What does white salary mean?

White salary- this is the only legal form of remuneration. When looking for a job, many job seekers also face illegal types of payment: black and gray wages. In order to figure out whether a given employer's salary is legal, you need to pay attention to the following signs.

Signs of a white paycheck:

• The full amount of the salary is indicated in the documents when applying for a job.
• The accrual of bonuses and other incentive allowances is carried out by order.
• The money is transferred to the card or issued through the cashier. Cash payments must be made on one of the following documents: cash order, payroll, or payroll. The documents must be signed by a manager, chief accountant or authorized person. Opposite the surname of a specific employee should be the amount that is handed out.
• No additional envelope amounts will be issued.
• The actual amount of income is reflected in the 2-NDFL certificate and in the payroll.
• All deductions are made from the entire amount of the employee's income.

What is the official pay

Many people do not even think that they are receiving illegal income. They work without registration or receive part of their payment in envelopes, but do not realize that part of their income is hidden. For most employees, it does not matter that the size of their actual income according to documents is less than their real earnings. Employees pay attention to the fact that money arrives on time, without delays.

The official salary is calculated either according to the report card, or according to the fulfilled norms. An employee should not be issued for a salary less than the minimum wage established by the state.

Salary structure

• Salary. To calculate which, the actual hours worked according to the timesheet are taken into account, or the actually fulfilled norms.
• Increase (for length of service, qualifications, length of service, rank or others).
• Additional payments for work on weekends, for night hours, for replacing an absent employee, and others.
• Incentive payments, including bonuses.
• The regional coefficient established in a specific region.

When an employee is on sick leave, he is paid a temporary disability benefit. When on a business trip-business trip. And when you go on vacation, vacation pay is paid.

Features of employment at work

When hiring an employee, a hiring order must be made. An employment contract is another fundamental document describing the position, working conditions, rest, as well as the amount of remuneration for performed duties.

You need to familiarize yourself with the following internal documents of the organization:

1. Collective agreement.
2. Bonus regulations.
3. Inner order rules.
4. Job descriptions.
5. Taxes and salaries.

You need to understand the difference between accrued and paid salaries. The difference between them is withholding personal income tax (personal income tax), trade union dues, alimony and other deductions on a writ of execution.

In addition, the employer pays mandatory contributions from all accrued income of employees to the following extra-budgetary funds:

1. Pension Fund of the Russian Federation (PFR).
2. Mandatory Health Insurance Fund (MHIF).
3. Social Insurance Fund of the Russian Federation (FSS).

Illegal types of salaries

On the territory of the Russian Federation, there is only one type of remuneration - the official salary in accordance with the Labor Code of the Russian Federation. In the common people, such earnings are called white wages. No other types of wages are legal, there are no legal concepts of black or gray wages.

Black salary

An employment contract is not concluded with an employee, an order for employment is not made, and there is no documentary registration of a person in the organization. Such an employee receives earnings in cash in an envelope.

The obvious disadvantages of illegal sources of income:

• The lack of protection of the employee by law.
• Lack of tax transfers.
• The impossibility of formal care for vacation, sick leave or maternity leave.

The employee does not have experience and there are no deductions either to the MHIF, or to the Pension Fund, or to the FSS. In the event of illness or dismissal, the employer often does not pay due payments. When the time comes to receive a pension, the payments will be minimal.

The only advantage of such a source is the higher amount of illegal income. This option is convenient for business areas with a regular turnover of cash, which are then used to pay earnings.

This method is also convenient for real estate organizations. In such firms, only a few people are registered, and the rest receive only interest on sales.

Gray salary

In part, the official salary is called gray. At the same time, employees are registered for a minimum wage. It is from this amount that the employer pays all taxes. Sometimes an employee is appointed to a position with a lower salary. The rest is paid in an envelope.

Such a scheme allows the employer to reduce tax costs and increases wages. However, sick leave, maternity leave, leave, as a rule, are calculated according to the minimum wage and their size is minimal. It is highly likely that after the decree, the employer will offer to quit, and in case of disagreement, he will leave only the white part of the salary.

Another disadvantage of partially illegal earnings is that the employer regulates the amount in the envelope on his own and can establish various fines and illegal deductions.

Illegal salary scheme disguised as dividends

Another way of paying salaries is a scheme that includes a minimum wage and dividends. Each employee is given the opportunity to purchase shares of the organization, which he must sell when he leaves.

These conditions are specified in the employment contract. A smaller part of the salary is drawn up and paid on time. The employee periodically receives most of the income in the form of dividends, which in fact make up most of his earnings.

Taxes are paid only on the minimum wage. The frequency of dividends is not monthly, but quarterly. In this scheme, dividends are a good cover for illegal income. To identify this scheme, they reconcile all labor contracts, minutes and documents of shareholders' meetings, employee shares and the amount of payments.

What is the employer's risk

Often the employer is calm and confident that employees will not complain because they will not be able to prove anything without official documents. However, illegal schemes are easily detected. For this, an unscheduled check is carried out and the number of employees in the workplace and in the staffing table is simply compared.

The identification of this pattern can be facilitated by employee complaints to inspection bodies and testimony. Illegal wages and tax evasion threaten the employer with heavy fines and even criminal liability.

Advantages and disadvantages of official earnings for an employee

• The main advantage is the social security of the employee. If there is a violation of labor obligations, then you can file a complaint with the regulatory authorities.
• The registration of workers and the payment of white wages is a sign of a stable organization.
• Taxes are charged on all earnings. In the future, the amount of pension payments will be calculated from these taxes transferred to the PFR.
• Temporary disability benefits and vacation pay are calculated based on total earnings.
• When you go on parental leave, it will be easier to return to your position by keeping your salary, since the registration is official.
  Your income can be confirmed with a certificate, this is sometimes needed to obtain a mortgage or loan.
• The size of the salary is fixed, the employer has no right to reduce it at will.
• In case of dismissal of an employee, the employer must pay all due payments.
• You can return part of personal income tax from the budget using tax deductions. This is beneficial in the case of buying an apartment or house on a mortgage.

The disadvantages are not so obvious, but still there.

• Official income is usually less than illegal income. Since the employer reduces part of his expenses by cutting the size of wages.
• Most of the vacancies in private business are offered with illegal earnings, so it is more difficult to find a job with an official salary.
• Alimony and debts under orders of execution are withheld from official earnings, it is easier to hide illegal income. In this regard, when registering an employee, the deduction from wages will be in full.

Advantages and disadvantages of a white salary for an employer

• The obvious disadvantage is the cost of taxes.
• Complex accounting reporting.
• The inability to fire an unsuitable employee, since according to the Labor Code it is difficult to do this.

The advantages for the employer are much less:

• Lack of responsibility for illegal wages and tax evasion.
• Good reputation and stability of the organization.
• Accounting transparency.

How to check if the employee's pay is official

If an employee has doubts about whether he has official income, then this can be checked as follows. You need to register in your personal account on the website of the Federal Tax Service and download the 2-NDFL certificate there. Organizations are required to submit these certificates annually by surname. Having received a similar one in accounting, you can compare income by month.

Despite the obvious merits of the white salary, most employers and employees opt for the gray option. Making such a choice, you need to weigh all the risks, since more often workers lose more than they get. It should be borne in mind that with an illegal salary, the employer may delay its issuance for an indefinite period, pay it not in full or not pay at all.