How an individual entrepreneur calculates his salary. A frequent question from beginning individual entrepreneurs: can I pay myself a salary and make an entry in my work book? Social contributions for employees and payroll taxes
IP (individual entrepreneur) is an individual who is engaged in entrepreneurial activities. To register oneself as an individual entrepreneur, a person must collect the necessary documents and submit them to the registration authority. The activity can be different, from a small computer repair shop to a kitchen furniture manufacturing company. It remains to figure out how to be an individual entrepreneur if an entrepreneur plans to use hired labor.
Individual entrepreneur and employee
When a business expands, it becomes more difficult for an individual entrepreneur to keep it afloat alone. Workers of different specializations are required. When hiring the first employee, the business entity must register itself as an employer. This is not required with subsequent employees. Further algorithm of IP actions:
- accept a job application;
- take the work book from the future employee;
- make copies of your passport, TIN, insurance policy;
- enter into an agreement with the employee;
- issue an order for employment;
- make an entry in the work book;
- provide a workplace;
- pay wages by withholding .
Of course, an employee can work for an individual entrepreneur unofficially. Consequently, an individual entrepreneur will not pay taxes on it, and the employee will be able to receive full wages. However, such activity is illegal. If the tax service finds out about this, individual entrepreneurs may be subject to tax or criminal liability. In this case, the employee is not accrued a pension, and sick leave is not paid.
Legislation
Before plunging into entrepreneurial activity, you need to familiarize yourself with the current legislation. This will help you figure out how an individual entrepreneur pays wages to employees so as not to break the law.
The amount of monthly remuneration is determined by the employment contract. It also stipulates the conditions, terms and methods of payment of funds. So, before signing the agreement, the employee must read it carefully.
Salaries must be paid twice a month. If payments are made once a month, then this is contrary to the law (Article 136 of the Labor Code of the Russian Federation).
The law also provides for cases when the day of payment of wages coincides with a holiday. In this case, funds must be credited a day earlier.
Features of salary payment
How does an individual entrepreneur pay wages to employees? Similar questions arise for any beginning entrepreneur. If an individual entrepreneur hires employees, he must pay for their work. According to the law, the business entity itself establishes the method and procedure for calculating wages. As for the amount of wages, it depends on the official salary, the presence of allowances and additional payments, bonuses, etc. employees with the same position and rank receive the same salary, provided that the number of days worked in a month is identical.
When figuring out how an individual entrepreneur pays wages to employees, you need to take into account that it can be piecework or hourly. If the employment contract specifies a salary, then payment depends only on the hours worked (not counting bonuses). The piece rate will depend on the amount of work performed at the established rate.
The employee’s employment contract must contain a clause on the method of crediting wages. Typically payments are made as follows:
- by issuing cash through a cash register;
- money is credited.
Typically, entrepreneurs try to pay salaries using bank cards. To do this, you need to conclude a contract that will issue cards for employees. In this case, you can transfer your salary to the card and issue an advance in your hands. After receiving the funds, the employee must sign the pay slip, confirming their receipt.
If the entrepreneur does not pay the money
During the financial crisis, many are familiar with the word - delay. This can happen for various reasons. For example, an individual entrepreneur has a debt to credit institutions or a businessman’s counterparties refuse to pay for the delivered goods. People rarely deal with such problems and leave for another job. According to the law, the permissible period for delayed wages is 15 days.
If, after this period, the employee has not been paid, he should write a statement to the entrepreneur about the violation of the payment deadline. The employee has every right not to perform his work until the funds are paid in full, since the entrepreneur has violated the terms of the employment contract. If the individual entrepreneur continues to delay payment of money and the salary debt grows, you can:
- go to court;
- suspend work until salary is paid (by notifying the individual entrepreneur in writing about this);
- contact the labor inspectorate.
- An employee who is not paid has the following rights:
- may be absent from work:
- they have no right to fire him;
- he can participate in strikes;
- his average earnings are maintained.
If you have additional questions, you can consult a lawyer. He will not only explain how an individual entrepreneur pays wages to employees, but also what to do if the entrepreneur does not do this. And if necessary, he will be able to prepare the necessary documents and represent the interests of the employee in court.
