How to calculate contributions for an individual entrepreneur. Insurance premiums for individual entrepreneurs for less than a year
Individual entrepreneurs (IP) are required to annually transfer fixed insurance premiums to the Pension Fund ( Pension Fund Russia) and FFOMS (Federal Compulsory Health Insurance Fund).
Insurance premiums from 2018
Starting from 2018, the amount of insurance premiums no longer depends on the minimum wage. Now these are fixed values established by law for 2018, 2019 and 2020:
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Pension Fund | RUR 26,545 | RUR 29,354 | RUB 32,448 |
| FFOMS | 5840 rub. | 6884 rub. | 8426 rub. |
| Total | RUB 32,385 | RUR 36,238 | RUR 40,874 |
If your annual income exceeds 300,000 rubles, then you must pay another 1% of the excess amount to the Pension Fund, as before. Nothing has changed here. Contributions to the FFOMS do not depend on income.
The maximum contribution amount is now also calculated in a new way. This is now also a fixed value and for 2018 it is equal to 212,360 rubles.
The deadline for paying fixed contributions has not changed - they must be paid before December 31 of the current year. However, the deadline for paying the additional 1% has changed. Now this part of the contributions must be paid before July 1, and not until April 1, as before.
Calculation of insurance contributions to the Pension Fund and the Federal Compulsory Medical Insurance Fund until 2017
- Amount of contribution to the Pension Fund = minimum wage * 12 * 26%
- Amount of contribution to the Compulsory Medical Insurance Fund = minimum wage * 12 * 5.1%
where the minimum wage (Minimum Wage) from 07/01/2017 is set at 7800 rubles
Please note that when calculating the amount of insurance premiums, the minimum wage is used, which was set on January 1 of the current year, despite its changes during the year.
Thus, the amount of fixed insurance premiums in 2017 is equal to 27 990 rub.
Also, starting from 2014, upon receipt of income in excess of 300,000 rubles per year, the individual entrepreneur is obliged to pay 1% to the Pension Fund of the Russian Federation on the amount exceeding 300,000 rubles. For example, when receiving an income of 400,000 rubles, 1% must be paid on the amount of 400,000 - 300,000 = 100,000 rubles, we get 1,000 rubles.
In this case, the amount of contributions to the pension fund will not exceed(8 * minimum wage * 12 * 26%). In 2017 this is187,200 rubles, in 2016 - 154,851.84 rubles.
The procedure for calculating insurance premiums for an incomplete year
When paying the insurance premium for less than a year(when starting a business activity not from the beginning of the year or when terminating the activity), the amount of the contribution is correspondingly reduced in proportion to the calendar days. In this case, the day of registration or the day of termination of activity MUST be included.
History of insurance premiums
| Year | Amount, rub. |
|---|---|
| 2018 | 32,385.00 (+1% of income from amounts over RUB 300,000) |
| 2017 | 27,990.00 (+1% of income from amounts over RUB 300,000) |
| 2016 | 23,153.33 (+1% of income from amounts over RUB 300,000) |
| 2015 | 22,261.38 (+1% of income from amounts over RUB 300,000) |
| 2014 | 20,727.53 (+1% of income from amounts over RUB 300,000) |
| 2013 | 35 664,66 |
| 2012 | 17 208,25 |
| 2011 | 16 159,56 |
| 2010 | 12 002,76 |
| 2009 | 7 274,4 |
| 2008 | 3 864 |
Insurance premiums and reduction of tax simplified tax system
An individual entrepreneur who has chosen the simplified tax system (simplified tax system) and the “income” tax regime can reduce the amount of income tax by the amount of insurance premiums paid. Individual entrepreneurs without employees can reduce tax by 100%, with employees - by 50%.
Both annual tax and quarterly advance payments can be reduced. To reduce advance payments, it is necessary to pay insurance premiums in quarterly installments.
If the object of taxation is “income reduced by the amount of expenses”, then paid insurance premiums can be included in expenses.
Responsibility for non-payment of insurance premiums
For late payment of insurance premiums, penalties are charged in the amount of 1/300 of the refinancing rate of the Central Bank of the Russian Federation for each calendar day of delay (clause 6 of Article 25 of Law 212-FZ)
For non-payment or incomplete payment, a fine is provided in the amount of 20% of the unpaid amount or 40% if there is intent (Article 47 of Law 212-FZ).
The debtor has the right to forcibly recover unpaid amounts of insurance premiums along with penalties and fines.
