

2) incentives should not be paid from special-purpose funds or targeted revenues (clause 22 of Article 270 of the Tax Code of the Russian Federation; resolution of the Federal Antimonopoly Service of the North-Western District dated June 19, 2006 in case No. A56-25980/2005);

3) incentive rewards (payments) must be of a stimulating nature;

4) incentive rewards must be aimed at generating income (economic justification for the reward) (clause 2 of Article 255 of the Tax Code of the Russian Federation). Thus, the resolution of the Federal Antimonopoly Service of the North-Western District dated April 24, 2006 in case No. A13-9766/2005-23 states that the economic justification of expenses incurred by a taxpayer is determined not by the actual receipt of income by him in a specific period, but by the focus of these expenses on generating income . Previously, in accordance with clause 5.6 of the Methodological Recommendations for the Application of Chapter 25 “Income Tax of Organizations”, Part Two of the Tax Code of the Russian Federation,” approved by order of the Ministry of Taxes of Russia dated December 20, 2002 N BG-3-02/729 (lost in force on the basis of the order of the Federal Tax Service Russia dated April 21, 2005 N SAE-3-02/173), it was stipulated that expenses should not be taken into account in reducing taxable income if they were not documented and were not economically justified and/or were associated with activities for which no income is received.

3.2. Unified social tax

According to paragraph 3 of Art. 236 of the Tax Code of the Russian Federation, incentive payments for work (regardless of the form in which they are made) are not recognized as an object of taxation if:

For taxpayer organizations, such payments are not classified as expenses that reduce income tax in the current reporting (tax) period;

For taxpayers - individual entrepreneurs or individuals, such payments are not reduced for personal income tax in the current reporting (tax) period.

The position of the tax authorities is as follows: if incentive material grants are included in the employer’s remuneration system, then they should relate to payments and other remuneration accrued by taxpayers (employers) in favor of individuals under labor and civil contracts, the subject of which is the performance of work, provision of services (except for remunerations paid individual entrepreneurs), forming the object of taxation of the unified social tax in accordance with paragraph 1 of Art. 236 Tax Code of the Russian Federation.

In case of compliance with the requirements for taxation of the amounts of such incentive payments and remuneration by the unified social tax, the conditions for their attribution to expenses related to wages for the purposes of calculating and paying income tax are simultaneously considered to be met.

The polemical version of the interpretation of the norm of clause 3 of Art., which previously existed in the practice of relations between tax authorities and taxpayers. 236 of the Tax Code of the Russian Federation allowed (from the point of view of taxpayers) the possibility of alternative taxation of amounts of incentive remuneration for work: either with a unified social tax or with a profit tax.

Currently, this issue has lost its debatability due to the release of the official clarification of the Presidium of the Supreme Arbitration Court of the Russian Federation, set out in paragraph 3 newsletter dated March 14, 2006 N 106. The plot of the case is as follows: during the tax period, a business company, when performing work stipulated by an employment contract, paid its employees bonuses for production results. According to paragraph 2 of Art. 255 of the Tax Code of the Russian Federation, these payments are classified as labor costs, which reduce the tax base for income tax. The company, instead of reducing the tax base for income tax by these expenses, reduced the tax base for the unified social tax by their amount, believing that clause 3 of Art. 236 of the Tax Code of the Russian Federation provides the right to make such a choice. The Presidium of the Supreme Arbitration Court of the Russian Federation supported the arbitration court, which, when resolving a specific tax dispute, indicated that the norm established by clause 3 of Art. 236 of the Tax Code of the Russian Federation, means that if there are appropriate norms in Chapter 25 of the Tax Code of the Russian Federation, the taxpayer does not have the right to exclude amounts classified by law as expenses that reduce the tax base for income tax from the tax base for the unified social tax.

