Salaries salesforce: Average Salesforce Salaries 2021 [Infographic]
How Much Are Salesforce Employees Paid in 2022
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Salesforce is an impressive company. They pretty much invented the SaaS model, and are the fastest-growing enterprise software company ever. In addition, they consistently get voted as one of the best places to work around the globe. It’s rare that you don’t see Salesforce grabbing the #1 spot, or at least a close second or third.
If you’ve ever been inside a Salesforce office (or Tower!), you will know why. They put a huge emphasis on employee well-being. This doesn’t just include the free snacks and plush offices, but also an emphasis on work-life balance, physical and mental health. Of course, a part of becoming one of the best places to work is also paying well, and boy do Salesforce pay well! This article includes some of the most common jobs inside Salesforce, including respective salaries and bonuses.
Salesforce Salaries 2022
These figures have all been sourced from Glassdoor, and we’ve focused on roles that have the highest number of salary reports, so we can be sure the numbers are pretty accurate. To keep things simple, we’ve used salaries from the USA, but you will find most of these jobs globally, and the salaries and roles will be relative.
Account Executive
Salesforce Account Executives are the Salesforce sales team army, and they are charged with managing Salesforce’s 150,000 customers. Account Execs will manage a varying number of accounts depending on the size of the customer – this could range from 50 smaller accounts to a single account like Coca-Cola.
Account Executives are typically paid on a 50% split of annual basic salary, with 50% made up by commission. These are the guys and gals that close the deals!
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Account Executive | $85,000 | $85,000 | $170,000 |
Senior Account Executive | $133,000 | $134,000 | $267,000 |
Enterprise Account Executive | $138,000 | $138,000 | $276,000 |
Strategic Account Executive | $160,000 | $161,000 | $321,000 |
Business Development Representative
Business Development Reps, often abbreviated to BDRs, are the people responsible for generating Leads for Salesforce. This could come in many forms such as phone calls, email, social networking, etc. Once BDRs have a bite, they will qualify the Lead and pass it onto an Account Executive to take them through the full sales cycle and close the deal.
BDRs are typically paid commission on the qualified Leads they pass over to AEs, not on the closing of a deal.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
BDR | $70,000 | $40,000 | $110,000 |
Sales Development Representative
SDRs and BDRs can often have interchanging roles from company to company. However, in Salesforce, they are charged with qualifying inbound Leads. These Leads could come from Salesforce’s website, events, or webinars.
SDRs will qualify the Lead, and then pass it to an Account Executive. Typically you will only find SDRs in the smaller customer segments.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
SDR | $67,000 | $56,000 | $123,000 |
Solution Engineer
Solution Engineers are Account Executives’ best friends. An AE is in charge of relationship building and actually closing the deal, and a Solution Engineer is the technical product expert. They are in charge of gathering the customer’s requirements, digesting the pain points, and creating a fancy demo to show the customer the power of Salesforce.
SEs are paid a fair chunk of commission as well, but this is usually based on team performance (not individual).
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Solution Engineer | $110,000 | $45,000 | $155,000 |
Senior Solution Engineer | $128,000 | $53,000 | $181,000 |
Lead Solution Engineer | $148,000 | $63,000 | $211,000 |
Principle Solution Engineer | $176,000 | $74,000 | $250,000 |
Product Manager
Salesforce has a huge team of Product Managers who all work on different products and features on the platform. Product Managers are responsible for guiding the success of a product or feature, improving and updating it based on customer feedback.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Product Manager | $138,000 | $42,000 | $180,000 |
Senior Product Manager | $159,000 | $51,000 | $190,000 |
Director of Product Management | $172,000 | $78,000 | $250,000 |
Software Engineer
Salesforce Software Engineers are the people that make it all happen. Working behind the scenes, the engineers are building, maintaining, and upgrading the platform that we all know and love.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Software Engineer | $142,000 | $15,000 | $157,000 |
Senior Software Engineer | $161,000 | $24,000 | $185,000 |
Lead Software Engineer | $195,000 | $31,000 | $226,000 |
Principle Software Engineer | $236,000 | $47,000 | $283,000 |
Software Architect | $276,000 | $68,000 | $344,000 |
QA Engineer
Working alongside software engineers, Quality Assurance engineers are responsible for testing the Salesforce products.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
QA Engineer | $136,000 | $12,000 | $148,000 |
Senior QA Engineer | $153,000 | $23,000 | $176,000 |
Architecture
Architects in Salesforce work across a variety of job functions.
