Select payment method
Cashless payments.
Individual entrepreneurs or legal entities have a special current account for the organization. A self-employed person is not an organization, but an individual, and instead of a current account he has a bank card.
A business cannot transfer money to a self-employed person using a card number - such a payment will not go through the accounting department. To make a transfer, you need to ask the self-employed for full details:
- Receiver name
- Current account number
- Name of the bank
- BIC
- Correspondent account
- Bank branch code and address
The self-employed can obtain these details from the bank.
Cashless payments have one drawback. The bank sees that the payment goes to an individual, and not to an individual entrepreneur or legal entity, but you do not pay taxes and fees for it. This seems suspicious and the bank may temporarily block the account.
Usually the blocking is easy to remove: just say that you are paying the self-employed and show the bank the agreement. But the account will remain blocked for several days.
Cash.
If you work with a self-employed person not remotely, but in person, it is more convenient to pay him in cash. The main thing is not to forget to enter this operation into the accounting department and ask for a check from the self-employed person. If this is not done, the self-employed can say that there was no payment and demand it again - according to the law, he will be right.
When paying in cash, a self-employed person
can be paid without a contract. To do this, the transaction must be immediate. For example, you, as a legal entity, buy handmade products from a self-employed person and immediately pay for them in cash.
What is non-cash?
A form of non-cash payment is the movement of funds through the accounts of clients of banking or credit organizations in electronic form. Any payment for goods by bank transfer is carried out only through specialized organizations that have licenses to perform banking operations.
Bank transfer is available to absolutely all persons, regardless of the form of their activity. As a rule, at the end of the working day, account holders are provided with a statement of their cash flow activity for the day, which allows them to control all transactions. But if necessary, such a statement can be requested from a credit institution at any time.
Specify the chosen payment method and procedure in the contract
The contract must indicate:
- Payment method: cash or bank card.
- Time range for payment, for example within 5 days after accepting the job.
- Terms of prepayment and postpayment.
Also, do not forget to state that the performer applies tax on professional income - this will explain why you do not pay taxes and fees for him.
In the section with contacts and details, you need to indicate the full name, TIN and address of the freelancer, as well as the full details of his bank card.
Advantages of non-cash payments
First of all, payment by bank transfer requires minimal documents in comparison with regular cash payments between organizations. Many companies choose this form of payment because it makes it possible to avoid large fines due to errors in registering cash discipline and using cash registers.
Large organizations are also increasingly invoicing their clients by bank transfer, instead of taking cash from them. This allows companies to save significantly, since servicing such operations is much cheaper.
The obvious benefit of such calculations for ordinary citizens is the convenience of transactions. The fact is that you can carry them out simply by having a payment bank card and the ability to access the Internet, and commissions for money transfers between accounts are not always charged or amount to minimal losses.
Such virtual settlements also have benefits for the state, because it allows you to constantly monitor all cash flows in real time. In addition, a decrease in the turnover of the living money supply reduces the possibility of inflation in the country.
In general, the advantages of non-cash payments are clearly visible to everyone, and most importantly, they can be carried out at any time of the day, on any day of the week and completely regardless of the geography of the transfer.
Receive an invoice from the freelancer
Self-employed people have the right to receive payment without issuing an invoice. But it will be better for your accounting department if the freelancer still issues an invoice: this way there will be fewer problems with payment to an individual.
A self-employed person does not have tools for issuing an invoice in “My Tax” or a personal bank account. Therefore, offer him a template, for example, based on the invoices that the individual entrepreneur issues to you. The invoice must include:
- Self-employed details
- Date and account number
- Name of the payer organization, its TIN
- List of all services with prices
- Total invoice amount
- Signature of the self-employed
Typically the invoice is sent in PDF format. To make it convenient to fill out, you can create the invoice itself in Word or Excel, and then save it as PDF.
Types of bank transfer payments for individuals
Ordinary citizens may think that bank transfers are only transfers between accounts, but in fact there are 6 types of them. Most are available only to legal entities and organizations and are controlled by the same regulatory documents.
The most common form of payment available to civilians is in the form of an electronic transfer. It represents the transfer of funds from the payer’s personal bank account to the recipient’s account through a banking operator. The recipient can be an individual or an organization, the main thing is that such a right is described in the agreement between the account holder and the bank. The payer can only be a private person.
Another form of payment, which, like the previous one, is regulated by the law “On the National Payment System” is direct debit. It represents the debiting of funds from the owner’s account at the request of the recipient, but only if this is permitted by the agreement between the account owner and the credit institution. Most often, such payments are mandatory fees for servicing a bank card or account.