3.3. Insurance contributions for compulsory pension insurance

By virtue of paragraph 2 of Art. 10 of the Federal Law of December 15, 2001 N 167-FZ "On compulsory pension insurance in the Russian Federation", the object of taxation of insurance contributions for compulsory pension insurance and the basis for their calculation are the object of taxation and the tax base for the unified social tax, established by Chapter 24 of the Tax Code of the Russian Federation .

3.4. Insurance contributions for compulsory social insurance against accidents at work and occupational diseases

According to clause 3 of the Rules for the accrual, accounting and expenditure of funds for the implementation of compulsory social insurance against accidents at work and occupational diseases, approved by Decree of the Government of the Russian Federation dated March 2, 2000 N 184, insurance premiums are accrued on the accrued wages for all reasons (income) workers (including freelance, seasonal, temporary, performing part-time work), persons sentenced to imprisonment and recruited to work by the insurer, and in appropriate cases - for the amount of remuneration under a civil law contract.

Thus, since in this case the legislator uses the “umbrella” definition of “income”, which covers any property provision, then the incentive payment, regardless of its type and intended purpose will be taken into account in the base for calculating insurance premiums.

3.5. Personal income tax

In accordance with paragraph 28 of Art. 217 of the Tax Code of the Russian Federation, income not exceeding 4,000 rubles is not subject to taxation (exempt from taxation), including in the form of the value of gifts received by the taxpayer from organizations or individual entrepreneurs.

If a gift is provided in kind, the date of receipt of income will be the moment the gift is transferred (subclause 2, clause 1, article 223 of the Tax Code of the Russian Federation). According to paragraph 2 of Art. 223 of the Tax Code of the Russian Federation, when receiving income in the form of wages, the date of actual receipt by the taxpayer of such income is recognized as the last day of the month for which he was accrued income for work duties performed in accordance with the employment agreement (contract).

From the above norms it follows that clause 2 of Art. 223 of the Tax Code of the Russian Federation is subject to application if the gift is included in the wage system.

By virtue of clause 4 of Art. 237 of the Tax Code of the Russian Federation, when calculating the tax base, payments and other remuneration in kind in the form of goods (work, services) are taken into account as the cost of these goods (work, services) on the day of their payment, calculated on the basis of their market prices (tariffs), and in the case of state regulation of prices (tariffs) for these goods (works, services) - based on state regulated retail prices. In this case, the cost of goods (work, services) includes the corresponding amount of VAT, and for excisable goods - the corresponding amount of excise taxes.

In conclusion, it should be noted that the decision regarding the inclusion or non-inclusion of incentive remuneration in the remuneration system should remain with the parties to the employment contract - the employee and the employer. The generally permissible method of regulation (of the type: “everything that is not prohibited is permitted”), of course, does not apply to public legal (including tax) relations. In this sense, the legal position of the Presidium of the Supreme Arbitration Court of the Russian Federation, contained in paragraph 3 of the information letter dated March 14, 2006 N 106, does not allow for misinterpretation. However, the corresponding tax regime is almost always a consequence of the economic policy chosen by the taxpayer. In this regard, it seems unacceptable to objectively impute to the employer the goals and motives for providing incentive remuneration, as well as assessing the taxpayer’s remuneration system solely from the point of view of his deliberate dishonesty as a taxpayer.

Cash remuneration for employees.

Permanent part.

To calculate base salaries and develop the entire compensation system as a whole, Company employees are divided into the following categories:

ü core personnel: these are employees who directly generate profit;

ü support staff: employees who develop a tool for “earning” money for the main employees;

ü service personnel maintains and ensures the functioning of all business processes;

ü management personnel.

Under the concept discharge means a description of the position (functions for this position), compiled according to the following criteria:

ü financial responsibility;

ü decision making;

ü management;

ü communication;

ü education.

All of these criteria carry some weight when describing positions.

Discharge is the sum of weighted function costs, expressed in the form bit coefficient.

The rank is inextricably linked with the position and changing one without the other is not allowed. In this case, the amount of monetary remuneration can be changed without changing the position and rank due to changes in allowances for production behavior, performance of functions not described by the position, etc.