The Tax Service of the Russian Federation, in its latest letter dated 03/07/2017 No. BS-4-11/4091, explained how to calculate insurance premiums if a businessman began his activities not from the beginning of the billing period, but at any other interval or decided to close an individual entrepreneur in middle of the year.
What does the Law say?
Insurance premiums payable for the billing period should be calculated based on the minimum wage in proportion to the number of months per year during which the individual entrepreneur carried out his activities. If the first month was also incomplete, you need to calculate the amount of contributions from the number of days of this month from which the activity began (clause 3 of Article 430 of the Tax Code of the Russian Federation).
A similar calculation is made when a businessman closes his individual entrepreneur - fixed contributions must be calculated using the minimum wage as a basis and determining the proportional number of months in which the activity was still carried out. If the last month of activity is incomplete, the number of days worked in it is calculated and multiplied by the minimum wage (clause 5 of Article 430 of the Tax Code of the Russian Federation). It is worth recalling that the minimum wage amount is taken at the beginning of the billing period. So in 2017, the minimum wage as of January 1 was 7,500 rubles. If this value changes upward during the year, this will not affect the calculation of fixed insurance premiums.
Calculation example
Let's give an example of calculations when a businessman closed his individual entrepreneur on February 7, 2017, that is, on this date he was excluded from the Unified State Register of Individual Entrepreneurs. Thus, the number of full months of the billing period will be one (January), plus the number of calendar days of the incomplete month in which the state registration of the activity was terminated, in our case - 7 days, while in the month of termination of the activity (February 2017) there are 28 calendar days .
Let's calculate how many contributions an individual entrepreneur must pay when ceasing to operate:
The contribution to the Pension Fund will be 2437.5 rubles. The amount of contributions for one full month will be 1950 rubles (7500 (minimum wage) x 12 (number of months in a year) x 26% (PFR coefficient) / 12 (number of months in a year)). And for an incomplete month, 487.50 rubles (we divide the amount of contributions for a full month of calculation by the number of calendar days in an incomplete month (in February 28) and multiply by the number of days worked (in our example - 7)).
In Social Insurance, in our example, the merchant will need to pay 478.13 rubles. In particular, we calculate contributions for a full month using the formula: minimum wage x 12 months x MHIF coefficient 5.1% / 12 months. We get the value of 382.50 rubles. To it we add calculations for an incomplete month, proceeding in the same way as with pension contributions (382.50 rubles / 28 days x 7 days = 95.63 rubles), then add up the results obtained.
You need to act in a similar way when calculating contributions when opening an individual entrepreneur during the billing period.
In the letter under discussion, the tax authorities clarify: if a businessman carried out activities for an incomplete calendar year, then when closing an individual entrepreneur and the need to determine the amount of income for calculating the required insurance premiums, all income received should be taken into account (proportionality to the number of months of the individual entrepreneur’s operation to the number of months unfinished during the year does not apply in this case).
Officials also reminded that it is necessary to pay no later than 15 calendar days from the moment the merchant is deregistered with the Tax Service and excluded from the Unified State Register of Individual Entrepreneurs when he closes his business activity (clause 15 of Article 431 of the Tax Code of the Russian Federation).
In this article, we will look at an example of calculating insurance premiums for an entrepreneur if he did not work for the whole year; we will learn how to calculate contributions independently or using the service on the tax service website.
Legislative regulation of the issue
Legislative regulation of the issue is carried out by the following legal acts and documents:
- Information letter dated March 30, 2017 with number BS-4-11-4091, which describes the procedure for calculating insurance premiums;
Amount of insurance premiums (IC) for a full year
The amount of CB no longer depends on minimum size payment, it is prescribed in the Tax Code for three years in advance for 2020, 2020 and 2020. The fixed amount of SV payments for the year includes two types of SV - pension and medical. There is also a variable part of pension contributions - this is one percent of the excess income of three hundred thousand rubles. The amounts of contributions in accordance with Article 430 of the Code are presented in the table.
| Year | 2020 | 2020 | 2020 |
| Pension, rub. | 26545 | 29354 | 32448 |
| Medical, rub. | 5840 | 6884 | 8426 |
| Total, rub. | 32385 | 36238 | 40874 |
Features of payment of SV
The entrepreneur is obliged to pay the amount of SV for the entire year within the time limits specified by law. Let's look at the payment deadlines in the table.