When choosing an LLC or individual entrepreneur, very often novice entrepreneurs choose the latter organizational and legal form. Why? It is very convenient, simple (compared to an LLC) to start and run a business, and also... receive the profit it brings. If in an LLC these are dividends and other methods that are not always simple and not always approved by the tax authorities, then an individual entrepreneur should have a salary, at least at the everyday level, many people think so. Also, in the case of an expansion of an individual entrepreneur, when the business has taken off, or is running up before starting to climb it (the mountain), it is not difficult to hire employees. Individual entrepreneurs are registered simply and quickly. Of course, various obligations are imposed on the entrepreneur, and the most important, probably, are taxes on the salaries of individual entrepreneurs, which he is obliged to pay to the tax office, as well as contributions to funds from the same salary.
Does the individual entrepreneur himself receive a salary? Hiring habits bother a new entrepreneur for a while, but disappear over time. In the case of an individual entrepreneur’s salary ... there is simply no such concept, since all funds received by an individual entrepreneur are his own, that is, an individual entrepreneur’s salary does not exist in principle. This is a consequence of the fact that an individual entrepreneur is an individual engaged in entrepreneurial activities (as opposed to a legal entity, LLC, JSC, etc.). Confusion in this matter is caused by banks and other organizations that work with businesses and, for the sake of convenience of personal accounting, classify individual entrepreneurs as legal entities. There is no use arguing with them. You just need to know the law, and in this case these are the provisions of the Civil Code, and understand the conventions of other opinions.
So how does the salary of an employee differ from the “salary” of an individual entrepreneur? In the first case, according to the Labor Code, an advance is paid once a month and then the salary itself. In the second case, we are talking about the income of an individual entrepreneur (for example, during the month), accordingly, everything depends not on an abstract date in the calendar (payroll), but simply on the availability of money in the bank (if the individual entrepreneur has opened a current account) or in the wallet (this there may be new receipts, or a remainder from past receipts), and also depending on what fate is assigned to them, whether they be invested in the business, paid as wages to employees, payroll taxes, or otherwise. That is, there is no payment of wages to individual entrepreneurs; there can be any amount of income.
If an individual entrepreneur does not receive a salary, then how can he get money? How and from what moment can they be considered “yours” and spent? If an individual entrepreneur works with cash, then you need to become familiar with the concept of “cash discipline”, and from time to time you will have to update your knowledge - the state is constantly changing rules and laws. In addition, you need to understand that the cash discipline of an individual entrepreneur and the presence of a cash register (KKM, cash register) are different, although related concepts. If it is convenient for an individual entrepreneur to open a settlement account, then the easiest way to receive money from a business for personal, absolutely unaccountable disposal is to transfer money from the individual entrepreneur’s current account to a card account, but as an individual. To avoid paying commissions, as well as for other reasons, you can have both accounts in one bank.
A surge of interest in the topic “salary of individual entrepreneurs” arose in 2011, and continues to this day. The reason is clear - a sharp and serious increase in insurance premium rates has become a big headache for very, very many companies. And one of the options for getting out of a very difficult situation (50% of the wage fund must be given away! That is, half is salary, half is contributions!) was to register relations with hired employees as individual entrepreneurs (for example, individual entrepreneurs working as taxis registered and formalize, well, etc.). And in this case, you can transfer money to an individual entrepreneur, who will pay contributions and taxes on income for himself. In any case, it will be less than the salary of an employee, but not everything is so simple in reality, of course. Sometimes salaries are not issued officially, and other business features can also have an impact.
Such a scheme for attracting individual entrepreneurs is “seen out” by the tax authorities very quickly and causes dissatisfaction, so it is advised to practice such relationships after studying the topic very carefully; moreover, the rapid growth of insurance premiums for individual entrepreneurs (and it will continue) simply destroys the meaning of such a “scheme”.
There is only one case when an individual entrepreneur’s salary actually exists - this is the work of an individual entrepreneur for hire. An individual entrepreneur cannot find a job at home, but he can find a job wherever he wants, and then the individual entrepreneur will have a salary like everyone else, that is, he will receive income from entrepreneurial activities and wages from hired work. That is, an individual entrepreneur can have a salary, but only if he combines work and entrepreneurial activities. And all income received will be considered personal funds.
The difference will be that the salary of an individual entrepreneur, consisting of income from business activities, must be calculated independently. Calculating the salary of an individual entrepreneur must be carried out constantly - in order to receive money, in simple terms, you need to keep records, based on this record, calculate taxes and contributions, pay them, and only after that manage the money.
