Companies often enter into civil law agreements (CLA) with individuals: in this case, they can save a lot on costs. However, it will not be possible to completely avoid taxes and contributions in this case. Nikita Rozhentsov and Natalia Fedorova from Alliance Legal CG explained in detail what taxes need to be paid when working under GPC agreements in 2022.
Natalia Fedorova
Advisor to the Financial and Analytical Department of Alliance Legal CG
Registration of relations with individuals through civil contracts is a common occurrence for many entrepreneurs. To perform one-time work or provide any service, it is not always advisable for an organization to hire an employee and bear associated expenses (personal income tax, insurance premiums), as well as provide the person with certain guarantees (annual paid leave, temporary disability benefits).
For such cases, the most optimal way out of the situation may be to conclude a service agreement or a contract with an individual. But for managers, the question of the fiscal burden immediately arises: how, how much and in what order to pay taxes and insurance premiums.
Features of the GPC agreement
Concluding a GPC agreement is suitable for various situations, be it updating software, developing a business card layout, holding an entertainment event, one-time transportation by personal car, etc. A distinctive feature of this type of relationship is that the contractor performs specific work specified in the agreement.
If several contracts are concluded with him over a certain period of time, then it is desirable that the tasks requiring execution are not of the same type, repeated each time. Otherwise, the tax service and labor inspectorate may consider that an employment relationship is hidden behind a civil contract. Such a violation entails administrative liability, for which fines are imposed.
The GPC agreement regulates not labor, but civil legal relations, and therefore it should not contain signs of labor relations. To ensure that the GPC agreement does not cause claims from the inspection authorities, it is necessary to take care of the following points:
- schedule. A person performing a task under a GPC agreement is not given a work schedule. He independently decides when he will complete the assigned tasks, since the main thing is that he meets the designated deadlines, that is, it is the end result that is important. If a person works according to a specific schedule, then he complies with the company’s internal labor regulations, and therefore is its full-time employee;
- liability agreement. An individual with whom a GPC agreement has been concluded does not bear financial liability. If it is assigned to him, this is a clear sign that he is an employee of the company;
- payslips and salary payment statements. An employee with whom a GPC agreement has been concluded does not need to be issued pay slips. In addition, settlements with him should be made not according to the salary slip, but according to cash receipts or by non-cash payment to a personal account. In addition, regular identical payments may indicate an employment relationship, since the GPC agreement establishes different tasks, for which the payment should differ;
- primary documents. When collaborating under a GPC agreement, primary documentation should not be drawn up, as in the normal labor process, for example, waybills for vehicle drivers, applications for cargo transportation, etc.;
- certificate of completion. This document is drawn up as part of the GPC agreement, but should not be drawn up at the end of each month. It is filled out for each contract at the end of the assigned task;
- visitor log. If information about a person appears too often in the visitor log, this may well alert the tax office, which will consider him a full-time employee. In addition, an individual must still appear at the company’s office at least once a month to conclude an agreement and sign a certificate of completion of work;
- local documents. In such company documents, for example, in internal labor regulations, regulations on remuneration, etc. There should not be a signature of an individual working under a GPC agreement. An exception may be the briefing log, since the Ministry of Labor is of the opinion that introductory and initial briefing for such citizens should be carried out (Letter of the Ministry of Labor dated May 17, 2019 No. 15-2/OOG-1157);
- internal correspondence. The tax office can check the correspondence between the company and the contractor. If the employer daily controls the performance of work by an individual, then the relationship is of an employment nature. In this case, the conclusion of a GPC agreement is unacceptable, for which a fine is imposed.
Important! Inspectors also check relationships with self-employed citizens. There is no need to conclude an agreement with them, but the main thing is that the individual has the right to use the NAP regime in accordance with the requirements of the law.
6-NDFL and RSV
Accountants are always full of questions regarding filling out reports.
Please consider the following points.
1. In 6-NDFL, reflect the remuneration in the period of its actual payment.
If the remuneration is paid on September 3, 2022, then it will be reflected in section 1 and section 2 of form 6-NDFL for 9 months of 2019.
