If you are an individual entrepreneur, you are required to make fixed payments annually to the Pension Fund of Russia (aka) and to the Federal Compulsory Medical Insurance Fund (aka FFOMS).
These payments are required to be made regardless of whether you are employed somewhere else, are conducting business, or are simply lying on the couch, being registered as an individual entrepreneur. Mandatory contributions of an individual entrepreneur are also not affected by the taxation system on which it is located (USN, OSNO, UTII, PSN - everyone pays!), nor the amount of your income or expenses.
In any case, you are required to annually transfer fixed payments to these two funds (PFR and FFOMS).
This payment is fixed annually and indexed every year. Most often, of course, in a larger direction.
| Year | Minimum wage | Pension Fund | FFOMS | Total |
|---|---|---|---|---|
| 2020 | Not important | RUB 32,448 | RUB 8,426 | RUB 40,874 |
| 2019 | Not important | RUB 29,354 | RUB 6,884 | RUB 36,238 |
| 2018 | Not important | RUB 26,545 | RUB 5,840 | RUB 32,385 |
| 2017 | 7,500 rub. | RUB 23,400 | RUB 4,590 | RUB 27,990 |
| 2016 | RUB 6,204 | RUB 19,356.48 | RUB 3,796.85 | RUB 23,153.33 |
Calculation of insurance contributions of individual entrepreneurs to the Pension Fund of the Russian Federation and the Federal Compulsory Compulsory Medical Insurance Fund for the month
Since 2018, when calculating insurance premiums for individual entrepreneurs, size does not play a role. Instead, according to Article 430 of the Tax Code of the Russian Federation, fixed contribution amounts are established for 2018, 2019 and 2020 (see table above). To find out the monthly amount, you simply need to divide these amounts by 12.
REFERENCE: Until 2018, the amount of insurance premiums depended on the value of the minimum wage and the formula for calculating insurance and medical premiums for individual entrepreneurs was as follows:
Pension Fund = minimum wage x 26% x 12 months.
FFOMS = minimum wage x 5.1% x 12 months.
When to pay IP fees
Before answering this question, you need to remember some very important information:
Individual entrepreneurs working without registered employees have the opportunity to deduct 100% of insurance contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund from the tax burden imposed on them by one or another taxation system.
Example.
You are engaged in providing soap making services. In the first quarter you made 30 thousand rubles worth of soap. If you work under the simplified tax system, you pay 6% tax. From 30 thousand rubles. 6% is 1800 rubles. So, at the end of the quarter you pay this 1800 not to the tax office, but to the Pension Fund!
In total, for the remaining 3 quarters you need to contribute to the Pension Fund and the Federal Compulsory Medical Insurance Fund: (Total amount insurance premium- 1800 rub.).
You can pay fixed insurance premiums once a month, once a quarter, once every six months or once a year - whenever! Here it is important to cover the advance payment with the insurance premium, which individual entrepreneurs must pay quarterly without fail!
If you did not pay to the Pension Fund, but sent the money to the tax authorities, and at the end of the year it turned out that the insurance premiums completely cover the tax (since 100% of the contributions are deducted from the tax), then you will have to withdraw this money back from the tax authorities, which will be quite problematic.
How to properly pay insurance premiums to the Pension Fund and the Federal Compulsory Medical Insurance Fund
Attention! Let's look at the example of contributions for 2018. Their total amount was 32,385.00 rubles.
Tip: Don't pay them every month. There is no point.
We worked for the first quarter, calculated the tax, and it came out to 10 thousand rubles. So, pay these 10 thousand to the Pension Fund and the Federal Compulsory Medical Insurance Fund, and first to the Pension Fund of the Russian Federation.
Nothing for the tax authorities, because the contributions were offset against the tax. There are 22,385.00 rubles left, of which 5,840.00 are in the FFOMS.
For the second quarter, another 10 thousand in taxes came out. Again we do not pay tax, but pay to the Pension Fund. There are 12,385.00 rubles left, of which 5,840,000 are in the FFOMS.
For the third quarter, another 10 thousand in taxes came out. Again we do not pay tax, but pay to the Pension Fund.
BUT! We no longer send 10 thousand to the Pension Fund, but the remainder of the total contribution (from 26545.00), i.e. 6,545.00. And with this tranche we cover our obligations to the Pension Fund.