Is it permissible for an individual entrepreneur to accrue and pay wages to himself? The legislation does not contain a clear answer to this question, but representatives of the Ministry of Finance and Rostrud have already voiced their position on it.
Individual entrepreneurs cannot calculate and pay salaries to themselves. In 2019, no legislative changes appeared that would allow this.
According to general rules, salary is a reward for the employee’s performance of labor functions. It is paid only within the framework. The entrepreneur himself belongs to the category of self-employed; he has a special legal status and does not enter into an employment contract with himself.
At the same time, the individual entrepreneur has the right to attract other employees to work and conclude an employment contract with them. In relation to individual entrepreneurs, there are no grounds for concluding an employment contract, since one of the parties to such legal relations is missing (based on Article 56 of the Labor Code).
Due to the lack of grounds for payment to himself, the individual entrepreneur does not accrue it. A similar position was contained in the explanatory letter of Rostrud No. 2009 No. 358-6-1 and in the Letter of the Ministry of Finance of the Russian Federation of 2015 No. 03-11-11/665.
But this does not mean that the entrepreneur will not be able to use his income. He can take the required amount directly from the profit received from the business. At the same time, taxes are not paid on such payments, which is beneficial.
Instead of personal income tax of 13%, individual entrepreneurs pay a single tax of 6% on income received.(if the individual entrepreneur is on the simplified tax system, and not on OSNO). And he pays insurance premiums separately in a fixed amount.
In order to use the money, an individual entrepreneur can withdraw it from his current account or take it from the organization’s cash desk. In the future, he can use them at his own discretion, without reporting to regulatory authorities.
Differences in calculating salaries for individual entrepreneurs and LLCs
Salary certificate from individual entrepreneur
Entrepreneurs are often faced with the need to present a salary certificate. Such a document can be requested at the bank when registering, at the embassy for obtaining a visa, at the social security authorities for processing benefits, etc. But since the individual entrepreneur does not have a salary, he can issue not a salary certificate, but a certificate of income received for himself.
Typically, entrepreneurs can confirm their income based on their tax return. But for those who work on UTII or on a patent, this option is not suitable. Often, a certificate of income is requested for the last three months, and individual entrepreneurs submit a simplified declaration only at the end of the year.
A certificate to yourself from an individual entrepreneur is drawn up in free form and contains his registration information: full name, tax identification number, address (it coincides with the registration address), as well as information about income received for the required period of time.
The certificate is certified by the personal signature of the entrepreneur and his seal (if available).
The entrepreneur can be contacted by his employee for receipt., working for him under an employment contract. According to the requirements of Art. 62 of the Labor Code, a certificate is issued within three days after receipt of a written application from the employee.
It is drawn up in free form, and it displays the fact of employment with an individual entrepreneur, the position and duration of work, the monthly salary or the amount of earnings for the last 3-6 months. General information with registration data, number and date of compilation, full name of the employee and the place of presentation of the certificate should also be indicated here. The certificate is certified by the signature of the individual entrepreneur with a transcript.
Thus, individual entrepreneurs do not pay themselves a salary and do not enter into an employment contract. But they have the right to withdraw the profit received from the account or take it from the cash register. In this case, no additional taxes are paid. Documenting the receipt of profit by individual entrepreneurs is very simplified: entrepreneurs may not maintain a cash book and accounting records.
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If you have registered an individual entrepreneur and have employees on your staff, then you are obliged to pay them wages, guided by the norms of the Labor Code (Article 12, Article 136). In this article, let's look at specific examples of how wages are calculated and paid to employees of individual entrepreneurs, what rules the employer needs to know and follow.
Remuneration system for individual entrepreneurs
Entrepreneurs, like legal entities, when concluding legal relations with an employee, must draw up an employment contract. In it, in addition to basic information (personal data of the employee, position, etc.), it is necessary to indicate the amount of the salary, as well as the amount of bonuses, if any. In addition, the contract must describe the remuneration system applicable to the employee. It can be piecework and depend on the volume of production, or time-based (based on the number of hours worked). Individual entrepreneurs and small businesses, as a rule, use time-based wages. Read also the article: → “”. Its essence is as follows:
- As an individual entrepreneur, you hire an employee (for example, an accountant), setting for him a 40-hour work week with a work schedule from 8:00 to 17:00 (1 hour break). Saturday and Sunday are days off for an accountant;
- Taking into account the established schedule, the accountant’s salary (amount X) was approved. If the accountant worked all days during the reporting month, then his salary will be X (the entire amount of the salary);
- If, at the end of the month, the accountant did not actually work all days, then he receives his salary based on the time when he was actually at work. For example, out of 21 working days, an accountant had 3 days of vacation at his own expense. Then his salary will be X / 21 days * (21 days – 3 days).
