General information about insurance premiums
Insurance premiums are mandatory payments that are regularly paid by companies and entrepreneurs. Payment of contributions to the Social Insurance Fund gives the right to receive sick leave and child benefits, contributions to medical insurance guarantee the opportunity to use the services of free medicine, transfer of pension contributions ensures receipt of a pension in the future.
Who pays insurance premiums
All employers, entrepreneurs and self-employed persons must pay insurance premiums. Moreover, if an entrepreneur has hired employees, then the individual entrepreneur pays insurance premiums both for himself and for his employees.
A complete list of organizations that pay insurance premiums is given in the Tax Code of the Russian Federation (see paragraph 2 of article 11, article 19 of the Tax Code of the Russian Federation).
So, insurance premiums must be paid:
- Russian organizations;
- foreign companies;
- branches and representative offices of foreign companies established on the territory of the Russian Federation.
Where are insurance premiums paid?
Payment of insurance premiums occurs simultaneously in several instances (in separate payments):
- to the Federal Tax Service at the place of registration of the company / at the place of residence of the individual entrepreneur - contributions for pension insurance, as well as medical insurance. and social insurance;
- in the Social Insurance Fund - contributions for injuries and accidents at work.
Employing companies and individual entrepreneurs with hired employees transfer insurance premiums monthly no later than the 15th day of the month following the billing month.
Individual entrepreneurs without employees pay contributions only for themselves, and do this monthly, quarterly or in a lump sum.
In this case, the specific amount that the policyholder - a company or individual entrepreneur - is obliged to transfer, i.e. the amount of contributions payable depends on whether the maximum base for calculating contributions has been exceeded or not.
The maximum value of the base for calculating insurance premiums is discussed in detail in the next section.
Insurance premiums under GPC agreements
If a GPC agreement has been concluded with a person, taxes and contributions for 2018 must be calculated and paid according to the following algorithm:
- Personal income tax is withheld by the tax agent, provided that the performer of the work is an individual (not an individual entrepreneur). In this case, the recipient of the income can, by writing an application to the employer, exercise the right to a professional deduction in the amount of documented expenses associated with the performance of work and services under the GPC agreement (Article 221 of the Tax Code of the Russian Federation).
- Contributions for pension and health insurance are paid if (clause 1 of Article 420 of the Tax Code of the Russian Federation): the subject of the contract is the performance of work or the provision of services;
- a copyright contract has been concluded;
- under the agreement, the rights to works of literary, musical, artistic direction, or to a scientific work are transferred.
Limit value of the base for insurance premiums
Every month, all employers - companies and entrepreneurs - pay their employees various amounts: salaries, vacation pay, bonuses, compensation, additional payments, allowances instead of travel allowances, etc. All these payments may or may not be subject to insurance premiums. So, payments, all amounts that are subject to contributions, form the basis for calculating contributions.
At the same time, limits on payments are approved annually at the Government level, if exceeded, the contribution rates will be lower or completely reset to zero. The maximum base for calculating contributions for 2018 has been approved.
In particular, the regressive scale of contributions applies to insurance contributions to the Pension Fund, i.e. when calculating contributions for compulsory pension insurance. Thus, the maximum base for calculating insurance contributions for pension insurance from January 1, 2018 is 1,021,000 rubles. Until this amount is exceeded, contributions are charged at a rate of 22%. After exceeding - at a rate of 10%.
As for social security contributions, the situation there is somewhat different. The maximum value of the insurance contribution base is 815,000 rubles. Until the amount of taxable payments has reached the specified amount, contributions are charged at a rate of 2.9%. Once the limit is exceeded, contributions are not charged at all.
There are no limits on health insurance contributions. Therefore, regardless of the total amount, contributions are paid at a rate of 5.1%.
For compulsory pension and social insurance, the limits have been increased. Therefore, policyholders will have to pay more. See the table for new base values.
In 2020, the maximum value of the insurance premium base increased. The table below clearly shows from what amounts insurance premiums for employees should be calculated.
Table 1. Limit value of the base for calculating insurance premiums in 2020
| Insurance type | Base, rub. | Rates.% | |
| 2017 | 2018 | ||
| Mandatory pension | 876 000 | 1 021 000 | 22% 10% – when exceeding the base |
| Mandatory social benefits in case of temporary disability and in connection with maternity | 755 000 | 815 000 | 2.9% if the base is exceeded - no need to pay |
| Medical | The entire amount of income | 5,1 | |
Important!
