What taxes does an employer pay under an employment agreement?

The difference between a GPA and an employment contract

When concluding a civil law contract (CLA), it is necessary to carefully ensure that its terms exclude even the small possibility of being classified as a form of employment agreement.
In judicial practice, such requalification is not uncommon, and its consequences are fraught not only with the payment of an administrative fine, but also with additional assessment of insurance premiums and penalties for their late payment. IMPORTANT! Labor relations with an employee are regulated by the Labor Code of the Russian Federation, and civil relations with an individual are regulated by civil law.

To avoid possible problems, the following features must be observed in the terms of the contract:

1. The subject of the GPA is the provision of a certain service, performance of work or transfer of property rights, and not the performance of a labor function by profession. The result of the work should be a tangible result in the form of, for example, a completed project or assembled equipment. Accordingly, the basis for payment is not a time sheet, application or order, but an act of work performed (services rendered).

2. An employee under such a contract is not a full-time employee, which means that he cannot be subject to requirements for compliance with internal regulations and subordination in accordance with the hierarchical structure of the company, as well as standards for setting salaries in accordance with the staffing table. This means that there will be no such conditions in the GPA.

3. The procedure for payment under the GPA is determined by agreement of the parties and is not regulated by the Labor Code of the Russian Federation. Thus, payment of remuneration is possible only after completion of the work (their stages) stipulated by the contract or transfer of rights to property, unless its conditions indicate the need for an advance payment.

4. Unlike an employment agreement, such an agreement, regardless of its subject matter, status of the parties and special conditions, always has a finite period of validity.

5. In the case of providing services under the GPA, special attention should be paid to the frequency of their provision. If, under the contract, certificates of work performed or services provided are regularly issued for amounts of a comparable amount, this will be considered a clear sign of a disguised labor relationship and will attract the attention of inspectors.

About situations in which the courts regard the GPA as a labor one, read the material “GPA with an individual for the provision of services - the risk of reclassification as a labor one.”

Pros and cons of a civil contract for the performer

Calculation of insurance premiums under GPC agreements in 2019-2020: features

One of the most important advantages of registering relations with an individual in a civil law manner is the possibility of reducing the amount of accrued insurance premiums, and sometimes the complete absence of the need to accrue them.

To understand which payments are subject to contributions and which are not, it is necessary to clearly define the subject of the agreement and its compliance with one of the categories listed in Art. 420 Tax Code of the Russian Federation:

In the case of concluding an agreement with a mixed subject, for example, providing for both the sale or transfer for use of property and services associated with its transfer, contributions must be accrued only for that part of the remuneration that is subject to taxation. Therefore, in such GPAs it is necessary to distinguish between the amounts of an individual’s income into taxable and non-taxable parts.

ConsultantPlus experts have prepared detailed explanations on the calculation of insurance premiums for payments under a vehicle rental agreement with and without a crew. Go to the Ready-made solution by getting free trial access to the system.

The calculation of contributions does not depend on the form in which the GPC agreement is concluded: on paper or electronically .

Find out when to pay advance payments to the “physicist” contractor here .

See also “Reimbursing the expenses of a “physicist” under the GPA - should I pay fees? .

GPC agreement: taxes and fees

According to the provisions of Article 226 of the Tax Code of the Russian Federation, an organization or individual entrepreneur that makes payments in favor of individuals becomes their tax agent. This means that they must withhold personal income tax from the income paid and pay it to the budget. Therefore, if an organization has entered into a civil agreement on the performance of work (provision of services) with an ordinary citizen (not an individual entrepreneur), then it will have to withhold and pay personal income tax from the amount of remuneration paid to him. Moreover, even if the terms of the contract stipulate that the contractor must independently pay personal income tax, this does not cancel the tax agent’s obligation to withhold tax. After all, the norms of the Tax Code of the Russian Federation, as the Ministry of Finance of Russia recalled in Letter No. 03-04-05/12891 dated 03/09/2016, in this case have greater legal force than the agreement between the parties.

