Employers are often interested in the question: “Is employee sick leave taxable?” Sick leave payments are considered income and, accordingly, are subject to personal income tax. But according to the legislative acts of the Russian Federation, there are specifics for calculating such a tax. If an employee falls ill, the employer must pay him compensation accrued for the period of illness (Article 183 of the Labor Code of the Russian Federation).

What taxes are imposed on a certificate of temporary incapacity for work?

Money paid for a period of incapacity for work that is associated with illness, although not considered wages, is subject to taxes.

According to the legislative acts of our country, personal income tax on sick leave is calculated in the general manner. It is paid at the expense of the employee and depends on the reasons for his receipt of a certificate of temporary incapacity for work.

A document issued in connection with:

• with an employee's illness;
• caring for sick children or other disabled relatives;
• with quarantine;
• with injury;
• with the need for further treatment in a hospital or sanatorium.

It should be noted that a document confirming temporary disability must be issued only in licensed medical institutions. The diagnosis is not prescribed in it, since it is a medical secret. Only a certain code must be entered on the sheet. It also notes its duration, which is taken as the basis when calculating the benefit.

Cases when tax is not charged

According to the current legislative acts of the country, personal income tax is not taken from sick leave if it is issued to an employee in connection with with pregnancy and childbirth. After submitting such a document and several certificates attached to it to the employer, the employee must receive full compensation within ten days, since these payments are not taxable.

There is also a special case when taxes are not levied on sick leave in 2017 - this is the adoption of a child. A certificate of temporary incapacity for work is issued upon adoption of a child under 3 months of age. for 70 days. The date of birth of the child will be considered the one indicated in the court decision. Personal income tax is not deducted from sick leave issued for such an occasion.

Contributions levied by the employer

Taxation on sick leave in 2017-2018 is determined by the provisions of the Tax Code of the Russian Federation. Due to the fact that payments based on a document confirming incapacity for work are made by the employer, he must withhold income tax. Accordingly, the employee receives compensation, from which personal income tax has already been deducted.

The organization pays only for the first 3 days of sick leave. The remaining days until recovery will be compensated by the Social Insurance Fund. This means that the tax is collected from the amount that is accrued to the employee for the first 3 days of his being on sick leave.

Taxes on sick leave compensation are calculated in the same way as they are levied on accrued wages.

Personal income tax on sick leave is calculated at a rate that is 13% .

Attention ! The employee can receive compensation under the document within 6 months. from the date of return to work after recovery, since the duration of sick leave is limited to the above period.

Term and date of withholding personal income tax from sick leave

From the beginning of 2016, the transfer of personal income tax from sick leave and vacation pay must be made no later than the last day of the month in which they were paid.

Personal income tax accounting

To account for personal income tax, you first need to calculate the amount of withholding. You need to do it like this:

• The salary for the previous 2 years is added up, and the resulting total is divided by 730 (the number of days in 2 years). Salaries received in the current year are not taken into account in calculations (see);
• the calculations from the previous paragraph gave us the average income for 1 day;
• the average income is multiplied by the number of days spent on forced short-term leave;
• The result was an amount that constitutes sick leave income. But only an employee with more than 8 years of insurance experience will receive it in full. If the years worked are from 5 to 8, then 80% of the amount received is paid, and if less than 5 years, then the payment will be 60%.

If a person did not work for the previous 2 years or did not present a salary certificate, then the calculation will be made as follows:

• the amount of the minimum wage (SMW) is taken and multiplied by the number of days that the employee spent on sick leave;
• divide the amount by the number of days in the month in which the employee was sick;
• the amount received is the average income;
• the following calculation scheme is similar to that described above;.
• the final amount is paid in full, regardless of length of service.

Compensation for a document confirming temporary disability is calculated within 10 days after it is submitted to the organization, and is paid along with the salary following the benefit.

Correctly filling out the 2-NDFL certificate

In order to correctly issue a certificate reflecting personal income tax on sick leave, you should take into account the advice of the Federal Tax Service. The 2-NDFL certificate must indicate all income received for the required period.

Subsection 3 of the document is filled out as follows:

• in the “month” field, enter the serial number of the month and the amount of funds received;
• the salary amount is displayed for the current month, and the receipt on the certificate of incapacity for work is displayed for the previous month, in which the employee was sick;
• a special code is defined for each amount. The salary is displayed by code 2000, and the amount of compensation by code 2300.