But our tax was 10 thousand, and we paid 6,545.00. The remaining 3,455.00 is sent to the FFOMS. All that remains is to pay for honey. insurance: 5,840 - 3,455 = 2,385 rubles.
So, already for the fourth quarter, when your tax again comes out to 10 thousand rubles, we send the remaining 2,385 to the FFOMS, and the remaining 7,615.00 to the details of the tax authorities!
Important! Sending to the Pension Fund or FFOMS means using the KBK for such payments, but the recipient is the Federal Tax Service.
Of course, this is just an example, and your tax already for the first quarter may amount to an amount exceeding insurance contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund. Then it’s better to pay everything at once in the first quarter, and then you’ll have to make quarterly advance payments.
According to this above scheme, you relieve yourself of the burden of monthly payments and any risk of imposing penalties and other sanctions from the tax authorities.
1 percent in the Pension Fund of the Russian Federation on income exceeding 300 thousand rubles
The following year, after you have made a fixed contribution to off-budget funds, if your income exceeds 300 thousand rubles, please be kind enough to pay 1% of the amount that exceeded these 300 thousand.
An example for dummies.
Your income for the year was 487,000 rubles. Of this amount, 187 thousand is an excess of 300 thousand, and it is from 187 thousand that you must pay 1%. It will be 1870 rubles.
Be careful! You need to pay using the PFR details, not the FFOMS! Deadline: July 1 of the following reporting year. If contributions are transferred in 2018, you must use a new one. From March 2018, 1% contributions must be transferred to the KBK, as for fixed contributions - 182 1 02 02140 06 1110 160 (Order of the Ministry of Finance of the Russian Federation of February 28, 2018 No. 35n) indicating the details of the Federal Tax Service in the payment order.
If your income has exceeded 300 thousand already this year, you don’t have to wait for next July and feel free to pay 1% of the excess to the KBK PFR corresponding to this payment.
Do I need to pay insurance premiums when closing an individual entrepreneur?
If you are closing an individual entrepreneur, the tax inspector, accepting your closure documents, may require receipts confirming the fact of payment to the Pension Fund of all contributions for the year in which the closure procedure is carried out. Remember, you are not obligated to pay insurance premiums when you submit the paperwork to close! We read the article. 432 of the Tax Code of the Russian Federation, based on which this can be done within 15 days after the closure of the individual entrepreneur.
On the other hand, the insurance premium can be deducted from the tax, as we already know, which will be impossible if you transfer the money to the Pension Fund after closing, and not before. Therefore, before closing the individual entrepreneur, pay all contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund, according to the monthly calculations given above.
Receipt for payment of insurance premiums to the Pension Fund
Most convenient way pay insurance premiums - generate a receipt yourself on the official website of the Pension Fund.
It's very easy to do.
Step 1. We follow the link: https://www.pfrf.ru/eservices/pay_docs/ and see the following:
Step 2. We select the item “Insured”, our subject of the Russian Federation and then the item “Payment of insurance premiums by persons who voluntarily entered into legal relations under the compulsory insurance policy.”
A window will open with payment details:
Attention! The service has not yet introduced changes to the KBK part.
After entering the data, you can either print the receipt or download it in PDF format. This is what it should look like:
Such a receipt will not be suitable for direct payment at the bank due to the incorrect BCC. However, you can pay insurance premiums through Internet banking, the same Sberbank-Online, by filling out an electronic payment order based on the generated receipt. Or from your current account. The main thing is that the money comes to you, and where it came from, from which bank and account - it doesn’t matter.
Individual entrepreneurs make contributions to the Pension Fund from the very beginning, that is, after registering the business. The established amounts of money are paid in accordance with current legislation. Each individual business entity must know the specifics of making payments and other useful information on the interaction between individual entrepreneurs and extra-budgetary funds.
Depositing funds
The responsibility of each individual business entity is to contribute the necessary funds to the Pension Fund and the state institution for compulsory health insurance. If the individual entrepreneur does not have hired personnel who are involved in obtaining commercial benefits from the activities carried out, the businessman is obliged to produce fixed payment to extra-budgetary funds for one’s own person (for an individual). In addition to pensions and health insurance, if desired, you can also receive social insurance. To do this, you need to make payments to another organization that deals with such issues. However, payment of sums of money to social security funds, according to the law, is optional, but only if the entrepreneur wishes.
