ACCOUNTING ASPECTS OF CALCULATION AND TAXATION OF HOLIDAYS

The calculation and taxation of vacation pay pose challenges in the accounting system in Ukraine due to the lack of standardized instructions and frequent changes in the legislative framework. This leads to inconsistency in calculation and taxation methods across different sectors, burdening employers with administrative tasks, misleading employees, and causing disputes with tax authorities. To address these issues, it is necessary to establish fundamental principles and methodological guidelines for accurate calculation and taxation of vacations to ensure compliance with legal standards. The article examines the latest changes in the legislative framework related to the calculation and taxation of vacations, and provides practical suggestions for improving accounting methods in this regard. Understanding these aspects is crucial for businesses as they directly affect finances and the well-being of employees. The legal basis for granting vacations, including conditions, duration, and procedure, is established by various laws and regulatory acts, including the Labor Code and the Law of Ukraine “On Leaves,” which define the parameters and procedure for granting vacations. These vacations are aimed at restoring efficiency, improving health, and satisfying personal needs. It is established that the process of documenting vacations consists of several stages: creating a vacation schedule, employees submitting vacation requests, issuing an official order granting vacation, and vacation pay disbursal. The types of vacations and their duration are grouped according to Article 4 of the Law of Ukraine “On Leaves,” and the procedure for determining the number of days of annual leave due to an employee is justified. The authors propose an algorithm for calculating average daily wages. By following the sequence outlined in the algorithm, businesses can calculate the average daily wage for different types of vacations in accordance with Cabinet of Ministers Resolution No. 100 and accurately reflect the amount of vacation pay. Overall, improving understanding, compliance with legal requirements, and implementing standardized accounting practices are key steps in addressing the complexities of calculating and taxing vacations in Ukraine.