en
How should deductions be made when multiple enforcement orders are directed to a salary?
How should deductions be made when multiple enforcement orders are directed to a salary?
In practice, we encounter situations where, within a certain time period, multiple enforcement documents regarding an employee’s income are received by the organization. In such cases, which enforcement document should be prioritized for deductions? Tax expert Ilqar Asadov clarifies this issue.
Suppose that on 20.06.2024, an enforcement document arrives at the organization related to the debt owed by an employee for a computer received from the “X” company. The document states that 20% should be deducted from the employee’s income, where the employee’s main workplace is a state institution with a salary of 2,000 manat.
Thus, the company begins to execute the deduction according to the enforcement document:
Income tax: (2,000 - 200) x 14% = 252 manat
Social Security Fund (SSF): 2,000 x 3% = 60 manat
Unemployment insurance: 2,000 x 0.5% = 10 manat
Mandatory health insurance: 2,000 x 2% = 40 manat
Net salary payable: 2,000 – 252 – 60 – 10 – 40 = 1,638 manat
Amount to be deducted according to the enforcement document: 1,638 x 20% = 327.60 manat
On 18.08.2024, the organization receives a new enforcement document related to the same employee. This time, the subject is the tax debt to the state budget, and the amount to be deducted is set at 20% of the income.
In this case, the accounting department must ensure deductions for both enforcement documents:
Income tax: (2,000 - 200) x 14% = 252 manat
SSF: 2,000 x 3% = 60 manat
Unemployment insurance: 2,000 x 0.5% = 10 manat
Mandatory health insurance: 2,000 x 2% = 40 manat
Net salary payable: 2,000 – 252 – 60 – 10 – 40 = 1,638 manat
Amount to be deducted according to the enforcement document: (1,638 x 20%) + (1,638 x 20%) = 655.20 manat
On 06.10.2024, another enforcement document related to the same employee arrives at the organization. This time, the subject is alimony, with the percentage rate set at 40% of the salary.
In this case, the accounting department should continue the deduction related to the previous “X” company enforcement document, fully execute the alimony deduction, and ensure a 10% deduction for the tax debts. After completing all deductions related to the second enforcement document, the deduction for the first enforcement document should be continued. According to Article 75 of the Enforcement Law, alimony deductions take precedence over tax debts and other organization debts.
The reason for only a 10% deduction for tax debts after alimony deductions is Article 176 of the Labor Code. According to this article, when multiple enforcement documents are executed based on an employee's salary, at all times, 50% of the employee’s salary must be retained. This last provision does not apply to alimony deductions. This means that if the third enforcement document regarding alimony was set at 70% of the salary, it would be fully executed, and the second document related to tax debts would not be executed.
Income tax: (2,000 - 200) x 14% = 252 manat
SSF: 2,000 x 3% = 60 manat
Unemployment insurance: 2,000 x 0.5% = 10 manat
Mandatory health insurance: 2,000 x 2% = 40 manat
Net salary payable: 2,000 – 252 – 60 – 10 – 40 = 1,638 manat
Amount to be deducted according to the enforcement document: (1,638 x 40%) + (1,638 x 10%) = 819 manat
It should also be noted that deductions are calculated from the net salary after mandatory payments such as taxes, SSF, unemployment insurance, and mandatory health insurance.
In practice, we encounter situations where, within a certain time period, multiple enforcement documents regarding an employee’s income are received by the organization. In such cases, which enforcement document should be prioritized for deductions? Tax expert Ilqar Asadov clarifies this issue.
Suppose that on 20.06.2024, an enforcement document arrives at the organization related to the debt owed by an employee for a computer received from the “X” company. The document states that 20% should be deducted from the employee’s income, where the employee’s main workplace is a state institution with a salary of 2,000 manat.
Thus, the company begins to execute the deduction according to the enforcement document:
Income tax: (2,000 - 200) x 14% = 252 manat
Social Security Fund (SSF): 2,000 x 3% = 60 manat
Unemployment insurance: 2,000 x 0.5% = 10 manat
Mandatory health insurance: 2,000 x 2% = 40 manat
Net salary payable: 2,000 – 252 – 60 – 10 – 40 = 1,638 manat
Amount to be deducted according to the enforcement document: 1,638 x 20% = 327.60 manat
On 18.08.2024, the organization receives a new enforcement document related to the same employee. This time, the subject is the tax debt to the state budget, and the amount to be deducted is set at 20% of the income.
In this case, the accounting department must ensure deductions for both enforcement documents:
Income tax: (2,000 - 200) x 14% = 252 manat
SSF: 2,000 x 3% = 60 manat
Unemployment insurance: 2,000 x 0.5% = 10 manat
Mandatory health insurance: 2,000 x 2% = 40 manat
Net salary payable: 2,000 – 252 – 60 – 10 – 40 = 1,638 manat
Amount to be deducted according to the enforcement document: (1,638 x 20%) + (1,638 x 20%) = 655.20 manat
On 06.10.2024, another enforcement document related to the same employee arrives at the organization. This time, the subject is alimony, with the percentage rate set at 40% of the salary.
In this case, the accounting department should continue the deduction related to the previous “X” company enforcement document, fully execute the alimony deduction, and ensure a 10% deduction for the tax debts. After completing all deductions related to the second enforcement document, the deduction for the first enforcement document should be continued. According to Article 75 of the Enforcement Law, alimony deductions take precedence over tax debts and other organization debts.
The reason for only a 10% deduction for tax debts after alimony deductions is Article 176 of the Labor Code. According to this article, when multiple enforcement documents are executed based on an employee's salary, at all times, 50% of the employee’s salary must be retained. This last provision does not apply to alimony deductions. This means that if the third enforcement document regarding alimony was set at 70% of the salary, it would be fully executed, and the second document related to tax debts would not be executed.
Income tax: (2,000 - 200) x 14% = 252 manat
SSF: 2,000 x 3% = 60 manat
Unemployment insurance: 2,000 x 0.5% = 10 manat
Mandatory health insurance: 2,000 x 2% = 40 manat
Net salary payable: 2,000 – 252 – 60 – 10 – 40 = 1,638 manat
Amount to be deducted according to the enforcement document: (1,638 x 40%) + (1,638 x 10%) = 819 manat
It should also be noted that deductions are calculated from the net salary after mandatory payments such as taxes, SSF, unemployment insurance, and mandatory health insurance.