Section 2 will contain the following entries:
page 100 — 03.09.2019
page 110 — 03.09.2019
page 120 — 04.09.2019
2. In the DAM, reflect the remuneration under the GPC agreement in the period of signing the act of completed work.
Important! In Appendix 2 of the DAM, which includes the base and contributions for social insurance in case of temporary disability, remuneration under GPC agreements is not reflected at all either in the total amount of payments or in the non-taxable category.
But if this employee simultaneously works under an employment contract, then he is insured in case of temporary disability, which means that remuneration under the contract is reflected in Appendix 2 on both lines - 020 and 030.
Taxes and fees under the GPC agreement
If a GPC agreement is concluded with an individual, then personal income tax must be withheld from such payment on a general basis. There are no special features when calculating tax in this situation. The personal income tax rate is 13% for residents of the Russian Federation or 30% for non-residents.
As for insurance premiums, payments under the GPC agreement are subject to them, but not in full. Contributions for pension and health insurance need to be calculated, but for social insurance - not. In this case, the insurance premium rates are:
- 22% for pension insurance;
- 5.1% for health insurance.
Thus, there is no need to charge social insurance contributions for illness (2.9%) and accidents and work-related injuries (from 0.2% to 8.5%) from payments under GPC agreements.
Important! The employer can independently decide on the calculation of social insurance contributions. This point must be indicated in the GPC agreement.
Example of calculating personal income tax and contributions
entered into a GPC agreement with P.D. Nikitin. to develop a layout for an advertising brochure. For this work, an individual is entitled to payment in the amount of 29,000 rubles. The company indicated in the contract that it would charge social insurance contributions, including for accidents (0.2%).
29,000 * 13% = 3,770 rub. — personal income tax is calculated and withheld
29,000 - 3,770 = 25,230 rubles. — the performer will receive in his hands
29,000 * 22% = 6,380 rub. — pension insurance contributions
29,000 * 5.1% = 1,479 rubles. — medical insurance premiums
29,000 * 2.9% = 841 rub. — social insurance contributions
29,000 * 0.2% = 58 rub. — social insurance contributions “for injuries”
Please note how exactly the payment clause is spelled out in the GPC agreement. If it is indicated that the contractor will receive “clean” 29,000 rubles, then the accrued payment for the work will be greater. This will also affect the amount of insurance premiums.
29,000 * 100%: 87% = 33,333 rub. — payment for work, with which you need to calculate personal income tax and insurance premiums.
Results
An employer who has entered into a contract with an employee has the right not to pay contributions for disability and maternity insurance on payments accrued under this contract, and to accrue contributions for injuries only if this is expressly provided for in the contract.
It is for this reason that the possibility of reclassifying such a contract into an employment contract should be excluded. Accrual of other insurance premiums (for compulsory health insurance and compulsory medical insurance) is carried out at generally established or reduced (if there is a right to apply them) rates. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.
Documents under GPC agreements
Cooperation based on the conclusion of a GPC agreement provides for the formation of the following documents:
- directly the GPC agreement itself, which specifies the basic terms of cooperation, including the rights, obligations and responsibilities of the parties;
- terms of reference, which outlines all the nuances of the assigned work;
- act of acceptance of work (act of completed work), which indicates that the task has been completed in full and accepted by the customer.
For employees with whom GPC agreements have been concluded, reports must be submitted, as for full-time employees.
Such documents include:
- Certificate 2-NDFL for the year. It reflects the amount of the performer’s income and the personal income tax withheld from them. Income must be reflected according to code 2010 - “payments under civil partnership agreements (except for royalties).” The certificate must be submitted to the tax office no later than April 1 of the year following the reporting year;
- calculation of 6-NDFL. The law establishes that income received under a GPC agreement must be reflected in the calculation of 6-NDFL as follows:
Calculation of 6-NDFL must be submitted based on the results of each quarter;
- calculation of insurance premiums. The payment under the GPC agreement must be included in the DAM in the period in which the work completion certificate was signed. In addition, you need to enter information only on those sheets that are related to pension and health insurance (section 1, pp. 020-053, as well as Appendix 1, subsections 1.1 and 1.2), and skip information on social insurance. In addition, you must also fill out Section 3, which is related to the reflection of personalized information about the insured persons.
