Reduced tariffs for payment of insurance premiums - Article 427

General provisions

Insurance premiums are a fee that organizations and individual entrepreneurs in Russia are required to pay.
They have been introduced since 2010, when they replaced the single social tax (UST). Until 2020, insurance premiums were not formally part of the Russian tax system, but have always played a vital role in our country’s compulsory social insurance system. Their payment ensures the right to receive financial support during retirement, pregnancy and in the event of the birth of a child, or illness. The right to receive free medical care is also inextricably linked with the payment of insurance premiums.

From January 1, 2020, the collection of insurance premiums, except for injuries, is regulated by the Tax Code of the Russian Federation. Now tax authorities monitor compliance by policyholders with legislation on taxes and fees through desk and on-site audits. However, the FSS checks whether contributions for injuries have been calculated and transferred correctly, and whether benefits have been paid correctly, as before. The changes are provided for by Federal Law No. 243-FZ of July 3, 2016.

Insurance premiums include:

1. Insurance contributions for compulsory pension insurance (OPI). They are listed in 2020 to the Federal Tax Service.
2. Insurance contributions for compulsory social insurance for temporary disability and in connection with maternity. They are transferred, as before, to the Social Insurance Fund of the Russian Federation.
3. Insurance premiums for compulsory health insurance (CHI). They are transferred from 2020 to the Federal Tax Service.

There are also so-called injury contributions (insurance contributions for compulsory social insurance against industrial accidents and occupational diseases), however, they are regulated by another federal law and stand somewhat apart. A separate material is devoted to contributions for injuries in our 2020 tax guide.

Basis and legal basis

Issues of insurance premiums were previously regulated by a number of federal laws. Fundamental among them was Federal Law No. 212-FZ of July 24, 2009, which became invalid due to amendments to the Tax Code.

Now the norms of the Tax Code of the Russian Federation apply to the calculation and payment of insurance premiums. New section 11 and chapter 34 of the Code are devoted to insurance premiums.

From 2020 tax authorities:

• control the completeness and timeliness of payment of insurance premiums accrued according to the new rules;
• accept and check reports starting with the calculation of insurance premiums for the first quarter of 2020;
• collect arrears, penalties and fines on insurance premiums, including for 2020 and previous periods.

With regard to insurance premiums for periods expired before 2020, the Pension Fund and the Social Insurance Fund continue to conduct inspections and identify the presence of arrears.

The Tax Code in Article 8 establishes the concept of insurance contributions - these are mandatory payments for compulsory pension insurance, compulsory social insurance in case of temporary disability and in connection with maternity, for compulsory medical insurance, collected from organizations and individuals for the purpose of financial security for the implementation of the rights of insured persons to receive insurance coverage for the corresponding type of compulsory social insurance.

Insurance contributions are also recognized as contributions collected from organizations for the purpose of additional social security for certain categories of individuals.

The Tax Code of the Russian Federation in its latest edition establishes:

• general conditions for establishing insurance premiums (Article 18.2 of the Tax Code of the Russian Federation);
• circle of contribution payers (Article 419 of the Tax Code of the Russian Federation);
• obligations of payers (Article 23 of the Tax Code of the Russian Federation);
• the procedure for calculating insurance premiums (Article 52 of the Tax Code of the Russian Federation);
• taxable object and base (Articles 420 and 421 of the Tax Code of the Russian Federation);
• tariffs of insurance premiums (Articles 425-429 of the Tax Code of the Russian Federation);
• the procedure for paying insurance premiums (Article 431 of the Tax Code of the Russian Federation);
• liability for violation of legislation on insurance premiums and other issues.

What kind of norm is this

Art. 422 of the Tax Code of the Russian Federation, as amended for 2020, with comments and explanations from regulatory and supervisory authorities, gives an idea of ​​the types of income of citizens that are not taken into account when calculating insurance premiums payable for compulsory types of insurance (pension, medical and social).

Article 422 of the Tax Code of the Russian Federation, as amended for 2020, is contained in the Tax Code of the Russian Federation, Chapter 34, Section 11. This codified document is one of the main ones in the Russian Federation and is available on all known legal platforms.