| Peculiarities | Fixed part of contributions – If the entrepreneur was registered with the tax office for the entire year | Fixed part of contributions - If the entrepreneur ceased activities and was deregistered during the year | Contributions from excess income of 300 thousand rubles - If the entrepreneur was registered with the tax office for the whole year | Contributions from excess income of 300 thousand rubles - If the entrepreneur ceased operations and was deregistered during the year |
| Deadlines | Until December 31 of the current year | Within 15 calendar days from the date of deregistration of the individual entrepreneur | Until July 1 next year | Within 15 calendar days from the date of deregistration |
The deadlines for paying SV are described in the Tax Code in Article 432. For fixed contributions, you must pay before December 31 of the current year, for 1% from exceeding 300,000 rubles - before July 1 of the next year. If an entrepreneur decides to terminate his activities and deregisters, then he has fifteen calendar days to pay the fees.
Example.
Ivanov A.A. registered as an individual entrepreneur in January 2020. On June 21, 2020, he deregistered as an entrepreneur. During his work, he received an income of 200 thousand rubles. Ivanov A.A. Must pay contributions within 15 calendar days from the date of deregistration, that is, until July 6, contributions must be paid. If Ivanov A.A. will not pay dues until given period, then the tax office will begin to charge penalties on contributions for each day of delay.
How to calculate the amount of SV for an incomplete year
If an individual entrepreneur does not begin its activities from the beginning of the year or is deregistered during the year, then the amount of the SV must be calculated by him independently. The amount is calculated based on the number of days that individual was registered as an entrepreneur.
Example.
IP Vasiliev began operations in December 2017, and on April 10, 2020, he was deregistered. The amount of income for 2020 was 150,000 rubles. The number of months during 2020 when IP Vasiliev was registered is three - January, February, March. During this time you need to pay:
Pension:
26545/12=2212.08 (monthly amount of SV)
2212.08*3=6636.24 (for three months)
Medical:
5840/12=486.67 (monthly amount of SV in FFOMS)
486.67*3=1460.01 (for three months)
Total: 8096.25 rubles for three full months.
Now let's calculate the contributions for April:
Pension:
2212.08*10/30=737.36 (for 10 days of April)
Medical:
486.67*10/30=162.22 (for 10 days of April)
Total for 2020, individual entrepreneur Vasiliev must pay:
6636.24+1460.01+737.36+162.22=8995.83 rubles.
Detailed calculations can also be found here:
Services for calculating the amount
In fact, in order to calculate the size of the SV of an entrepreneur who has not been registered for a full year, one cannot help but pick up a calculator and calculate formulas. The tax office has an excellent service for such cases - Calculation of contributions. All you need to know for an individual entrepreneur is the start date of activity and the end date. Enter the dates and the system will calculate the amount of contributions. The only exception is that it does not take into account the amount of contributions in excess of income of three hundred thousand. But this part of the SV does not depend on when the individual entrepreneur began and ended his activities. It is calculated as 1% of the difference between the amount of income and 300 thousand. It is important to note that in addition to calculating the amount, the tax service provides information about the budget classification codes by which SV must be paid.
conclusions
When starting an activity not from the beginning of the year and when deregistering during the year, the individual entrepreneur has the right not to pay the fixed part of the SV in full for the year. The amount of SV must be calculated by him based on the actually registered days as an individual entrepreneur. The easiest way to calculate the amount is through the tax office website.
The individual entrepreneur insurance premium calculator helps calculate mandatory individual entrepreneur insurance premiums for 2017 -2019. To calculate contributions, select the desired year and indicate the income received if it is more than 300 thousand rubles.
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Who pays insurance premiums
All entrepreneurs pay a fixed portion of insurance premiums to the Pension Fund and the Federal Compulsory Medical Insurance Fund, even in the absence of activity.
If your income for the year exceeds 300 thousand rubles, then an additional 1% of the excess amount is paid to the Pension Fund.
How to calculate income
To pay an additional 1% to the Pension Fund, the amount of income is calculated as follows:
- for the simplified tax system - this is all income, excluding expenses ( line 113 of section 2.1.1 of the declaration under the simplified tax system income and line 213 of section 2.2 of the declaration under the simplified tax system income minus expenses),
- for UTII - this is imputed income for the year ( the sum of the values on line 100 of section 2 of the UTII declarations for all quarters),
- for the patent system, this is the potential annual income ( line 010). If the patent was received for a period of less than 12 months, then the annual income must be divided by 12 and multiplied by the number of months of the period for which the patent was issued ( line 020).
If an entrepreneur combines several tax regimes, then the income from each of them is summed up.