Technical Architects could be working on the pre-sales of a deal, helping some of the more complex deals close. Whilst Program Architects work in the customer success function, helping some of Salesforce’s biggest customers maximize their investment with Salesforce.
Most roles are advisory, where they are tasked with the client’s most complex challenges.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Technical Architect | $148,000 | $58,000 | $173,000 |
Solution Architect | $173,000 | $24,000 | $197,000 |
Program Architect | $163,000 | $58,000 | $221,000 |
Enterprise Architect | $185,000 | $83,000 | $268,000 |
Customer Service
Customer Service helps Salesforce customers after they’ve signed the contract. This could be in customer success roles that help Salesforce users maximize their investment by working closely to align their Salesforce products and features to the client’s goals. Or, technical support to help solve technical issues on the platform.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Customer Success Manager | $110,000 | $47,000 | $157,000 |
Customer Success Director | $145,000 | $49,000 | $194,000 |
Tier 2 Support | $46,000 | $26,000 | $72,000 |
Recruitment
To help hire Salesforce’s vast amount of employees (currently over 70,000!), Salesforce has recruiters all around the world to help with networking, interviewing, and sealing the deal.
Job Title | Annual Basic | Bonus | Average Total Compensation |
---|---|---|---|
Recruiting Co-ordinator | $63,000 | $19,000 | $82,000 |
Recruiter | $69,000 | $41,000 | $110,000 |
Senior Recruiter | $110,000 | $54,000 | $164,000 |
Summary
It’s pretty common for Salesforce to hire from within the very ecosystem they have built. I’ve seen many friends and colleagues from AppExchange partners and Salesforce consultancies move to the ‘mothership’, and I can’t blame them!
With Salesforce earning the spot of one of the best companies to work for on earth (with salaries that will set you up for life), it can feel like an easy decision.
Average Salesforce Salary By Location, Job Title, and Department
Updated August 22, 2022
$114,753yearly
To create our salary estimates, Zippia starts with data published in publicly available sources such as the U.S. Bureau of Labor Statistics (BLS), Foreign Labor Certification Data Center (FLC) Show More
$55.17 hourly
Entry level Salary
$78,000
yearly
$78,000
10 %
$114,753
Median
$167,000
90 %
Highest Paying Jobs At Salesforce
While Salesforce employees earn an average yearly salary of $114,753, different roles can command different wages. Some of the positions that earn high wages at Salesforce include partner, director program management, senior member technical staff, and data scientist. A typical partner salary at Salesforce is $153,176. Some of the other roles at Salesforce are business development representative and systems administrator. A worker with the title business development representative at Salesforce earns an average salary of $53,017 per year.
Highest Paying Jobs At Salesforce
Rank | Job Title | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | Partner | $153,176 | $73.64 |
2 | Director Program Management | $151,314 | $72.75 |
3 | Senior Member Technical Staff | $122,169 | $58.74 |
4 | Data Scientist | $121,835 | $58.57 |
5 | Application Software Developer | $121,703 | $58. 51 |
6 | Technology Architect | $121,189 | $58.26 |
7 | Senior Manager | $121,075 | $58.21 |
8 | Software Engineer | $120,392 | $57.88 |
9 | Product Designer | $117,354 | $56.42 |
10 | Salesforce Developer | $116,961 | $56.23 |
11 | Engagement Manager | $110,887 | $53.31 |
12 | Member, Technical Staff | $109,657 | $52.72 |
13 | Solutions Architect | $103,870 | $49.94 |
14 | Account Director | $97,565 | $46.91 |
15 | Model Builder | $96,057 | $46.18 |
16 | Systems Specialist | $92,774 | $44.60 |
17 | Business Analyst | $90,085 | $43.31 |
18 | Account Executive | $81,654 | $39. 26 |
19 | Solutions Engineer | $79,900 | $38.41 |
20 | Systems Administrator | $77,653 | $37.33 |
Highest Paying Salesforce Competitor Salaries
Some of the competitors of Salesforce are Meta, DocuSign, and Sumo Logic. The average salaries at Meta rank the highest, with their employees earning an average salary of $155,739 per year. Employees at DocuSign earn an average of $135,649 per year, and the employees at Sumo Logic earn an average salary of $133,310 per year.
