It should be recalled that workers who have part-time jobs receive wages for actually performed work
How to tax the wage for part-time job – in the following.
PIT and the War Tax
The subject to the personal income tax (hereinafter – PIT) is the total monthly (annual) taxable income. According to para. 164.2.1 of the Tax Code of Ukraine, hereinafter - TCU, such income of the taxpayer should include income in the form of wages accrued (paid) to the taxpayer in accordance with the terms of the employment agreement (contract). Therefore, the wages for part-time jobs are taxed at the rate of 18% on the general grounds.
When calculating incomes in the form of wages, the tax base is defined as the accrued salary reduced by the amount of the tax social benefit (hereinafter - TSB), if any (para. 164.6 of Art.164 of TCU).
In the case of internal part-time job, the total income of the employee, received from the employer (payment for the main place of work and for part-time job is taxed by the personal income tax on the general rules of taxation of wages.
TSB is applied to the income accrued in favor of the taxpayer during the reporting tax month as a salary (other benefits equivalent to it in accordance with the legislation of payment, compensation and remuneration), if its size does not exceed the amount equal to the size of the monthly living wage applicable to the able-bodied person on January 1 of the reporting tax year multiplied by 1.4 and rounded to the nearest UAH 10 (para. 169.4.1 of Art.169 of TCU). In 2018 this amount is UAH 2 470.00.
In the case of TSB application in accordance with para. 169.1.2, paras. “a” and “b” of sub-para. 169.1.1 of Art. 169 of TCU, the maximum amount of benefits is increased to one parent fold the number of children. The maximum size is applied irrespective of whether the employee works at full time or part-time.
However, on the basis of para. 169.2.1 of Art. 169 of TCU, TSB applies only in one place of its accrual (payment) to tax monthly income accrued to the taxpayer in the form of wages. At the same time for the application of TSB, it does not matter where the wage is paid: at the main place of employment or part-time job. Therefore, the employee can independently choose the place of application of TSB, submitting an application for the selection of the place of application of TSB (para. 169.2.2 of Art. 169 of TCU). It may be a place of a part-time job.
The subject to the war tax is the incomes defined in Art. 163 of TCU (sub-para. 1.2 of para. 161 of sub-sec. 10 of sec. XX of TCU), that is, the total taxable monthly (annual) income of the employee. Therefore, part-time wage is a taxable income and is taxed at the war tax at a rate of 1.5%.
USC
According to paras.1, 2 of part 1 of Art. 4 of the Law of Ukraine “On the Collection and Registration of the Unified Contribution to the Mandatory State Social Insurance” of dated 08.07.2010, No. 2464-VI (hereinafter - Law No. 2464) payers of the USC are, in particular, employers who use the labor of individuals under conditions of labor agreement (contract). Consequently, the USC is counted on the income of a part-time worker on a general basis at a rate of 22%.
The USC is accrued on the amount of the accrued wages by types of payments, which include basic and additional wages, other incentive and compensatory payments, including in kind, determined in accordance with the Law of Ukraine “On Payment for Labor” of 24.03.1995, No. 108/95-ВР (Art. 7 of Law No. 2464). Types of payments related to the basic, additional wage and other incentive and compensatory payments during the accrual of the USC should be determined in accordance with the Regulations on Wage Statistics, approved by the order of the State Statistics Committee of Ukraine dated 13.01.2004, No. 5 (hereinafter – Guidelines No. 5).
The maximum value of the calculation base of the USC is 15 minimum wages (para. 4 of part 1 of Art. 1 of Law No. 2464), i.e. UAH 55 845 in 2018.
Remuneration for work performed in accordance with established labor standards at tariff rates (wages), piece-work rates of workers and salaries of managers, specialists, technical staff, including full-time internal secondary employment, are credited to the basic salary fund (paras. 2.1.1 of Guidelines No. 5), and therefore, the maximum value of the base of the calculation of the USC for internal interdepartmental workers is determined collectively by the main place of work and the place of part-time job.
For external part-timers, the maximum value of the base of the accrual of the unified contribution is applied separately for each work place.
If the USC accrual base does not exceed the minimum wage established by law for the month in which the income is earned, the USC amount is calculated as the product of the minimum wage, established by law for the month in which the income (profit) was received, and the USC rates (Art. 5 of the Law No. 2464). That is, the employer paying to the empl