The personal income tax rate in this case is standard - 13%. In some specific situations, higher rates may need to be applied. Employees within the framework of the GPC must also be included in all reports: form 6-NDFL and certificates 2-NDFL.

In addition, the customer who has entered into a civil contract has an obligation to pay insurance premiums for the contractor. True, the GPC agreement obliges you to pay contributions not the same as for wages, but in a reduced version. How does this happen?

Exceptions to the general rule

Chapter 34 of the Tax Code of the Russian Federation, among other things, provides for a number of features in the taxation of insurance premiums relating to both the status of the insured person and the type of contract concluded with him:

1. Remunerations under the GPA, regardless of the subject of the agreement, are not subject to contributions for insurance against temporary disability or in connection with maternity (subclause 2, clause 3, article 422 of the Tax Code of the Russian Federation).

2. Amounts of income accrued to freelance employees are not subject to contributions for insurance against accidents and work-related injuries, unless this is expressly stated in the terms of the contract.

3. Remunerations to foreign citizens who have the status of temporary residents, in accordance with subparagraph. 15 clause 1 art. 422 of the Tax Code of the Russian Federation are not subject to insurance premiums, unless this is expressly provided for by federal laws on specific types of insurance.

4. Income under the GPA of foreign citizens working in company divisions abroad of the Russian Federation is not subject to insurance contributions.

Read about the nuances of calculating contributions on the income of foreigners in the material “Insurance contributions from foreigners in 2021 - 2020.”

5. If a GPC agreement is concluded with an individual in the status of an individual entrepreneur, then he is obliged to calculate and pay insurance premiums independently. This is due to the fact that in the light of Art. 419 of the Tax Code of the Russian Federation, private entrepreneurs are allocated to a separate class of payers.

Read about the specifics of calculating and paying individual entrepreneur contributions here.

Contracts that are not subject to insurance premiums

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Contracts that are not subject to insurance premiums

From 01/01/2010, organizations, both Russian and foreign, became payers of insurance premiums, which replaced the unified social tax.

To calculate the amount of insurance premiums payable to extra-budgetary funds, it is necessary to determine the object of taxation. The legislation of the Russian Federation on insurance premiums, along with payments and rewards for which insurance premiums are calculated, defines payments and rewards that do not relate to the object of taxation, and are also not recognized as an object of taxation by insurance premiums.

Let's consider under which contracts payments and rewards are not subject to insurance premiums, and also why profit taxation has ceased to matter for the calculation of insurance premiums.

The procedure for calculating and paying (transferring) insurance contributions to state extra-budgetary funds is regulated by Federal Law dated July 24, 2009 N 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund and territorial compulsory medical funds insurance" (hereinafter referred to as Federal Law No. 212-FZ).

Before talking about payments and rewards that are not related to the objects of taxation by insurance premiums, and also not recognized as such, let us name the payments and rewards that are recognized as the object of taxation.

The object of taxation of insurance premiums for payer organizations in accordance with clause 1 of Art. 7 of Federal Law N 212-FZ recognizes payments and other remuneration accrued by them in favor of individuals:

— under employment contracts;

- under civil law contracts, the subject of which is the performance of work, the provision of services (with the exception of remunerations paid to individual entrepreneurs, lawyers, notaries engaged in private practice who do not pay remuneration to other individuals);

— under copyright contracts;

— under agreements on the alienation of the exclusive right to works of science, literature, and art;

— under publishing license agreements;

— under licensing agreements granting the right to use works of science, literature, and art.

In addition, the object of taxation with insurance contributions for organizations are payments and other remunerations accrued in favor of individuals subject to compulsory social insurance in accordance with federal laws on specific types of compulsory social insurance.

The list of payments and rewards that are not subject to insurance premiums contains clause 3 of Art. 7 of Federal Law N 212-FZ. According to this paragraph, payments and other remunerations made within the framework of:

— civil contracts, the subject of which is the transfer of ownership or other proprietary rights to property (property rights);

- agreements related to the transfer of property (property rights) for use, with the exception of copyright contracts, 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.

