FSS RF (Social Insurance Fund of the Russian Federation) is one of the state extra-budgetary funds that was created to provide compulsory social insurance for citizens of the Russian Federation.
The FSS of the Russian Federation was created on January 1, 1991 (by Resolution of the Council of Ministers of the RSFSR and the Federation of Independent Trade Unions of the RSFSR No. 600/9–3 of December 25, 1990).
The activities of the Social Insurance Fund are regulated by the Budget Code of the Russian Federation, the Federal Law “On the Fundamentals of Compulsory Social Insurance” and other regulations.
In our publication today, we will find out in what cases it is required to register an individual entrepreneur with the Social Insurance Fund as an employer in 2019-2020, and what is the procedure for this procedure.
Who and when must register with the Social Insurance Fund?
In accordance with the norms of current legislation, individual entrepreneurs who:
- entered into an employment contract with the employee and became employers;
- entered into a civil law agreement, which stipulates the obligation to pay insurance contributions to the Social Insurance Fund.
Registration of an individual entrepreneur with the Social Insurance Fund as an employer in 2019-2020 is not required, if the individual entrepreneur does not have employees or, in accordance with a civil law contract, there is no need to register with the Social Insurance Fund.
But if an individual entrepreneur plans to receive temporary disability benefits, maternity benefits, child care benefits, then he must register with the Social Insurance Fund and pay contributions in a fixed amount. This is voluntary insurance, in contrast to compulsory pension and health insurance.
To receive benefits in 2020, you must submit the following documents during 2019 to register:
Application for registration as an insurer (the application form can be downloaded at the bottom of the article). A copy of your passport.
Also, during 2020, it is necessary to pay a voluntary contribution to the Social Insurance Fund in the amount of 11,280 x 12 x 2.9% = 3,925.44 rubles.
The calculation of the voluntary contribution depends on the minimum wage established as of January 1 of the accounting year. For 2020, the minimum wage is set at 11,280 rubles.
If in 2020 you did not have time to conclude a voluntary insurance agreement with the Social Insurance Fund and did not transfer the required amount of contributions, you will not be able to count on the payment of social benefits in 2020.
The amount of voluntary contribution to the Social Insurance Fund for individual entrepreneurs in 2020 will be 12,130 x 12 x 2.9% = 4,221.24 rubles.
The deadline for registering an individual entrepreneur using hired labor with the Social Insurance Fund is no later than 30 calendar days from the date of concluding the relevant contract with the hired employee.
The amount of the fine for violating the deadline for registering an individual entrepreneur with the Social Insurance Fund is from 5,000 rubles, if the deadline is violated by more than 90 days - 10,000 rubles (Article 19 of the Federal Law of July 24, 1998 No. 125-FZ).
Carrying out activities without registration faces a fine of 20,000 rubles.
An individual entrepreneur hired an employee: does he need to register and how to fill out the SZV-M
Also, this conclusion corresponds to the provisions of clause 7.2 of Art. 83 Tax Code of the Russian Federation. It says that registration of an individual as a payer of insurance premiums, recognized as such in accordance with Article 419 of the Tax Code of the Russian Federation, is carried out by the tax authority at the place of residence of the individual on the basis of his application for registration (deregistration) as a payer of insurance contributions. As we can see, the norm contains a clause that only individuals recognized as payers of insurance premiums on the basis of Art. 419 of the Tax Code of the Russian Federation. If we open this article, we will see that entrepreneurs in it are a separate category of payers of insurance premiums from individuals from among the persons making payments and other remuneration (clause 1, clause 1, article 419 of the Tax Code of the Russian Federation). Accordingly, the registration procedure provided for in clause 7.2 of Art. 83 of the Tax Code of the Russian Federation does not apply to individual entrepreneurs.
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From a literal reading of these norms, it follows that formally the obligation to provide information in the SZV-M form in the situation under consideration arises for the entrepreneur from the month in which he entered into an employment (civil law) contract with the individual. Moreover, this obligation arises generally without any connection with registration or non-registration with the Pension Fund.
Registration of individual entrepreneurs in the territorial body of the Social Insurance Fund
Registration of an individual entrepreneur with the FSS as an employer requires the entrepreneur to provide a package of documents and submit them to the registration department of the FSS body no later than 30 days from the date of concluding an employment contract with the first employee.
The documents for registering an individual entrepreneur with the Social Insurance Fund as an insurer are as follows:
- application of the established form (Appendix No. 2 to the registration procedure approved by Order of the Ministry of Health and Social Development of Russia dated December 7, 2009 No. 959n);
- IP passport;
- certificate of registration with the tax authority (TIN);
- certificate of state registration of an individual as an individual entrepreneur (OGRNIP);
- extract from the Unified State Register of Individual Entrepreneurs;
- work books of hired workers;
- power of attorney (if the trustee of the individual entrepreneur applied to the fund).
After submitting the necessary documents, the individual entrepreneur is immediately issued a notice of registration as an insurer of an individual in the territorial body of the Social Insurance Fund of the Russian Federation. The document contains the following information:
- policyholder registration number;
- code of subordination of the insured;
- the amount of the insurance tariff for compulsory social insurance (against industrial accidents and occupational diseases);
- details of the Social Insurance Fund branch, according to which it is necessary to transfer insurance contributions from the salaries of employees.
