Employers must report salaries of highly qualified specialists by Oct. 30

IMPACT – HIGH

What is the change? Before the end of the month, companies must report the salaries paid to highly qualified specialists during the third quarter of 2014.

What does the change mean? Companies and company officials that fail to comply with the reporting requirements face hefty fines.

• Implementation timeframe: The deadline for reporting is Oct. 30.
• Visas/permits affected: Work visas for highly qualifiedspecialists (HQS).
• Who is affected: Companies employing HQSs.
• Business impact: Companies should track these salary paymentsregularly to ease the reporting requirements.
• Next steps: Employers should file the quarterly salary payments by the deadline.

Background: The Federal Migration Service requires that companies report salaries paid to HQS workers for the third quarter (July 1 to Sept. 30) no later than Oct. 30.

Employers who do not comply with these requirements face administrative fines ranging from 400,000 rubles to 1 million rubles (approximately US $10,000 to $25,000) against the company and from 35,000 rubles to 70,000 rubles (approximately US $870 to $1,750) against company officials.

BAL Analysis: Any violations of the salary reporting requirement are punishable by administrative fines under Russian law. Employers should work with their BAL attorney to complete their reporting requirements.

This alert has been provided by the BAL Global Practice group and our network provider located in the Russian Federation. For additional information, please contact your BAL attorney.

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