Payers of insurance premiums

According to Article 419 of the Tax Code of the Russian Federation, payers of contributions are persons making payments and other remuneration to individuals:

• organizations;
• individual entrepreneurs;
• individuals who are not individual entrepreneurs.

Contributions are also paid by individual entrepreneurs, lawyers, mediators, notaries engaged in private practice, arbitration managers, appraisers, patent attorneys and other persons engaged in private practice in accordance with the legislation of the Russian Federation. These are payers who do not make payments or other remuneration to individuals. A separate material is devoted to them in the tax reference book.

If the payer belongs to several categories simultaneously, he calculates and pays insurance premiums separately for each basis.

Who applies contribution benefits?

Despite the fact that the provision of the legislative act 212-FZ as a whole ceases to be relevant, all payers of contributions retained their obligations in part 34 of Chapter 34 of the Tax Code of the Russian Federation. Persons who are recognized as payers of contributions are considered insurers of their employees for all types of insurance:

• Enterprises that pay individuals (employees) wages under an employment contract or GPC agreement;
• For an individual entrepreneur;
• Private citizens who are a source of income for individuals without the status of an individual entrepreneur;
• Individuals who conduct private legal practice;
• They provide notary services and pay (or not) fees.

At the same time, lawyers, notaries, entrepreneurs conducting economic activities are required to pay the amount of insurance premiums for their activities. Also, having hired employees on staff or paying remuneration to persons for services related to activities under GPC agreements, they are recognized as payers in relation to payments for the labor functions of their employees.

The obligation to charge/pay insurance premiums arises for some payers upon completion of certain actions.

Object of taxation of insurance premiums

Tax Code in Art. 420 provides rules for determining the object of taxation of insurance premiums in three cases.

For organizations and individual entrepreneurs making payments in favor of individuals subject to compulsory social insurance in accordance with federal laws on specific types of compulsory social insurance, the object of taxation is payments and other remuneration accrued:

• within the framework of labor relations and civil contracts, the subject of which is the performance of work and the provision of services;
• under copyright contracts in favor of the authors of works;
• under agreements on the alienation of the exclusive right to works of science, literature, art, publishing license agreements, license agreements on granting the right to use works of science, literature, art;

For individuals who are not recognized as individual entrepreneurs, the following are recognized as objects of taxation:

• payments and other remuneration under employment contracts and civil law contracts, the subject of which is the performance of work, provision of services, paid by payers of insurance premiums in favor of individuals (with the exception of remunerations paid to individual entrepreneurs, lawyers, notaries and other persons engaged in private practice) . The concepts of the object of taxation for these payers have been transferred without significant changes from Federal Law No. 212-FZ, which has lost force.

What is new in the Tax Code is the allocation of a separate facility for individual entrepreneurs, lawyers, notaries and other persons engaged in private practice . This:

• the minimum wage established at the beginning of the corresponding billing period, and if the amount of income of such a payer for the billing period exceeds 300,000 rubles, his income is also considered subject to insurance premiums.

What payments are not subject to insurance premiums:

1. Payments and other remuneration within the framework of civil contracts, the subject of which is the transfer of ownership, and contracts related to the transfer of property for use (except for contracts of author's order, contracts for the alienation of the exclusive right to works of science, literature, art, publishing licenses contracts, licensing agreements on granting the right to use works of science, literature, art). These are contracts of purchase and sale, lease, loan, borrowing, etc.
2. Payments to a foreign citizen or stateless person on the basis of an employment contract, according to which the person’s place of work is a separate division of a Russian organization outside the Russian Federation, or a civil contract for the performance of work (rendering services), the execution of which also takes place outside the territory of the Russian Federation.
3. Payments to reimburse a volunteer’s expenses within the framework of the execution of a civil contract concluded in accordance with Federal Law No. 135-FZ of August 11, 1995 “On Charitable Activities and Charitable Organizations,” with the exception of food expenses in an amount exceeding daily allowance standards.
4. Payments to foreign citizens and stateless persons under employment contracts or under civil law contracts in connection with the preparation and holding of the 2018 FIFA World Cup and the 2020 FIFA Confederations Cup in the Russian Federation. Payments made to volunteers under civil law contracts that are concluded with FIFA to reimburse the expenses of volunteers in connection with the execution of these contracts in the form of payment for the costs of processing and issuing visas, invitations and similar documents, payment of travel costs, accommodation, food, sports equipment, training, communication services, transportation support, and others .

