How to Pay Store Employees’ Salaries into Their Bank Accounts

To pay salary into a bank account, an employer must obtain the employee’s personal written consent and the details of an account chosen by that employee. Salary must be paid at least twice a month, no more than 16 calendar days apart and no later than seven days after the end of the period for which it is paid. The employer pays the transfer fees.

For each payment, calculate gross pay and lawful deductions, notify the employee of the calculation, prepare the salary and tax payment documents, and meet the bank’s requirements for the single social contribution (SSC). Complete the procedure by reconciling completed transfers: a submitted payment instruction still requires a check of the outcome, and returned funds must be transferred again using correct account details.

Employee consent and choice of account

Article 24 of the Law of Ukraine “On Remuneration” allows salary to be paid through a bank with the employee’s personal written consent to payment into an account specified by the employee. This rule applies both to legal entities and to individual entrepreneurs (FOPs) who employ staff.

Ask the employee to submit an application specifying the bank and IBAN. The store’s payroll project may be a convenient way to organize payments, but a transfer to a particular employee requires that employee’s consent and the account they specify. If the employee chooses another bank, arrange payment using the employee’s details.

The law also allows payment through non-bank payment service providers that are authorized to open and service accounts, and by postal money order to an address specified by the employee. Personal written consent is also required for these methods, and the employer pays the related service fees.

What to include in the application

• The employee’s full name and the employer’s name.
• A request to pay salary into the specified account and written consent to this payment method.
• The bank’s name, IBAN and the account holder’s full name.
• The date from which the account details are to be used.
• The application date and the employee’s signature.

Sample application wording: “Please transfer the salary due to me to my account IBAN … at … Bank, starting with the next payment. I give my personal written consent to payment of my salary through the specified bank.”

If an employee changes banks or closes an account, obtain a new application and replace the details in the payment register. For control purposes, retain the previous application and record the date on which the old account stopped being used.

How to verify account details

Ask the employee to provide account details from their banking app or a bank document. For an IBAN transfer, use the account number shown in those details. Check the recipient’s full name, IBAN and any other fields required by the bank’s payment form.

After entering a new account, ask another responsible person to compare it with the application. If the accountant works alone, check the details separately before signing the payment. Restrict access to applications, payroll registers and employees’ bank details to those who prepare and control payments.

Salary and advance payment deadlines

Payment dates must be set out in a collective agreement or an employer’s internal regulatory act. The act must be agreed with the elected body of the primary trade union organization or another body authorized to represent the workforce. If there are no such bodies, it must be agreed with representatives elected and authorized by the workforce.

Article 115 of the Labour Code and Article 24 of the Law “On Remuneration” set three requirements that apply together:

• payment at least twice a month;
• no more than 16 calendar days between payments;
• payment no later than seven days after the end of the period for which salary was accrued.

A practical schedule is the 22nd of the month for the first half of the current month and the 7th for the second half of the previous month. Before approving the schedule, check the payment calendar, including date changes and the intervals between payments.

As a general rule, if a payment date falls on a weekend, public holiday or non-working day, salary is paid on the preceding day. During martial law, the provisions of Article 73 of the Labour Code on public holidays and non-working days do not apply. Check the established work schedule: if the payment date falls on a day off under that schedule, pay salary on the preceding day. After moving a payment date, also check the interval between payments; it must not exceed 16 calendar days. Plan bank transfers around banking hours and the time required to process a transfer. For a store with shift work, assign in advance the people responsible for preparing and signing payments by the set date.

An employee’s request to be paid once a month does not justify changing the statutory frequency. Under the simplified regime for regulating employment relationships, payment dates are set in the employment contract while complying with Article 115 of the Labour Code, including two payments and an interval of no more than 16 calendar days.

How to calculate payment for the first half of the month

The amount paid for the first half of the month is set in a collective agreement or an agreed internal regulatory act. It must be at least the amount due for time actually worked, calculated using the employee’s tariff rate or fixed salary for the position.

For sales staff with shift schedules, use the actual hours or days worked during the first half of the month. Before calculating, account for hiring partway through the month, leave, sick leave and other absences. A fixed percentage of the salary needs to be checked: the resulting amount must meet the statutory minimum for time actually worked.

Illustrative example: a salesperson’s monthly salary is UAH 20,000, the monthly working-time norm is 160 hours, and the employee worked 72 hours during the first half of the month. Pay for that time based on the salary is UAH 20,000 ÷ 160 × 72 = UAH 9,000 before tax deductions. Bonuses and other components are included according to the established pay terms.