Procedure for payment of wages
Complying with the provisions of the Labor Code, the entrepreneur is obliged to pay wages to his employees 2 times a month. The regulatory act regulates the following: the period between payment of advance payment and salary should not exceed 15 calendar days. In this case, the individual entrepreneur must receive his salary for the month no later than the 15th day of the next month. If you are an entrepreneur, then for convenience we recommend using the following scheme for paying salaries to employees:
- pay the first part of the monthly remuneration (advance) on the 15th of the current month;
- make the final payment (direct payment of wages) on the 31st (30th) day of the current month.
This scheme complies with both requirements of the Labor Code: both regarding the period between payments (15 days) and regarding the timing of salary payments (until the 15th of the next month). Be sure to familiarize the employee with the payment mechanism, and also document the procedure in the employment contract.
Taxes and contributions: rate calculation
The amounts of payments to the budget and extra-budgetary funds for employees of individual entrepreneurs differ significantly from the amount and procedure for transferring taxes and contributions of individual entrepreneurs for themselves. If you do not have employees, then the amount of contributions for you is fixed. If you have hired one or more employees, then you will have to calculate tax and contribution indicators for each individual.
The amount of contributions and taxes from the salary of an individual entrepreneur is determined as a percentage of the established salary.
You must withhold only personal income tax from the employee’s salary; you will have to accrue and pay contributions at your own expense. For each employee’s salary you need to accrue:
- Personal income tax in the amount of 13% of salary;
- Pension Fund contribution – 22%;
- The amount for compulsory social insurance (FSS) is 2.9%;
- Contribution for health insurance (MHIF) – 5.1%.
Paying salaries: stages and calculation example
The procedure for paying salaries to individual entrepreneurs is as follows:
Stage 1. We pay the employee an advance
This month you must pay employees an advance. The payment amount can be calculated based on the number of days worked. You can also fix the advance amount as a percentage of the total rate. There is no need to charge and withhold personal income tax and contributions from the advance payment. Pay the advance on the day fixed by internal regulations (for example, an employment contract).
Stage 2. Calculate wages before deductions
If an employee took time off during the month (was sick, on vacation, etc.), then calculate the amount of salary based on the days actually worked. For example, an economist worked 19 days out of 21. Then the basis for the calculation will be the amount (Ok f) obtained as a result of the calculation:
Ok f = Ok / 21 days. * 19 days
Ok – salary according to the employment contract;
Ok f – salary based on days actually worked before deductions.
Stage 3. Calculate contributions and taxes
Also, before the payday, you need to calculate the amount of taxes and contributions. To do this, use the established rates (listed in the section above). The basis for calculation will be the salary (full or for days actually worked).
If this month you hired an employee to work under a contract, then you do not need to accrue and pay contributions to the Social Insurance Fund.
Stage 4. Calculate and pay salaries
Once you have determined the amount of contributions and taxes, calculate the amount of salary payable (“net” salary). Its size is determined by the formula:
Z = Ok f – Ok f * 13%,
where Ok f – salary based on days actually worked before deductions;
Ok f * 13% – the amount of personal income tax that is withheld from the employee at a rate of 13%. If YOU hired a non-resident, use the 30% rate.
There is no need to deduct contributions from your salary. Pay the salary received minus personal income tax to employees on the day established by the employment contracts. You can transfer money to employees on cards or give it in cash through the cash register.
Stage 5. Transfer taxes and contributions
After the salary has been paid, take care of transferring funds to the budget and extra-budgetary funds. You need to make a personal income tax transfer and pay funds to the funds on the day the salary is issued. List the amount that was accrued in terms of taxes and funds.
Since personal income tax was withheld from the salary, it is paid at the expense of the employee. Payments to the funds are made at your expense.
Example No. 1. IP Sidorchuk sells automobile spare parts. In August 2016, Sidorchuk hired accountant G.L. Popova.
An employment contract was concluded with Popova, according to which:
- time-based wages have been established;
- the fixed salary was 51,380 rubles;
- the advance is paid on the 15th of the current month, the salary is paid on the 31st;
- The advance is calculated based on 30% of the salary without deductions.