Salaries By Salesforce Competitors
Rank | Company Name | Zippia Score | Average Salary |
---|---|---|---|
1 | Meta | 4.9 | $155,739 |
2 | DocuSign | 4.7 | $135,649 |
3 | Sumo Logic | 4.4 | $133,310 |
4 | Microsoft | 4.9 | $131,100 |
5 | Workday | 4. 9 | $125,723 |
6 | Cisco | 4.9 | $123,536 |
7 | Adobe | 4.9 | $119,996 |
8 | SugarCRM | 4.7 | $113,898 |
9 | Informatica | 4.9 | $113,301 |
10 | Tableau | 4.8 | $110,831 |
11 | Zoho | 4.1 | $110,588 |
12 | NetApp | 4.9 | $109,497 |
13 | MuleSoft | 4.7 | $107,148 |
14 | Intuit | 4.8 | $106,118 |
15 | Oracle | 4.9 | $101,392 |
16 | NetSuite | 4.7 | $99,888 |
17 | Dell | 4.9 | $98,219 |
18 | IBM | 4.8 | $86,845 |
19 | Computer Science Corporation | 4.6 | $73,824 |
Average Pay By State For Salesforce
Rank | State | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | California | $137,612 | $66. 16 |
2 | Washington | $126,404 | $60.77 |
3 | Oregon | $116,754 | $56.13 |
4 | New York | $112,731 | $54.20 |
5 | Massachusetts | $108,597 | $52.21 |
6 | District of Columbia | $108,039 | $51.94 |
7 | Colorado | $106,465 | $51.19 |
8 | Texas | $106,404 | $51.16 |
9 | New Jersey | $106,066 | $50.99 |
10 | Virginia | $103,749 | $49.88 |
11 | Georgia | $101,934 | $49.01 |
12 | Illinois | $100,260 | $48.20 |
13 | Nebraska | $96,695 | $46.49 |
14 | Florida | $96,683 | $46.48 |
15 | Indiana | $93,996 | $45.19 |
How Much Does Salesforce Pay By Location?
When choosing a place to work, it’s important to factor in the cost of living when negotiating a salary. Looking at our data, we can see that employees at Salesforce earn more in some areas than others. Our data shows that Salesforce employees in San Francisco, CA get paid the most, where the average yearly pay is $142,237. Salesforce Employees in Seattle, WA don’t earn quite as much. The median salary in Seattle, WA is $126,931.
Salaries By Location At Salesforce
Rank | Location | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | San Francisco, CA | $142,237 | $68.38 |
2 | Seattle, WA | $126,931 | $61.02 |
3 | Carson City, NV | $118,603 | $57.02 |
4 | Hillsboro, OR | $116,222 | $55.88 |
5 | New York, NY | $112,916 | $54.29 |
6 | Phoenix, AZ | $111,817 | $53.76 |
7 | Boston, MA | $108,751 | $52. 28 |
8 | Washington, DC | $108,076 | $51.96 |
9 | Salt Lake City, UT | $108,042 | $51.94 |
10 | Boise, ID | $107,339 | $51.61 |
11 | Santa Fe, NM | $106,696 | $51.30 |
12 | Dallas, TX | $106,314 | $51.11 |
13 | Denver, CO | $106,259 | $51.09 |
14 | Juneau, AK | $106,230 | $51.07 |
15 | Trenton, NJ | $105,675 | $50.81 |
16 | Concord, NH | $104,637 | $50.31 |
17 | Hartford, CT | $103,690 | $49.85 |
18 | Richmond, VA | $103,619 | $49.82 |
19 | Providence, RI | $103,312 | $49.67 |
20 | Annapolis, MD | $102,850 | $49.45 |
Salesforce Salaries By Department
How much you earn at Salesforce depends on your role, and the organizational function that you work in. Employees in business development roles earn the highest wages at Salesforce, with an average salary of $130,710. Employees working in the engineering organizational function also get paid well, with an average yearly pay of $119,229. The lowest paying organizational functions at Salesforce are human resources and art/design, where employees earn $86,529 and $93,072, respectively.
