The nuances of concluding employment contracts for individual entrepreneurs with an employee, with a legal entity and with another individual entrepreneur

Certificate of employment from the individual entrepreneur at the place of request

In accordance with Art. 62 of the Labor Code of the Russian Federation, upon a written application from an employee, the employer is obliged, no later than three working days from the date of filing this application, to issue to the employee:

• work book for the purpose of his compulsory social insurance (security);
• copies of documents related to work (copies of orders for hiring, orders for transfers to another job, orders for dismissal from work; extracts from the work book; salary certificates, accrued and actually paid insurance contributions for compulsory pension insurance, period of work for a given employer, etc.).

Copies of work-related documents must be properly certified and provided to the employee free of charge.

An employee may need a certificate of employment from an individual entrepreneur to obtain a visa, to apply for benefits from social security authorities, etc.

The form of the certificate is not defined by law, but it must reflect:

• information about individual entrepreneur registration information;
• certificate number, date of issue;
• surname, name, patronymic of the employee;
• start date of work for an individual entrepreneur;
• the employee's position;
• place of presentation of the certificate (or the phrase “At the place of request”);
• the amount of wages for a certain period (if necessary);
• last name, first name, patronymic of the individual entrepreneur, signature and seal (if available).

When generating a certificate, it is advisable to check with the organization where the certificate should be submitted about the set of information necessary for informing.

Certificate issuance process

As already mentioned, the employee can request a certificate from the place of work, and the employer, in turn, is obliged to provide it within three days.

This is stated in Article 62 of the Labor Code of the Russian Federation.

If an individual entrepreneur has a personnel department, then the employee should contact its employees. If there is no such department, then contact the manager directly.

Having received a request from an employee, the person who received it is obliged to prepare the necessary documents for writing a certificate.

That is, the personnel officer or manager raises the contract with the employee, looks at the full name of the position and salary (or tariff rate) and writes this data in the certificate.

Then this document is given to the manager for signature and certification. Or the manager himself certifies the certificate.

After this, the completed document is given to the employee.

Sample certificate of employment from an individual entrepreneur

Individual entrepreneur Petrov Petr Petrovich

INN 12456789012

Address: 123456, Moscow, st. Moskovskaya, 987, tel. (495)1234567

Ref. No. 1-c dated May 25, 2021

REFERENCE

Issued to Ivan Ivanovich Ivanov in that he actually works for the individual entrepreneur Petrov Petrovich from 02/01/2021 to the present as a tower crane operator.

The monthly salary of Petrov P.P. is 21,000 rubles (twenty-one thousand rubles 00 kopecks).

The certificate is provided for presentation at the place of request.

IP Petrov P.P. Petrov

How to confirm the income of an individual entrepreneur on UTII

Unlike other types of taxation, individual entrepreneurs located on UTII, if it is necessary to confirm income, find themselves in a slightly more difficult situation.

The thing is that to calculate taxation, it is not income that is used here, but types of activity. At the same time, the tax amount for each type of activity has a fixed value, based on their level of expected profitability, physical indicator and adjusting federal and regional coefficients. That is, the actual income that an individual entrepreneur receives on UTII actually, in any case, differs from what is assumed when calculating this tax. Moreover, the state does not in any way oblige entrepreneurs working on UTII to monitor and record their income.

What to do in this case?

Option two:

• regardless of the will of legislators, still keep records of income in a simplified form;
• prove profitability by presenting primary documents.

Here the first option requires some explanation. Almost all individual entrepreneurs who are “imputed” still control the level of their income in one way or another. Which, in general, is logical: every individual entrepreneur wants to be sure that his business is profitable and profitable, and also to clearly understand exactly how much income he has. However, the main question here arises not in the fact of accounting itself, but in what form it is carried out. For example, if these are ordinary magazines or notebooks filled out by hand, then of course they will not have any evidentiary value. It is important that income records are kept in documentary form, with official status assigned to internal accounting documents. This is possible if each such document has the appropriate details.

The law clearly defines the information that must be contained in the details confirming income on the “imputation”:

1. Name;
2. date and place of compilation;
3. Full name IP;
4. IP INN;
5. individual entrepreneur registration number;
6. signature and seal (if any) of the individual entrepreneur.