It should be recalled that civil law contracts, the subject of which is the transfer of ownership or other proprietary rights to property (property rights), include:

- gift agreement regulated by Ch. 32 “Donation” of the Civil Code of the Russian Federation (Civil Code of the Russian Federation). According to Art. 572 of the Civil Code of the Russian Federation, under a gift agreement, one party (the donor) gratuitously transfers or undertakes to transfer to the other party (the donee) an item of ownership or a property right (claim) to himself or to a third party, or releases or undertakes to release it from a property obligation to himself or to a third face.

The gift agreement can be concluded both in written and oral form (Article 574 of the Civil Code of the Russian Federation). At the same time, Art. 128 of the Civil Code of the Russian Federation determines that objects of civil rights include things, including money and securities, other property, including property rights; works and services; information; results of intellectual activity, including exclusive rights to them (intellectual property); intangible benefits.

In the Letter of the Ministry of Health and Social Development of Russia dated 03/05/2010 N 473-19, it is noted that in the case of a gift (including sums of money) being transferred to an employee under a gift agreement concluded in writing, from an organization subject to insurance premiums on the basis of clause 3 of Art. 7 of Federal Law No. 212-FZ does not arise.

At the same time, the said Letter draws attention to the following. Based on Art. 57 of the Labor Code of the Russian Federation, in particular, the terms of remuneration (including the amount of the tariff rate or salary (official salary) of the employee, additional payments, allowances and incentive payments) are mandatory for inclusion in the employment contract.

By agreement of the parties, an employment contract may also include the rights and obligations of the employee and employer established by labor legislation and other regulatory legal acts containing labor law norms, local regulations, as well as the rights and obligations of the employee and employer arising from the terms of the collective agreement and agreements .

Consequently, the cost of purchased gifts for employees provided for in employment contracts (collective agreements, agreements, local regulations), not formalized in gift agreements, will be subject to insurance premiums.

In the case of the presentation of gifts to individuals who are not in labor (civil) relations with this organization, the amount of the value of the gifts is not subject to insurance premiums, as indicated in the Letter of the Ministry of Health and Social Development of Russia dated February 27, 2010 N 406-19;

- annuity agreement regulated by Ch. 33 “Rent and lifelong maintenance with dependents” of the Civil Code of the Russian Federation. Based on Art. 583 of the Civil Code of the Russian Federation, under a rent agreement, one party (rent recipient) transfers property to the other party (rent payer), and the rent payer undertakes, in exchange for the received property, to periodically pay rent to the recipient in the form of a certain amount of money or providing funds for its maintenance in another form ;

- purchase and sale agreement regulated by Ch. 30 “Purchase and sale” of the Civil Code of the Russian Federation. Under a purchase and sale agreement, one party (seller) undertakes to transfer the thing (goods) into ownership of the other party (buyer), and the buyer undertakes to accept this product and pay a certain amount of money (price) for it, as established by Art. 454 Civil Code of the Russian Federation. The purchase and sale agreement has several varieties, in particular, a retail purchase and sale agreement, an agreement for the supply of goods, an agreement for the supply of goods for state or municipal needs, a contract for contracting, an energy supply agreement, an agreement for the sale of real estate and an agreement for the sale of an enterprise.

Explanations regarding the need to charge insurance premiums under loan agreements are given in Letter of the Ministry of Health and Social Development of Russia dated May 17, 2010 N 1212-19. According to Part Two of the Civil Code of the Russian Federation, under a loan agreement, one party (the lender) transfers into the ownership of the other party (borrower) money or other things determined by generic characteristics, and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal amount of other things received by him of the same kind and quality. Thus, payments under the loan agreement on the basis of clause 3 of Art. 7 of Federal Law N 212-FZ do not apply to the subject of taxation of insurance premiums.