Due to increased payment limits, you will have to pay more pension and social contributions in 2020. Additionally, there are still no limits on medical and injury payments. These insurance premiums in 2020 must be calculated from all employee income.
If the limit on insurance premiums is exceeded in 2020, the organization can save on payments to the budget.
To save safely, it is important to follow 3 rules:
- Keep records of payments for each employee separately.
- Calculate the base on an accrual basis from the beginning of the year.
- Take into account in the database only those employee incomes that are subject to insurance contributions.
More details
Limit bases for calculating insurance premiums in 2020: example of application
Example. Vesna LLC pays insurance premiums from payments and rewards to individuals at general rates. The general director of the company receives a monthly salary of 100,000 rubles. The procedure for calculating insurance premiums from payments to an employee (citizen of the Russian Federation) is presented in the table below.
Note. Let us assume that the Company pays contributions to the Social Insurance Fund “for injuries” at a rate of 0.2%.
| Month | Contributory payments accrued per month, rub. | Contributory payments accrued on an accrual basis from the beginning of the year, rub. | Insurance premiums calculated per month, rub. | Total contributions, rub. | |||||||
| on OPS | at VNiM | on compulsory medical insurance | for injuries | ||||||||
| Total | up to RUB 815,000, inclusive | up to RUB 1,021,000, inclusive | over 1,021,000 rub. | from payments up to RUB 1,021,000, inclusive | from payments over 1,021,000 rubles. | ||||||
| 22% | 10% | 2,9% | 5,1% | 0,2% | |||||||
| January | 100 000 | 100 000 | 100 000 | 100 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| February | 100 000 | 200 000 | 200 000 | 200 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| March | 100 000 | 300 000 | 300 000 | 300 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| April | 100 000 | 400 000 | 400 000 | 400 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| May | 100 000 | 500 000 | 500 000 | 500 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| June | 100 000 | 600 000 | 600 000 | 600 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| July | 100 000 | 700 000 | 700 000 | 700 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| August | 100 000 | 800 000 | 800 000 | 800 000 | 22 000 | 2 900 | 5 100 | 200 | 30 200 | ||
| September | 100 000 | 900 000 | 815 000 | 900 000 | 22 000 | 435 | 5 100 | 200 | 27 735 | ||
| October | 100 000 | 1 000 000 | 1 000 000 | 22 000 | 5 100 | 200 | 27 300 | ||||
| November | 100 000 | 1 100 000 | 1 021 000 | 79 000 | 4 620 | 7 900 | 5 100 | 200 | 17 820 | ||
| December | 100 000 | 1 200 000 | 179 000 | 10 000 | 5 100 | 200 | 15 300 | ||||
Insurance premium rates
Insurance premiums in 2020: rates (Table 2)
Insurance premiums are calculated based on accruals to “physicists”, established limits on the taxable base and rates. The interest rate of contributions directly depends on the amount of insurance premiums.
So, the amount of insurance contributions (for pension, social, medical insurance) depends on:
- payer categories (the company charges contributions at general rates or has the right to apply reduced contribution rates);
- category of employee in whose favor payments are made;
- the amount of payments accrued to the employee during the year (the maximum value of the insurance premium base is exceeded or not).
The general contribution rate is 30% (see, Tax Code of the Russian Federation):
- 22% – for pension insurance;
- 5.1% – for health insurance;
- 2.9% - for social insurance.
As for individual entrepreneurs who do not make payments to individuals, they pay only for themselves - fixed insurance premiums. The amount of insurance premiums paid by individual entrepreneurs in a fixed amount no longer depends on the minimum wage.
In 2020, individual entrepreneurs will pay the following fixed contributions for themselves (see table).
Table 2. Insurance premiums for individual entrepreneurs in 2020
| Fund | Payment amount |
| Contribution to compulsory pension insurance if the individual entrepreneur’s income is less than 300 thousand rubles. | RUB 26,545 |
| Compulsory medical insurance contribution if income is over 300 thousand rubles. | RUB 26,545 + 1% of income* |
| Compulsory medical insurance contribution | 5840 rub. |
*The maximum amount of pension contributions cannot exceed eight times the amount of fixed contributions.
Reduced insurance premium rate
There are several categories of beneficiaries - companies and individual entrepreneurs - who pay contributions at lower rates than everyone else. A complete list of beneficiaries is given in the Tax Code of the Russian Federation. Among them are participants in special economic zones and the Skolkovo project, IT organizations, ship crews, etc. Reduced contribution rates are also provided for companies and individual entrepreneurs on the simplified tax system. At the same time, they are subject to additional conditions that give them the right to the benefit:
- Income should not exceed 79 million rubles. per year (while in the general case this limit is 150 million rubles).