In addition, this document must include:

• the name of the business transaction performed;
• a specific amount of income or expense, if accounting is also carried out for expenses.

All accounting documents must be kept in chronological order, including all information about costs and profits without exception.

Attention! Since, according to UTII, the reporting tax period is one quarter, it is necessary to summarize the internal accounting of expenses and income once every three months. Based on the results of the year, it is necessary to display separate annual results.

Certificate of employment for individual entrepreneurs at the place of requirement

In some cases, the individual entrepreneur himself also requires a certificate from his place of employment. In this case, you need to write it out yourself.

The certificate of employment for an individual entrepreneur must also reflect:

• information about individual entrepreneur registration information;
• certificate number, date of issue;
• last name, first name, patronymic of the individual entrepreneur;
• work start date;
• place of presentation of the certificate (or the phrase “At the place of request”);
• the amount of wages for a certain period (if necessary);
• last name, first name, patronymic of the individual entrepreneur, signature and seal (if available).

Sample:

Individual entrepreneur Petrov Petr Petrovich

INN 12456789012

Address: 123456, Moscow, st. Moskovskaya, 987, tel. (495)1234567

Ref. No. 1-c dated May 25, 2021

REFERENCE

Issued to Petrov Petrovich that he is indeed an individual entrepreneur from 02/01/2021 to the present.

The amount of monthly income of Petrov P.P. is 21,000 rubles (twenty-one thousand rubles 00 kopecks).

The certificate is provided for presentation at the place of request.

IP Petrov P.P. Petrov

A tax return is usually required to verify income. It should be noted that the tax return does not reflect the income of individual entrepreneurs who use UTII and PSN.

Individual entrepreneur on OSNO: confirmation of income

The procedure for confirming income by individual entrepreneurs is clearly defined by law. If hired employees must provide state bodies and other organizations that require information about income with certificates in Form 2 of personal income tax, then individual entrepreneurs applying the general taxation regime are required to file a declaration in Form 3 of personal income tax. If you already have a declaration and it contains a mark of acceptance by a tax specialist, then it is advisable to obtain copies of it - they may also come in handy. In most cases, the individual entrepreneur will no longer need any additional documents or certificates.

Important! Photocopies of the declaration in Form 3 of personal income tax must also have the original marks of the tax authorities. Otherwise, the interested party may refuse to accept them due to invalidity.

For your information. Institutions that require proof of income sometimes have a very different approach in this regard regarding individual entrepreneurs. In particular, sometimes, in addition to the standard 3 personal income tax declaration, they may ask to provide a declaration for the last reporting tax period, according to the tax regime used by the entrepreneur.

Certificate 2-NDFL from individual entrepreneur

Certificate 2-NDFL is a document containing the following information:

• source of income;
• salary amount;
• volume of taxes withheld.

This information is provided in relation to the following categories of citizens:

• workers;
• contractors;
• citizens receiving dividends.

The employer or tax agent is required to issue personal 2-NDFL certificates.

From 01/01/2021, in accordance with the Order of the Federal Tax Service of October 2, 2021 No. ММВ-7-11/ [email protected] the following were approved:

• form of information on the income of individuals and amounts of personal income tax “Certificate of income and amounts of tax of an individual” (form 2-NDFL);
• the procedure for filling out the form for information on the income of individuals and amounts of personal income tax “Certificate of income and amounts of tax of an individual” (form 2-NDFL);
• format for presenting information on the income of individuals and amounts of personal income tax “Certificate of income and amounts of tax of an individual” (form 2-NDFL) in electronic form;
• the procedure for submitting to the tax authorities information on the income of individuals and the amount of personal income tax and notification of the impossibility of withholding tax, the amount of income from which tax was not withheld, and the amount of unwithheld personal income tax;
• form of a certificate of income received by individuals and withheld amounts of personal income tax “Certificate of income and amounts of tax of an individual.”

How to obtain a certificate of income of an individual entrepreneur

Typically, working citizens submit a Form 2-NDFL certificate from their employer at the place of request. For an individual entrepreneur, this option is only possible if he works for someone under an employment contract, receiving earnings subject to personal income tax. An individual entrepreneur does not have the right to draw up such a document in relation to his business income, and there is no approved form of a certificate of income for an individual entrepreneur. So what can you do?