Correctly indicate the purpose of payment
When transferring money to a self-employed person, you must indicate the purpose of the payment. It is better to do this in this format: “Payment on account No. 111. Advance payment for writing texts.” There is no need to list all the work. If you pay without an invoice, you need to indicate the work itself in more detail.
In the purpose of payment, in no case should you write “salary”, “bonus” or other words that hint at an employment relationship. Salaries and bonuses can only be paid to employees, and you are obliged to employ the employee under an employment contract and pay taxes and deductions for him. As a self-employed freelancer, you simply pay for a specific job, and you cannot call it a salary - otherwise the bank will block the account, and the tax office will fine you for non-payment of taxes and contributions.
Regulation of non-cash payments
Payment by bank transfer is subject to only three regulatory documents that fully control their implementation. The main one is the Civil Code of the Russian Federation, Chapter 46 of which describes all the basic requirements for permitted non-cash forms of money circulation.
Further, the bank transfer obeys:
- regulations on the issue of payment cards;
- Regulations on the rules for making money transfers.
The first document was approved by the Central Bank on December 24, 2004 and reveals the procedure for the legal implementation of acquiring. This concept defines the non-cash payment for services or goods that is familiar to many ordinary citizens.
The second document was approved only on June 19, 2012 by the Bank of Russia and contains all the necessary detailed descriptions of possible forms of non-cash payments and requirements for them. Everything contained in the provision fully complies with the norms of the Civil Code.
Any payment by bank transfer must be carried out in strict compliance with all of the listed regulatory documents, but such control is not an obstacle to the growing popularity of non-cash money circulation among the entire population.
Be sure to ask for a check
When making payments to self-employed people, you do not need acts. They are officially replaced by a check, which the self-employed person generates in the “My Tax” application and sends to you by email or any messenger. The receipt can be attached to the accounting documents and used as proof that you accepted and paid for the work. There is no need to sign it.
By law, the self-employed must send you the check themselves.
If he forgot, remind him. If it still doesn’t send, complain to the Federal Tax Service on the tax website .
If you are afraid that there will be problems with accounting, you can still draw up an act. Send the self-employed your standard form and exchange signed copies.
Clients – legal entities or individual entrepreneurs
You can accept payment from them to the entrepreneur’s bank account or in cash.
Cash payments between organizations and entrepreneurs are limited to an amount of 100 thousand rubles within one agreement. In this case, you need to run a cash receipt for the amount of cash received and issue a cash receipt order. If the contract amount is more than 100 thousand, you can pay in cash within the established limit, and the rest must be transferred to a bank account.
Electronic money payments between individual entrepreneurs and legal entities are prohibited; electronic money can only be accepted from individuals. Also, legal entity clients cannot be issued BSO, but individual entrepreneurs can.
If an entrepreneur or organization transfers money to another entrepreneur or organization from current account to current account, a cash register is not needed. But if an electronic means of payment is used for payment, for example, a plastic card, then you need to use a cash register (clause 9 of Article 2 of Law 54-FZ of May 22, 2003).
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Service agreement with an individual
S.A. Arykov , expert of the Legal Consulting Service GARANT
The organization plans to enter into an agreement for the provision of paid services with an individual (a citizen of the Russian Federation who is not an individual entrepreneur). What taxes and insurance premiums are payable to this individual?
A civil contract is an agreement between two or more persons to establish, change or terminate civil rights and obligations (Article 420 of the Civil Code of the Russian Federation).
Under a contract for the provision of paid services, the contractor undertakes, on the instructions of the customer, to provide services (perform certain actions or carry out certain activities), and the customer undertakes to pay for these services (clause 1 of Article 779 of the Civil Code of the Russian Federation).
Thus, an agreement for the provision of services for a fee is one of the types of civil law contracts.
According to paragraph 1 of Article 781 of the Civil Code of the Russian Federation, the customer is obliged to pay for the services provided to him within the time frame and in the manner specified in the contract for the provision of paid services.
In accordance with paragraph 1 of Article 207 of the Tax Code of the Russian Federation, personal income tax payers are individuals who are tax residents of the Russian Federation, as well as individuals receiving income from sources in the Russian Federation who are not tax residents of the Russian Federation.
Based on subparagraph 6 of paragraph 1 of Article 208 of the Tax Code of the Russian Federation, remuneration for the performance of labor or other duties, work performed, service provided, or action performed in the Russian Federation is classified as income from sources in the Russian Federation.