• This year, 2017, sick leave turns 80 years old. The first temporary disability certificate was issued in our country in 1937.
• From July 1, 2017, a gradual transition to electronic forms of temporary disability begins
• In Germany, an employee can be absent due to illness for 3 days without issuing an official document and without losing his salary. It is enough to notify the employer by telephone call (see).
• Sick leave taxes in 2017 did not undergo any changes compared to the previous year. This means that there are no special problems with their calculation.

A sick leave certificate is a document certifying a valid reason for an employee’s absence from the workplace. It is issued during pregnancy, during illness, in case of need to care for a child or for other reasons prescribed in regulations. This document serves as the basis for the employer to pay a certain amount of money. However, the procedure for calculating sick leave changes every year.

The amount of money intended to pay for sick leave does not have a fixed rate. The amount of payment is calculated based on the average salary of the employee and his insurance record. In this case, the calculation scheme will look like this:

1. The addition of the amounts received by the employee every month during the last 2 working years.
2. Finding average daily earnings. In this case, the amount received in the first point is divided by the number of days in 2 years.
3. Multiplying the result obtained in point 2 by the number of working days that the employee spent on sick leave.

When calculating sick leave, the length of service coefficient is taken into account.

Calculation of sick leave according to the minimum wage

The length of service factor is taken into account on sick leave in accordance with the minimum wage (minimum wage). In this case, its calculation corresponds to the following scheme:

• If the employee’s length of service does not exceed six months, then each month of sick leave will cost no more than 1 minimum wage.
• An employee whose work experience is from 3 to 5 years receives a coefficient of 0.6.
• An employee with 6 to 8 years of experience deserves a 0.8 share.
• A person who has worked for more than 8 years is awarded a coefficient of 1.

The calculation scheme becomes clearer if you look at its example.

How is sick leave calculated in 2017?

Calculation of sick leave occurs in accordance with the following example:

1. Payment terms. Two working years (2016 and 2017) gave Krotkov an income equal to 308,000 rubles. His work experience is 5 years. His sick leave lasted 12 days.
2. Calculation formula. 2016 – 366 days. 2017 – 365 days. From which the amount of payment after sick leave for Krotkov corresponds to this example: 308,000: 731 days * 12 * 0.6. In total, Krotkov will receive 3,033 rubles 65 kopecks.

Procedure for paying sick leave

Payment of sick leave at the expense of the employer is made taking into account 3 days from the moment of illness of the employee. The subsequent period is paid by the Social Insurance Fund. If the purpose of sick leave is to care for a child, the employer does not participate in its payment. This responsibility falls entirely on the FSS.

The amount of money intended for sick leave is calculated and received by the employee along with wages or advance payment. In this case, the time of their payments is taken into account. If the salary comes before the advance, then the sick leave will be paid with it.

The accountant first checks that the sick leave form is filled out correctly. If he notices errors in the execution of the document, sick leave is not paid to the employee until he provides a correctly completed sick leave form. Despite receiving papers certifying a person’s absence from work for a valid reason, not all citizens can receive money for sick leave. Sick leave is paid in the following cases:

• The person officially works for the company. The exception is a contract.
• The employee is officially registered with an individual enterprise. Also, except for the contract.
• The employee works under a contract and this document contains a clause on providing a social package.
• A citizen voluntarily transfers funds to the Social Insurance Fund.
• The person requiring sick pay is a member of the cooperative.

If a person does not meet any of these criteria, then sick leave is not paid to him. Sick leave payment is not made under the following circumstances:

• An employee's work is regulated by a contract.
• The treatment regimen was disrupted during the illness.
• The patient's outpatient record does not contain any records of his condition.
• The sick leave was issued by a medical institution operating without a license.
• The sick leave was extended for more than a month, but the medical commission did not give an opinion on this.
• A certificate of incapacity for work was issued, but the patient was not prescribed treatment.
• The date the sick leave was issued is incorrect.
• The employee was suspended from work and his salary was not retained.
• The employee's injury was the result of a criminal violation.
• The enterprise is in a state of idleness.

In order for an employee to receive a payment, documents must be submitted to the Social Insurance Fund to pay for sick leave. Their list includes:

• Certificate of incapacity for work, supplemented by a certificate with calculation of benefits.
• Salary information related to a given pay period.
• Personal income tax-2, containing data for the last 2 years.
• Employment contract and book.
• Salary certificate taken from other employers.
• An application written by hand, which must indicate the amount of funds required to pay for sick leave.
• Calculation made in accordance with Form 4 of the Social Insurance Fund, taking into account the payment of insurance coverage.