The DAM must be submitted at the end of each quarter;
- SZV-M. The GPC employee must be included in this report throughout the entire period of validity of the contract. It does not matter in which month the payment for the work is made, since in this report it is the timing of the conclusion of the contract that is important. The report is submitted at the end of each month;
- SZV-STAGE. Based on this report, information about the individual’s work experience will be reflected in his personal account with the Pension Fund. Additionally, you need to fill out the form. 11. It states:
“AGREEMENT” - if there was a payment in the reporting period;
“NEOPLDOG” - if there was no payment under the agreement.
The report must be submitted no later than March 1 of the year following the previous one.
What payments are not indicated in the calculation
According to the rules of the law, individuals who work under the GPA are not subject to compulsory social insurance in case of temporary disability and in connection with maternity (Article 2 of the Federal Law of December 29, 2006 No. 255-FZ).
Payments to such employees are not subject to insurance premiums in case of temporary disability and in connection with maternity (subclause 2, clause 3, article 422 of the Tax Code of the Russian Federation).
In the commentary letter, the Russian Ministry of Finance explained that any payments in favor of individuals made under the GPA agreement are not included in the base for calculating contributions for compulsory social insurance in case of temporary disability and in connection with maternity. Therefore, there is no need to reflect them in Appendix No. 2 to Section 1 of the calculation of insurance premiums. Also, foreign citizens temporarily staying in the Russian Federation and who are highly qualified specialists are not subject to compulsory insurance in case of temporary disability and in connection with maternity. Accordingly, payments in favor of such foreigners are not subject to insurance premiums and do not need to be indicated in the calculation (letter of the Federal Tax Service of Russia dated August 31, 2017 No. BS-4-11 / [email protected] ).
Reflection of the GPC agreement in 1C
1C: ZUP allows you not to get confused when reflecting the GPC agreement in accounting, as well as when calculating personal income tax or insurance premiums and generating reports. Entering information into the program has some nuances and features, since the relationship is characterized as civil law, and not as labor.
We invite you to familiarize yourself with the step-by-step instructions for reflecting the GPC agreement in the 1C program. If you still have questions, order a free consultation with our specialists!
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Who to show in SZV-M
Today, regional branches of the Pension Fund insist on the following. Freelance workers are included in the SZV-M report, even if in the reporting month:
- they were not paid any remuneration under a civil law contract;
- Accordingly, insurance premiums were not charged on him.
That is, in order to understand whether or not to include a specific insured person in the SZV-M, you must proceed from the following:
- what type of contract is concluded;
- whether the contract was valid in the reporting month (if at least 1 day, then it must be included in the SZV-M);
- it does not matter whether in the reporting month there are facts of accrual and payment of remunerations, as well as the accrual of contributions for them (after all, payment often occurs only after the delivery and acceptance of work).
Thus, even when in the reporting month you did not pay remuneration under a civil law agreement and did not accrue contributions for it, such a person still needs to be entered into the SZV-M form.
Also see “Instructions for filling out the SZV-M form in 2022.”
Let us note that previously the exact opposite position prevailed, based on the letter of the Pension Fund of the Russian Federation dated July 27, 2016 No. LCH-08-19/10581. From its general meaning it follows that information about the performers under the GPA is shown in the SZV-M while simultaneously meeting the following conditions in the reporting month:
- the performers were paid remuneration;
- contributions are calculated on the amount of remuneration.
Here's the catch with filling out the SZV-M. We did not find any official clarification regarding the mandatory inclusion in this report of workers under the GAP without payment to them in the corresponding month. At the same time, regional branches of the Pension Fund of Russia insist in their comments that the duration of the agreement and the accrual of payments under it do not matter.
As a result, we strongly advise you to stick to the first approach. Of course, in the context of SZV-M we are talking only about civil agreements under which people work (perform work/provide services) for firms and individual entrepreneurs. The logic here is simple: for example, it is impossible to work under sales or rental agreements. You can't even say that.
