The Russian payroll system is somewhat complicated compare to the payroll in other countries. For example, an average salary which has to be paid to a Russian employee during his annual paid leave or a business trip shall be based on the average salary for the previous 12 months, however, the salary for vacation is based on the calendar days and the business trips salary is based on the number of working days for that period.
The social charges in Russia are paid by an employer only. The employer acts as a tax agent and withholds a 13% flat rate income tax from the employees (tax resident) remuneration and transfers the withhold tax to the budget on the day of the salary payment.
In Russia the salary has to be paid twice a month: a fixed advance around 15 of the month and the remaining amount is usually paid either on the last business day of the month or at the very beginning of the following month. Our services include:
- Day-to-day payroll processing and related tax and social security filing;
- Customization of payroll processing systems, fringe benefits and incentive policies;
- Review of payroll records for identification of tax and legal risks;
- Business trips documentation processing;
- Sick leave sheets processing for employees;
- Maternity leave sheets processing;
- Redundancy and termination compensations;
- Mandatory reporting on the salary of highly-qualified specialists to the Russian immigration service.