If a certificate of income of an individual entrepreneur is required for a bank

Most financial institutions are ready to consider other reliable sources containing the necessary information for a loan, instead of a certificate of income for an individual entrepreneur. It is advisable to first check with the bank whether it is possible to confirm the data with other documents.

What can be submitted instead of a certificate of income of an individual entrepreneur:

• For individual entrepreneurs on OSNO - a copy of the 3-NDFL declaration accepted by the Federal Tax Service. For information about the income of the current year - a copy of the “Book of accounting of income and expenses of individual entrepreneurs” (approved by Order of the Ministry of Finance dated August 13, 2002 No. 86n/BG-3-04/430, as amended on June 19, 2017).
• “Simplers” submit for the past year a copy of the declaration under the simplified tax system, and for the current period - a copy of the KUDiR (approved by Order of the Ministry of Finance dated October 22, 2012 No. 135n, as amended on December 7, 2016).
• Individual entrepreneur on a patent - a copy of the patent and the “Income Accounting Book” (approved by Order of the Ministry of Finance dated October 22, 2012 No. 135n).
• It is more difficult for persons using UTII - the quarterly declaration does not confirm their real income, and there is no separate register in which to keep records. You can offer the bank for consideration an independently developed document that takes into account all revenues and expenses, with copies of primary documents attached. For example, for non-cash payments - bank statements, for cash - printouts of revenue data from the OFD personal account.
• Individual entrepreneurs who have switched to paying professional income tax (self-employed) can generate a certificate of income for the reporting year in the “My Tax” mobile application.

If the bank is not satisfied with the proposed options, you will have to issue a certificate on your behalf.

How to make a certificate of income for an individual entrepreneur yourself

Since the law does not have a mandatory form for use, a certificate of income of an individual entrepreneur is drawn up in free form. You can find out in advance about the requirements for such certificates from the organization where the completed document will be submitted. It is recommended to specify in the certificate the details required for primary documentation (clause 2 of Article 9 of Law dated December 6, 2011 No. 402-FZ):

• document's name;
• date;
• surname, name, patronymic of the individual entrepreneur issuing the certificate;
• content of the fact (amount of income) indicating units of measurement (rubles);
• positions and signatures of the persons vising the document (the signature of the entrepreneur himself is sufficient).

The law talks about accounting documents, but these rules also apply to certificates of any form. To confirm income for the entire required period of time, one document is usually drawn up (for example, a certificate of income for the period 2017-2019); it is not worth issuing a certificate of income separately for each calendar year, unless required by the party requesting the document.

What a completed income certificate for an individual entrepreneur might look like, a sample of it is given below.

The certificate is signed by the individual entrepreneur himself. If an entrepreneur hires a person to perform the duties of an accountant (or chief accountant), then this employee can also sign the document.

Responsibility of the employer for refusal to provide certificates

Failure by the employer to provide certificates upon a written application from the employee is a violation of labor legislation and entails administrative sanctions (Article 5.27 of the Code of Administrative Offenses of the Russian Federation):

If the applying citizen is not a current employee of the enterprise - in relation to this case, Art. 5.27 of the Code of Administrative Offenses of the Russian Federation is not in force, but Art. 5.39 Code of Administrative Offenses of the Russian Federation. According to Art. 5.39 of the Code of Administrative Offenses of the Russian Federation, an unlawful refusal to provide a citizen with information, the provision of which is provided for by federal laws, untimely provision of it, or provision of knowingly false information shall entail the imposition of an administrative fine on officials in the amount of five thousand to ten thousand rubles.

Rules for compilation and issuance

The request must be made on paper in any form. Next, it is transferred to the head of the organization for consideration.

The entrepreneur’s response is issued in the form of a certificate from the place of work, a sample of which from the individual entrepreneur must contain certain information:

1. Company details (registration address and telephone number).
2. Date and number.
3. The title of the document in the form of the inscription “Help”.
4. Applicant details: Full name, date of birth, position, time of reception and confirmation of his work in the organization.
5. Destination of official paper.
6. IP signature and decryption.
7. Company seal (if available).
8. Information about the executor of the document: last name, first name, patronymic and telephone number.

The certificate is issued on plain A4 paper, in portrait orientation. There is no legally established uniform form for such a document. But, usually, a company stamp containing its details is applied in the upper left corner.