The Letter of the Ministry of Health and Social Development of Russia dated May 17, 2010 N 1212-19 states that in the event of termination of the employee’s obligations to return funds under the loan agreement, the amount of the unrepaid debt is subject to insurance premiums in accordance with clause 1 of Art. 7 of Federal Law N 212-FZ.

To contracts related to the transfer for use of property (property rights), with the exception of copyright contracts, contracts 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, This applies in particular to the lease agreement. This is indicated by Art. 606 of the Civil Code of the Russian Federation, according to which, under a lease agreement (property lease), the lessor (lessor) undertakes to provide the lessee (tenant) with property for a fee for temporary possession and use or for temporary use.

It should be noted that the lease agreement has several varieties - rental agreement, lease agreement for a vehicle with a crew, lease agreement for a vehicle without a crew, lease agreement for a building or structure, lease agreement for an enterprise, financial lease agreement.

All listed agreements are subject to the general provisions of civil law governing the lease agreement, unless otherwise established by the rules of the Civil Code of the Russian Federation on these agreements.

Note! Under a lease agreement (temporary charter) of a vehicle with a crew, the lessor provides the lessee with the vehicle for a fee for temporary possession and use and provides its own services for its management and technical operation (Article 632 of the Civil Code of the Russian Federation). The remuneration paid under such an agreement, in terms of the provision of services for driving a vehicle, is subject to insurance premiums in the generally established manner.

They are not recognized as an object of taxation for payers of insurance premiums - organizations on the basis of clause 4 of Art. 7 of Federal Law N 212-FZ payments and other remuneration accrued in favor of individuals who are foreign citizens and stateless persons:

- under employment contracts concluded with a Russian organization for work in its separate division located outside the territory of the Russian Federation;

- in connection with their activities outside the territory of the Russian Federation within the framework of concluded civil contracts, the subject of which is the performance of work and the provision of services.

The absence of grounds for imposing insurance premiums on payments to foreign citizens working abroad is also stated in the Letter of the Ministry of Health and Social Development of Russia dated February 12, 2010 N 295-19.

The Letter also stated that in accordance with the provisions of Federal laws on specific types of compulsory social insurance dated December 15, 2001 N 167-FZ “On compulsory pension insurance in the Russian Federation”, dated December 29, 2006 N 255-FZ “On compulsory social insurance in case of temporary disability and in connection with maternity”, Law of the Russian Federation of June 28, 1991 N 1499-1 “On medical insurance of citizens in the Russian Federation”, these employees are not insured persons in the compulsory social insurance system of the Russian Federation.

Based on paragraphs. 15 clause 1 art. 9 of Federal Law N 212-FZ are not subject to insurance premiums for persons making payments and other remuneration to individuals, and these include organizations, the amounts of payments and other remuneration in favor of foreign citizens and stateless persons temporarily residing in the territory of the Russian Federation :

— under employment contracts;

— under civil law contracts, including copyright contracts.

Provisions of paragraphs. 15 paragraph 1 and paragraphs. 2 p. 3 art. 9 of Federal Law N 212-FZ corresponds with the provisions of federal laws on specific types of compulsory social insurance, defining the list of insured persons for the relevant types of compulsory social insurance.

According to the Explanations of the Ministry of Health and Social Development of Russia, given in Order No. 112n dated February 26, 2010 “On approval of the Explanation on the application of certain norms of the Federal Law of July 24, 2009 No. 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, Federal Compulsory Medical Insurance Fund and territorial compulsory medical insurance funds" insofar as it relates to the imposition of insurance premiums on payments and other remuneration in favor of individuals under copyright contracts, contracts on the alienation of the exclusive right to works of science, literature, art, publishing license agreements, licensing agreements on granting the right to use works of science, literature, art”, in accordance with the provisions of paragraph 1 of Art. 7, paragraph 1, art. 8, pp. 15 paragraph 1 and paragraphs. 2 p. 3 art. 9 of Federal Law N 212-FZ the following are not included in the base for calculating insurance premiums:

- in terms of insurance premiums payable to the Pension Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund and territorial compulsory medical insurance funds, - payments and other remunerations paid under copyright contracts, contracts 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 in favor of individuals - foreign citizens and stateless persons who are not permanently or temporarily residing in the territory of the Russian Federation;

- in terms of insurance premiums payable to the Social Insurance Fund of the Russian Federation, - payments and other remunerations paid under author's order agreements, 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 a work science, literature, art in favor of any individuals (including foreign citizens and stateless persons who are not permanently or temporarily residing in the territory of the Russian Federation).