The list of amounts not subject to insurance premiums, given in Article 422 of the Tax Code of the Russian Federation, is slightly different from the list that was enshrined in Art. 9 of Federal Law N 212-FZ.

Previously, employer contributions paid in accordance with the legislation of the Russian Federation on additional social security for certain categories of employees in the amount of paid contributions were not subject to insurance contributions. In the new list, such employer contributions are not mentioned, which means that contributions will have to be deducted from their payment.

The second change is that previously, when payers paid for travel expenses of employees, per diem allowances were not subject to insurance premiums, regardless of the amount. Now, when payers pay expenses for business trips, daily allowances will not be subject to insurance contributions, only those provided for in paragraph 3 of Art. 217 Tax Code of the Russian Federation.

The third change: among payments not subject to insurance premiums, payments to guardians were previously mentioned, but there was no indication of the conditions for such payments. Now there is a rule that the amount of one-time financial assistance provided to guardians when establishing guardianship over a child, paid during the first year after the establishment of guardianship, but not more than 50 thousand rubles, is not subject to insurance contributions. for each child.

The following are not subject to insurance premiums under Article 422 of the Tax Code of the Russian Federation:

• State benefits, including unemployment benefits, as well as benefits and other types of compulsory insurance coverage for compulsory social insurance.
• All types of compensation payments (within the limits established in accordance with the legislation of the Russian Federation) - the article provides an exhaustive list of them.
• Amounts of one-time financial assistance to employees in connection with a natural disaster (emergency circumstances, terrorist attacks); with the death of a family member; upon the birth (adoption) of a child or the establishment of guardianship, but not more than 50,000 rubles for each child.
• Income of communities of indigenous peoples of the North, Siberia and the Far East from the sale of products obtained as a result of their traditional types of fishing (except for wages of workers).
• Amounts of insurance payments (contributions) for compulsory insurance of employees carried out by the payer in the manner established by the legislation of the Russian Federation, amounts of payments under contracts of voluntary personal insurance of employees concluded for a period of at least one year, amounts of payments under contracts for the provision of medical services to employees concluded for a period of at least one year, the amount of payments under voluntary personal insurance contracts for employees, concluded exclusively in the event of the death of the insured person and (or) harm to the health of the insured person, as well as the amount of pension contributions of the payer under non-state pension agreements.
• Employer contributions to a funded pension in the amount of contributions paid, but not more than 12,000 rubles per year per employee for whose benefit employer contributions were paid.
• The cost of travel for employees to and from the vacation destination and the cost of luggage weighing up to 30 kilograms, paid by the payer of insurance premiums to persons working and living in the Far North.
• Amounts paid to individuals by election commissions, referendum commissions, as well as from the election funds of candidates for the position of President of the Russian Federation, candidates for State Duma deputies, candidates for deputies of the legislative (representative) body of state power of a constituent entity of the Russian Federation, candidates for a position in another state body of a constituent entity of the Russian Federation Federation for the performance by these persons of work directly related to the conduct of election campaigns and referendum campaigns.
• The cost of uniforms and uniforms issued to employees in accordance with the legislation of the Russian Federation, as well as to civil servants of federal government bodies free of charge or with partial payment and remaining for their personal permanent use.
• The cost of travel benefits provided by the legislation of the Russian Federation to certain categories of employees.
• Financial assistance to employees up to 4,000 rubles. per person per calendar year.
• Amounts of tuition fees for employees in basic professional educational programs and additional professional programs.
• Reimbursement of employee expenses for paying interest on a loan for the purchase or construction of housing.
• Amounts of monetary allowance, food and clothing support in connection with the performance of military service duties and service in the specified bodies in accordance with the legislation of the Russian Federation.
• All types of payments and remuneration under civil law contracts, including copyright contracts, in favor of foreign citizens and stateless persons temporarily residing in the territory of the Russian Federation.
• Daily allowances for business trips provided for in paragraph 3 of Article 217 of the Tax Code of the Russian Federation, as well as actually incurred and documented targeted expenses for travel to the destination and back.
• Expenses of members of the board of directors or members of another similar body of the company in connection with their arrival to participate in its meeting.