If the entrepreneur does not have such a template, then the information is entered in the following order:

• Name of the organization;
• postal address, indicating the zip code;
• telephone for communication.

The reference number is the serial number of the entry in the journal of outgoing documentation. You can create one accounting book to organize the internal document flow of the organization and register the requested information in it.

Below the title of the document, enter information about the required employee.

An example of an entry for an employee officially registered under a contract:

“Issued to Alexander Yurievich Romanov, born on May 21, 1976, in that he really works for the individual entrepreneur A.A. Gusev. from 02/12/2018 (order of admission dated 12/25/2017 No. 5) as a car driver to the present.”

If a civil agreement has been concluded, the information will take the form:

“Issued to Alexey Viktorovich Sidorov, born on January 19, 1977, in that he actually provides services for driving a passenger car in the period from February 15, 2018 to August 31, 2018 (agreement dated February 2, 2018 No. 3).”

The destination of the information is determined depending on the requirements of the organization requesting this document. If the employee does not indicate where he needs to provide such paper, then this is indicated. A standard certificate form from the place of work, as a sample individual entrepreneur at the place of requirement, can be downloaded online as a sample.

An individual entrepreneur may not have a seal. The optionality of its registration for small enterprises is defined in the legislation of the Russian Federation. Then, in the place provided for affixing the stamp, a mark “b/p” is made or nothing is noted.

As already noted, there is no form of such a document approved by the Laws of the Russian Federation. Therefore, a handwritten or printed version is equivalent. But a certificate form prepared in advance on a computer will make it easier to issue in the future.

Questions and answers

1. We received a letter where a former employee asks to provide him with a salary certificate for the period when he worked for us. He quit 3 months ago. Should we provide him with this certificate?

Answer: The legislation does not stipulate the fact that certificates should be issued only to working employees. If an application is received, you must provide the former employee with the necessary document within 3 days.

1. The husband of an employee who is on maternity leave contacted us with an application for a certificate from her place of work. The application was not written by the employee, but by the husband himself, and he did not provide us with a power of attorney. Should we issue him the necessary certificate?

Answer: No, you do not have to issue a certificate to your spouse, because Information about an employee can only be provided to the employee himself. You can issue a certificate to the employee’s spouse, but only if you have a power of attorney drawn up in free form. There is no need to certify the power of attorney, but when issuing the document, it is necessary to verify the identity of the spouse by checking the passport.

Individual entrepreneur income by type of taxation

The types of confirmed income of a merchant may differ in time periods. It depends on which organizations request the required papers.

Income should be shown from documentary sources:

1. Confirmed entries in the declaration, certified by the Federal Tax Service with a seal.
2. Standard accounting books for income and expenses.
3. Primary cash register originals.
4. Free-form certificates of profitability.

The authorities specify the required type of confirmation of profitability. Each entrepreneur chooses his own taxation system and works according to it.

Income of individual entrepreneurs under the simplified tax system and special tax system

An individual entrepreneur working on the simplified tax system or special tax system can confirm his profitability with a declaration.
The copy is certified by the tax representative in duplicate and attached instead of a certificate. With the simplified system, annual returns are shown. They can request income from three to six months, in which case a declaration will not be required.

Information about income is taken from the income and expense ledgers. The entrepreneur maintains cash accounting personally to determine profit. Such books are kept by entrepreneurs working on a simplified or patent basis; registration logs are approved by law.

In situations where this is required, income is confirmed by primary data from the documentation:

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Certificate of income for accrual of sick leave

• bank statements showing cash flows;
• cash receipt orders;
• concluded contracts.

The entrepreneur's income is determined from the books. It is advisable not to lose the original books, they are the evidence base.

Income of an entrepreneur with UTII

Individual entrepreneurs working for PSN do not declare income. When working for UTII, there is no real income; the declaration reflects the taxable base of the entrepreneur’s activities. Actual income will vary.

The justification of income in the declaration is not objective.
Profitability is proven by documents that reflect the business transactions of the individual entrepreneur. Reports are submitted quarterly. The periods requested on the certificates range from three to six months. Under the imputed system, there are no normative books. The Ministry of Finance proposes to confirm profitability with cash documentation, namely cash receipt orders and payroll statements.

Based on the primary documentation from the above, a document is drawn up for individual entrepreneurs on income for social security, banks and other institutions.