Salaries By Department At Salesforce
Rank | Department | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | Business Development | $130,710 | $62.84 |
2 | Engineering | $119,229 | $57.32 |
3 | Marketing | $113,210 | $54.43 |
4 | Non Profit/Government | $108,523 | $52.17 |
5 | IT | $107,889 | $51.87 |
6 | Sales | $103,661 | $49.84 |
7 | Plant/Manufacturing | $100,957 | $48. 54 |
8 | Customer Service | $94,339 | $45.36 |
9 | Finance | $93,694 | $45.05 |
10 | Art/Design | $93,073 | $44.75 |
11 | Human Resources | $86,529 | $41.60 |
How Much Does Salesforce Pay by Department?
Best Paying Salesforce Engineering Position Salaries
Rank | Position | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | Engineering Director | $162,515 | $78.13 |
2 | Senior Engineering Manager | $159,738 | $76.80 |
3 | Design Director | $141,137 | $67.85 |
4 | Senior Member Technical Staff | $122,169 | $58.74 |
5 | Data Scientist | $121,835 | $58.57 |
6 | Application Software Developer | $121,703 | $58. 51 |
7 | Technology Architect | $121,189 | $58.26 |
8 | Software Engineer | $120,392 | $57.88 |
9 | Design Manager | $114,678 | $55.13 |
10 | Lead Database Administrator | $110,392 | $53.07 |
11 | Solution Developer | $109,744 | $52.76 |
12 | Member, Technical Staff | $109,657 | $52.72 |
13 | Lead Architect | $106,445 | $51.18 |
14 | Solutions Engineer | $79,900 | $38.41 |
15 | Data Analyst | $79,771 | $38.35 |
16 | Quality Assurance Consultant | $76,403 | $36.73 |
Best Paying Salesforce IT Position Salaries
Rank | Position | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | Director, Applications | $167,438 | $80. 50 |
2 | Data Operations Director | $159,233 | $76.55 |
3 | Health Information Management Director | $138,141 | $66.41 |
4 | Security Engineer | $124,370 | $59.79 |
5 | Technology Architect | $121,189 | $58.26 |
6 | Senior Project Manager | $108,258 | $52.05 |
7 | Solutions Architect | $103,870 | $49.94 |
8 | Securities Analyst | $98,843 | $47.52 |
9 | Senior Solutions Engineer | $92,904 | $44.67 |
10 | Systems Specialist | $92,774 | $44.60 |
11 | Technical Account Manager | $82,435 | $39.63 |
12 | Systems Administrator | $77,653 | $37.33 |
13 | Deployment Specialist | $70,663 | $33.97 |
14 | Support Agent | $62,326 | $29. 96 |
Best Paying Salesforce Marketing Position Salaries
Rank | Position | Average Salesforce Salary | Hourly Rate |
---|---|---|---|
1 | Product Management Director | $159,835 | $76.84 |
2 | Communications Director | $150,143 | $72.18 |
3 | Senior Product Marketing Manager | $126,774 | $60.95 |
4 | Senior Manager Of Marketing | $119,259 | $57.34 |
5 | Brand Strategist | $117,291 | $56.39 |
6 | Business Solutions Architect | $109,920 | $52.85 |
7 | Business Analyst | $90,085 | $43.31 |
8 | Content Developer | $84,962 | $40.85 |
9 | Content Specialist | $68,616 | $32.99 |
Recently Added Salesforce Salaries
Frequently Asked Questions About Salesforce Salaries
Is The Pay Good At Salesforce?
Yes, the pay is good at Salesforce. Compared to the industry average of $113,505 per year, the average annual salary at Salesforce is $114,753, which is 1.10% higher.
What Is The Starting Pay At Salesforce?
The starting pay at Salesforce is $78,000 per year, or $37.50 per hour.
How Much Does Salesforce Pay Compared To Informatica?
Salesforce pays $114,753 per year on average compared to Informatica which pays $113,301. That works out to $55.17 per hour at Salesforce, compared to $54.47 per hour at Informatica.
How Much Does Salesforce Pay An Hour?
Salesforce pays $55.17 an hour, on average.
Have more questions? See all answers to common company questions.