Registration of an individual entrepreneur as an employer in the Pension Fund through government services
If you are on this portal for the first time, but are interested in registering LLCs and individual entrepreneurs, then you can get answers to any questions about opening an LLC or individual entrepreneur by using the free consultation service on business registration: an individual entrepreneur is an individual entrepreneur. And an individual entrepreneur, from the point of view of the law, is an individual registered in the manner prescribed by law, who has the right to conduct entrepreneurial activities (i.e. business)
It will allow EPGU users to receive information about their work experience, estimated pension capital, the value of the individual pension coefficient (IPC), as well as the selected pension option: only an insurance pension or an insurance and funded pension.
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Responsibilities of an individual entrepreneur registered with the Social Insurance Fund
An individual entrepreneur who is registered with the Social Insurance Fund must make monthly transfers of insurance premiums by the 15th of each month. The amount of contributions to the Social Insurance Fund is calculated based on the size of the insurance tariff for compulsory social insurance against industrial accidents and occupational diseases. This tariff is indicated in the notice of registration with the Social Insurance Fund. The tariff ranges from 0.2 to 8.5. It depends on the class of professional risk. The cash tariff is multiplied by the amount of accruals in favor of employees (for the previous month).
An individual entrepreneur who is an insurer, if the average number of its employees does not exceed 25 people, no later than the 20th day of the calendar month following the reporting period, is obliged to provide a paper calculation to the FSS office for accrued and paid insurance premiums (for compulsory social insurance in case of temporary disability, for compulsory social insurance against accidents at work and occupational diseases and in connection with maternity) and for the costs of paying compulsory insurance coverage in form 4-FSS.
If the average number of individual entrepreneurs exceeds 25 people, then the 4-FSS calculation must be submitted only electronically by the 25th day of the month following the reporting quarter.
Individual entrepreneurs do not have to inform the Social Insurance Fund about opening a bank account.
If the last employee was fired, and the individual entrepreneur does not plan to hire employees in the future, in order to deregister with the Social Insurance Fund, the individual entrepreneur provides the Social Insurance Fund with a dismissal order along with reporting and an application for deregistration.
Individual entrepreneur without employees
If you operate without employees, registration with the Social Insurance Fund is not required. But you can register voluntarily. This will impose on you the obligation to pay insurance premiums, but will also give you the right to receive sick leave and maternity benefits at the expense of the Social Insurance Fund.
To voluntarily register with the Social Insurance Fund, you must submit the following documents:
- application for registration as a policyholder - an individual;
- passport;
- a certificate of state registration, if the entrepreneur was registered before 2020, or a USRNIP registration sheet, if after;
- TIN.
The employees will make copies of the original documents themselves and certify them in the proper way.
You can submit documents in person by contacting the FSS office at your place of residence. You can also submit documents through the MFC or electronically through the public service portal.
Within three days, the Fund will register you and send you a notice of registration as a person who has voluntarily entered into a social insurance relationship. The notification is sent by email in the form of an electronic document signed with an electronic digital signature of the FSS. If you want to receive a paper version, you must submit a separate application.
From the moment of registration, you are required to pay contributions at a frequency convenient for you (once a month, quarter or year). The main thing is to pay the entire annual amount no later than December 31st.
Removal of individual entrepreneurs from the Social Insurance Fund register
An individual entrepreneur who fires all hired workers must be deregistered from the Social Insurance Fund. In order to do this, the individual entrepreneur writes a corresponding statement. Afterwards, reconciliation of mutual settlements is carried out. If employees were laid off for a certain period, and then the individual entrepreneur plans to hire new employees, then they do not have to be deregistered from the Social Insurance Fund, but in this case, it is necessary to send zero 4-FSS reports within the established time frame until the employees are hired again.
When an individual ceases to operate as an individual entrepreneur, there is no need to deregister with the FSS, since the FSS independently deregisters an individual entrepreneur as an employer based on information received from the Federal Tax Service.
If an entrepreneur's debt to the Social Insurance Fund is identified, he must repay it. Without repaying the debt to the FSS, individual entrepreneurs will not be deregistered from the fund. The Fund must also repay the debt to the individual entrepreneur if it was identified during the reconciliation of mutual settlements.
Documentation
You can download the necessary documents from the links below:
The material has been edited in accordance with current legislation 11/06/2019
Tasks when registering with the Pension Fund of Russia
In addition to the requirements regarding the correct hiring of employees and the preparation of all necessary documentation, there is one more thing - mandatory registration with the Pension Fund and the Social Insurance Fund .
It is impossible to evade this requirement - the law establishes a clear algorithm of actions, as well as time limits for the registration procedure with these bodies.
