Holiday provision for construction companies / ZVK
June 11, 2010 | 15,00 EUR | answered by Matthias Wander
How is the holiday provision calculated for construction companies? The individuals did not work the entire month and are only entitled to paid leave proportionally. How do I determine the number of days per employee as of December 31? At the same time, there is a liability towards the ZVK. How should this be reported in the balance sheet or is it possible that no provision needs to be made because it offsets each other?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and in the context of your engagement within a preliminary consultation.
A holiday provision is to be created when employees carry over vacation days to the next year. The actual unused vacation days must be included in the calculation of the provision. Refunds from the ZVK are to be offset against this.
For commercial employees, the gross holiday pay is reimbursed by the ZVK, so they should not be considered in the provision calculation. Only the employer contributions to social security and contributions to the professional association can be taken into account in the provision calculation, as these are not reimbursed by the ZVK.
For clerical employees, there is no reimbursement from the ZVK. Therefore, the gross holiday pay can also be considered for these employees.
Specifically, the following should be included in the provision:
- Gross wages,
- Employer contributions to social security,
- Holiday pay, and
- other wage-related ancillary costs (e.g. contributions to the professional association).
Claims against the ZVK are only activated in the year they are due to the company. In the year the provision is created, the claim for compensation has not yet arisen. Therefore, the claim for compensation should not be recognized as a receivable in the year the provision is recognized, but only taken into account in the valuation of the provision.
I hope this gives you an initial overview.
Kind regards,
Wander
Tax consultant
