We pay even when we are sick

The allowance for temporary incapacity for work due to illnesses or accidents unrelated to work is paid starting with the second day of the sick leave by the employer and represents a taxable source of income for the employee, Info-Prim Neo reports. According to an informative note published on the official website of the State Main Tax Inspectorate, the employer is to collect an income tax on the payment source from the sum allocated for the second day of temporary work incapacity. The size of the allowance is to be indicated by the employer in the report on the levying of income tax on salary and other payments made by the manager for the employee’s benefit within a month of the end of the month when the allowance is paid, and in the annual report on the incomes earned and taxes collected from the employee. The allowance for the first day of work incapacity is covered by the employee, while from the third day is paid by the National Social Insurance House.