The absence of grounds for recognizing payments under labor, civil law contracts, as well as copyright contracts to citizens of the Republic of Belarus temporarily staying in the territory of the Russian Federation as an object of taxation of insurance premiums is stated in the Letter of the Ministry of Health and Social Development of Russia dated 01.03.2010 N 424-19.

The Letter draws attention to the fact that, in accordance with paragraph 4 of Art. 1 of Federal Law No. 212-FZ, in cases where an international treaty of the Russian Federation establishes rules other than those provided for by the said Federal Law, the rules of the international treaty of the Russian Federation are applied.

Cooperation between the Russian Federation and the Republic of Belarus in the field of social security is established by the Agreement of January 24, 2006. This Agreement, in particular, regulates state social security, compulsory (state) social insurance of persons living in the territories of the Contracting Parties (the Contracting Parties, based on the provisions of the Agreement, are the Russian Federation and the Republic of Belarus).

Article 4 of the said Treaty provides that persons of one Contracting Party residing in the territory of another Contracting Party are equal in rights and obligations to citizens of this other Contracting Party in relation to what is set out in Art. 3 of the Agreement, in particular labor pensions for old age (old age), disability, loss of a breadwinner, benefits for temporary disability and maternity.

At the same time, on the basis of Art. 1 of the Agreement, the place of residence (residence) in the Russian Federation is recognized as a place of permanent or temporary residence legally on the territory of the Russian Federation.

Taking into account the above, the provisions of the previously mentioned Agreement apply only to citizens of the Republic of Belarus permanently or temporarily residing legally on the territory of the Russian Federation.

Thus, payments under labor, civil law, as well as copyright contracts to citizens of the Republic of Belarus temporarily staying in the territory of the Russian Federation are not subject to insurance premiums.

Concluding the article, it is necessary to say a few words about why taxation of profits has ceased to matter in deciding whether it is necessary to charge insurance premiums to extra-budgetary funds.

It should be recalled that until 01/01/2010, Ch. 24 “Unified Social Tax” of the Tax Code of the Russian Federation. Guided by paragraph 3 of Art. 236 of the Tax Code of the Russian Federation, the organization that pays the unified social tax did not recognize the payments and remuneration listed in paragraph 1 of this article as an object of taxation if such payments were not related to expenses that reduce the tax base for corporate income tax in the current reporting period.

Federal Law No. 212-FZ does not contain similar provisions, due to which the question of the presence or absence of an object subject to insurance premiums does not depend on whether the amounts of payments and remunerations paid to individuals are taken into account for the purpose of taxing the profits of organizations.

Author: V.V. Semenikhin

First Capital Legal Center.

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Property rights, Lease agreement, Supply agreement, Insurance, Provision of services

06.05.2012, .

Expense limit for reducing the taxable base for insurance premiums

In the case of royalties, as well as contracts for the alienation of rights to the results of intellectual activity, the amount of expenses by which the taxable base can be reduced must be documented and have a direct connection with the receipt of such income (clause 8 of Article 421 of the Tax Code of the Russian Federation) . The volume of expenses not confirmed by documents is limited (clause 9 of Article 412 of the Tax Code of the Russian Federation). The limits are set as a percentage of the accrued remuneration:

• for the creation and execution of literary works, scientific developments and works - 20%;
• for the creation of musical works not related to the theatrical sphere or audio design for video films - 25%;
• for the creation of artistic, architectural, audiovisual works, photographs - 30%;
• for inventions, discoveries and creation of industrial designs - 30% of the amount of income of an individual received during the first 2 years of using the results of work;
• for the creation of sculptures, decorative and design graphics, as well as musical works intended for theater or films - 40%.

