Despite the fact that in Russia a gradual process of leaving quarantine has begun, the situation in many regions of the country is unstable, and international travels are still difficult. Therefore, companies are still forced to cancel business trips.
In our new article, we’ll talk about how to properly conduct and take into account the abolition of a business trip due to coronavirus.
Step #1: Prepare an order to cancel a business trip
First of all, it is necessary to issue an order to cancel business trips in connection with the spread of coronavirus infection. For each trip, it is necessary to indicate the reasons why the trip did not take place – here you can indicate the introduction of quarantine or an increased readiness regime in connection with the pandemia of the coronavirus. Additionally, references to regulatory acts of the authorities of the Russian Federation, subjects, WHO recommendations should be included in the document.
You can also simply annul the previously issued business trip order. However, it can only be canceled if the company has not yet paid per diem or payment of tickets/residence for an employee.
Order on the cancellation of a business trip in connection with coronavirus sample
Step #2: Rasse Booking
In the event that, in preparation for a business trip, the company has already conducted reservation of tickets and hotels, then after issuing an order to cancel the trip, it will also be necessary to cancel them. These actions must be correctly taken into account in accounting.
Often, fines are provided for the abolition of tickets and hotel armor – all such payments, including penalties or penalty, should be taken into account as non -operating expenses.
Debit Credit Description Operation
60 51 Payment of an employee from a settlement account
51 60 After the cancellation of the armor, the hotel transferred reimbursement of funds for deducting fines/commissions
91.02 60 The company took into account penalties and fines as non -operating expenses
In the case of an international business trip, one of the possible items of expenses is a visa. It is possible to take these costs to reduce the tax base in case of cancellation of the trip, however, the company should be ready to explain the reason for the cancellation of the business trip in the event of questions from the tax authorities. To avoid claims of tax inspectors, it is necessary to have a ready-made package of documents confirming that the trip was canceled precisely because of the pandemic-that is, for reasons beyond their control and employee. Examples of such documents can be:
- The order of the head to cancel the business trip with the obligatory indication of the reasons for the cancellation and references to regulatory acts of the Russian Federation (on the suspension of the message) and the countries to which the employees are sent (the example of the order is given in our article above);
- A document on the abolition of the armor of the hotel and travel documents;
- A document from a visa center or consulate, which issued a visa on the restrictions introduced in the country of entry (desirable).
If for some reason the company has already managed to put an advance on a business trip, which later did not take place, then the employee needs to return the entire amount. The return is carried out directly to the cash desk or to the current account of the company.
Debit Credit Description Operation
71 51.50 Paite for a perch to an employee
51.50 71 Feast of per diem when canceling a business trip
Step #3: Accounting for personal income tax and insurance premiums
In case of cancellation of a business trip, the company cannot hold personal income tax with an employee – the costs incurred by the employer are not his income. This is true for the costs of visas, booking, tickets, etc.
All these expenses, which did not lead to the performance of the labor task within the framework of a business trip, are completely falling on the employer. Accordingly, it is not necessary to tax their insurance premiums.
If the employee bought tickets at his own expense, and then handed them over, then the fee for the return must be included in the costs. To hold personal income tax and pay insurance premiums from the amounts of compensation to the employee of such expenses.