If an individual engaged in individual entrepreneurship has hired employees, pension contributions are made for each employee (the individual entrepreneur pays as an employer). Such contributions to the Pension Fund for individual entrepreneurs are mandatory even in the absence of evidence of any activity.
It does not matter the type of regime for paying tax amounts (general taxation system or specific, for example, simplified), receipt of profits, conditions employment contract employee (meaning their main place of functioning, part-time work, performance of duties on an urgent basis) labor agreement etc.).
There are some cases when a businessman is exempt from insurance payments. This may happen when specific circumstances arise that prohibit a person from functioning normally. Moreover, in each individual case it is necessary to confirm the actual situation with the necessary documents.
They may not pay funds to the fund in question and other institutions (temporarily, since there is no activity) or citizens who have been called up for service (military or alternative). A businessman as an individual provides government agency military ID and other documentation (a corresponding note is made in his work book). The reason for not making money transfers is also caring for an infant until he reaches 1.5 years of age. To be exempt from payment, the subject must provide the following documentation:
- original of your passport;
- document confirming the birth of the child;
- marriage certificate.
In addition to the originals, copies will be needed. A compelling argument is also the provision of care for disabled persons: disabled people belonging to group 1, elderly people who have already turned 80, if the disabled person is a child. For documentary evidence you will need:
- a conclusion drawn up after an inspection of the institution;
- from the body performing the medical examination - an extract;
- for the child - his birth certificate.
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Information about the amounts and timing of payments
The individual entrepreneur tax to the Pension Fund in 2016 increased compared to 2015, but only slightly. There are no changes to the calculation rules and the procedure for depositing funds. The total amount of insurance premiums consists of 2 components: a fixed part, which is contributed to extra-budgetary structures for the reporting year, and an amount equal to 1% of income. The last installment is not always paid. The need arises when a businessman receives a total income above 300 thousand rubles. The interest is calculated only from the excess amount and is transferred to the pension authority as an additional contribution.
The state determines (fixes) part of the contributions. They are called that because of equality for absolutely all individual entrepreneurs. When establishing amounts, there is a direct dependence on the minimum wage, which is set on January 1 of each period.
In 2017, the minimum wage is 7,500 thousand rubles.
To independently calculate the amounts of fixed contributions, the following formula can be used: minimum wages multiplied by interest rate and the number of months in a year. The current rate is 26%.
So, the fixed payment for the year will be: 7500 x 0.26 x 12 = 23.4 thousand rubles.
Similar calculations are made for amounts paid to compulsory health insurance funds, only a rate of 5.1% is used. For 2017, the individual entrepreneur is required to contribute 4.59 thousand rubles.
The deadline for payment of the fixed part of contributions is December 31 of the current period.
In fact, no one delays transfers until the specified date. You need to pay in advance. For violation, if payment deadlines are not met, the state provides for liability. Fines are used as penalties.
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Payment Process
How to pay insurance premiums to the relevant authorities? It is allowed to act in a way that is convenient for the individual entrepreneur. The total amount may not be paid in a single payment, but divided into parts and paid any number of times. It is important to list all the necessary cash during the calendar period. In practice, payment of PFR contributions to individual entrepreneurs is most often made quarterly. The entire amount is divided into 4 shares. This makes it possible to reduce tax payments for every 3 months (under the simplified tax collection regime or unified taxation on imputed income).
If we take into account the insurance amounts transferred for free medical care, then a business entity needs to contribute at least 2 amounts per year to extra-budgetary funds. When making quarterly payments to non-budgetary institutions, there will be a total of 8 payments.
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Tax reduction
An individual entrepreneur can operate relying on a simplified tax collection regime. Paid insurance funds (both for an individual individual entrepreneur and for hired personnel) can be reduced by a certain payment of advances, that is, a tax according to a simplified system. This is a feature of the system with income minus costs. In this mode, insurance premiums are recorded as normal costs.
The law provides for deadlines within which the amount for reduction is paid. For example, the period is from 01/01/17 to 03/31/17 (for the first quarter).
The reduction of an advance already calculated but not yet paid is up to 100% for an individual engaged in business and not interacting with employees on the basis of an employment contract.
A reduction in the advance payment by half is provided for if entrepreneurs have hired employees. Individual entrepreneurs have the opportunity to take into account their own insurance payments, provided that they are included in 50% of the amount.