Payslips and lawful deductions

With each payment, the employer must notify the employee of the total salary, broken down by type of payment, the amounts and grounds for deductions, and the amount payable. This is required by Article 110 of the Labour Code and Article 30 of the Law “On Remuneration”.

Arrange to provide individual payslips in a procedure agreed with employees. They should show the pay period, salary or pay for time worked, allowances and bonuses, taxes, other lawful deductions, the amount already paid for the first half of the month, and the balance to be transferred.

A bank transfer pays the funds; notifying the employee of the calculation is a separate employer obligation. Keep proof that payslips were provided.

Deductions to repay an employee’s debt, compensate for damage or comply with an enforcement document may be made only on the relevant legal grounds. Articles 127–128 of the Labour Code set out the grounds and limits for such deductions. The general limit is 20% of salary due for payment; in cases expressly provided by law, it is 50%. If there are several enforcement documents, the employee must retain at least 50% of their earnings. These limits do not apply to deductions while serving corrective labour or collecting child support for minor children: in those cases, the maximum is 70%.

For the recovery of certain advances and amounts overpaid because of an arithmetic error, Article 127 sets conditions concerning the absence of a dispute with the employee and a one-month deadline for issuing the order. For deductions for leave days taken but not yet earned, check the grounds for dismissal: the article sets out cases in which such a deduction is prohibited.

Do not impose disciplinary fines for lateness, breaches of store rules or failure to meet a target. A shortage requires lawful grounds for material liability and proper documentation of compensation. A deduction field in software does not create a legal basis for reducing salary.

Personal income tax, military levy and SSC

The employer calculates salary, withholds personal income tax (PIT) and the military levy from the employee’s income, and separately accrues the SSC. For an ordinary store employee’s salary, the rates are 18% PIT, 5% military levy and 22% SSC paid by the employer.

Before calculating, the accountant must determine the employee’s status, the base for each payment, eligibility for the tax social benefit and whether a special SSC rate applies. The SSC is not deducted from the employee’s salary.

Exceptions to check

• Tax social benefit. Under Article 169 of the Tax Code, the basic benefit is 50% of the subsistence minimum for an able-bodied person set on 1 January of the reporting year. The maximum monthly income for applying it is that subsistence minimum multiplied by 1.4 and rounded to the nearest UAH 10. For the child-related benefits provided by law, the income limit for one parent is multiplied by the relevant number of children; the benefit amount depends on the grounds. The benefit is applied at one place of salary accrual after an application and documents confirming eligibility have been received. Check monthly income and statutory restrictions: in particular, the benefit does not apply to salary received in the same month as a scholarship or support paid from the budget to the categories specified in Article 169.
• Employee with a disability. Part 13 of Article 8 of Law No. 2464-VI provides for an SSC rate of 8.41% for enterprises, institutions, organizations and individual entrepreneurs that employ people with disabilities. Obtain confirmation of the relevant status before applying this rate.
• Minimum contribution. For the ordinary rate at the employee’s primary place of work, check the requirement to calculate SSC on the minimum wage if the contribution base is lower. Part 5 of Article 8 separately provides for calculation on the actual base for income from a non-primary place of work and for employees on an employment contract with non-fixed working hours.
• Maximum SSC base. For high accruals, apply the established maximum base. Its application may require additional documents for the bank’s payment control.
• Special employer status. Separate rules apply to certain organizations of people with disabilities and Diia City residents. An ordinary retail store applies these rules only if it has the relevant status and meets the statutory conditions.

The special 1.5% military levy rate and exemptions for certain payments to military personnel and employees of the relevant authorities apply to specific income and conditions. A salesperson’s salary at an ordinary store is taxed at 5%. This rate remains in effect until the end of the third calendar year after the year in which martial law is terminated or lifted; from 1 January of the following year, the rate for such income will be 1.5%. Record an individual entrepreneur’s own payments as a business owner separately from taxes and contributions on employees’ salaries.

Illustrative calculation for a salary of UAH 20,000

This example assumes ordinary rates, no tax social benefit, no other deductions and no special status. The SSC base equals the accrued salary.

UAH 15,400 is the total amount paid to the employee for the month. For the final transfer, subtract the amount already paid for the first half of the month. Bank fees are added separately to the employer’s costs.