The purpose of these documents is to confirm the status of a person entitled to receive temporary disability benefits. In addition, based on them, the required payment is calculated. Personal income tax is withheld from the results obtained.

Another rule for paying sick leave applies to those who have worked at the company for less than 2 months. These employees must present to the employer a certificate from their previous place of employment, which will confirm their income for the last 2 years. The amount indicated therein will be taken into account when calculating the payment.

Sick leave is calculated by an accountant within 10 days from the date the employee provides sick leave. After which it is paid. It occurs no later than the nearest date of receipt of wages.

Maximum sick pay

A limited amount is allocated for temporary work ability benefits. In 2017, an employee cannot receive more than 72,000 rubles per month. And the maximum amount of payment for sick leave during the year is 755,000 rubles.

What is included in the calculation of sick leave

Based on the information presented, we can conclude that the calculation of sick leave is carried out taking into account the average salary and length of service of the employee. At the same time, years, not months and days, are taken into account as length of service. Also, when applying for payment, attention is paid to where the injury occurred. If its receipt is the result of the production process at the enterprise, then the payment for sick leave will be equal to 270,000 rubles.

Sample of a new sick leave certificate for 2017

Even if an employee falls ill during his vacation, he must consult a doctor. Having received a sick leave certificate, he has the right to ask for an extension of leave for the number of days indicated on the certificate of incapacity for work. Sick leave during vacation is paid in the same way as if the person had to work at that time.

If a person works in several organizations, he has the right to receive sick pay in each of them. If an employee who terminates the contract with the organization falls ill, he is also entitled to disability benefits. It is paid taking into account a coefficient of 0.6 if the employee falls ill within 30 days after termination of the contract.

There are several interesting facts about sick leave abroad that greatly distinguish the foreign benefit system from the Russian one:

1. There are no sick days in the USA. The fact of payment for a specific number of days is stated in the contract. This leaves 38% of Americans without temporary disability benefits.
2. In Israel, only 18 working days spent on sick leave are paid per year. If the employee has not been sick all year, then these days are postponed. But you cannot accumulate more than 90 days. In addition, the first day of illness is not paid, for the 2nd and 3rd days only 50% is paid. Sick leave will be fully compensated starting from the 4th day.
3. Germany provides its citizens with the opportunity to get sick for 3 days without taking out sick leave. This fact does not affect their income in any way.

The system for calculating sick leave in the Russian Federation is within the strict framework provided for by Federal Law No. 255-FZ of December 29, 2006 “On compulsory social insurance in case of temporary disability and in connection with maternity.” Thus, in order to be guaranteed to receive paid sick leave, you need to follow the rules.

If your employee is sick, then during the period of temporary disability you must pay him benefits based on the sick leave certificate submitted by him (Article 183 of the Labor Code of the Russian Federation, clause 1, part 1, article 2,). In general, the first 3 days of illness from the employee’s period of incapacity are paid at the expense of the employer, the remaining days - at the expense of the Social Insurance Fund (Part 1, Article 3, Clause 1, Part 2, Article 3, Part 1, Article 6 of the Law dated December 29, 2006 No. 255-FZ).

The benefit must be assigned to the employee within 10 calendar days from the date of presentation of sick leave to the employer, and transferred on the nearest payday after the assignment of the benefit, established by the employer (part 1 of article 15, part 8 of article 13 of the Law of December 29, 2006 No. 255-FZ).

Sick leave is subject to personal income tax

Temporary disability benefits are excluded from the list of tax-free state benefits established by current legislation (clause 1 of Article 217 of the Tax Code of the Russian Federation). That is, personal income tax is withheld from all sick leave payments directly when it is paid to the employee (Clause 1, 4, Article 226 of the Tax Code of the Russian Federation). And the tax must be transferred to the budget no later than the last day of the month in which the employee was paid temporary disability benefits (clause 6 of Article 226 of the Tax Code of the Russian Federation).

Is personal income tax accrued on sick leave for a performer under the GPA?

For sick persons with whom you have concluded civil contracts (providing services, performing work), you do not have to pay sick leave (clause 1, part 1, article 2, part 1, article 13 of the Law of December 29, 2006 No. 255- Federal Law). After all, there is no need to pay contributions to VNiM from payments to such performers (clause 2, clause 3, article 422 of the Tax Code of the Russian Federation). Accordingly, the question of whether personal income tax is withheld from sick leave in this case is automatically removed.

