Until 2022, all employers had to independently register with the Pension Fund and Social Insurance Fund. But now the situation is different - the Federal Tax Service is in charge of administering some insurance premiums. Do I need to register an individual entrepreneur as an employer somewhere in 2022? Or does registration happen automatically?
Free accounting services from 1C
What are extrabudgetary funds responsible for?
There are three extra-budgetary funds in Russia: FSS, PFR and FFOMS.
The Social Insurance Fund is a social insurance fund that monitors the correctness of calculations and complete payment of the following insurance premiums for employees:
- in case of temporary disability;
- in connection with motherhood;
- from accidents at work and occupational diseases.
The collection of contributions for pension and health insurance is entrusted to the Federal Tax Service, but their accounting is also carried out by the Pension Fund and the Federal Compulsory Medical Insurance Fund.
Please note: registration of an individual entrepreneur as an employer with the tax office does not occur by application, but automatically. The Federal Tax Service will learn that you have hired employees when you transfer insurance premiums for employees and submit a quarterly unified calculation. There is also no need to submit an application for registration of an individual entrepreneur as an employer to the Pension Fund of Russia (letter of the Federal Tax Service of Russia dated January 31, 2017 N BS-4-11 / [email protected] ).
What contributions does the individual entrepreneur pay?
The employer pays the following types of contributions for each employee:
- For compulsory pension insurance
- For compulsory health insurance
- For insurance for temporary disability and maternity
- For insurance against accidents and occupational diseases
All contributions, except for insurance against accidents and occupational diseases (the so-called “injury” contributions), you will pay to the tax office. The inspectorate itself will distribute payments between the funds.
Contributions for injuries must be paid to the Social Insurance Fund.
If at some point you fire all your employees, do not forget to deregister with the Social Insurance Fund and reconcile your settlements with the fund. Otherwise, contributions will have to be paid further. When hiring new staff, you will need to register with the fund again.
Who should register with the FSS
Registration of an individual entrepreneur with the Social Insurance Fund as an employer is mandatory in two cases:
- when concluding an employment contract;
- when concluding a civil law contract or an author's contract, if its terms provide for the payment by the customer of contributions to insure the performer against accidents.
What about individual entrepreneurs’ contributions for themselves? An individual entrepreneur is not required to pay insurance contributions for his social insurance, but can do so voluntarily. However, given that an individual does not have the right to conclude an employment contract with himself, registration of an individual entrepreneur with the Social Insurance Fund as an employer does not occur in this case.
In order for an entrepreneur to receive payments for temporary disability or in connection with maternity, he submits a special application for voluntary insurance of an individual to his FSS branch. Moreover, in order to receive benefits in the current year, contributions must begin to be paid in the previous year.
Example 1. Self-registration with the Pension Fund and Social Insurance Fund
The initial state registration of an LLC with several founders with the Federal Tax Service took place in December 2022. Registration documents were received by the applicant on December 30, 2017. But the founders of the LLC, as established, did not receive notifications from the funds in January.
Having contacted the Pension Fund and the Social Insurance Fund by telephone, the general director of the LLC found out that the funds had not received data from the Federal Tax Service Inspectorate and, accordingly, there was no information about the LLC in the database. Then, during the next call from the general director, representatives of the Pension Fund and the Social Insurance Fund suggested that he independently register the LLC.
To complete the registration, a set of documents was generated and submitted:
- Certificates: OGRN and registration with the Federal Tax Service.
- The corresponding decision and order on the appointment of the general director.
- Extract from the Unified State Register of Legal Entities.
- Information letter on statistics codes.
Extra-budgetary funds were presented with copies of the listed documents, certified by the signature of the general director and the seal of the LLC. Registration took 2 days. Based on its results, the applicant was given relevant notices.
The procedure for registering an individual entrepreneur with the Social Insurance Fund
So, if you have entered into your first employment or civil contract with an employee or contractor, then you need to submit an application to social insurance for registration as an employer. The deadline for submitting documents is no later than 30 calendar days from the date of conclusion of the contract.
In accordance with the Order of the Social Insurance Fund dated April 22, 2019 N 125, the mandatory list of documents for registration of an individual entrepreneur includes:
- application in the prescribed form;
- a copy of the policyholder's identity document (passport of an individual entrepreneur);
- copies of the employee’s work record book or concluded employment contract;
- copies of a civil law agreement or an author's order agreement, if the conditions provide for the payment of insurance premiums for injuries.
Copies of documents are certified by an enhanced qualified electronic signature (when submitted via the Internet) or by FSS employees when verified with the originals. Depending on the type of contract concluded, an application for registration of the policyholder with the Social Insurance Fund is submitted using different forms.
For an employment contract:
- application form (approved by Order of the Social Insurance Fund dated April 22, 2019 N 215).
For a civil contract:
- application form (approved by Order of the Social Insurance Fund dated April 22, 2019 N 214).
Documents must be submitted to the social insurance department at the place of registration of the individual entrepreneur. If you have access to the State Services portal, you can register by submitting documents remotely.
Choose a profitable current account
How to register as an individual entrepreneur online in 2022
You can register as an insurer-employer with the territorial body of the Social Insurance Fund, as well as submit an application for deregistration on the State and Municipal Services Portal https://www.gosuslugi.ru/
To do this you need to do the following:
1. Go to the website https://www.gosuslugi.ru/
and log in or register.
2. Click on the “Service Catalog” tab.
3. Click on the “Authorities” tab.
4. Select “Social Insurance Fund of the Russian Federation”.
5. In the “Territorial bodies and subordinate organizations” tab, select “Government institution – Primorsky regional branch of the Social Insurance Fund of the Russian Federation.”