It is allowed to add an additional percentage of the excess income limit to deductions. But manipulation is carried out exclusively during the period of payment. Not in all cases, dividing insurance funds into quarterly amounts is convenient or acceptable. If there is no income received for the first 3 months, you need to distribute the fourth part of the fixed payment over the remaining 3 periods. It is unacceptable to make mistakes, so the calculation of total paid insurance premiums and advance taxes is carried out using a mechanism with a cumulative total.
When a businessman works under a simplified tax collection system (income minus costs), the funds contributed for insurance both for himself and for hired employees must be classified as expenses. This determines the use of the operation purely to reduce the tax base (directly advance payment or the tax is not reduced as under the previous system).
Each individual entrepreneur is given the right to reduce taxes on insurance payments, paid for the tax period when operating on the basis of a unified taxation system for imputed income. This applies to payments both for the individual entrepreneur himself and for employees, if any are involved in an individual business.
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additional information
For each fund, the state has determined budget classification codes. They are applied within the framework of payment of fixed monetary insurance amounts. It must be taken into account that codes change, information on them must be monitored annually so that the individual entrepreneur does not have any violations when interacting with government agencies.
Calculation formula for additional insurance payments to the pension authority: 0.01 x (total value of income for the entire year - 300 thousand rubles). In the process of calculations using the given formula, from the income earned or received for a certain period, it is not necessary to subtract those incurred during commercial activities expenses. Payment of pension contributions to individual entrepreneurs of this nature must also be made on time. The cut-off date is April 1 of the year following the current period. That is, for 2016 it is allowed to contribute funds until 04/01/2017. When a businessman’s income already exceeds the limited amount, and the year has not yet ended, contributions are allowed to begin making even before its end.
You need to pay attention to some points related to additional deductions. Payment is made only in respect of PF. For this payment in 2017, its own budget classification code was determined. The total amount should not exceed 187.2 thousand rubles. A formula is also used to calculate it. The rate is 26%. The minimum wage must be multiplied by 8 and 12 months per year.
To make contributions to the Pension Fund for individual entrepreneurs, you must have the details.
To calculate the tax paid to government agencies by individual businessmen, you can use a special calculator. This service is provided by online services. Calculation of any taxes and insurance amounts thanks to such accounting is carried out free of charge. The operation can be carried out for any designated period. Using the calculator is very convenient and allows the individual entrepreneur himself or his authorized person to save significant time. First you just need to go to the website of the verified system and register.
An individual entrepreneur is responsible for his own future pension and health insurance, and therefore is obliged to transfer insurance contributions for these purposes. Mandatory payments (contributions for yourself by the Pension Fund and Compulsory Medical Insurance 2019) are established by the Tax Code. How much, when and where should I pay? When can you not pay contributions for yourself? Find out about this in our article.
Mandatory insurance premiums for individual entrepreneurs for themselves
In Russia, the insurance system for individuals includes several types of contributions:
- for pension insurance;
- for health insurance;
- for social insurance (sickness and maternity benefits);
- for insurance against accidents at work and occupational diseases.
However, all these contributions must be paid only by employers for their employees. And the mandatory payments of individual entrepreneurs include only two types of contributions - for pension (OPS) and medical (CHI) insurance.
The entrepreneur pays social insurance contributions voluntarily; for this he needs to submit a special application to the Social Insurance Fund. And individual entrepreneurs are not insured against injuries and occupational diseases. Such insurance can be taken out in the usual manner, as an individual.
How much should you pay? Mandatory payments to individual entrepreneurs in 2019 consist of two amounts:
- for compulsory pension insurance - 29,354 rubles;
- for compulsory health insurance - 6,884 rubles.
The total is 36,238 rubles. This amount is also called “fixed individual entrepreneur contributions”. The fact is that it is pre-established or fixed in the Tax Code. And besides, all individual entrepreneurs pay fixed contributions equally, regardless of how much income they received. You cannot pay less than this established amount, even if the individual entrepreneur does not work at all or suffers losses.
Additional contribution to pension insurance
Obligatory payments to individual entrepreneurs, of course, cannot provide the entrepreneur with a good pension. Compared to the insurance premiums that employers pay for workers, this is a very small amount.