Concept minimum wage (minimum wage) for our Company is the basic variable used in calculating the salaries of the Company’s employees, which is multiplied by the coefficients described above. The minimum wage is equal to the amount paid to first-class employees. The minimum wage depends on economic indicators work of the Company and can be indexed taking them into account, both downward and upward.

Basic salary is a variable obtained by multiplying the minimum wage by the category coefficient and the personnel category coefficient.

Supplements are added to the base salary.

1. Bonus for quantitative results - the main allowance, which is based on the specific position and its significance. At the same time, at the end of the month, the bonus fund is redistributed depending on the performance of each specific employee, and if this fund is not fully spent, the remainder goes to fund social payments Companies.

2 . Allowance guide - this is not described in job description, for example, mentoring. This payment allows you to stimulate initiative, as well as support the system of internships and training.

3 . Performance bonus . This bonus is provided for those categories of employees whose work cannot be quantified. Therefore, we focus on demonstrated behavior, level of skills, quality of communication with the client and formal errors. In the Company, each department and service is allocated a monthly bonus fund in the form of a certain percentage of the base salary of each employee, which must be used entirely within that department.

The decision to award bonuses to employees is made by the head of the department, based on an assessment of the behavior of employees for the period in accordance with the evaluation criteria defined for a particular category of employees and compiled protocols that record formal behavioral errors, such as being late, failing to carry out instructions, using working time on solving personal problems, etc.

Thus, the constant part of the monetary reward is the sum of the base salary and bonuses, in other words, it is the sum of the price of the position and the price of the employee’s behavior.

Variable part .

Factors influencing the variable part of cash payments:

1. Sales volumes.
2. Profit volumes.
3. Execution of coefficients.

Total: monetary reward- this is 1. the price of the position + 2. the price of behavior +

3. price of the department’s performance results + 4. bonus for work efficiency.

Social transfers .

Social transfers are some valuable and costly for the Company benefits.

The provision of benefits is due to several reasons:

1. Satisfaction with wages depends on the balance between the expected reward and the one actually received, and whatever the salary, after some time it ceases to satisfy the employee. Naturally, I would like to be paid more money in order to change the quality of life and increase the level of comfort. Great comfort means great service. At the same time, excessive attention to comfort leads to a shift in attention towards the unsettledness of certain everyday issues to the detriment of solving production problems. By paying social benefits, the Company makes it clear to its employees that it understands and is trying to solve the specific problems that they face, changing not the level of income, but the level of comfort.
2. This is the Company’s way of competing with others in terms of employee retention, while the volume of cash payments in the market balances out at some level, competition is carried out through additional benefits.
3. Social transfers should increase employee loyalty to the Company, distinguishing between people working in other organizations. Unlike monetary remuneration, social benefits are paid out of profits.

Permanent part of the transfer focused on retaining employees and increasing the Company's competitiveness in the market in matters of remuneration and external image in terms of its profitability and stability. Permanent transfers include transfer benefits, discounts when using the services of the Company’s Business Centers, meals, and payment for cell phones.

Variable part of the transfer is focused on rewarding employees, however, social variable benefits differ from bonuses in that they distinguish a specific employee from among others. For example, with high performance of a team, where everyone needs to be rewarded, but one deserves more reward than others, some difference in the amount of bonuses does not allow the employee’s merits to be sufficiently reflected. A completely different effect is produced by providing such an employee, for example, with a paid voucher, despite the fact that the cost of such a voucher may not be much higher than the size of the bonus. Variable benefits depend on the behavior or status of employees. For employees who are making a dramatic career leap and are potentially ready for the next one, the Company helps them quickly change their external social status and provides opportunities for further growth. For these purposes, loans to employees, payment for additional training, and training of the strongest employees in social courses are used.

Providing variable benefits may not require significant investment on the part of the Company, for example, providing an individual place directly in front of the Business Center or office in the parking lot, etc.

Administration of the employee compensation system.