- The share of revenue from preferential activities must be at least 70%.
Table 3. Reduced insurance premium rates (STS and other categories of employers)
| Payer category | Contributions to community pension insurance,% | Contributions to OSS. % | Compulsory medical insurance contributions,% |
| Organizations and individual entrepreneurs on the simplified tax system that carry out types of preferential activities (see Article 427 of the Tax Code of the Russian Federation). | 20 | 0 | 0 |
| Individual entrepreneur on a patent, except for retail, trade, real estate rental | 20 | 0 | 0 |
| Non-profit and charitable organizations on the simplified tax system | 20 | 0 | 0 |
| Pharmacies operating on UTII | 20 | 0 | |
| IT organizations | 8 | 2 | 4 |
| Companies and individual entrepreneurs conducting technical innovation and tourism and recreational activities on the basis of an agreement with the SEZ management bodies | 13 | 2,9 | 5,1 |
| Business entities and partnerships on the simplified tax system engaged in the implementation of intellectual property owned by budgetary and autonomous institutions | 13 | 2,9 | 5,1 |
| Participants of the Skolkovo project | 14 | 0 | 0 |
| Participants of the SEZ in Crimea and Sevastopol | 6 | 1,5 | 0,1 |
| Residents of the territory of rapid socio-economic development and the free port of Vladivostok | 6 | 1,5 | 0,1 |
| Insurers making payments to crew members of ships that are registered in the Russian International Register of Ships | 0 | 0 | 0 |
If a company or individual entrepreneur uses reduced tariffs in 2020, then pension contributions from payments exceeding the base do not need to be calculated.
Additional insurance premium rates in 2018
For certain categories of payers and workers engaged in hazardous work, additional contribution rates are provided (Tax Code of the Russian Federation). They can only be used if there are workplace certification results, based on which the working conditions at these workplaces are recognized as harmful or dangerous.
Insurance premiums paid by individual entrepreneurs “for themselves”, in 2020 - 2018
The maximum bases that we described above are used by organizations and entrepreneurs exclusively when calculating insurance premiums from payments and rewards to individuals - ordinary citizens.
Individual entrepreneurs also pay insurance premiums for compulsory medical insurance and compulsory medical insurance. But the basis for their calculation is the minimum wage established at the beginning of the year for which contributions are calculated (clause 1 of Article 430 of the Tax Code of the Russian Federation). The following formula is used:
Annual contribution = minimum wage x 12 x interest rate
The rates of insurance premiums paid by individual entrepreneurs “for themselves” are established by clause 2 of Article 425 of the Tax Code of the Russian Federation: for compulsory health insurance in the amount of 26% and for compulsory medical insurance in the amount of 2.9%. Thus, for 2020 an entrepreneur needs to pay:
- pension contributions - in the amount of 23,400 rubles. (= RUB 7,500 x 12 x 26%);
- medical contributions - in the amount of 4,590 rubles. (= RUB 7,500 x 12 x 2.9%).
(Since 01/01/2017, the minimum wage has been in force, approved by Article 1 of Federal Law No. 82-FZ dated 06/19/2000 (as amended on 06/02/2016).)
At the same time, if an individual entrepreneur earns more than 300 thousand rubles in a year, then he will have to pay additional contributions to compulsory pension insurance in the amount of 1% on income in excess of the specified amount. At the same time, maximum contributions to pension insurance in 2020 should not exceed 8 times the annual fixed contribution, i.e. 187,200 rubles. (= 8 x 7,500 rub. x 12 x 26%).
Please note that from 2020, insurance premiums for individual entrepreneurs will be determined on a new basis. Thus, “entrepreneurial” contributions will no longer depend on the minimum wage. For them, Federal Law No. 335-FZ dated November 27, 2017 established fixed sizes in rubles:
for compulsory pension insurance (OPI):
- for 2020 – 26,545 rubles;
- for 2020 – 29,354 rubles;
- for 2020 – 32,448 rubles;
for compulsory health insurance (CHI):
- for 2020 – 5,840 rubles;
- for 2020 – 6,884 rubles;
- for 2020 – 8,426 rubles.
At the same time, individual entrepreneurs whose annual income exceeds 300 thousand rubles still have the obligation to pay an additional “pension” contribution (1%).
Read more about this in the article “Fixed insurance premiums for individual entrepreneurs in 2020.”