Personal income tax on sick leave in 2020

Amounts paid for sick leave are subject to personal income tax in 2020 in the same manner as in 2019.

Personal income tax on sick leave: pilot project

Today, in some constituent entities of the Russian Federation, there is a pilot Social Insurance Fund project, according to which the employer pays benefits only for the first three days of illness, and employees receive benefits for the period starting from the 4th day directly from the Social Insurance Fund, and (clauses 1, 6 of the Regulations, approved by the Resolution Government dated April 21, 2011 No. 294). It is from the “three-day” allowance that the employer needs to withhold personal income tax.

Sick leave in 6-NDFL

Sickness benefits are reflected in 6-NDFL in sections 1 and 2 during the period of their payment to employees. Moreover, if sick leave was paid in the last month of the quarter and the last day of this month falls on a weekend, then in the 6-NDFL of this quarter sick leave will only fall into section 1, and into section 2 - already in the next quarter (Letter of the Federal Tax Service dated March 13, 2017 N BS-4-11/4440@).

Personal income tax from sick leave in certificate 2-NDFL

The amounts of temporary disability benefits paid to the employee are reflected in the certificate in form 2-NDFL (

Hello!

Read the letter from the Ministry of Finance of the Russian Federation:

MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

FEDERAL TAX SERVICE

The Federal Tax Service, having considered an online appeal regarding the reflection of income in the form of temporary disability benefits in the calculation of the amounts of personal income tax calculated and withheld by the tax agent (Form 6-NDFL) (hereinafter referred to as the calculation according to Form 6-NDFL), and certificate of income of an individual in form 2-NDFL (hereinafter referred to as certificate in form 2-NDFL), reports the following.

In accordance with paragraph 3 of paragraph 2 of Article 230 of the Tax Code of the Russian Federation (hereinafter referred to as the Code), tax agents submit to the tax authority at the place of their registration a calculation in form 6-NDFL for the first quarter, half a year, nine months - no later than the last day of the month following for the relevant period, for the year - no later than April 1 of the year following the expired tax period, in the form, formats and in the manner approved by order of the Federal Tax Service of Russia dated October 14, 2015 N ММВ-7-11/450@.

Section 1 of the calculation in Form 6-NDFL is filled out with an accrual total for the first quarter, half a year, nine months and a year.

Section 2 of the calculation in Form 6-NDFL for the corresponding period reflects those transactions that were carried out over the last three months of this period. If a tax agent carries out an operation in one period and completes it in another period, then this operation is reflected in section 2 of the calculation in Form 6-NDFL in the period in which it was completed.

According to clause 1.1 of the Procedure for filling out and submitting the calculation of the amounts of personal income tax calculated and withheld by the tax agent in Form 6-NDFL, approved by order of the Federal Tax Service of Russia dated October 14, 2015 N ММВ-7-11/450@ (hereinafter referred to as the Procedure for filling out and submitting calculation according to Form 6-NDFL), calculation according to Form 6-NDFL is filled out on the basis of accounting data for income accrued and paid to individuals by a tax agent, tax deductions provided to individuals, calculated and withheld tax on personal income contained in tax accounting registers.

Section 1 of the calculation in Form 6-NDFL indicates the sums of accrued income, calculated and withheld tax, cumulative for all individuals, on an accrual basis from the beginning of the tax period at the appropriate tax rate. In particular, line 020 of the section indicates the cumulative amount of accrued income for all individuals on an accrual basis from the beginning of the tax period (clause 3.1 of the Procedure for filling out and submitting calculations in Form 6-NDFL).

The date of actual receipt of income in the form of temporary disability benefits is the day of payment of income, including the transfer of income to the taxpayer’s bank accounts or, on his behalf, to the accounts of third parties (subparagraph 1 of paragraph 1 of Article 223 of the Code).

In this regard, since income in the form of temporary disability benefits is considered received on the day of its payment (transfer to the taxpayer’s account), then on line 020 of section 1 of the calculation in Form 6-NDFL, this income is reflected in the period in which this income is considered received .

According to paragraph 4 of Article 226 of the Code, tax agents are required to withhold the accrued amount of tax directly from the taxpayer’s income upon their actual payment, taking into account the specifics established by this paragraph.