Difficulties in implementing the system are due to the resistance to the new, characteristic of all innovations, and therefore it is fundamentally important to implement it when our Company is booming (since business is seasonal) - September-March.

All managers should be involved in the administration of the monetary reward system, starting with the heads of the production department (sales department) and ending with the General Director Management Company. Approximate diagram works:

1. The head of the department evaluates the position and the employee, then submits proposals to the director of the Business Center, who, together with the economist of the Management Company, enters variables from the work results. After this, the HR Director agrees on vacancies, grades and allowances and submits the document to the Operations Director for approval. The CFO then agrees on the variable ratios and payroll and submits for approval. General Director Management Company. The accountant turns all of the above into money, the IT director administers the system, and the cashier pays out the money.

2. The system of monetary remuneration for employees should be in the form of a page on the Internet, the principle should be as follows: by logging into the system with an individual password, the manager sees all the variables that affect the calculation of the employee’s salary - rank, rank coefficient, personnel category, etc. . The final calculation of the amount and the method of its payment are also reflected here.

3. The entire system will have an effect only when the principles are followed:

3.1. visibility;

3.2. opportunity to replicate best practices;

3.3. comparability of results;

3.4. publicity.

To do this, it is necessary to use all available forms - meetings, visual propaganda (posters, honor boards), challenge pennants, flags, etc.

We then examined the use of monetary rewards in planning and executing plans. We asked whether monetary rewards were related to plan implementation and results. According to us, in Japan, monetary rewards are used to a lesser extent (see Table 9.8), Americans rely heavily on it, and the practice is something between Japanese and American.  

In the USA, monetary reward and sometimes the threat of deprivation of it are necessary to motivate the branch manager; in this case, responsibility must be clearly defined so that it is clear what results he should strive for. In Japan, money plays a less important role and the money manager cannot be deprived of it, so power is centralized.  

Anyone who has worked with people knows that there is an almost unlimited number of factors and ways to influence the motivation of a particular person. Moreover, the factor that today motivates a particular person to work intensively may contribute to the shutdown of that same person tomorrow. No one knows exactly how the motivation mechanism works, how strong the motivating factor should be and when it will work, not to mention why it works. All that is known is that the employee works for monetary reward and a set of compensation and incentive measures. An employee can, to a certain extent  

The quality of working life can be improved by changing any of the variables that affect people. It appears that the appropriate combination of cash rewards and fringe benefits that a self-service cafeteria benefits system can successfully implement increases job satisfaction and reduces absenteeism and turnover.  

The amount of monetary reward should reflect the financial significance of the action and the recorded growth rate. Small and frequent rewards are usually practiced when improvements are achieved to a satisfactory level. After this, a reinforcement scheme is introduced, where rewards coincide either with peaks of activity or are paid at random intervals. The non-frequency of bonus payments destroys the relationship between active activity and the timing of remuneration payments according to a fixed schedule, makes it impossible to take bonuses for granted as a reward and reduces the feeling of excessive control among employees 16.  

Authors of discoveries, inventions, and innovation proposals have the right to monetary reward.  

Authors of discoveries, inventors and innovators in our country receive not only monetary rewards. Of no less importance are such types of moral encouragement as nomination to the Board of Honor, to the stand of the Best Inventors and Innovators of an enterprise (organization), the opportunity to defend inventions for academic degrees, etc. Many authors of discoveries, inventors and innovators have been awarded Lenin and State Prizes . The honorary titles of Honored Inventor of the Republic and Honored Innovator of the Republic were established.  

INCENTIVES are those means or incentives by which coherence of interests, goals and actions is achieved and which induce individuals to abandon their personal goals and submit more or less willingly to the goals of the organization. The famous American economist J.C. Galbraith identifies four main types of motives for individual activity: coercion, monetary reward, solidarity (with the goals of the organization) and adaptation (of the goals of the organization to its goals).  