When to pay taxes and SSC

When salary is transferred to an account, PIT is paid at the time the income is paid. Under subparagraph 168.1.2 of the Tax Code, the bank accepts payment documents for income payments on condition that a payment instruction to transfer the tax to the relevant budget or credit the amount to the single account is submitted at the same time. The military levy on salary is paid under the procedure in Section IV of the Tax Code.

Prepare PIT and military levy documents for every payment, including the payment for the first half of the month. Reconcile the monthly amounts so that prior deductions and payments are properly taken into account in the final calculation.

SSC on amounts paid must be paid at the same time as each payment. Part 8 of Article 9 of Law No. 2464-VI allows an exception if the contribution has already been paid by the due date or, following reconciliation with the tax authority, an overpayment sufficient to cover it is recognized. The remaining SSC accrued for the month must be paid by the store employer no later than the 20th of the following month.

If salary has been accrued but not paid, PIT and the military levy must be transferred within 30 calendar days after the last day of the month in which it was accrued: 20 calendar days are allowed for filing the monthly return, followed by 10 days for payment. If the payment deadline falls on a weekend or public holiday, the last day for payment is the next banking day. The store employer’s monthly SSC is due no later than the 20th of the following month. A salary delay does not cancel these deadlines.

An individual entrepreneur acting as a tax agent pays PIT at the place where they are registered with the supervisory authority. For a legal entity with separate divisions, check the rules in paragraph 168.4 of the Tax Code: tax on the income of employees of a division is transferred at the division’s location, including where the main legal entity performs the tax agent’s duties. Check the payment details for PIT, the military levy and SSC separately.

Bank control of SSC: the 22% rule and certificates

Ministry of Finance Order No. 291 specifies the documents a payment service provider requires to accept salary payments. As a general rule, payment instructions for the SSC or documents showing its prior actual payment for the relevant period must be submitted with them.

For this control, the SSC amount must be at least 22% of the funds for salary payments specified in the salary payment instructions for the period. This is a bank criterion. The accountant calculates the contribution itself using the statutory base and the rate applicable to the employee.

In the example above, the check amount for a monthly payment of UAH 15,400 is UAH 15,400 × 22% = UAH 3,388. The correctly accrued SSC on a salary of UAH 20,000 is UAH 4,400. When making two payments, check the documents and amounts for the relevant payments.

How to confirm prior payment

Give the bank an executed payment instruction for the SSC. The payment description must specify the salary accrual period, and the payment service provider must complete the “Date of execution” field. The procedure allows proof of payment from an account with another payment service provider as well.

When using the single account, proof is a receipt showing a positive result from processing a notice to direct funds to the relevant non-budget account under technology code 71010000. It must specify the salary accrual period.

When a calculation certificate is required

If the SSC amount in the submitted documents is less than 22% of the funds for salary payments, attach to the salary payment a calculation certificate approved by the tax authority under Appendix 1 to the Procedure. This may occur, in particular, when applying the 8.41% rate or the maximum SSC base.

Submit the certificate to the supervisory authority where the payer is registered. A paper document is prepared in three copies: for the bank, the tax authority and the employer. The bank needs the original approved paper certificate or a properly prepared electronic certificate. The tax authority approves the document without delay; grounds for refusal are an incorrect form, inaccurate data or submission to the wrong place of registration.

Certificate without an SSC amount check

Point 6 of the Procedure provides for a separate certificate under Appendix 2 for payers whose ratio is below 22% because they apply the maximum SSC base. The condition is that there have been no SSC accrual or payment violations during the preceding 12 calendar months. The certificate is issued by decision of the head of the supervisory authority or an authorized person.

Its validity does not exceed 12 calendar months, including the month of issue. If violations are found, the certificate is revoked and the employer and bank are notified. On the next working day after receiving the notice, the bank resumes the general verification procedure.

Who is outside the scope of Procedure No. 291

Point 2 excludes the following from this procedure:

• the enterprises and organizations of public associations of people with disabilities specified in the Procedure, including nationwide organizations, UTOS and UTOG, provided that people with disabilities make up at least 50% of the total workforce and their payroll accounts for at least 25% of total labor costs;
• diplomatic missions and consular offices of foreign states, and separate divisions in Ukraine of foreign enterprises, institutions and organizations;
• budgetary institutions serviced by the Treasury, the Pension Fund of Ukraine and its territorial bodies;
• Diia City residents.