Preferential payments that are not subject to contributions

In addition to preferential tariffs, there are amounts that are not taken into account when determining the taxable base. This means that the types of income that are mentioned in Article 422 of the Tax Code of the Russian Federation are not included in the general base for taxation of contributions. To correctly determine the preferential amount, you should look at the table:

Base for calculating insurance premiums

How is the base for calculating contributions determined in 2020?

The base for calculating insurance premiums for payers making payments and other remunerations to individuals is determined by Article 421 of the Tax Code of the Russian Federation as the amount of payments and other remunerations provided for in paragraph 1 of Art. 420 of the Tax Code of the Russian Federation, accrued by payers of insurance premiums for the billing period in favor of individuals (except for amounts not subject to insurance premiums specified in Article 422 of the Tax Code of the Russian Federation).

The base for calculating insurance premiums is determined separately for each individual from the beginning of the billing period at the end of each calendar month on an accrual basis.

When calculating the base, remuneration paid both in cash and in kind is taken into account. The base for payments in kind is defined as the cost of goods (work, services) received by an individual.

Limit amount of payments for calculating contributions

In 2020, the size of the maximum base for calculating insurance premiums is provided separately for insurance premiums for compulsory pension insurance and insurance for temporary disability and maternity. There is no maximum base for calculating insurance premiums for compulsory medical insurance.

The maximum value of the base for calculating insurance premiums is established taking into account increasing factors for each year from 2017 to 2021. In 2020, its value is:

• for calculating insurance premiums for temporary disability and in connection with maternity - 876,000 rubles;
• for calculating insurance premiums for compulsory pension insurance - 755,000 rubles.

The size of the maximum base for calculating insurance premiums is rounded to the nearest thousand rubles. In this case, the amount of 500 rubles or more is rounded up to the full thousand rubles, and the amount less than 500 rubles is discarded.

Payments when calculating the base relating to an author's order agreement, an agreement on the alienation of the exclusive right to works of science, literature, art, etc. is defined as the amount of income received under these contracts, reduced by the amount of actually incurred and documented expenses associated with the extraction of such income.

If such expenses cannot be documented, they are accepted for deduction in the following amounts (as a percentage of the amount of accrued income):

• for the creation of literary works, including for the theater, cinema, stage and circus - 20 percent;
• for the creation of artistic and graphic works, photographs for printing, works of architecture and design - 30 percent;
• for the creation of works of sculpture, monumental and decorative painting, decorative and decorative art, easel painting, theatrical and film set art and graphics, made in various techniques - 40 percent;
• for the creation of audiovisual works (video, television and cinema) - 30 percent;
• for the creation of musical stage works (operas, ballets, musical comedies), symphonic, choral, chamber works, works for brass band, original music for film, television, video films and theatrical productions - 40 percent;
• for the creation of other musical works, including works prepared for publication - 25 percent;
• for the performance of works of literature and art - 20 percent;
• for the creation of scientific works and developments - 20 percent;
• for discoveries, inventions and the creation of industrial designs (percentage of the amount of income received in the first two years of use) - 30 percent.

Insurance premium rates in 2020

If an organization does not have the right to apply reduced tariffs, then it charges contributions at the basic tariffs. They are indicated in Art. 426 Tax Code of the Russian Federation.

Tariffs of insurance premiums for payments to employees not exceeding the maximum base:

• For compulsory pension insurance (OPI) - 22%;
• For insurance for temporary disability and in connection with maternity (VNIM) - 2.9%;
• For compulsory health insurance (CHI) - 5.1%.