Coercion, monetary reward, solidarity and goal adaptation can serve as motives for individual activity, both individually and in combination. Their combined influence is called a system of motives. Systems of motives differ significantly from each other depending on what motives they include. Some motives come into conflict and thereby neutralize each other. Some motifs are combined  

With regard to the relationship between various motives, coercion and monetary reward are combined in different ways. Those who are forced to participate in the implementation of organizational goals by the threat of punishment, that is, by negative reward, always receive some positive reward.  

Just as coercion and monetary reward can act as various combinations, identification can be combined with goal adaptation. These last motives complement each other extremely well. A person who is closely associated with an organization is more likely to perceive its goals than his own if he hopes to change those that he considers unsatisfactory or unacceptable. On the other hand, the more he is imbued with the goals of the organization, the more persistently he will try to correct them and change (that is, adapt) everything that he considers unsatisfactory, based on his own goals. A member of a political party is more willing to identify with its goals if he believes that he is able to influence the development of its platform from the other side, and he will try to more actively influence this platform if he agrees with the goals of the party.  

Amounts of monetary allowance and monetary rewards and other payments received by military personnel in connection with the service military service grants in the field of science, culture  

Managers Monetary reward, prestige, power  

Employees of the enterprise Job security, monetary reward, job satisfaction  

The reasons for privatization may vary. Let us name the most common among them: the orientation of financial markets towards the short term; the desire of companies to avoid costs associated with the creation of investor relations departments, the payment of monetary remuneration for compiling lists of shareholders and preparing financial statements; the opportunity to stimulate the activities of managers by providing them with a share of the company's ownership, etc. Obstacles to privatization are the following factors: the owners have illiquid property in the company; the occurrence of irrecoverable expenses associated with privatization; the need to pay monetary compensation to bankers and lawyers involved in investment issues; the company's owners and managers have some material assets that are not invested in anything, and if. the company will remain state-owned, they can easily sell these values ​​in parts and invest the proceeds in any business.  

At the same time, if the increase occurred within the billing period, the payments taken into account when calculating the average earnings are subject to increase for the period of time preceding the change, but if after the billing period until the day of the event (vacation, etc.) - the average earnings calculated on the basis of billing period and if during the period of the event, only that part of the average earnings that falls on the period from the moment of increasing tariff rates, official salaries, and monetary remuneration is subject to increase until the end of the event.  

Civil servants are citizens of the Russian Federation who perform, in the manner established by federal law, duties of a public office civil service for monetary remuneration paid from the federal budget or the budget of the corresponding constituent entity of the Russian Federation.  

Cash reward for time worked.  

If the employee in the billing period did not have earnings from which the average earnings should be calculated, or time was completely excluded from the billing period on the grounds provided for in paragraph 11 of the Procedure, the average earnings of the accrued wages for the previous period of time equal to the established billing period with its subsequent increase by coefficients for increasing tariff rates, official salaries, and monetary remuneration.  

If an employee in the billing period and before the billing period did not have days worked or earnings in this organization, the average earnings are determined based on the amount of accrued wages, monetary remuneration for the days actually worked before the event.  

A group interview involves inviting 6-10 people for several hours to talk with a specially trained interviewer about a product, service, organization or some other marketing problem. The presenter must be highly qualified, objective, knowledge of the topic and industry in question, and the ability to understand the specific dynamics of group and consumer behavior. Otherwise, the results of the conversation may be unhelpful or misleading. Interviewees are usually paid a small monetary reward for participating in the conversation. The conversation usually takes place in a pleasant environment (for example, in an apartment), and in order to further emphasize its ease, guests are served refreshments. The presenter begins the conversation with general issues like how you feel before flying on an airplane. Subsequent questions ask how people perceive pre-flight, in-flight, and after-flight service and, finally, how they feel about Allegheny and each of its competing airlines. The facilitator encourages a free and relaxed exchange of views between the interviewees in the hope that the dynamics of group behavior will reveal their true feelings and thoughts. The statements are recorded manually or using a tape recorder and then studied in an attempt to understand how consumers make purchasing decisions. Group interviews are becoming one of the main research tools in marketing, allowing for a deeper understanding of the thoughts and feelings of consumers12.  

