Withdrawal of funds through the payroll project

The payroll project is one of the most popular banking services among businesses. Its popularity is justified by its ease of use. Under the terms of the payroll project, money from the organization's current account to the employee's account is received much faster and on time, which saves the employer from having to pay compensation to employees for each day of delay in wages.

To connect this service, the organization must have a current account in the bank, if not, then it must be opened. An agreement is also concluded with the employee for servicing in this bank and a new account is opened in his name and a plastic card is issued.

Formally, this account can be used for any payments, not only for salaries.

Most often, within the framework of a payroll project, there is no commission for transferring funds to an individual, or it is very small. This is what attracts those who want to withdraw funds from the current account.

But some banks impose a ban on the transfer of non-salary funds through a salary project.

There are no legal restrictions on the transfer of non-salary money through a salary project, but such payments can still attract the attention of the tax authorities.

To avoid questions from the tax, the transfer can be carried out under the independent contractor agreement. But here it is worth considering that in some cases the independent contractor agreement can be equated to an employment contract and then it will be necessary to pay the corresponding taxes and contributions. For greater security, it is worth transferring money by independent contractor agreement on non-salary days.

Also, money can be transferred as dividends or an interest-free loan. Such payments are permitted and will not arouse suspicion.

From the foregoing, we can conclude that the withdrawal of funds through a salary project is quite possible, but it should be borne in mind that such non-salary payments may be signs of an employment relationship with subsequent additional taxes and contributions. The decision on this matter will be taken by the tax authorities.

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