Application for confirmation of the main type of activity in the Social Insurance Fund

Employer reporting

Olga Yakushina

Tax expert-journalist

Current as of December 21, 2019

Confirmation of the main type of activity in the Social Insurance Fund in 2020 is a mandatory procedure for many employers. Let's look at it step by step and find out who is required to confirm the main type of activity, within what period of time, as well as how to correctly fill out the necessary documents.

Is it necessary to confirm the main type of activity?

All entrepreneurs and organizations with hired employees are required to pay personal income tax and insurance premiums for them, as well as submit reports. Starting from 2020, the bulk of contributions to pension and health insurance are transferred to the details of the Federal Tax Service, with the exception of contributions to compulsory social insurance against accidents and occupational diseases (“accident” contributions): they are still made to the Social Insurance Fund.

Rates for “unfortunate” contributions depend on the occupational risk class of the activity in which employees are engaged. The more likely an employee is to suffer an injury or occupational illness, the higher the rate for social insurance contributions.

The FSS sets the rate for contributions for “injuries” itself, based on data on the main type of activity of the organization.

Possible errors and answers to common questions

Error No. 1. When filling out information on an income certificate, an enterprise sometimes indicates the amount of revenue with indirect taxes. Wrong position. The amount of income by type of activity is indicated without VAT and other indirect taxes. The data must match the tax reporting. For organizations on UTII that do not take into account revenue, the amount of imputed income is provided.

Question No. 1. How is the main type of activity determined for an organization conducting non-profit activities?

Organizations that do not have income from commercial activities use the number recorded in the previous year to determine the main type. The indicator is determined using average data calculated according to statistical guidelines.

Question No. 2. How to determine the main type of activity for the purpose of determining the rate of contributions to the Social Insurance Fund if the organization conducts several areas in equal shares?

In the absence of a priority area of ​​activity, the FSS department determines the rate of contributions according to the maximum of the types used.

What is occupational hazard

Before moving directly to the procedure for confirming the main type of activity, let’s consider what professional risk is and what classes it exists.

Occupational risk is the likelihood of getting injured or occupational disease at work. All activities carried out by individual entrepreneurs and organizations have their own risk class: from the smallest (class 1) to the largest (class 32). The higher the risk class, the higher the insurance premium rate.

So, for class 1, which includes wholesale and retail trade, courier, publishing, catering, the rate will be 0.2%, and for the highest - 8.5% (mining of ore, coal, non-ferrous metals).

To find out at what rate you need to pay injury rates in 2020, determine what risk class your activity falls into. The classification of types of activities (indicating the OKVED code) by occupational classes is given in Order of the Ministry of Labor of the Russian Federation dated December 30, 2016 No. 851n.

After the profit class is determined, you can find out the contribution rate. The size of the tariff for each class is given in the Law of December 22, 2005 No. 179-FZ “On insurance tariffs for compulsory social insurance...”.

The following rates apply in 2020:

In order to make deductions for injuries, the contribution rate must be approved by Social Insurance, and it does this on the basis of a certificate of confirmed type of activity, which all organizations are required to submit annually.

How to fill out a confirmation certificate?

Provide information about the organization: name, tax identification number, address, full name of the director and chief accountant. If the organization does not have a chief accountant, indicate the director instead. Calculate the average number of employees - read the article on how to do this.

Fill the table:

1. Your OKVED codes according to the extract from the Unified State Register of Legal Entities.
2. Decoding of OKVED codes is in the same wording as in the extract from the Unified State Register of Legal Entities.
3. Income for each OKVED code excluding expenses. Important: indicate income in thousands of rubles. For example, write 1 million like this - 1,000 thousand rubles.
4. Do not fill out the fourth column if there was no targeted income - for example, grants and subsidies.
5. Calculate the share of income for each OKVED as a percentage.
6. Do not fill out the sixth column, it is only for non-profit organizations.

In paragraph 10, write the type of economic activity for which the share of income is greater, indicate its OKVED code.

Sample confirmation certificate

Who must confirm the main activity

The need to confirm the main type of activity in 2020 for different categories of policyholders is presented in the table:

General provisions on the application of economic activity codes

Both individual entrepreneurs and legal entities of enterprises of all forms of ownership must submit information to the register about the types of activities they use. The data is reflected in the Unified State Register of Legal Entities or Unified State Register of Individual Entrepreneurs, depending on the chosen organizational form. Information about the types of activities used is provided by the Federal Tax Service as part of the forms received during registration. In the future, information is issued by statistical authorities.

The main type of activity is determined by revenue, which has a greater share in the total turnover. When submitting activity codes to the Federal Tax Service, it is important that the information is up to date. In 2020, the codes of the OKVED OK 029-2014 reference book are used, used during the transition period until 2020 along with previous classifiers. After 2020, previously valid reference books do not apply. These codes are used in tax and statistical reporting.

How to confirm your main activity

The confirmation procedure consists of several steps:

1. We determine the main type of activity.
2. We fill out the necessary papers.
3. We send the documents to Social Security.
4. We accept the response from the Foundation.