For example, an individual entrepreneur who received an income of 240,000 rubles in 2019 will pay 36,238 rubles for himself. And for an employee with the same income at average contribution rates (at least 30% if there are no benefits), the employer will pay 72,000 rubles. This means that the employee’s insurance account will have more funds than that of the individual entrepreneur.
To give individual entrepreneurs the opportunity to accumulate more money for retirement, the state has developed a mechanism for additional contributions to compulsory pension insurance. If an individual entrepreneur received an income of more than 300,000 rubles in a year, then he must transfer an additional 1% of the amount above this limit to his pension insurance.
So, with an annual income of 800,000 rubles, the additional contribution will be (800,000 – 300,000) * 1%) 5,000 rubles. And if an entrepreneur earned 2 million rubles in a year, then the additional contribution is 17,000 rubles.
The additional contribution to pension insurance has an upper limit; in 2019 it is 205,478 rubles. In total, taking into account the mandatory contribution of 29,354 rubles, payments by individual entrepreneurs in 2019 for their pension cannot exceed 234,832 rubles.
The basis for calculating the additional contribution to the entrepreneur’s pension insurance depends on which tax system he works on. Unfortunately, this approach cannot be considered fair for all contributors.
The fact is that for two versions of the simplified tax system (Income and Income minus expenses), the same rule applies - income received without taking into account expenses is taken into account. Suppose an individual entrepreneur is on USN Income earned 1 million rubles in income from the provision of services, so his additional contribution is 7,000 rubles.
Now let’s take an entrepreneur using the simplified tax system Income minus expenses, who is engaged in trade. Although he also received revenue of 1 million rubles, taking into account the costs of purchasing goods (for example, 700,000 rubles), his real income is much more modest - only 300,000 rubles. But at the same time, his additional contribution of 1% is calculated from all revenue, which means he must also transfer 7,000 rubles.
The incorrectness of such calculations has been repeatedly pointed out by courts, including those of higher authorities. However, the Ministry of Finance does not give up and continues to insist that individual entrepreneurs pay an additional contribution on Income minus expenses on all income received without taking into account business expenses.
What about other modes? Entrepreneurs on the Unified Agricultural Tax find themselves in a similar situation - they also do not take into account expenses when calculating the additional contribution. But the IP is on common system taxation were able to achieve changes in the norms of the Tax Code. And since 2017, their income is allowed to be reduced by business deductions to calculate the additional contribution.
Two more taxation systems - UTII and PSN - do not take into account the actual income received, but that which is calculated in advance. Often this turns out to be beneficial not only for paying taxes on these regimes, but also for an additional 1% contribution.
So, once again about how insurance premiums are calculated for entrepreneurs who have received an annual income of more than 300,000 rubles per different systems taxation (Article 430 of the Tax Code of the Russian Federation):
- STS and UST – income from sales and non-operating without taking into account expenses;
- BASIC – income received is reduced by business deductions;
- UTII - imputed income, which is calculated taking into account the basic profitability, physical indicator and coefficients (K1 and K2);
- PSN is the potential annual income established at the place of conduct of a particular type of activity.
Contributions for less than a year
Above, we looked at the amounts that an individual entrepreneur pays for himself if he had the status of an entrepreneur throughout 2019. How much do you have to pay if registration occurs in the middle or end of the year? Or does the entrepreneur stop business without waiting for the end of the year?
Behind less than a year entrepreneurial activity, the amount of contributions is proportionally reduced. Only those months and days of the year when you were registered as an individual entrepreneur are taken into account.
It is convenient to calculate insurance premiums using the Federal Tax Service calculator. Indicate the date of registration of the individual entrepreneur (if you were already registered at the beginning of the year, then select January 1) and the end date of the billing period.
Let’s take, for example, an entrepreneur who was registered back in 2017, and on October 30, 2019, decided to cease his activities. Since the beginning of this year, he has received an income of 538,000 rubles. Let's enter this data into the calculator.
The calculator will immediately show the amounts that need to be paid.
And here is the details of how contributions were calculated for an incomplete year:
- for OPS in a fixed amount - (29,354.00 / 12) * 9 + (29,354.00 / 12) * 30/31 = 24,382.76;
- for OPS with income over 300,000 rubles - (538,000.00 - 300,000.00) * 1.00% = 2,380.00;
- for compulsory medical insurance - (6,884.00 / 12) * 9 + (6,884.00 / 12) * 30/31 = 5,718.16.
