Today, a press conference of Head of the Main Directorate of the STS in Luhansk region Olha Vysochyna was held for journalists of regional mass media.
Among the topics of event was one of the most important issues – payment of wages in the “envelopes” and illegal labor. Legalization of wages is relevant for many reasons. This is an increase in revenues to the budgets of all levels, including the Pension Fund of Ukraine and the provision of social guarantees for employees, the amount of which depends on the length of insurance.
Head of the Main Directorate of the STS in Luhansk began speech with indicators from the personal income tax.
“During January – June 2020, the tax authorities of Luhansk region provided collection of 1 billion 626 million UAH to the general fund of local budgets. This is 95.8 million UAH more than during the same period in 2019, - said Olha Vysochyna. – Almost 75.1% of local budget revenues are the personal income tax. In fact, the local budgets received 1 billion 222 million UAH of the personal income tax during January – June 2020.”
According to Head of the Main Directorate of the STS in Luhansk region, additional sources of the personal income tax revenues were provided, particularly, through the implementation of additional reserves for the un-shadowing the economy, labor relations and legalization of wages in the “envelopes” – almost 28 million UAH or 2.3%.
Olha Vysochyna stated that results of monitoring level of wages in the region show that 1.9 thousand business entities – employers have criteria for the risks of abuse and violations of labor legislation. These are the so-called “minimizers”. Namely, 730 employers – legal entities, which pay almost 7.5 thousand citizens’ wages below the minimum wage and 1.2 thousand employers – individuals – entrepreneurs, who paid 3 thousand 775 citizens’ wages below the minimum.
Tax official noted that as a result of measures taken to control employers in compliance with the employment legislation with employees in January – June 2020, the labor of more than 16 thousand citizens was legalized. The budget and funds from this area of work received additional 8.9 million UAH of the personal income tax and 9.2 million UAH of the single social contribution. Level of wages was increased by 197 enterprises and 343 individuals – entrepreneurs. As a result, in addition the budget received personal income tax from enterprises totaling almost 585 thousand UAH and 467 thousand UAH from individuals – entrepreneurs.
At the end of briefing, Olha Vysochyna reminded that legal entities and individuals – entrepreneurs who use hired labor are financially liable for violation of labor legislation in accordance with current legislation.