Read about the cases in which income under the GPA is not subject to personal income tax.

What is not subject to insurance premiums

• remuneration to foreigners and stateless persons within the framework of labor and civil contracts for the performance of work (provision of services) concluded with FIFA (Federation Internationale de Football Association), the organizing committee of Russia 2021 and subsidiaries of these organizations;
• reimbursement of the following expenses of volunteers incurred while performing their duties under civil contracts concluded with FIFA, the Russia 2021 organizing committee and their subsidiaries: expenses for processing and issuing visas or invitations;
• costs of travel, accommodation, food, sports equipment, training, communications, transportation, linguistic support;
• cost of souvenirs with the symbols of the 2021 FIFA World Cup, 2021 FIFA Confederations Cup.

• interest received by the employee under the terms of the loan agreement concluded between him and the organization;
• material benefit from savings on interest, if, under the terms of the contract, the loan issued to the employee is interest-free;
• a loan or part of a loan repaid under agreements;
• a gift transferred on the basis of a deed of donation.

Insurance premium rates for GPC in 2019-2020

According to established Art. 425 of the Tax Code of the Russian Federation, the amount of insurance premiums for calculation from the amounts of remuneration under GPC agreements is:

• for compulsory pension insurance - 22%, taking into account the maximum base for calculation and 10% on income exceeding it;
• for compulsory health insurance - 5.1% (there is no limit on the income base for these contributions).

The maximum base for calculating insurance contributions for pension insurance is equal to:

• in 2021 - RUB 1,150,000. (Resolution of the Government of the Russian Federation dated November 28, 2018 No. 1426);
• in 2021 - RUB 1,292,000. (Resolution of the Government of the Russian Federation dated November 6, 2019 No. 1407).

However, the size of the marginal base and the tariffs depending on it cease to play their role if the policyholder has the right to apply reduced premium rates.

Which sections of the RSV should I fill out?

The RSV includes a title page and 3 sections, the 1st of which contains 10 applications, and the 2nd - one application. The title page, section 1 (subsections 1.1, 1.2 of appendix 1, appendix 2) and section 3 are required for completion by organizations and individual entrepreneurs that have hired employees.

This is interesting: Car rental agreement, transfer acceptance certificate, 2021

Other sheets need to be completed only if necessary, for example:

• if benefits were paid, you need to fill out Appendix 3 of Section 1;
• if the company has established harmful and dangerous working conditions, you need to fill out subsections 1.3.1, 1.3.2 of Appendix 1 of Section 1;
• if an organization uses reduced rates for calculating insurance premiums, you need to fill out appendices 5, 6, 7 of section 1, depending on the basis for paying insurance premiums.

Application of reduced and additional GPA contribution rates

In Art. 427, 428 of the Tax Code of the Russian Federation clearly regulate cases when the payer can use reduced rates of insurance premiums or, conversely, must apply an additional rate.

The situation with a reduced tariff in relation to civil law contracts is quite simple: if the payer exercises the right to reduce insurance premiums for full-time employees, it has the right to apply the same tariffs under civil contracts.

Note! Starting from 2021, the list of persons entitled to preferential rates on contributions has been significantly reduced; in particular, the majority of simplifiers have lost this right. Since 2021, this list has decreased even more, at the same time, individuals have appeared who can reduce the general insurance premium rate to 15%.

A more complex analysis is required before a decision is made on the assessment of additional contributions. As you know, this applies to work that is carried out in hazardous and unhealthy working conditions: the legislator lists professions that are subject to additional contributions for pension insurance in paragraphs 1–18 of Part 1 of Art. 30 of the Law “On Insurance Pensions” dated December 28, 2013 No. 400-FZ.