In total, individual entrepreneurs’ insurance premiums for themselves will be: 24,382.76 + 2,380.00 + 5,718.16 = 32,480.92 rubles.
Exemption from payment of contributions
We have already said that an entrepreneur must transfer contributions for himself, even if he is not engaged in real business or there is no income from it. But there are so-called grace periods, during which contributions can be temporarily waived if the individual entrepreneur does not conduct business for the following reasons:
- maternity leave for up to one and a half years; disabled person of the 1st group; a disabled child; an elderly person over 80 years of age;
- military service by conscription;
- living with a spouse who is a military serviceman under a contract or sent to diplomatic missions and consulates of the Russian Federation.
In order to inform the tax office about temporary non-payment of contributions, you must submit an application in advance (the application form is in the letter of the Federal Tax Service dated June 7, 2018 No. BS-4-11/11018@) and supporting documents.
Where and when to pay contributions for yourself
The entrepreneur must transfer insurance premiums for himself to the Federal Tax Service where he is registered at his place of residence. The Pension Fund keeps records of the amounts transferred for insurance, but the individual entrepreneur does not have to report the payments themselves or report on them in any way. All necessary information is received by the Pension Fund from tax office.
The following deadlines for transferring contributions for yourself have been established:
- for a fixed amount - no later than December 31, 2019 (however, in the UTII and STS Income modes, it is more convenient to pay contributions in installments every quarter);
- for an additional 1% contributions – no later than July 1, 2020.
KBK (budget classification code) for payment of contributions, which must be indicated in the payment slip:
- for contributions to compulsory pension insurance (fixed amount and additional contribution) - 182 1 02 02140 06 1110 160;
- for contributions to compulsory medical insurance - 182 1 02 02103 08 1013 160.
Results
- Individual entrepreneurs' insurance premiums for themselves consist of a fixed amount that all entrepreneurs pay (in 2019 it is 36,238 rubles), and an additional contribution of 1% if the annual income exceeds 300,000 rubles.
- Fixed contributions of individual entrepreneurs for themselves must be transferred before December 31 of the current year. The deadline for paying the additional contribution is July 1, 2020.
- Contributions can be waived only during grace periods permitted by law. If an individual entrepreneur does not operate for a long time or the business does not make a profit, then in order not to pay fees, you must deregister. If necessary, you can register again within 3 working days.
- Contributions are transferred to the tax office, where the individual entrepreneur is registered with registration, regardless of what region of the Russian Federation he operates in.
Instructions
Individual entrepreneurs make two types of contributions to the pension fund: Fixed contributions to a pension fund(PF, Pension Fund), as well as contributions from FFOMS (Federal Fund for Compulsory Medical Insurance) and TFOMS (Territorial Fund for Compulsory Medical Insurance). Before transferring funds to a pension fund, you need to go to the pension department fund Russian Federation and whether there are any outstanding payments for the previous year. If there are no debts, then in the pension department fund a, must provide receipts for repayment of debts for the entire current year. This operation should be carried out before March 1 of the year in which they will be performed.
After receiving the receipts, you can already pay the fees. How to make payments and in what periods is decided by the payer, because There are payments that must be made monthly, quarterly or once a year. Payment can be made at any branch. Through, you can also get acquainted with the amount of debt; to do this, you need to enter the payer’s TIN and familiarize yourself with the upcoming payments. Payment must be made no later than last day quarter.
Also important feature of these payments, is that in December of the current year, you must appear at the pension office fund and to check whether there are any arrears on pension contributions. If there are no debts, then the year is considered closed and no fines are assessed, but if there are late payments, then it will be equal to 10% of the charges for the previous year. If an overpayment of contributions is detected, then this amount will automatically be transferred to the first quarter, month or period of the year following the current one.
Pay dues to Pension Fund, it is possible at any time, as is more convenient for the entrepreneur, but you should not put it off until the last month of the year, because It’s easier to divide the amount of contributions over the whole year and pay in small parts
Sources:
- debt to the pension fund
Registration of individual entrepreneurs in the Pension Fund required condition for conducting commercial activities. Registration of individual entrepreneurs is carried out by the territorial branches of the Pension Fund.
You will need
- - copy of TIN;
- - a copy of the certificate of state registration as an individual entrepreneur;
- - a copy of the insurance certificate of compulsory pension insurance;
- - employment contract with an employee;
- - copy of the passport.