These employers must provide their servicing provider with information confirming their status when opening an account, when they acquire the relevant status, or if they have not reported it previously. They submit the information electronically or on paper. They must report a change in status within five working days following the day of the change. Exemption from the bank’s control procedure does not remove the obligation to calculate and pay the contribution correctly. Employing a person with a disability at an ordinary store does not, by itself, take the store outside Procedure No. 291.

Payment workflow: from the time sheet to deposit confirmation

1. Assign responsibilities. The manager approves the procedure and deadlines; the person responsible for personnel provides work and absence data; the accountant calculates salary and payments; and an authorized person signs the bank documents.
2. Collect the basis for accruals. Use the pay terms, records of time actually worked, and documents on allowances, bonuses, leave and other payments. Check that employee applications and account details are current.
3. Calculate the amounts. Determine gross pay, PIT, the military levy, SSC, lawful deductions and the amount due to each employee. For the final calculation, account for the first payment and taxes and contributions already paid.
4. Prepare the payroll register and payslips. Reconcile the register total with the amount of salary payments. Give employees information about each payment.
5. Check that funds are sufficient. Ensure funds are available for salary, taxes, SSC and bank fees before sending payments.
6. Create the bank documents. Prepare individual transfers or a payroll project register in the bank’s format. Enter the recipient, account, amount, salary period and other required fields.
7. Add tax payments and SSC proof. Obtain an approved calculation certificate in advance if required. Check recipients’ payment details, amounts and payment descriptions.
8. Sign and send the documents. Allow for the bank’s operating hours, the payment date and time to correct any rejected documents.
9. Check processing. Keep executed payment instructions, the bank statement and the processing result for the payroll register. Check every recipient, especially after account details change.
10. Resolve discrepancies. For a returned or rejected payment, establish the reason, obtain correct account details and retry the transfer after confirming the previous one was not executed. If an employee reports missing funds, ask the bank to confirm the transfer outcome.

A returned salary payment does not settle the debt to the employee. In the accounting records, mark the unpaid amount, the reason for return and the details of the replacement payment. Before transferring taxes and SSC again, reconcile their actual prior payment so that completed payments are properly taken into account.

Documents to retain

• The document setting payment dates and proof that it was properly agreed.
• Employee applications for payment into accounts and notices of changed account details.
• Documents on pay terms, actual work, allowances, bonuses and lawful deductions.
• Salary calculations, payroll registers and proof that payslips were provided.
• Payroll project registers, executed payment instructions, bank statements and transfer processing results.
• Documents showing payment of PIT, the military levy and SSC, approved certificates and proof of special status.
• Documents concerning returned funds, corrected account details and replacement payments.

Link documents by employee and salary period so that accruals, deductions and payments actually executed can be matched. Safeguard paper originals and electronic documents with proof of execution.

Reporting after payment

Transferring funds and filing reports are separate obligations. Under subparagraph “b” of paragraph 176.2 of the Tax Code, individual entrepreneurs and people carrying out independent professional activity file the tax calculation of income, tax withheld and SSC accrued by the deadlines for a tax quarter, broken down by month within the quarter. Other tax agents file it by the deadlines for a tax month.

The calculation must be filed if relevant income was accrued to individuals during the reporting period. Before filing, reconcile accrued and paid amounts, taxes withheld and paid, SSC and employee data against payroll records and bank documents. Quarterly reporting by an individual entrepreneur does not change salary payment deadlines or the requirement to make payments with each salary payment.

Paying salary during martial law

Article 10 of Law No. 2136-IX requires employers to take all possible measures to pay salary on time. Martial law alone does not give an employer the right to postpone salary arbitrarily.

An employer is released from liability for missing payment deadlines if it proves that the breach resulted from hostilities or other force majeure circumstances. The obligation to pay salary remains. If hostilities make timely payment impossible, the law allows payment to be deferred until the enterprise resumes operations.

In such a situation, document the circumstances, their impact on specific payments, the measures taken, the amounts owed and notices to employees. Keep bank documents concerning outages or refusals, correspondence and other evidence that payment could not be made. Once payment becomes possible, arrange to settle the debt.

The rules in this article concern wage payment deadlines. Tax and SSC payments and liability for them are assessed under the relevant tax legislation and Law No. 2464-VI.