Tariffs of insurance premiums for payments to an employee in the part exceeding the maximum base:

• For compulsory pension insurance - 10%;
• For compulsory health insurance - 5.1%.

Reduced contribution rates are established, in particular, for the following categories of organizations:

• IT organization (Tariffs: OPS - 8%, VNiM - 2%, compulsory medical insurance - 4%);
• An organization on the simplified tax system that conducts preferential activities according to paragraphs. 5 p. 1 art. 427 of the Tax Code of the Russian Federation (Tariffs: OPS - 20%, VNiM - 0%, compulsory medical insurance - 0%);
• Pharmacy on UTII in relation to payments to employees engaged in pharmaceutical activities (Tariffs: OPS - 20%, VNiM - 0%, compulsory medical insurance - 0%).

Organizations whose annual income does not exceed 79 million rubles have the right to apply a reduced tariff.

Contributions to compulsory health insurance at additional rates are charged to organizations that have employees engaged in work that give the right to early assignment of an insurance pension (listed in paragraphs 1 - 18, part 1, article 30 of Law N 400-FZ). This is indicated by Art. 428 of the Tax Code of the Russian Federation, Letters of the Ministry of Finance dated November 16, 2016 N 03-04-12/67082, Ministry of Labor dated February 25, 2014 N 17-3/B-76.

How SMEs calculate insurance premiums from April 2020

Federal Law No. 102-FZ dated April 1, 2020 approved reduced insurance premium rates for small and medium-sized businesses. The criteria by which a business is classified as an SME are given in Federal Law No. 209-FZ dated July 24, 2007. This is the number of employees, the amount of income for the last year and others.

Tariffs depend on the amount of salary. The part within the minimum wage is subject to contributions at the standard rate, and the part above the minimum wage is subject to reduced contributions.

At the same time, do not forget about the maximum base on which contributions are calculated. For example, if an employee’s income from the beginning of the year exceeds 1,292,000 rubles, then the portion within the minimum wage will also be subject to pension contributions at a rate of 10%, similarly for contributions to VNiM.

The new algorithm begins to operate from the salary for April 2020.

Payment of fees. Reporting on insurance premiums

Payment of contributions by employers

Payment of insurance premiums from payments to individuals assumes that during the billing period (year) it is necessary to calculate and pay contributions in the form of monthly mandatory payments.

At the end of each reporting period - the first quarter, half a year, 9 months, calendar year - you need to summarize the payment of insurance premiums: fill out and submit calculations for accrued and paid premiums for these periods.

At the same time, it is necessary to keep records of accrued payments and contributions for each employee.

A monthly mandatory payment has been paid since 2020 to the Federal Tax Service for all employees in the total amount (except for the contribution to the Social Insurance Fund). The amounts of monthly mandatory payments must be transferred in rubles and kopecks.

Monthly mandatory payments for insurance premiums must be paid no later than the 15th day of the month following the month for which they were accrued. If the last day for payment falls on a non-business day, the payment deadline will be the next business day.

Reporting on insurance premiums

On January 1, 2020, new rules for reporting insurance premiums came into force.

Starting from the 1st quarter of 2020, you must submit a new unified calculation of insurance premiums to your tax office. It combines data from four reports to funds at once: RSV-1 PFR, 4 - FSS, RSV-2 PFR and RV-3 PFR. The calculation, format and procedure for filling out are approved by Order of the Federal Tax Service of Russia dated 10.10.2016 N ММВ-7-11/ [email protected]

Important! The deadline for submitting calculations has changed.

Calculation of contributions for compulsory pension insurance, compulsory social insurance in case of temporary disability and in connection with maternity, compulsory medical insurance must be submitted to the tax authority once a quarter no later than the 30th day of the month following the billing (reporting) period (p 7 Article 431 of the Tax Code of the Russian Federation). The innovation is due to the fact that the Tax Code of the Russian Federation has been supplemented with provisions on the collection of insurance premiums (except for contributions for injuries).