Instructions
Registration in Pension fund will happen automatically after you receive the OGRN from the tax office. The pension fund will assign you registration number of 13 digits. The first three digits are the code of the subject of the Russian Federation; the next three digits are the district (city) code; the next six digits are the serial number of the record individual at the Pension Fund branch.
If you plan to hire workers, you need to register with the Pension fund as an insured no later than 30 days after concluding an employment contract. Registration takes place at the territorial office of the Pension Fund of the Russian Federation at your place of residence. Provide the entire package of documents and you will be given a “Notice of registration as an insurer making payments to individuals.”
From the moment of state registration, an individual entrepreneur - the Pension Fund , social insurance of the Russian Federation, compulsory medical insurance. From this moment on, he is responsible for paying mandatory insurance payments.
What to pay to the Pension Fund for
Russian entrepreneurs have developed a long-term habit of following news about increases in the minimum wage. This interest is explained not so much by curiosity as by fiscal necessity. In 2017, individual entrepreneurs already experienced the transfer of payment of contributions under the auspices of the Federal Tax Service; from January 1, 2018, legislators prepared a new surprise. Starting from the new year, the amount of the monthly fixed pension payment “for yourself” will no longer be tied to the minimum wage. Now the individual entrepreneur’s contribution consists of two parts and depends only on the amount of annual income.
When calculating it, you need to be guided by Art. 430 Tax Code of the Russian Federation. It describes the financial prospects for payers of pension contributions for the next three years. So the fixed part of the contribution is equal to:
- in 2018 – 26,545 rubles/year;
- in 2019 – 29,354 rubles/year;
- in 2020 – 32,448 rubles/year.
The transferred amounts will be final only for those individual entrepreneurs whose income did not exceed 300 thousand rubles per year. For every ruble earned above the specified limit, you will have to pay 1% as pension contributions.
The obligation to make contributions to the Pension Fund for individual entrepreneurs has a dual structure. Firstly, an individual entrepreneur must transfer a fixed amount of insurance premium for himself once a year. This payment is mandatory regardless of whether the entrepreneur carries out activities or not. Termination of payments is possible only in case of liquidation of the status of an individual entrepreneur, as well as in cases of impossibility of carrying out entrepreneurial activity(maternity leave, conscription, etc.).
What reports are submitted?
- for individual entrepreneurs on the simplified tax system, unified agricultural tax, OSNO (personal income tax) - the amount of income received from business activities;
- for individual entrepreneurs on UTII and PSN - the amount of imputed income taking into account K1 and K2, and the amount of potentially receivable income, while the amount of income actually received by the entrepreneur is not taken into account.
If an individual entrepreneur combines several modes, the total income is considered.
The deadline for payment of contributions calculated on income over 300,000 rubles is paid until April 1 of the year following the reporting year.
Payment of insurance premiums for employees is carried out by individual entrepreneurs, based on the following amounts (as a percentage of accrued income to employees):
| Pension Fund | Compulsory Medical Insurance Fund | |
|---|---|---|
| Basic insurance premium rate | 22% | 5,1% |
| Individual entrepreneurs using the patent tax system | 20% | 0% |
| Individual entrepreneurs with resident status of a technology-innovation special economic zone | 8% | 4% |
| Individual entrepreneurs who use the simplified tax system and carry out certain type activities | 20% | 0% |
Thus, the amount paid to employees may change during the year if there are changes in the amounts they receive.
Please note that the law does not allow wages to be set below minimum size remuneration: this must be remembered when deciding to optimize business expenses.
What to expect new in 2018
The fixed pension insurance payment is calculated no longer on the basis of the minimum wage, which is established by law and is valid for a certain period of time, but is established in the Tax Code of the Russian Federation. So the size fixed fee in 2018 will be 26,545 rubles. in a year. The entrepreneur is exempt from paying pension contribution subject to: passing military service; caring for a child until he reaches 1.5 years of age; caring for a disabled person of group 1, a disabled child, a person over 80 years old; residence in a region where there is no opportunity to work - for spouses of contract military personnel, but not more than 5 years in total; residence in representative offices of the Russian Federation abroad, but also for a total of no more than 5 years.
Contributions to the Pension Fund from an individual entrepreneur”>Contributions to the Pension Fund from an individual entrepreneur: Video