Managers have always performed the function of motivating their employees, whether they realized it themselves or not. In ancient times, this was done using a whip and threats, and for a select few - rewards. From the late 18th century through the 20th century, it was a widely held belief that people will always work more if they have the opportunity to earn more. It was therefore believed that motivation is a simple matter of offering appropriate monetary rewards in exchange for effort. This was the basis for the approach to motivating the school of scientific management.  

Most often, such a system is implemented in the form of proposal boxes, where employees of the company can anonymously submit a proposal. Unfortunately, this option is not very effective, because there is often no mechanism to confirm that proposals have been considered, as well as to provide incentives to employees whose proposals benefit the organization. Programs that provide such incentives and have a mechanism to explain why an idea is being implemented allow employees to understand the reasons for the rejection or rejection of their proposals. In addition, workers have a chance to receive cash rewards.  

According to N. Paul Loomba Payment is a monetary reward or utility resulting from a specific strategy in combination with specific circumstances. If the payments are presented in the form of a table (or matrix), we get a payment matrix of 24, as shown in Fig. 8.4. Words combined with specific circumstances are important to understand when a payoff matrix can be used and to evaluate when a decision made based on it is likely to be reliable. In the very general view matrix means that the payment depends on certain events that actually occur. If such an event or state of nature does not actually occur, the payment will inevitably be different.  

COMPENSATION (OMPENSATION) - monetary remuneration paid by an organization to its employees for the work they perform.  

In rich countries and among wealthier people, coercion takes a back seat. As a result, alienation is either small or absent. The way is opened for the worker to accept the goals of the organization. This creates a paradoxical situation with the monetary motive, which consists in the fact that the higher the level of payment, the less its importance relative to other motives. And this is not a matter of the decreasing marginal utility of money, although along with a progressive income tax this may reduce the purchasing power of earnings. The point is rather that as income increases, in most cases, dependence on a specific place of work decreases. At the same time, the element of coercion is also reduced, which opens the way for the identification and adaptation of goals. These latter complement and can surpass in importance monetary reward in the system of motives. The power of the organization and the coordination of motives are manifested and determined by the activities of managers.   (before deduction of taxes and mandatory payments) and net salary (after deduction).  

When registering all types of incentives, except for monetary rewards (bonuses), an exception is allowed from form No. T-11 Order (instruction) on incentives for a props employee in the amount of rubles. cop. .  

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Monetary compensation paid by a licensee to a licensor for the transfer of rights to industrial property, which can take several forms.  

Monetary remuneration for work on the day of weekly rest should be made in double the amount in accordance with Article 60 of the Labor Code of the RSFSR. Piece workers, in addition to their piecework earnings, should be paid an additional hourly tariff rate of time wages for each hour of work, that is, in the same way as overtime hours are paid after the first two hours of overtime.  

Monetary reward for service (comes out of use.  

Monetary remuneration and other components of compensation provide the necessary conditions for the survival, development of the employee, leisure activities in the present, as well as confidence in the future, development and high quality life for the future.  

Cash rewards are the most obvious way an organization can reward employees, but estimates of monetary rewards are inconsistent. Proponents of the theory human relations claim that they are most important social needs people, while supporters of the theory of scientific management believe that material reward necessarily leads to increased motivation.  

The manager's monetary remuneration does not depend on this, but public praise itself serves as a strong incentive.  

In addition to monetary remuneration for work, workers (apparently all of them. The school for the education of masters and apprentices in the gunpowder, saltpeter and sulfur industries, organized in 1830 at the Okhgen plant1) received free room and board. Even in that case, the wages of horse drivers - furleyts (2 rubles per year. Workers of this qualification received but 2 rubles per year at other gunpowder factories.  

