Main Directorate of the STS in Ivano-Frankivsk region informed that during the first quarter of 2020, in order to legalize labor relations, the number of 73 factual audits of business entities were conducted, including 10 audits jointly with employees of the State Labor Office in Ivano-Frankivsk region.
According to the results of audits were detected 28 cases regarding violations of the labor use of 43 employees without proper registration of labor relations with them by legal entities and individuals-entrepreneurs. Employers submitted employment notifications regarding 38 employees and three entrepreneurs were charged with protocols of administrative offenses for conducting business activities without state registration.
Additional 259.6 thousand UAH of the personal income tax and 315.3 thousand UAH of the single social contribution were transferred to the budget as a result of audits.
Audits conducted by the tax authorities showed that employers continue to disregard the current legislation and pay employees an official salary less than the minimum or at the level of the minimum, and the rest of the salary – in the “envelope”. For employees it is common to be unofficially registered at work. As follows, the employers evade paying personal income tax, military levy and single social contribution.
It should be reminded that receiving salary in the “envelopes”, employees deprive themselves of guaranteed amount of salary, the right to enrollment of work experience, the right for paid sick leave period, the right for vacation leave period, the right for early retirement (in hazardous working conditions), the right for unemployment benefits, the right for social insurance for accidents at work and occupational diseases, the right for enrollment of work experience, etc.
Conclusion of employment contract enables the employee to be protected by current labor legislation in case of violation of his/her rights, namely: in case of delay in the calculation of salaries, refusal to pay for performed work. At the same time, employers are obliged to send a notification of hiring an employee to the Tax inspections at the place of registration as payers of the single social contribution to compulsory state social insurance. Such notification must be sent before the start of work of hired employee under the concluded employment contract. The sample form of notification on hiring an employee was approved by the Resolution of the Cabinet of Ministers of Ukraine as of 17.06.2015 № 413.
Occasionally, we draw the employers’ attention to the fact that using the labor of employees in violation of labor and tax legislation there is administrative and disciplinary liability.
Hired employees need to be clear that no one can better force employers to pay their earnings honestly than the employees themselves who simply do not have to agree to work on unfavorable terms. After all, illegal salaries not only reduce revenues to budgets and state social funds, but also lead to many problems for employees themselves.