Search For Jobs
Zippia gives an in-depth look into the details of Salesforce, including salaries, political affiliations, employee data, and more, in order to inform job seekers about Salesforce. The employee data is based on information from people who have self-reported their past or current employments at Salesforce. The data on this page is also based on data sources collected from public and open data sources on the Internet and other locations, as well as proprietary data we licensed from other companies. Sources of data may include, but are not limited to, the BLS, company filings, estimates based on those filings, h2B filings, and other public and private datasets. While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. None of the information on this page has been provided or approved by Salesforce. The data presented on this page does not represent the view of Salesforce and its employees or that of Zippia.
Salesforce may also be known as or be related to SALESFORCE.COM, INC., Salesforce, Salesforce Inc, Salesforce.com, Inc., Salesforcecom, Salesforcecom inc and salesforce.com, inc.
Set up payroll accounting | VLSI Help
Set up payroll accounting | VLSI Help
TutorialJournalSet up payroll accounting
To set up the basic parameters of payroll accounting, VLSI provides a wizard to get started. To add additional parameters or change them, in the “Employees / Salary” section, select an organization, click and go to “Accounting and parameters”.
Set up:
- start date, AtoN, insurance premium rates, injury rate and more – in section “ Settlement »;
- conditions for payment of salaries and advances, rounding of their amounts, banks for issuance – in section “ Payments “;
- calculation of vacation pay with a rolling period, formation of a reserve – in section “ Vacations “;
- territorial conditions, participation in the FSS project “Direct payments” and details of the payslip – in the section “ Special conditions “;
- responsible departments for the payment of personal income tax – in the section “ Reporting “.
- In the “Calculation” section, set the date from which you start keeping track of wages in VLSI. From this date, debts to employees will be formed.
- Specify the taxation system or add several when combining modes if you are just starting to keep records in VLIS. Click .
If you have already kept records in VLSI and want to change the AtoN in connection with the transition to another mode, in the “Change system from” line, indicate the date when the new AtoN is applied.
- Change the conditions for calculating insurance premiums. The rates depend on the main type of economic activity of the organization and on the conditions determined by the Tax Code of the Russian Federation (Article 427 of the Tax Code of the Russian Federation). If company:
When loading payroll data from reports, the work start date will be set automatically. Accruals before this date will be downloaded from the reporting, and after that they will be calculated in VLSI.
If you repeat salary turnovers manually or from 1C, then only the salary will be calculated before this date, and after that, all permanent allowances, including northern and regional, sick leave and vacations that you added to VLIS.
- applies reduced rates – click current premium settings, click “Regular” and select a category.
- does not apply benefits, but is included in the register of small and medium-sized businesses – set up reduced rates.
To add new benefits from a specific period, click and add new premium settings;
How do I set up zero rates for Affected Industry for Q2 2020?
To change the rate from a certain period if the organization no longer applies the reduced rate, click and add new insurance premium settings from the desired date.
If the organization has already kept records in VLSI, then after changing the rates of insurance premiums, recalculate the salary.
If your organization is eligible for a 60% injury contribution benefit for all of its employees, select it when setting up the rate (art. 2 no. 179-FZ of December 22, 2005, Art. 1 No. 413-FZ of December 21, 2021).
To apply a different injury rate from a certain period, click and press ;
- How do I set up an injury discount or surcharge?
- from the schedule – actual hours worked are multiplied by the cost per hour;
- from the shift plan – the employee is paid a salary regardless of the number of hours worked per month.
If you want to change the conditions for an employee, create a document “Change of wages”.
- Set salary and advance payment dates. The advance date refers to the current month, and the salary date refers to the next.
- For branches and subdivisions, you can choose a different payment procedure. To do this, click “Subdivisions with other payment terms” and specify the values.
- Select the advance payment method or set a fixed amount on employee cards.
- Set the accuracy with which the amount in the payroll statement will be rounded.
- In the “Early advance” line, specify whether employees are allowed to request payments early.
You can also set up salary payment on the last working day of the month or on the current date. To do this, click “numbers” and select the desired option.
How to set up an early advance payment?
- In the “Vacations” section, specify how to calculate the average earnings for holidays that affect several working periods: for each period or only for one.
- To create vacation reserves, enable their formation.
- Specify the conditions for issuing vacations for employees who have a personal VLSI account:
- check the box to enable employees to arrange vacations on their own;
- indicate the period during which you need to take a vacation;
- Add a document that can or must be uploaded to receive leave.
How to set up vacations under a collective agreement?
