How To Calculate Late Payment Interest

Table of contents:

How To Calculate Late Payment Interest
How To Calculate Late Payment Interest

Video: How To Calculate Late Payment Interest

Video: How To Calculate Late Payment Interest
Video: late payment interest calculator excel 2024, December
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All money earned must be paid on time. Salary - at least 2 times a month on certain dates, which are indicated by the internal legal acts of the enterprise. In accordance with labor legislation, the employer is obliged to pay vacation pay three days before the vacation, payments upon dismissal of an employee should be issued the next working day after the last worked one. If the specified cash payments are delayed, the employer may be awarded a penalty, which is 1/300 of the refinancing rate of the Central Bank of the Russian Federation for each day of delay.

How to calculate late payment interest
How to calculate late payment interest

Instructions

Step 1

If the employer delays payments, the employee can go to court, the labor inspectorate or the prosecutor and claim compensation for the delay. The company can be awarded not only compensation, but also moral damage caused to employees in case of delay in wages, vacation pay or payment upon dismissal.

Step 2

In the internal acts of the enterprise, a different amount of compensation for the delay in funds may be indicated, but not less than the refinancing rate of the Central Bank of the Russian Federation for the period of the delay.

Step 3

If employees filed an application to the court for compensation, then the employer can issue part of the wage arrears and then they will not be able to award the payment of delay interest. But this provision applies only to the current salary and has nothing to do with vacation payments and settlement upon dismissal.

Step 4

To calculate the penalty for delayed cash payments, the delayed amount must be multiplied by the number of delayed days, multiplied by 1/300 and multiplied by 13%. For example, if the delay in cash payments was 10 days. The delayed amount is 50,000 rubles, then 50,000 should be multiplied by 10, multiplied by 1/300 and multiplied by 13%. You need to add 50,000 to the result obtained. This will be the payment for delayed wages. Income tax and other deductions are not withheld from the compensation paid.

Step 5

If the delay in cash payments was more than one month, then the amount of delayed payments should additionally be multiplied by the percentage of inflation that was in each delayed month, and also the amount of moral damage should be paid if these payments are awarded to the employer.

Step 6

For failure to comply with a court order, prosecutor or labor inspectorate, the employer faces a huge administrative fine and the suspension of the enterprise for up to 90 days. Exceptions are enterprises whose work cannot be stopped.

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