In this case, tax agents are obliged to transfer the amounts of calculated and withheld tax no later than the day following the day of payment of income to the taxpayer. When paying a taxpayer income in the form of temporary disability benefits (including benefits for caring for a sick child) and in the form of vacation pay, tax agents are required to transfer the amounts of calculated and withheld tax no later than the last day of the month in which such payments were made.

Thus, income in the form of temporary disability benefits accrued to an employee for June, for example, actually transferred on July 5, 2016, is subject to reflection in sections 1 and 2 of the calculation in Form 6-NDFL for the nine months of 2016.

In section 2 of the calculation in form 6-NDFL for the nine months of 2016, this operation is reflected as follows: line 100 indicates 07/05/2016, line 110 - 07/05/2016, line 120 - 08/01/2016 (taking into account paragraph 7 of article 6.1 Code), on lines 130 and 140 - the corresponding total indicators.

In accordance with the Procedure for filling out the form of information on the income of an individual “Certificate of income of an individual” (form 2-NDFL), approved by order of the Federal Tax Service of Russia dated October 30, 2015 N ММВ-7-11/485@, section 3 indicates information on income , accrued and actually received by an individual in cash and in kind, as well as in the form of material benefits by month of the tax period and corresponding deductions.

In the column "Month" of section 3 of the certificate in form 2-NDFL, the serial number of the month of the tax period corresponding to the date of actual receipt of income, determined in accordance with the provisions of Article 223 of the Code, is indicated in chronological order.

Since income in the form of temporary disability benefits, taking into account paragraph 1 of Article 223 of the Code, is considered to be actually received in July 2016, the month “07” (July) is indicated in the “Month” column of Section 3 of the Individual Income Certificate for 2016 .

Valid

state councilor

Russian Federation

Sickness benefits paid by an employer to its employees fall under income that is subject to personal income tax. The employer is obliged to transfer the tax to the budget. In the article, we will look at the deadlines for paying personal income tax on sick leave in 2020, as well as on what amounts the employer must pay tax.

There is a certain deadline for paying personal income tax from sick leave for 2020. This must be done no later than the last day of the month in which the sick leave benefit was paid to the employee. As a rule, personal income tax is paid by the organization in this case, but there are some exceptions.

Personal income tax from sick leave

Based on Article 217 of the Tax Code of the Russian Federation, personal income tax should be withheld from disability benefits (Read also article ⇒). This rule applies to all types of sick leave, including:

• Sick leave in case of illness of an employee or his family members;
• Occupational diseases of an employee, or diseases as a result of an accident at work.

When the Social Insurance Fund pays sick leave from the first day

There are several cases of sick leave, when the obligation to pay for it is assigned to the Social Insurance Fund from the first day (Read also article ⇒). These include sick leave:

• Caring for a child or other family member;
• Arising from an accident at work or an occupational disease;
• When receiving follow-up treatment upon referral by a medical institution to an employee in a sanatorium in the Russian Federation (or another resort organization in the Russian Federation) immediately after undergoing treatment in a hospital;
• When undergoing prosthetics in a special hospital;
• When quarantining the employee himself, or his child under 7 years of age who attends a preschool institution, as well as other family members.

Personal income tax on sick leave paid by the Social Insurance Fund

In those regions where the pilot project for payments directly from the Social Insurance Fund is not yet operational, social insurance continues to reimburse sick pay to the employer without deducting personal income tax. In this case, the employer must independently act as a tax agent and withhold personal income tax both from the benefit reimbursed from the Social Insurance Fund and from the benefit paid from its own funds. In this case, the employer must pay for the first three days of sick leave for the employee, and the remaining days are paid for by the Social Insurance Fund.

Petrova's employee O.P. I was on sick leave for 4 days. During this period, she was accrued sick leave in the amount of 2,400 rubles, of which 1,800 came from the Social Insurance Fund, and 600 came from the employer. Having calculated the personal income tax from this amount, Petrova was paid the following amount:

2400 – 2400 x 13% = 2088 rubles.

The FSS will reimburse the employer 1,800 rubles and personal income tax will need to be paid from this amount. Thus, the employer will have to transfer personal income tax to the budget in the amount of 2400 x 13% = 312 rubles.

In those regions where such a pilot project with the Social Insurance Fund has been launched, personal income tax payment occurs differently. From the amount of benefits paid at the expense of the employer, personal income tax is withheld and tax is paid by the organization independently. And from the part that the FSS pays, personal income tax is withheld and transferred by social insurance.