Let's look at each of the steps in more detail.

Step 1. Determine the main type of activity

We do this taking into account the following (clause 9 of the Decree of the Government of the Russian Federation dated December 1, 2005 No. 713):

• For NPOs, the main activity is the one that employs the most workers.
• For other companies - the type of activity that generated the most income.

If you carry out only one type of activity, you do not need to calculate anything additional. If there are several types of activities, determine the share of each of them in the total amount of income received using the formula:

Share of income from a specific type of activity (in%)

=

Income (excluding VAT) from a specific type of activity: Income from all types of activity x 100

Example 2

In 2020, Revers LLC was engaged in wholesale and retail trade. The total amount of income was RUB 8,550,000. Of this, retail trade accounted for 3,520,000 rubles, and wholesale trade accounted for 5,030,000 rubles.

Let's calculate the share of each type of activity:

For retail trade, it is 41.17% (3,520,000: 8,550,000 x 100).

For wholesale trade - 58.83% (5,030,000: 8,550,000 x 100).

As can be seen from the calculations, wholesale trade has the largest share - 58.83%.

This type of activity of Reverse LLC must be confirmed by 04/15/2020.

If the share is the same for several types of activities, the main one will be the one with the higher risk class (clause 14 of the Decree of the Government of the Russian Federation of December 1, 2005 No. 713).

Example 3

In 2020, LLC "Steel" was engaged in coal mining and its wholesale. The total income from these types of activities amounted to 16,000,000 rubles. Of these, 8,000,000 rubles. accounted for coal mining and 8,000,000 rubles. - for its implementation.

The share of these types of activities is the same - 50%, but the main one will be coal mining, since its risk class is higher (class 32 for coal mining and class 1 for wholesale trade).

Step 2. Fill out the necessary documents

After we have determined the main type of activity, fill in:

• Certificate confirming the main type of activity.
• Statement confirming this type of activity.
• Explanatory note to the balance sheet for last year (not filled out by small businesses).

When to submit confirmation

It is not entirely clear from social insurance regulations within what time frame an individual entrepreneur must submit an application to confirm the main type of activity. The application form is an appendix to the order of the Ministry of Health and Social Development of the Russian Federation dated January 31, 2006 No. 55, while the title of the order refers only to insurers - organizations.

Application for confirmation of the main type of economic activityCertificate confirming the main type of economic activity

Does this mean that individual entrepreneurs do not need to submit confirmation of their main type of activity to the Social Insurance Fund in 2020? No, this is not so, because there is another regulatory document - Decree of the Government of the Russian Federation dated December 1, 2005 No. 713, which lists not only legal entities, but also individuals among the policyholders, i.e. individual entrepreneurs.

According to this Resolution, the deadline for delivery depends on what legal form the employer belongs to:

• Organizations submit an application for confirmation of the main type of economic activity every year. Moreover, this must be done even when the organization has not changed the main OKVED code for years and is engaged in the same business.
• In the case where the policyholder is an individual entrepreneur, there is no annual deadline for delivery. The Social Insurance Fund independently chooses the rate of contributions for injuries, based on open data from the Unified State Register of Individual Entrepreneurs.

The deadline for reporting to the Social Insurance Fund is the same for entrepreneurs and organizations - no later than April 15 for the previous year. Thus, the deadline for submitting a certificate (application for confirmation of activity) in 2018 is 04/15/18 for 2020. And for 2020, you must report by April 15, 2020, of course, provided that the entrepreneur changed his field of business.

What happens if you don’t confirm your main activity?

There is no responsibility for failure to submit a certificate and application confirming the main type of activity. However, do not rush to rejoice: if you do not submit these documents on time, contributions will be calculated at the maximum rate of all types of activities specified in your Unified State Register of Legal Entities. It doesn’t matter whether you did them last year or not.

Example 4

The organization has 20 types of activities listed in the Unified State Register of Legal Entities, one of which is coal mining. In fact, the company is engaged in retail trade. She did not submit documents confirming her main type of activity, so the FSS assigned the company’s tariff to the highest risk group of all OKVED contained in its Unified State Register of Legal Entities - coal mining. And despite the fact that the company conducts retail trade (1st risk group, tariff - 0.2%), it will pay contributions for “injuries” at the rate approved by the FSS of 8.5% (32nd risk group).

Responsibility for failure to provide documents

Penalties for failure to provide documents to the Social Insurance Fund are not provided for by current Russian legislation. However, if the documents are not submitted to the fund, then the Social Insurance Fund has the right to determine the employer’s main type of activity for 2020 independently.

In addition, the FSS may assign the policyholder the highest class of professional risk. In this case, it is not taken into account whether the organization is engaged in the type of activity assigned to it or not. That is why we recommend confirming the main type of activity in the Social Insurance Fund in a timely manner.

Are there benefits and allowances for contributions for injuries?

Yes, in certain cases, the Social Insurance Fund may set a rate for contributions for injuries, taking into account a discount (benefits) or premium. Their size cannot exceed 40% of the tariff and is determined by the following indicators of the organization’s performance for the last 3 years:

• the ratio of the amount of funds paid by the Social Insurance Fund for insured events to the amount of accrued insurance premiums;
• number of insurance cases per 1,000 employees;
• number of days of sick leave per 1 accident (except for fatal ones).