Out of 22 working days in August, Popova worked 20 (the accountant took time off on August 17 and 18). The procedure for calculating and paying Popova’s salary for August 2016 is presented in the table below:
| Operation | Calculation | Sum | date |
| Advance payment to Popova | RUR 51,380 * thirty% | RUR 15,414 | 16.08.16 |
| Calculation of salary for actual days worked | RUR 51,380 / 22 days * 20 | RUR 46,709 | 30.08.16 |
| Personal income tax calculation | RUR 46,709 * 13% | RUR 6,072 | 30.08.16 |
| Calculation of contributions | · PF – 46,709 rubles. * 22%; · Social Insurance Fund – 46,709 rubles. * 2.9%; · Compulsory medical insurance – 49,709 rubles. * 5.1%. | · PF – 10,276 rubles; · Social Insurance Fund – 1,355 rubles; · Compulsory medical insurance – 2,535 rubles. | 30.08.16 |
| Payment of salary to Popova | RUR 46,709 – 6,072 rub. | RUR 40,637 | 31.08.16 |
| Calculation and transfer of personal income tax and contributions | · fees – 10,276 rubles. + 1.355 rub. + 2.535 rub. (at the expense of IP Sidorchuk); | · contributions – 14,166 rubles; · Personal income tax – 6,072 rubles. (at Popova's expense) | 31.08.16 |
Comparison of salary payment methods
If you have registered as an individual entrepreneur and have employees on staff, then you can pay them wages by bank card or in cash. The payment method must be fixed by internal regulations. But even if the employment contract states that the employee receives his salary on the card, the latter has the right to demand payment in cash.
Below in the table we will compare the procedure for paying funds in cash and by card, and also consider the necessary documents and accounting entries.
| Index | Cash payment | Cashless payments |
| Procedure | Based on the calculation made, you can give the employee the amount of salary due to him in cash. If you do not have a cashier on staff, then issue money yourself as the head of an individual entrepreneur. | If you decide to issue salaries to employees in non-cash form, then you must first enter into an agreement with the bank. The credit institution assumes obligations for issuing cards and servicing them. On the day the salary is issued, the bank transfers funds to the employees’ bank account according to the payment documents you provided. |
| Documentation | If you give money to one employee, then you can issue an expense order for this. If several employees receive salaries at the cash desk, then it is advisable to draw up a payroll sheet. When receiving money, the employee is required to sign the payment document as the recipient. | To pay funds to an employee’s card, provide the bank with a payment document. If you are transferring money to several employees, then you will also need a register indicating the full names of the employees, payment card (current account) numbers and amounts to be paid. Documents should be submitted to the bank in advance, but indicating the date of payment. This is due to the fact that banks can transfer money not on the same day, but for example, the next. It is advisable to pay salaries through the bank in which the employees' accounts are opened, this will significantly speed up the payment procedure. |
| Postings | When issuing money from the cash register, make the following entry: Dt 70 Kt 50. If you are issuing a deposited salary, then reflect the transaction as follows: Dt 76.4 Kt 50. | If funds are paid through the bank where employees’ accounts are opened, then reflect the payment as follows: Dt 76 Kt 51 – transfer of money towards salary; Dt 70 Kt 76 – money is credited to the employees’ card accounts. If you transfer your salary through another bank, then reflect the payment as follows: Dt 70 Kt 51. |
Procedure and example of preparing a salary slip
When calculating and paying salaries, use the payroll form T-51. It contains complete information necessary to calculate payments to individual entrepreneurs, namely:
- employee data (full name, personnel number, position);
- salary indicators;
- data on actual days (hours) worked, including on holidays;
- amounts of accruals, deductions, offsets, debts (both employee and individual entrepreneur);
- the total amount to be paid.
It is advisable to draw up a payroll in the case when several people are listed as employees of an individual entrepreneur. But you have the right to draw up a statement for one employee. After making the calculations and entering this into the document, certify it with your signature.
Example No. 2. IP Kirichenko is engaged in road transport. In November 2016, IP Kirichenko hired 2 drivers (Spiridonova N.G. and Panteleev L.D.). Employment contracts were concluded with the drivers, according to which Spiridonov’s salary was set at 15,800 rubles, Panteleev’s - 13,450 rubles. A time-based wage system has been established for drivers.