The initial registration of an entrepreneur is carried out automatically and, in fact, without his participation. All actions are carried out by the tax office: as soon as an ordinary citizen officially becomes an individual entrepreneur, all the necessary documents will be transferred to the Pension Fund and the Social Insurance Fund. After this, he will pay all the necessary insurance premiums for himself - this is the main purpose of registration. You can learn more about deductions from this video:
https://youtu.be/HVSgbp_RLwc
At this stage, the entrepreneur does not need to visit these authorities and register himself. This need will arise if other employees are involved in the work of the individual entrepreneur. For each of them, you also need to pay contributions, so re-registration is necessary - this time as an employer.
Registration with the FSS
The Social Insurance Fund is a subsidiary body of the Pension Fund, which also requires a registration procedure. This is done for the same purpose - for timely and full payment of legally established insurance premiums.
Registration is required only if there are employees - if an individual entrepreneur works independently, the right to pay or not pay insurance premiums remains with him.
The algorithm for registering with the Social Insurance Fund is in many ways similar to registering with the Pension Fund - within the time established after the conclusion of the agreement, you must submit the full package of documents to this body. Over the next 5 days, the individual entrepreneur will be registered, of which he will be notified.
Violation of deadlines or the use of hired labor without registration with the Social Insurance Fund can result in unpleasant consequences for individual entrepreneurs - a large fine or problems with submitting reports.
This might also be useful:
- What reporting must an individual entrepreneur submit?
- The amount of insurance premiums for compulsory health insurance and compulsory medical insurance for individual entrepreneurs in 2020
- Fixed payments for individual entrepreneurs in 2020 for themselves
- Individual entrepreneur insurance premiums for employees in 2020
- Registering with the Pension Fund
- How to open an individual entrepreneur: step-by-step instructions
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What to do after registration
After registering and receiving a number, the employer has only one obligation - to pay contributions on time , both for himself and for each of his employees. All receipts for deposited amounts should be kept in case there are problems or claims from the Pension Fund in the future. For failure to pay contributions, individual entrepreneurs may be fined up to 20% of the amount of the debt incurred.
It is also necessary to timely submit reports to the fund about the number of all employees working for the individual entrepreneur. If in the future they are all fired, then the obligation to submit reports will still remain . To avoid this, the entrepreneur will need to deregister.
To do this, a special application is drawn up and submitted to the department of the fund in which he is registered - about deregistration as an employer.
Registration with the Pension Fund is the responsibility of every individual entrepreneur. Unlike the situation with a legal entity, which is immediately registered as an employer, for an individual entrepreneur this happens only after the conclusion of the first employment contract or GPC agreement.
When registering, it is important to collect the necessary documents in a timely manner and submit them to the Pension Fund, as well as in the future to make all deductions on time and in full. For violating these conditions, an individual entrepreneur may be punished - with a fine, various inspections, or refusal to accept tax reports.
Comments
04/08/2018 at 02:48 # Reply
Deregistration of an individual entrepreneur upon termination of activity
As follows from the Order of the Ministry of Labor of the Russian Federation dated April 29, 2016 N 202N (clause 3, clause 21, clause 23 of the Procedure), as well as clause 3, clause 3, article 6 of Law 125-FZ, upon termination of activities, the FSS withdraws Individual entrepreneur registered as an employer based on information received from the Federal Tax Service. Thus, in such a situation, an application for deregistration is not required. An application is needed only if employees resign, but the individual entrepreneur continues to work. This change is effective from 2020
Where and when should documents be submitted?
An individual entrepreneur must register within 30 days from the date of conclusion of the first employment contract (Clause 1, Article 6 of Law No. 125-FZ of July 24, 1998). How to submit documents:
- personally or through a representative contact the territorial branch of the FSS;
- send a package of documents through the MFC;
- send papers by post;
- fill out an application through the State Services portal.
The fine for late registration of the policyholder is charged in the amount of 5,000 rubles, if less than 90 days have passed since the date of violation, 10,000 rubles. – in case of a longer delay (Article 26.28 of Law No. 125-FZ dated July 24, 1998).
How to register with the Social Insurance Fund (application, other necessary documents). Registration deadlines
Important! An entrepreneur who has entered into an employment contract with an employee must independently contact the territorial office of the Social Insurance Fund at the place of registration.
In accordance with paragraphs. 7 and 11 of the Registration Procedure..., approved. By order of the Ministry of Labor of Russia dated April 29, 2016 No. 202n, an individual policyholder must submit the following documents:
- Application form.
You can download the application form from the link: Application form for registration of individual entrepreneurs in the FSS.
- A copy of the hired employee’s work book or employment contract.
To submit this application, the representative of the entrepreneur must submit to the Social Insurance Fund a document confirming his authority.
When registering an individual entrepreneur as an employer in 2020, an application is submitted to the FSS in the approved form (see order of the FSS of the Russian Federation dated April 22, 2019 N 215, Appendix 1).
The registration methods are as follows:
- personal appeal to the territorial body of the fund;
- sending by postal mail;
- registration through the electronic service “Gosuslugi”.
Note! After the applicant has submitted all the necessary documents, the fund’s specialists are obliged to register him within 3 days. In this case, the individual entrepreneur is given a corresponding notification, which must be sent to him electronically within 3 days to the address specified in the application, and if the e-mail is not specified, in another way, including by letter to the address of the entrepreneur.