Consequences of late or incomplete payment

Article 265 of the Labour Code provides for a fine equal to three minimum wages for delaying salary by more than one month or failing to pay it in full. For failure to observe minimum state guarantees on remuneration, the fine is two minimum wages per employee. The amount is based on the minimum wage in effect when the violation is detected.

This article also provides that liability measures do not apply to the specified violations, including those involving deadlines and minimum guarantees, if the employer has complied with a corrective order and remedied the violation within the prescribed period. During martial law, Article 16 of Law No. 2136-IX separately provides that fines under Article 265 of the Labour Code do not apply where corrective orders resulting from an unscheduled inspection have been fully and timely complied with.

If accrued salary is delayed for one or more calendar months, calculate compensation for the loss of part of the income under the Law of Ukraine No. 2050-III. The calculation uses unpaid income for the relevant month after tax and mandatory payment deductions and takes inflation into account for the period of non-payment. Inflation for the month for which the salary was accrued is excluded. Compensation is paid in the same month that the debt for the relevant month is settled. Income not received on time due to the employee’s fault is not subject to compensation. Show the debt settlement and compensation due in the employee’s calculation.

Article 25 of Law No. 2464-VI provides for a fine of 20% of the amount not paid on time for non-payment or late payment of SSC. A fine of 10% of the relevant unpaid or late-paid amount applies for failure to pay SSC in full when salary is paid, including late payment of that contribution. Arrears accrue a penalty of 0.1% for each day of delay, from the first calendar day after the payment deadline through and including the day of actual payment. For SSC accrued additionally because it was not accrued on time, the fine is 10% of the additionally accrued amount for each full or partial reporting period, capped at 50% of that amount in total. The Tax Code determines the consequences of tax violations. Relief and special liability conditions must be established for the specific violation; release from employment-law liability does not replace that assessment.

Accruals and payroll registers in Torgsoft

The paid add-on option “Payroll Calculation” is available for Torgsoft Ultra, Terminal and Online. It helps manage employee schedules and work records, calculate salary and advances under configured rules, and create payroll registers, payslips and an archive of calculations.

For a store, configure its outlets, positions, work-tracking method and accrual rules. Before payment, reconcile actual time and accruals against personnel documents, and the register against the bank payments being prepared. If a bonus depends on sales, check how they are counted: in “Paid goods” mode, sales made through “Trade with invoice issuance” are not included in the relevant calculation, which may affect accruals.

Use registers and payslips to prepare and control payment. The accountant separately checks taxes and the lawfulness of deductions, prepares bank documents, files reports and keeps proof that funds were credited to employees’ accounts.

Official sources

• Law of Ukraine “On Remuneration” No. 108/95-VR — Article 24: consent, account, payment of transfer fees, frequency and deadlines; Article 30: notification and records; Article 34: compensation for loss of part of salary; Article 36: liability.
• Labour Code of Ukraine No. 322-VIII — Articles 110 and 115: notification and payment deadlines; Articles 127–128: grounds and limits for deductions; Article 265, part two, paragraphs four–five, and part six: sanctions and compliance with corrective orders; Chapter XIX, point 2: rules during martial law.
• Law of Ukraine “On the Organization of Employment Relations under Martial Law” No. 2136-IX — Article 10, parts 1–4: payment and proven inability to meet deadlines; Article 16, parts 1–3: unscheduled inspections and compliance with corrective orders.
• Law of Ukraine “On the Collection and Accounting of the Single Contribution for Mandatory State Social Insurance” No. 2464-VI — Article 8, parts 5, 13, 14 and 14-1: rates and special rules; Article 9, parts 2, 8, 10 and 12: documents, deadlines and payment; Article 24, part 2: control of salary payments; Article 25: enforcement measures and recovery.
• Ministry of Finance Order No. 291 of 16.09.2022, “On Approval of the Procedure for Payment Service Providers to Accept Payment Instructions for Salary Payments” — Procedure, points 2–6; Appendices 1–3: exemptions, the 22% check, proof of payment, certificates and their revocation.
• Tax Code of Ukraine No. 2755-VI — paragraph 167.1: PIT; subparagraphs 168.1.1, 168.1.2 and 168.1.5 and paragraph 168.4: withholding, deadlines and place of payment; Article 169: tax social benefit; paragraph 176.2, subparagraphs “a”–“c”: payments, reporting and information; Subsection 10 of Section XX, paragraph 16-1, subparagraphs 1.1–1.7: military levy, rates, procedure and specific exemptions.