6. Select “Registration of policyholders who have entered into an employment contract with an employee.”
7. Select “Registration with the Social Insurance Fund of the Russian Federation as insurers of individuals who have entered into an employment contract with an employee”
and click on the “
Get service
” button.
8. Fill out the form to receive the service.
Scanned (photographed) documents are attached page by page , i.e. each sheet in a separate file (copy of passport, copy of employment contract or work book of the first hired employee).
Register on the Public Services portal (link to service)
Confirmation of registration
After receiving the documents, the Social Insurance Fund, within three working days, assigns the individual entrepreneur a registration number and subordination code, and also enters information about him in the register of policyholders.
All this data is indicated in the notice of registration of an individual entrepreneur as an insured, which is sent in the manner specified in the application (in person, by mail or electronically). In addition, another notification is issued - about the amount of accident insurance premiums, which depend on the professional risk class of the individual entrepreneur’s activities.
If documents for registration of the policyholder are not submitted within 30 days from the date of conclusion of the first contract, the entrepreneur will be fined under Art. 26.28 of Law No. 125-FZ of July 24, 1998.
The amount of the fine depends on the length of the delay:
- up to 90 days inclusive - 5,000 rubles;
- more than 90 days - 10,000 rubles.
How to independently register an LLC with the Pension Fund and the Social Insurance Fund
You can register with the Pension Fund and the Social Insurance Fund yourself.
This initiative should be taken only after the initial state registration of the LLC with the Federal Tax Service has been completed and the applicant has received the appropriate registration documents. As established, this is a sheet of the Unified State Register of Legal Entities, a registration certificate of a legal entity and a copy of the LLC Charter with the required mark. (click to expand)
| What does self-registration of an LLC include? | General notes for applicants |
| Filling out a standard application form for LLC registration | Each fund has its own application form, which is usually published on the official website |
| Collection of documents | For the Pension Fund of Russia and the Social Insurance Fund, in fact, the basic set of documents is the same. Typically this is: · certificate of OGRN, as well as registration with the Federal Tax Service; · statistics codes; · extract from the Unified State Register of Legal Entities (the period of which is no more than a month); · notarized power of attorney for an authorized representative (if he submits documents, represents the interests of the LLC) If by the time you apply for a job, personnel have been hired, then the Pension Fund (FSS) should also submit employment contracts (labor contracts) |
| Appeal to the Pension Fund (FSS) | The prepared set of documents is transferred to the responsible specialist of the Pension Fund (FSS). LLC registration is completed in 3-5 days. |
| Receive notification from each fund | This notice is usually sent to the addressee by mail or hand-delivered. Its contents include: registration number for the LLC, details for the purpose of paying general mandatory contributions, fund contacts |
It should be noted that the notification for LLCs from the Pension Fund of the Russian Federation and the Social Insurance Fund are somewhat different, in particular:
- The registration number of the LLC in the notification from the Pension Fund of the Russian Federation includes: regional code (first 3 digits) + district code (subsequent 3 digits) + personal code of the policyholder (remaining 6 digits).
- The notification for an LLC from the FSS contains: a five-digit subordination code + an individual policyholder number of 10 digits.
For your information, you should initiate self-registration with the Pension Fund of Russia and the Social Insurance Fund only when notifications from funds are lost or their delivery is delayed. But it is recommended that this issue be discussed and agreed upon with fund specialists in advance.
Why should an individual entrepreneur register with the FSS?
Registration with the Social Insurance Fund for an individual entrepreneur is purely voluntary. No one can force an individual entrepreneur to pay contributions to the Social Insurance Fund if he does not want to. But then you will have to endure sick leave on your feet or pay for tests and medications out of your own pocket. But during an illness, an individual entrepreneur falls out of business processes for a while, may suffer unexpected losses and lose speed in doing business. So compensation from the state in this case will be very helpful.
The amount of disability benefits, of course, is small and can serve as a pleasant bonus that will slightly brighten up painful everyday life, rather than as a full replacement for official income. However, it may well be enough to pay for tests and medications needed, for example, for a common cold or mild flu.
Thus, registering with the Social Insurance Fund is worthwhile for entrepreneurs who want to be able to calmly take sick leave and not think about how to endure an illness on their feet. In addition, women entrepreneurs who are planning a pregnancy should contact the Social Insurance Fund. Then they will be able to receive compensation for 140 days of maternity leave.
What is the insurance premium?
The amount of the annual contribution to the insurance fund is directly dependent on the established minimum wage. Accordingly, it changes slightly every year and in each region.
From May 1, 2022, the national minimum wage was increased to 11,163 rubles. In some regions of Russia, this rate is even higher, since local authorities have the right to set it independently - they just cannot lower it below the all-Russian level.
How to calculate the amount of insurance premium based on the minimum wage
For this, a special formula was developed: minimum wage x TARIFF x 12 .
The tariff depends on the entrepreneur’s turnover. For individual entrepreneurs whose annual income does not exceed 300,000 rubles, the rate is set at 2.9%.
Accordingly, if an entrepreneur lives and works in a region with a standard minimum wage and receives no more than 300,000 rubles per year, he will have to pay a contribution in the following amount: 11,163 x 2.9% x 12 = 3,885 rubles per year .
The contribution can be paid in one lump sum for the entire year no later than December 31. But reporting in Form 4-FSS must be submitted every quarter, and no later than the 15th day of the last month of each reporting period. If you do not do this on time, problems may arise with sick leave payment.