The amount of monetary reward should reflect the financial significance of the action and the recorded growth rate. Small and frequent rewards are usually practiced when improvements are achieved to a satisfactory level. After this, a reinforcement scheme is introduced, where rewards coincide either with peaks of activity or are paid at random intervals.  

Receiving huge monetary rewards for those analysts whose recommendations wealthy clients are satisfied with attracts a large number of smart and hardworking people into this work.  

Coercion, monetary reward, solidarity and goal adaptation can serve as motives for individual activity, both individually and in combination. Their combined influence is called a system of motives. Systems of motives differ significantly from each other depending on what motives they include. Some motives come into conflict and thereby neutralize each other.  

In the USA, monetary reward and sometimes the threat of deprivation of it are necessary to motivate the branch manager: in this case, responsibility must be clearly defined so that it is clear what results he should strive for. In Japan, money plays a less important role and the money manager cannot be deprived of it, so power is centralized.  

PREMIUM-ALLIANCES - additional monetary rewards paid to collective farms for the delivery of certain types of products above the plan.  

SALARY, monetary reward for work; part of the income received from the sale of a product created by the employee’s labor; issued to an employee by an enterprise, institution or other employer.  

SALARY - monetary remuneration for work; part of the cost of a product created by labor, income from its sale, given to a worker by the enterprise, organization in which he works, or another employer. The amount of wages depends on the quantity and quality of labor, is established in the form of an official salary, according to a tariff schedule (rate), in accordance with the contract, but cannot be lower than the minimum wage. The upper limit of wages in a market economy is usually not limited, but official salaries have an upper limit.  

SALARY - monetary remuneration for work; part of the cost of a product created by labor, income from its sale, given to a worker by the enterprise, institution in which he works, or another employer. The amount of wages is established either in the form of an official salary, or according to a tariff scale (rate), or in accordance with a contract, but cannot be lower than the minimum wage established by law. The upper limit of wages in a market economy is usually not limited.  

The types of employee bonuses are quite varied. However, in addition to them, there are other ways of rewards. Let's consider how you can financially reward employees.

Incentive payments (bonuses) as a form of payment for work

The current labor legislation (Article 129 of the Labor Code of the Russian Federation) allows the employer to establish a wage system consisting of several parts:

• payments for work performed in accordance with job duties;
• compensatory payments taking into account the conditions in which work is carried out;
• additional incentive payments designed to increase employee interest in work.

By adopting such a remuneration system, the employer has the opportunity to:

• influence the employee’s interest in the results of his activities;
• regulate the amount of labor costs taken into account when calculating the income tax base.

The types of bonuses and remunerations used as additional incentive payments are reflected in the internal regulations developed by the employer (Article 135 of the Labor Code of the Russian Federation). This act establishes:

• list of types of incentives used;
• conditions and frequency of their accrual;
• the circle of persons to whom each type of incentive applies;
• a list of indicators that allow an employee to qualify for appropriate remuneration and deprive him of such an opportunity;
• a system for assessing indicators giving the right to remuneration, the result of processing of which will be the monetary value of the remuneration;
• procedure for reviewing assessment results and challenging its results.

However, incentive additional payments, when included in the remuneration system, become mandatory for the employer if all conditions for applying the incentive are met.

Are there any differences in the concepts of “monetary remuneration” and “wages”

The term "cash reward" can be applied to any payment made in money, regardless of its purpose. That is, it can be either remuneration for work or any other payment. Additional incentive payments made for the employee’s labor achievements are part of the salary and, when issued in cash, are regarded as monetary rewards issued as payment for labor.

But in addition to payments related to labor achievements, the employer can use other additional payments that are not determined by the employee’s labor functions. Usually they are one-time in nature and not regular in terms of accrual. An example of such additional payments are bonuses paid for anniversaries or holidays. They fully correspond to the term “monetary remuneration not related to wages.”

What kind of bonuses are there and how else can employee incentives be expressed?

Incentives that serve the purpose of stimulating employees are divided into 2 main types:

• material (cash or in kind), representing various types additional payments;
• intangible, which can be expressed in a declaration of gratitude, placement on the honor board, assignment of an honorary title, awarding a diploma, medal or memorial sign.