Thus, if the GPC agreement covers work related to the performance of duties in such professions, or it directly states that the work is carried out in hazardous conditions, then additional contributions are necessary. The same approach must be followed in the case where the place of work is the territory of an enterprise, which, as a result of a special assessment of work, has been assigned a certain class of danger or hazard.

However, in a situation where the contract does not indicate the location of the work or the wording of the subject of the contract is vague and does not directly indicate that work is being carried out in conditions of increased danger, the enterprise may not charge additional insurance premiums. But, taking advantage of this opportunity, it is necessary to understand that in case of an audit, you need to prepare to defend your position in the judicial authorities.

What fees are subject to a civil contract?

Please note that when assessing contributions for a civil contract, it is necessary to exclude from the taxable base compensation for the contractor’s expenses for materials, tools, etc. – these costs are not subject to insurance premiums (Clause 2, Part 1, Article 9 of Law No. 212-FZ).

• under an employment contract, the relations of the parties (employee and employer) will be regulated by the provisions of the Labor Code,
• under a GPC agreement, the parties to which are the customer and the contractor, relations can be built only on the basis of the provisions of civil law.

Payment and reporting of GPA insurance premiums in 2019-2020

Currently, reporting on insurance premiums (with the exception of contributions for insurance against accidents and industrial injuries, the calculation of which continues to be accepted by the Social Insurance Fund) is submitted to the Federal Tax Service. The form of this calculation is common to all contributions supervised by the service. For 2021, the ERSV is submitted according to the form approved. by order of the Federal Tax Service dated October 10, 2016 No. ММВ-7-11/551. As of reporting for the 1st quarter of 2021, a new ERSV form is in effect - from the Federal Tax Service order dated September 18, 2019 No. ММВ-7-11/ [email protected] The calculation must be submitted no later than the 30th day of the month following the end of the reporting quarter/year.

This report does not highlight the amounts of payments under the GPA, so the main thing for the accountant is to correctly determine the part of the income paid that is taxable and non-taxable with insurance contributions.

Read more about the rules for filling out the new calculation here.

Reporting on insured persons is not limited to a single calculation form submitted to the Federal Tax Service. On a monthly basis, it is necessary to submit a report to the Pension Fund in the SZV-M form, which must indicate not only all employees who worked in the organization during the reporting period, but also all individuals with whom GPC agreements were concluded.

Among other things, all payers are obliged annually, before March 1 of the year following the reporting year, to provide personalized data on the length of service of insured persons to the Pension Fund in the form SZV-STAZH, approved by Resolution of the Board of the Pension Fund of December 6, 2018 No. 507p.

What taxes are imposed on fixed-term employment contracts per year?

Thus, concluding such an agreement allows you to save on taxes. The tax authorities are well aware of this. They carefully ensure that this type of relationship is not a fictitious cover of labor relations.

Companies have various production costs, which include salaries, rent and other costs. As for individuals, they are forced to spend only their personal time. Basic information The type of contract under consideration has many nuances that you need to know about in order to minimize the risks of declaring it invalid with all the ensuing legal consequences.

Results

Despite the obvious attractiveness of using GPA agreements due to the possibility of charging insurance premiums for the payments they provide for in a smaller amount, their legal component requires accuracy in the wording of the terms of the agreement. For an accountant, the presence of freelance workers will mean the need to carefully collect and study documents confirming the possibility of non-payment of insurance premiums, as well as work together with a lawyer to exclude language from civil liability agreements that implies negative consequences for the business.

Sources:

• Tax Code of the Russian Federation
• Federal Law of December 28, 2013 No. 400-FZ
• Decree of the Government of the Russian Federation dated November 6, 2019 No. 1407
• Decree of the Government of the Russian Federation of November 28, 2018 No. 1426
• Order of the Federal Tax Service of Russia dated September 18, 2019 No. ММВ-7-11/ [email protected]
• Order of the Federal Tax Service of Russia dated October 10, 2016 No. ММВ-7-11/ [email protected]
• Resolution of the Board of the Pension Fund of December 6, 2018 No. 507p

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