Un-shadowing of labor market: results of the STS measures for 2020

STS and its bodies take measure to combat the “shadow” employment and payment of wages without taxation in order to control completeness of budgetary revenues of personal income tax, military levy and single contribution to compulsory state social insurance.

Tax specialists carried out explanatory work among employers on the inadmissibility of admission to work without employment, payment of wages without taxes and single contribution as a part of campaign to legalize payment of wages and employment on a systematic basis in 2020.

Employers submitted 2.131.2 thousand hiring notifications about 4.101.5 thousand employees specifically in 2020.

The biggest number of hiring notifications was submitted by employers in the following spheres:

- retail sale mainly of food, beverages and tobacco products at the non-specialized stores – notifications about 252.1 thousand employees;

- cultivation of grain crops (excepting rice), legumes and oilseeds – notifications about 214.4 thousand employees.

At the same time, tax control measures conducted by the STS and its bodies in 2020 resulted in explosion of 3.4 thousand employees whose work was used by employers without employment registration.

In addition, employers additionally concluded 121.8 thousand employment agreements with employees as a result of working groups’ activities aimed at legalization of wages and employment, as well as explanatory work. Budgets additionally received 124.8 million UAH of the personal income tax and military levy, as well as 140.4 million UAH of single contribution.

Territorial bodies of the State Labor Service were provided with information regarding violations of labor legislation against 582 employers identified during the taken tax control measures.

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