From the clarification of the FSS it follows that the calculation must be submitted for periods beginning no earlier than January 1, 2020. Reporting on contributions, including updated ones, for earlier periods is submitted according to the old rules. They are as follows: the electronic 4-FSS must be submitted to the territorial body of the FSS no later than the 25th day, the paper one - no later than the 20th day of the month after the reporting period. RSV-1 in electronic form should be sent to the territorial body of the Pension Fund no later than the 20th day, in paper form - no later than the 15th day of the second month following the reporting period.

The deadline for paying contributions remains the same - the 15th day of the month following the month for which they were accrued.

The changes are provided for by Federal Law No. 243-FZ of July 3, 2016.

Note! For late submission of payment calculations, inspectors are fined under Art. 119 of the Tax Code of the Russian Federation, the minimum fine is 1,000 rubles.

How to calculate the amount of insurance premiums

Employers are required to monthly calculate and pay insurance premiums, the amount of which is determined by the formula:

From the amount of the monthly VNIM payment, the employer deducts benefits paid during the month, which must be paid by the Social Insurance Fund (three days of sick leave, etc.). If the amount of the benefit exceeds the contributions, an overpayment is generated, which is returned to the payer or offset against future payments.

Personalized accounting

Deadlines for submitting reports on personalized accounting - new in 2020

On January 1, 2020, the law on new deadlines for filing personalized reports came into force.

The deadline for submitting monthly personalized reporting (form SZV-M) has been moved from the 10th to the 15th of the month following the reporting month.

In addition, the data that employers, according to the old rules, submitted once a quarter as part of RSV-1, now needs to be sent to the Pension Fund annually (no later than March 1 of the next year). An exception is information about the amount of income subject to contributions to compulsory pension insurance and their size. The frequency of submission of this information remains the same, but it is required to submit it to the tax authority.

The changes apply to periods beginning no earlier than January 1, 2017.

The changes are provided for by Federal Law No. 250-FZ of July 3, 2016.

A fine has been introduced for the fact that personalized accounting information is not submitted electronically. If the policyholder is required to provide personalized accounting information in electronic form, then failure to fulfill this obligation will entail a fine of 1,000 rubles.

A statute of limitations has been established for prosecution - the territorial body of the Pension Fund of the Russian Federation will be able to prosecute for an offense in the field of personalized accounting only if less than three years have passed from the date on which it became known.

Reporting forms for personalized accounting

• Form SZV-M for submitting information about insured persons. Approved by Resolution of the Pension Fund Board of February 1, 2016 N 83p.
• Form for calculating insurance premiums. The procedure for filling out and the format for submitting calculations in electronic form are approved by Order of the Federal Tax Service of Russia dated October 10, 2016 N ММВ-7-11 / [email protected] The form is applied starting from the submission of calculations for insurance premiums for the 1st quarter of 2020 (Article 423 of the Tax Code of the Russian Federation, paragraph 2 Order of the Federal Tax Service of Russia dated October 10, 2016 N ММВ-7-11/ [email protected] ).
• Data on the length of service of employees. They should be submitted to the Pension Fund of Russia at the place of registration in a form approved by the Pension Fund (clause 2 of Article 8, clauses 1, 2 of Article 11 of the Law on Personalized Pension Accounting). For the first time in this order, information about experience for 2017 is submitted no later than March 1, 2020.
• Form SPV-2, required to provide information about the insurance experience of the insured person for the purpose of establishing a labor pension. The form itself and instructions for filling it out were approved by Resolution of the Pension Fund Board of June 1, 2016 N 473p. The information must be submitted to the territorial body of the Pension Fund of the Russian Federation within three calendar days from the day on which such person applied to submit it.
• Form SZV-K. The form and rules for filling it out were approved by Resolution of the Pension Fund Board of June 1, 2016 N 473p. Information about the work experience of the insured person for the period before registration in the compulsory pension insurance system (before 01/01/2002) is submitted to the territorial body of the Pension Fund of the Russian Federation at the request of the Pension Fund of the Russian Federation.