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Manager's responsibility when paying gray wages

Posted: Sun Jan 26, 2025 7:02 am
by subornaakter40
Managers who pay grey salaries are exposed to significant risks and may be held liable in several areas:

Administrative liability. According to Article 5.27 of the Code of Administrative Offences of the Russian Federation, fines are provided for violation of labour legislation:

for officials – from 10,000 to 20,000 rubles .

for legal entities – from 50,000 to 100,000 rubles .

Criminal liability . In case of significant amounts vk database of unpaid taxes, the manager may be subject to criminal liability under Article 199 of the Criminal Code of the Russian Federation. Punishment may include a fine of up to 500,000 rubles or imprisonment for up to 6 years.

Criminal liability

Source: shutterstock.com

Financial risks. If the fact of payment of gray wages is revealed, tax authorities may charge additional taxes, penalties and fines, which may lead to significant financial losses for the company.

Fines for employees and managers
Fines for paying and receiving grey wages can be significant:

For managers: fines under Article 5.27 of the Code of Administrative Offences of the Russian Federation and Article 199 of the Criminal Code of the Russian Federation.

For employees : Penalties for complicity in tax evasion may be imposed in accordance with tax laws.

Paying grey wages carries serious risks and responsibilities for both employers and employees. Managers may face administrative and criminal liability, as well as significant financial losses.

Workers, in turn, lose social guarantees and may be held liable for complicity in violations. It is important to understand all the risks and strive to comply with the law to ensure stability and protect the rights of all participants in labor relations.