Analyzing these indicators, the FSS will assign you either an increase in the tariff or a benefit. At the same time, if last year you had an insured event with a fatal outcome, then the discount will not be assigned. If there were several deaths (2 or more people), a premium will be added to the tariff.

The results of assigning a discount or allowance are also influenced by the results of a special assessment of working conditions and data on mandatory and periodic medical examinations as of January 1 of the current year. The procedure and conditions for assigning discounts and allowances are specified in more detail in Decree of the Government of the Russian Federation dated May 30, 2012 No. 524.

Application and confirmation certificate: form and procedure for submission to the Social Insurance Fund

The information submitted to the Social Insurance Fund at the end of each year no later than April 15 consists of (clause 3 of the order of the Ministry of Health and Social Development of Russia dated January 31, 2006 No. 55):

• from an application with a request for confirmation of activity, in which, in addition to the registration data of the policyholder, the OKVED code that he considers to be his main one is indicated;
• confirmation certificate reflecting information about the insured (name, TIN, dates of registration and start of activity, number and place of registration, address, full name of the manager and chief accountant, data on the average number of employees) and information on the distribution by type of activity performed income received over the past year and the number of employees (in absolute numbers and percentages);
• copies of the reporting document confirming the information specified in the certificate (an explanatory note to the balance sheet, from the submission of which small businesses are exempt).

A similar set is formed for structural units allocated for the purpose of paying “unfortunate” contributions to independently accounted units. This allocation occurs in agreement with the fund (clause 9 of order No. 55) provided that (clause 7 of order No. 55):

• the activities carried out by the division differ from the main one;
• the division maintains separate records of data;
• Separate reporting on contributions to the Social Insurance Fund is generated for the division;
• the policyholder has no debts to pay premiums.

Within 2 weeks from the date of submission of a set of documents to confirm the activities being carried out, the FSS must inform the policyholder of its decision on establishing the amount of the insurance premium rate.

If the policyholder does not submit documents for confirmation, the fund will select the maximum possible tariff corresponding to those types of activities that were declared by the policyholder in the Unified State Register of Legal Entities during registration, and will notify the latter about this by May 1. If confirmation is not made in relation to a division, then this division will be assigned the same occupational risk class (and therefore the same tariff) that is established for the main activity.

NOTE! In some cases, policyholders still manage to challenge the maximum tariff.

Forms of documents submitted to the Social Insurance Fund to confirm the activities carried out by the policyholder can be downloaded on our website:

• statements;

Statement

Let's sum it up

• Confirmation of the main type of activity is necessary for organizations that have employees registered under employment contracts.
• Individual entrepreneurs and employees will need to confirm the main type of activity only if it is changed in the Unified State Register of Individual Entrepreneurs.
• Confirmation of the main type of activity is necessary until April 15, 2020
• To confirm the main type of activity, you need to fill out a certificate and application, the form of which is approved. By Order of the Ministry of Health and Social Development of the Russian Federation dated January 31, 2006 No. 55.

If you find an error, please select a piece of text and press Ctrl+Enter.

How and where to submit documents to confirm the type of activity

Send the application and confirmation certificate to the territorial office of the Social Insurance Fund at the place of registration on paper or in electronic format. In paper form, submit documents in person or through a representative directly to the FSS authority or send documents by mail. You can send an electronic confirmation using the government services website, using an electronic digital signature (EDS) (pre-register your organization in the personal account of a legal entity on the portal). There is no such option directly on the Russian FSS website. Moreover, some branches do not have the ability to accept electronic documents, so sending confirmation through accounting services for reporting is currently impossible.

On the government services website, it is quite easy to confirm the main type of activity. To do this, fill in all required fields:

And then simply upload the required documents and submit them. After this, the application is assigned a unique number - and the policyholder’s obligation is fulfilled.

How to correctly fill out an application form for confirmation of ATS for a legal entity

The standard application form consists of only one page. There is actually little information that needs to be written down in it. However, all lines must be completed. This can be done manually or on a computer. Therefore, the applicant must indicate:

1. Date of writing (day and year in numbers, and month in words, as indicated on the form itself). For example: “March 10, 2020.”
2. Name of the territorial branch of the FSS of the Russian Federation (to whom the application is addressed).
3. Standard details of the legal entity-insurer (name, subordination code, registration number).
4. The fact that the applicant is a state (municipal) institution.
5. The past year for which the ATS is confirmed (in 2020, the application is submitted for 2020, and in 2020 it will be necessary to confirm the ATS, respectively, for 2020).
6. Code for the confirmed type of activity according to the latest OKVED 2, approved. By Order of Rosstandart No. 14-st dated January 31, 2014 (actual edition dated July 10, 2020).
7. The name of the attached documents and the number of their sheets.

The application must be signed by the head of the organization. Attention should also be paid to the fact that indicating codes according to the old OKEVD is not allowed.