In the conditions of modern challenges and economic changes in Ukraine, every initiative in the field of taxation attracts considerable attention of business. Changes related to the increase in the military levy raise questions not only for accountants, but also for business leaders who seek to comply with current legislation. During this period, professional communities become an important resource for discussing complex issues, forming collective positions and finding effective solutions.
Draft law No. 11416-d, which provides for an increase in the military levy on the wages of individuals from 1.5% to 5%, caused considerable resonance in the professional environment of accountants. This draft law was adopted in the second reading and submitted to the President for signature, but it has not yet entered into force. This means that the new rules, including the increased fee rate, are not yet binding.
Despite this, some accounting services, taking into account the upcoming changes, have already applied a rate of 5% when calculating wages for October 2024. This premature withholding resulted in unnecessary deductions from workers’ wages, and now the companies must correct it and refund the funds.
Recommendations for accountants: how to return withholding to 1.5%?
– Withholding adjustments: The first step is to make appropriate adjustments to the assessments, reducing the military tax withholding to the current rate of 1.5%. If the salary calculation for October has already passed, it is necessary to create corrective information and return the excess withheld funds to employees.
– Compensation to employees: If, as a result of the 5% withholding, employees received less cash on hand, it is necessary to compensate for this deficiency. This is especially important for workers laid off in October, who may find it more difficult to recover excess withholding amounts, so companies should pay special attention to this.
Legal consequences and penalties:
At the moment, the legislation does not directly provide for liability for wrongful withholding of military duty at an increased rate, since the 5% rate has not yet been officially approved. However, there is a risk that such actions may be considered a violation of labor law, in particular, if withholding resulted in late or incomplete payment of wages. In such cases, fines and penalties may be imposed, as well as compensatory payments for each day of delay.
How to avoid similar situations in the future?
Such cases emphasize the importance of accuracy and timeliness of the accountant’s work. Before applying new rates or norms, it is necessary to wait for the final entry into force of the legislative changes and take into account clarifications from the fiscal authorities.
APEB Financial Affairs Committee