At the end of November, drivers worked a full working month (without sick leave, vacations, time off, etc.). IP Kirichenko calculated salaries for drivers:
| Full name | Contributions | Personal income tax | Calculation of the amount to be paid | Amount to be paid |
| Spiridonov N.G. | · PF – 15,800 rubles,* 22% = 3,476 rubles; · Social Insurance Fund – 15,800 rubles. * 2.9% = 458 rub.; · Compulsory medical insurance – 15,800 rubles. * 5.1% = 806 rub. | 15,800 rub. * 13% = 2.054 rub. | 15,800 rub. – 2,054 rub. | RUR 13,749 |
| Panteleev L.D. | · PF – 13,450 rubles,* 22% = 2,959 rubles; · Social Insurance Fund – 13,450 rubles. * 2.9% = 390 rub.; · Compulsory medical insurance – 13,450 rubles. * 5.1% = 686 rub. | RUB 13,450 * 13% = 1.749 rub. | RUB 13,450 – 1.749 rub. | RUR 11,701 |
Based on the calculation, Kirichenko compiled a payroll for November 2016:
| Full name | Job title | Salary, rub. | Days worked | Accrued, rub. | Withheld, rub. | Debt | To be paid, rub. | ||
| workers | on weekends, holidays | Behind the employee | For IP | ||||||
| Spiridonov N.G. | Delivery driver | 15.800 | 22 | – | 15.800 | 2.054 | – | – | 13.749 |
| Panteleev L.D. | Delivery driver | 13.450 | 22 | – | 13.450 | 1.749 | – | – | 11.701 |
Frequently asked questions and their answers
Question No. 1. Individual entrepreneur Sviridov pays wages to employees through the cash register. An employee of individual entrepreneur Pogorelov cannot receive his salary on his own, and therefore the employee has issued a power of attorney for his wife to receive funds. How should individual entrepreneur Sviridov prepare payment documents in this case?
In the payroll, instead of the employee’s signature, Sviridov must indicate “by power of attorney.” The original power of attorney must be attached to payment documents.
Question No. 2. On the day the salary was paid, the driver Sokolov, an employee of IP Koroedov, was not at work due to illness and did not receive a salary. How can Sokolov receive the amount due?
After returning to work, Sokolov must contact Koroedov with a request for funds. If at the time of application the cash desk has the required amount, Koroedov must give out the money. If there is no money in the cash register, then Koroedov must contact the bank and issue Sokolov’s salary immediately after receiving funds from the bank.
Question No. 3. IP Kucherov has hired workers. At the end of April 2016, funds were transferred to extra-budgetary funds for employees in the amount of 3,402 rubles. Can Kucherov, through these payments, reduce the tax base for the single tax?
Yes, but only in the amount of 50% (RUB 3,402 * 50% = RUB 1,701). Kucherov can offset the amount of contributions paid for himself in full.
The calculation of an employee's salary in 2019 is negotiated at the beginning of his or her employment and is described in the employment agreement. Each individual entrepreneur undertakes to make payments twice a month with the same frequency: advance payment (forty or fifty percent) and basic salary (sixty or fifty percent).
Before the vacation, payment must be made earlier than the due date, 3 days before the start of the vacation days. An employee does not have the right to pay his own salary; this must be done by a specially created accounting department, for the correct functioning of which the individual entrepreneur is responsible. Payment must be calculated according to the system to which the employee agreed when he took up his position.
There are two ways to pay wages:
- cash;
- cashless payments.
Each person must sign in order to calculate the monetary reward. Before issuing funds, the cashier must request a document that will serve as a means of identification. The payslip has the properties of an individual document, therefore it is compiled by each organization at its own discretion, although it has general requirements for registration.
Note! Ifindividual entrepreneur has a patent (it operates under the patent tax regime), then it is exempt from a certain tax burden and deductions.
Salary deduction rates in 2019
All entrepreneurs should know what deductions to make from their employees' salaries. Rates change every year, so it is imperative to keep track of all changes in order to correctly issue funds to your employee. A tariff of thirty percent was established in 2018, the amount of funds will be distributed as follows:
contributions to the pension fund – 22%;
contributions to the social insurance fund – almost 3%;
Contributions to the Russian Federation Compulsory Medical Insurance Fund are about 5%.
In the new year, a new rule will apply - the maximum value of the base, which largely depends on the level of the minimum wage for labor activity. This rule must be applied when deducting contributions to the pension fund from salary. If the salary does not exceed a certain base, then deductions will be withdrawn at the rate of ten percent. And social security payments are made only if wages exceed a certain base.