Let's take a closer look at the procedure for paying sick leave in the regions where the pilot project operates. An employer in such a region pays for the first three days of illness of an employee. And the remaining days of sick leave are paid at the expense of the Social Insurance Fund.

Important! In those regions where the FSS pilot project operates, an employee who was on sick leave with his child is paid sick leave benefits at the expense of the FSS in full.

It should be remembered that if the Social Insurance Fund has paid 100% of the benefit to an employee, the employer is not recognized as a tax agent for personal income tax purposes and does not have to pay it from the benefit. The Social Insurance Fund will do this for the entire amount of the calculated payment.

Let's take a closer look at an example ⇓

Petrova's employee O.P. I was on sick leave for 4 days. During this period, she was accrued sick leave, of which 1,200 rubles came from the Social Insurance Fund and 1,200 rubles came from the employer. The employer will have to transfer personal income tax to the budget in the following amount:

1200 x 13% = 156 rubles

From the benefit paid directly from the Social Insurance Fund to the employee, personal income tax will be paid by social insurance independently in the amount of 156 rubles.

Petrov will receive benefits in the following amount - 2088 rubles, of which 1044 rubles will be paid directly by the FSS and 1044 rubles by the employer.

Deadlines for paying personal income tax on sick leave

After the employee has submitted sick leave to the employer, he is required to calculate and pay sick leave benefits. The accounting department must make the calculation within 10 days from the date the employee submits the sick leave.

The deadline for paying personal income tax on hospital benefits is set by the Tax Code of the Russian Federation. According to Article 226 of the Tax Code, this should be done no later than the deadline of the month in which the employee received the benefit.

Important! Even if the employee’s sick leave was paid on March 30, personal income tax on them must be paid no later than March 31. This is the deadline for payment.

Let us determine the deadline for paying personal income tax on sick leave in 2020 using the following example:

Petrova O.P. I was on sick leave in February 2020 from the 5th to the 9th inclusive. Based on the certificate of incapacity for work, Petrova received sick leave on the day the first half of her salary was issued, February 25. The employer must pay personal income tax by the end of February, from the 25th to the 28th.

How to transfer personal income tax to the budget

To pay personal income tax for sick leave benefits, the employer will need to fill out a payment order, indicating the correct BCC.

Important! KBC for paying personal income tax on sick leave for 2020 – 18210102010011000110.

When filling out a payment receipt, pay attention to filling out field 107. Fill it out according to the date on which the income is considered received. It is recommended to pay personal income tax on wages and sick leave in different payments, since these payments have different income recognition dates: for wages - the last day of the month, and for sick leave - the day of payment.

Let's look at an example: sick leave benefits and wages were paid on the same day, March 5, 2020. However, the days of recognition of income for these payments are different; for personal income tax, the recognition date falls in March, and for wages, in February. In this case, two payment orders will need to be drawn up, one for personal income tax from salary, where MS.02.2020 will be indicated in field 107, and the second for personal income tax from sick leave, where field 107 will indicate MS.03.2020.

If the dates of income recognition coincide, you can pay personal income tax in one payment order. For example, if both sick leave and salary for February 2020 were transferred on the 28th, then the tax is paid in one payment, and MS.02.2020 is entered in field 107.

Personal income tax on the certificate of incapacity for work

Personal income tax on benefits paid for caring for a disabled child

Quite often, when paying an employee a disability benefit, which is paid in connection with caring for a disabled child, a question arises. Do I need to pay personal income tax on this amount? Let's consider this issue in more detail.

Based on the Tax Code of the Russian Federation, the tax base for personal income tax is defined as the amount of income taxpayers receive in the form of money or in kind. Article 217 of the Tax Code contains a list of income that is exempt from personal income tax. Sickness benefits, including benefits for caring for a sick child, are not included in this list. Accordingly, this payment is subject to personal income tax and the party that withholds it must withhold and transfer it to the budget, which means it acts as a tax agent.

Legislative framework

Legislative act	Content
Article 217 of the Tax Code of the Russian Federation	“Income not subject to taxation (exempt from taxation)”
Letter of the Ministry of Finance No. 03-04-05/14992 dated 04/29/2013	“Is temporary disability benefits assigned to care for a disabled child subject to personal income tax?”
Law No. 255-FZ of December 25, 2006	“On compulsory social insurance in case of temporary disability and in connection with maternity”
Article 226 of the Tax Code of the Russian Federation	“Features of tax calculation by tax agents. Procedure and deadlines for tax payment by tax agents"