If you start keeping records in VLIS and enter the remaining vacation days of all employees, issue a vacation adjustment.
- Set up the application of regional coefficients and percentage bonuses to wages (Articles 316, 317 of the Labor Code of the Russian Federation). To do this, set:
- territorial conditions;
- maximum northern allowance;
- local and federal district coefficients. They may differ. The federal coefficient is used when calculating the sick leave from the minimum wage, the regional coefficient is used when calculating salaries. Complete both fields, even if the odds are the same.
After selecting the territorial conditions, you will be able to see the amount of the allowance by region. To do this, click .
If the conditions for the branch are not specified, the data of the parent organization will be used in the calculation.
The project is applied to the entire organization together with its separate subdivisions, regardless of the region in which they are located.
How will the payslip be displayed when printed?
If your organization has separate subdivisions (OS) that are located on the territory of one municipality, then you can pay personal income tax:
- at the location of one of the OPs – if the parent organization is located in another municipality;
- at the location of one of the EPs or at the location of the organization – if the parent company is located in the same municipality (clause 7 of article 226 of the Tax Code of the Russian Federation).
To do this, set up the responsible divisions for the payment of personal income tax and indicate the places of business for which tax will be collected and paid:
- Click and select the responsible division.
- Select the department for which the tax will be paid.
- Save the data.
The parameters of the direction of change will also be changed in the card of the head organization or subdivision in the “Submission of reports” section. And vice versa, if the responsible departments are configured in the organization card, then they will also be displayed in the salary settings.
- Is it possible to set up responsible departments for individual entrepreneurs?
If you have chosen a responsible unit (SP or parent organization), you can transfer tax in one payment order indicating OKTMO of this person.
To see who made changes to salary settings and when, click .
License, rights and roles
Set up payroll
Payroll
Set up accounting
Salary settings
Salary settings
Found an inaccuracy? Select the text with the error and press ctrl + enter.
Payroll accounting for the simplified tax system – Kontur.
Accounting – SKB Kontur
Companies and individual entrepreneurs on the simplified tax system with the object of taxation “income – expenses” can take into account labor costs as part of expenses when calculating the tax base.
Labor costs
Companies and individual entrepreneurs on a simplified tax regime with the object of taxation “income – expenses” can take into account labor costs as expenses when calculating the tax base (clause 1, article 346.16, clause 2, article 346.18 of the Tax Code of the Russian Federation). This must be done in accordance with the rules of Chapter 25 of the Tax Code of the Russian Federation (Article 255, Subclause 6, Clause 2, Article 346.16 of the Tax Code of the Russian Federation).
Companies on the simplified tax system use the cash method of recognizing income and expenses, so labor costs can only be taken into account after they are paid (clause 2 of article 346.17 of the Tax Code of the Russian Federation).
Labor costs include:
- accruals in favor of employees at tariff rates, salaries, piece rates;
- incentive charges and allowances;
- compensation related to working hours and working conditions;
- company costs for the maintenance of employees.
A complete list of labor costs is contained in Article 255 of the Tax Code of the Russian Federation.
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Which labor costs cannot be taken into account in full
Some expenses relating to labor costs cannot be taken into account in full. In particular, these include:
- expenses under contracts for voluntary insurance of employees, non-state pension provision;
- expenses for additional contributions to the funded part of the pension;
- expenses for reimbursement of interest paid by employees on loans and borrowings for the purchase or construction of housing (clause 16, clause 24. 1, article 255 of the Tax Code of the Russian Federation).
For example, the total amount of contributions under contracts of long-term life insurance of employees, voluntary pension insurance and (or) non-state pension provision of employees is taken into account for taxation in the amount of no more than 12% of the amount of the organization’s expenses for labor remuneration (paragraph 7, paragraph 16 of Art. 255 of the Tax Code of the Russian Federation).
Expenses for reimbursement of employees’ expenses for paying loans and borrowings for the purchase or construction of housing can be included in the calculation of the tax base if they do not exceed 3% of the amount of expenses for wages (clause 24.1, article 255 of the Tax Code of the Russian Federation).
Labor costs and tax base
In order for labor costs to be included in the calculation of the tax base for the single tax, a number of conditions must be met.
- Such expenses must be economically justified, documented and aimed at generating income (clause 1, article 252 of the Tax Code of the Russian Federation).