Among material incentives, the leading role is given to bonuses. But there may also be other types of cash payments, expressed, for example:

• in bonuses to the salary or tariff rate established for a certain period;
• additional payments for length of service.

Among bonuses, in relation to the regularity of their payment, there are 2 main groups:

1. Regular (systematic), accrued and paid at a certain frequency (month, quarter, year). All issues related to such bonuses are regulated by the employer’s internal regulations on incentive payments. Special instructions (decisions) for calculating such bonuses are not needed. If the conditions stipulated by the internal regulations on bonuses are met, they must be accrued without fail.
2. Irregular (one-time), which can be named in the internal regulatory act on bonuses as included in the remuneration system, but their accrual requires additional information on indicators essential for bonuses. Therefore, for such bonuses it is necessary to draw up a separate document justifying the employee’s right to receive a bonus, and to make a separate decision on this document by the head of the organization.

According to the sources through which bonuses are calculated, they can be divided:

• included in expenses that reduce the income tax base - this will include bonuses related to the employee’s labor achievements, both included in the remuneration system and not included in this system;
• attributable to net profit - such attribution applies to bonuses for non-production purposes, paid not for labor achievements (letter of the Ministry of Finance of Russia dated April 24, 2013 No. 03-03-06/1/14283).

What are the differences between a bonus and a bonus, a regular bonus and a guaranteed one?

Regarding the words “premium” and “bonus”, dictionaries of financial terms give very similar interpretations, implying the same concept - “remuneration”. Therefore they can be considered identical. Although some nuances of the explanations given in the dictionaries allow us to consider the bonus as an unexpected payment (a gift), which makes it closer in meaning to irregular (one-time) bonuses.

Regular types of bonuses to employees include bonuses included in the remuneration system (i.e., which have become mandatory for the employer), accrued and paid at specified intervals. In certain circumstances, they may not be accrued (for example, in the event of unsatisfactory financial and economic performance of the organization for the period or in relation to an employee deprived of a bonus in accordance with the bonus rules), but this turns out to be the exception rather than the rule.

How is a bonus for a professional holiday or anniversary taxed in 2018-2019?

Bonuses paid for labor achievements are regarded as payment for labor and, like regular salaries, are subject to personal income tax and insurance contributions.

But incentive payments not related to work achievements, such as an employee’s anniversary bonus or a holiday bonus, are also employee income. And they, just like wages, must be subject to personal income tax and insurance contributions (Article 420 of the Tax Code of the Russian Federation, paragraph 1 of Article 20.1 of the Law “On Compulsory Social Insurance against Accidents...” dated July 24, 1998 No. 125-FZ). Moreover, contributions, in contrast to the amount of such a premium itself, can be taken into account in expenses when determining the income tax base (subclause 49, paragraph 1, article 264 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated 06/09/2014 No. 03-03-06/1 /27634).

How to fill out an order if a company’s employees have been given a bonus (sample)

To issue an order for bonuses, there are unified forms, approved by Resolution of the State Statistics Committee of the Russian Federation dated January 5, 2004 No. 1:

• T-11, issued when awarding bonuses to one employee;
• T-11a, compiled with the encouragement of a group of workers.

However, these forms are not mandatory for use and nothing prevents the employer from issuing such orders using a form developed independently.

The basis for issuing an order will be:

• the results of the distribution of regular (systematic) bonuses approved by the head of the organization;
• having a positive resolution from the head of the organization memo on the employee’s nomination for an irregular (one-time) bonus.

A sample of filling out an order for bonuses, drawn up on form T-11, can be seen on our website.

Results

One of components remuneration systems can provide incentive payments. The main role among these payments is given to bonuses. Bonuses can be regular or one-time, expensed and paid out of net profit. But they are taxed according to the same rules with the calculation of personal income tax and insurance contributions. Payment of the premium must be formalized by order.