According to Article 209 of the Tax Code of the Russian Federation, the object of taxation is income received by taxpayers:
• from sources in the Russian Federation and (or) from sources outside the Russian Federation - for individuals who are tax residents of the Russian Federation;
• from sources in the Russian Federation – for individuals who are not tax residents of the Russian Federation.
Thus, remuneration received by an individual under a contract for the provision of paid services is recognized as subject to personal income tax.
Article 224 of the Tax Code of the Russian Federation establishes a tax rate of 13% for residents of the Russian Federation and 30% for non-residents of the Russian Federation.
If an individual pays
Individuals who purchase goods from the self-employed or use their services can pay money to the self-employed in any way: transfer in cash, transfer to a card or e-wallet, send by post or money order.
The payer is not responsible for the further actions of the self-employed person, however, it is in his interests to receive a check as confirmation of the completed transaction and the fact of its payment.
Your interest in receiving a check is as follows:
- make sure that the other party has no claims regarding payment;
- obtain documentary evidence of the fulfillment of your part of the contract (if you work under a contract, its details must be indicated in the check);
- collect checks from self-employed people in order to issue a tax deduction (for example, for education, if you receive educational services from them, etc.).
Cash payment
Payment to a self-employed person in cash is possible, for example, if you buy goods at a self-employed person’s outlet or personally receive a service from him at home or in rented premises.
When paying in cash, receiving a check from the self-employed person occurs directly at the place of transaction. Please note that checks do not necessarily have to be issued on paper - a self-employed person can provide them in the form of a QR code on a phone or screen, print them out or send them electronically to you by email or instant messenger.
Where is my cash lying around?
Payment by card
You can pay a self-employed person by simply transferring money to his card or account. You can do this:
- by phone number through the fast payment system or regular bank transfer (enter the phone number of the self-employed and select the bank where he has a card or account and click “transfer”);
- by card number (enter the card number of the self-employed person, check his personal data and click “send”);
- according to the account details (indicate the account number, check the recipient’s details and send the money).
Another useful article: How to accept cash payments as a self-employed person
It is important that the information about the payee matches the name of the person who provided you with services as a self-employed person. Transfers sent by mistake to other individuals are almost impossible to claim back.
Payment by e-wallet number
You can also pay for self-employed services using your e-wallet number. True, this is often inconvenient, especially if you didn’t have your own wallet or don’t have the required amount in your wallet. As a rule, systems charge fees for replenishing wallets, so transferring money first to your wallet and then sending a transfer to a self-employed person may not be profitable.
How to pay a self-employed person using an electronic wallet number? It's simple: send funds from your wallet to the self-employed person's wallet using the number provided.
Insurance contributions to the Pension Fund, Social Insurance Fund and Compulsory Medical Insurance Fund
Relations related to the calculation and payment (transfer) of insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Compulsory Medical Insurance Fund are regulated by Federal Law dated July 24, 2009 No. 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Fund social insurance of the Russian Federation, Federal Compulsory Medical Insurance Fund" (hereinafter referred to as Law No. 212-FZ).
According to subparagraph “a” of paragraph 1 of part 1 of Article 5 of Law No. 212-FZ, payers of insurance premiums are organizations that make payments and other remuneration to individuals.
In accordance with Part 1 of Article 7 of Law No. 212-FZ, the object of taxation of insurance premiums for organizations making payments to individuals is recognized as payments and other remuneration accrued by payers of insurance premiums in favor of individuals within the framework of labor relations and civil contracts, the subject of which is the performance of work, provision of services (with the exception of remunerations paid to individual entrepreneurs, lawyers, notaries).
According to Part 1 of Article 8 of Law No. 212-FZ, the base for calculating insurance premiums for organizations is determined as the amount of payments and other remunerations provided for in Part 1 of Article 7 of Law No. 212-FZ, accrued by payers of insurance premiums for the billing period in favor of individuals, for with the exception of the amounts specified in Article 9 of Law No. 212-FZ.
Based on clause 2 of part 3 of Article 9 of Law No. 212-FZ, the base for calculating insurance premiums does not include (in terms of insurance premiums payable to the Social Insurance Fund of the Russian Federation) any remuneration paid to individuals under civil law contracts.
Thus, in the situation under consideration, the remuneration of an individual under a civil law contract is subject to contributions to the Pension Fund of the Russian Federation and the Federal Compulsory Medical Insurance Fund, and is not included in the base for calculating insurance contributions in terms of amounts payable to the Social Insurance Fund of the Russian Federation.