FFOMS are mandatory, therefore they are withdrawn even with the minimum wage. In order to know what size payments should be made, it is necessary to keep records of payments to each employee, since the FFOMS rate is different for each citizen. An accountant at an enterprise can develop such an accounting card, but you can download a ready-made example of the document form.
Additional tariffs are used in those enterprises where employees are forced to work in hazardous or unhealthy conditions. Other contribution rates apply in both pensions and social insurance.
Fixed insurance deductions must be accrued along with wages on the last calendar day of the reporting period.
Payments to the pension fund are made with one receipt; no changes are planned in this area next year. At the time of issuance of the advance, payment of income tax for an individual should not be made; it must be made when paying the basic salary for work activities. The day of payment of this tax also depends on the method of payment of wages: cash or non-cash.
Mandatory payments to individual entrepreneurs
Despite the fact that individual entrepreneurs who operate under the patent taxation system are exempt from many payments, they must make deductions in the following areas:
- state pension fund (PFR);
- compulsory medical insurance fund (FFMS).
These requirements are regulated by the law of the Russian Federation and are not subject to change without good reason. Interest rates of payments are fixed and regulated by law in 2019.
Individual entrepreneurs are required to make payments in these areas, both for themselves and for their subordinates. Payments are also made to the social insurance fund. In 2019, entrepreneurs must make contributions regardless of whether they are actively engaged in economic activity or not. Even if the company does not actually function, legally it continues to exist, which means that the obligation to make contributions is not removed.
Contributions deducted for oneself are fixed, so the interest of an individual entrepreneur is known to everyone in advance; they can be calculated using the estimated annual income in 2019 as a basis. The individual entrepreneur pays money to himself into the pension fund in order to have a certain level of payments upon retirement.
The minimum wage (minimum wage) affects almost all interest payments, so pension contributions in 2019 will depend on this indicator. To calculate any insurance premium, you need to know the level of the minimum wage, which changes every year. To calculate insurance premiums as a basis in 2019, you need to take the amount of 7,500 rubles established as the minimum wage at the beginning of 2019
In 2019, everyone has access to two ways to make payments to the pension fund of the Russian Federation. The first method is more labor-intensive, but not at all difficult. An individual entrepreneur can manually calculate contributions for himself and his subordinates or entrust this to the accounting department of the enterprise. To do this you will need:
- find out the fixed level of minimum wage (minimum wage);
- find out the current tariffs;
- fill out the necessary forms and enter accurate data;
- make your own payment.
Calculations must be carried out only according to the new tariffs established by the state.
The second method is simpler and will not take much time. You can simply contact the pension fund and request a tax receipt calculated for a specific enterprise. This procedure needs to be carried out only once a year, that is, one contribution will cover all annual deductions. Using this method, an entrepreneur can simplify life for both himself and his subordinates.
Which persons will be exempt from payments?
The state provides certain benefits that apply to individual entrepreneurs with specific social statuses. The payer is exempt from contributions to the pension fund of the Russian Federation in the following cases:
- conscription for military service, during which the person is under a special regime;
- time to raise a child;
- the time a person spends caring for a disabled person or a person over eighty years of age;
- time spent by one of the spouses abroad in order to establish diplomatic relations.
The state provides one and a half years of tax exemption when caring for one child. The total period of raising several or more children should not exceed four and a half years in total.
The individual entrepreneur pays fixed contributions to himself, so the state has not provided for any specific requirements. For an entrepreneur, there are only deadlines for payments, after which the state will impose a fine for non-compliance with tax obligations.
No later than the last day of the current year, the following fixed contributions of an individual entrepreneur must be made:
- payments to the Russian Federation Pension Fund (PFR);
- payments to the Russian Federation Compulsory Medical Insurance Fund (FFOMS).
These rules allow employers to independently choose the time to pay contributions, which greatly simplifies the procedure. An entrepreneur can choose the most appropriate time for payments based on his financial situation and his own schedule.
The easiest way is to make a single payment in all directions for the entire year; this will save time and effort. There are three ways to pay money to social and insurance funds:
- once a year;
- once a month;
- once a quarter.
Note!!! Parts of contributionsentrepreneur may be different, the employer has the right to independently choose what amount to pay this or next month. The only requirement is not to miss the payment!
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