Deadline for payment of insurance premiums
The fixed part of the insurance premiums must be paid before December 31. Additional 1% in the Pension Fund - until July 1 of the next year.
Insurance premiums for less than a year
If you have not been registered as an individual entrepreneur since the beginning of the year, then in the field beginning of period indicate the date of registration as an individual entrepreneur.
If you have ceased activities as an individual entrepreneur, then in the field end of period indicate the date of termination of activity as an individual entrepreneur.
Insurance premiums for individual entrepreneurs in 2017
From the moment they receive their status, individual entrepreneurs are required to make contributions to their own pension and health insurance. This is the only category of citizens in Russia that does this independently.
For all hired employees, contributions to extra-budgetary funds are made by the employer. This amount is not withheld from the employee’s salary (like personal income tax 13%), but is paid from the company’s own funds in addition to the salary.
An individual entrepreneur is not an employee; he does not pay himself a salary. His income is the profit received from business activities. It is not the basis for calculating the amount of contributions to the Pension Fund. Therefore, a special accrual procedure applies to entrepreneurs.
Since 2014, contributions to the Pension Fund have consisted of two parts: fixed and paid on income over 300,000 rubles.
With regard to the fixed part of insurance premiums, 2 most important rules apply:
- They begin to accrue from the moment of registration of the individual entrepreneur.
- They must be paid to all entrepreneurs without exception, regardless of whether they were active or not. Many individual entrepreneurs mistakenly believe that since they did not manage to receive their first profit, they are not required to pay contributions. In fact, the lack of income or losses incurred do not relieve one from the obligation to make contributions to extra-budgetary funds.
The basis for calculating fixed pension taxes for entrepreneurs is the minimum wage for the current year. In this case, we are talking about the federal minimum wage, which is the same for all Russian regions. Every year the government indexes the minimum wage, which leads to an increase in the amount of contributions to the Pension Fund.
The tariff for paying pension payments for individual entrepreneurs is 26% in the Pension Fund and 5.1% in the Compulsory Medical Insurance Fund. If the Compulsory Medical Insurance Fund establishes a single tariff for workers and the self-employed population, then in the Pension Fund it is higher for individual entrepreneurs than for hired employees (for them contributions are charged at a rate of 22%). Pension contributions are no longer divided into funded and insurance parts, as there is a moratorium on the funded component.
For the entire 2016, entrepreneurs must pay 23,153.33 rubles. (of which 3,796.85 rubles go to the Compulsory Medical Insurance Fund, and the rest to the Pension Fund) and another 1% from income over 300 thousand rubles. As a result, each individual entrepreneur will pay his own amount of contributions, which will directly depend on the success of his entrepreneurial activity. Additional contributions are transferred only to the Pension Fund.
For example, an individual entrepreneur earned 1.5 million rubles in 2016. He must transfer 23,153.33 rubles to the Pension Fund. and 12,000 rub. additionally from excess income (1,500,000-300,000) * 1%)).
It is worth understanding that income is the entire profit of the entrepreneur for the year without reduction for expenses incurred. This is true for simplified taxation system-income, simplified taxation system-income-expenses and OSNO. For “imputed” and “patent”, possible, or imputed, income is included in the calculation.
If an entrepreneur combines several taxation systems, then the income received under each of them must be added up.
Legislators also provided a limit on insurance premiums, more than which individual entrepreneurs will not pay in any case. In 2016 it is 158,648.69 rubles. The specified maximum value of deductions will have to be paid by businessmen who do not submit a tax return within the established time frame. Therefore, it is important to report to the Federal Tax Service on time.
Entrepreneurs must pay a fixed part of taxes by December 31, 2016; for the additional part, the deadline is set for April 1, 2017.
Return to contents
Insurance premiums for less than a year
The procedure for calculating insurance premiums for individual entrepreneurs for less than a full year is relevant for the following categories of businessmen:
- those who have not started their business since the beginning of the year;
- having a temporary exemption from paying contributions (for the period of parental leave, military service, for the period of caring for a disabled child, etc.);
- when closing an individual enterprise in the middle of the year.
In the above situations, payments are calculated in proportion to the number of days (months) during which the business activity was carried out.
The calculation of insurance premiums for individual entrepreneurs for an incomplete year can be divided into 2 stages:
- For fully worked calendar months, the calculation is carried out using the formula: minimum wage * 26% (or 5.1% for FFOMS) * number of full months.
- For incomplete months, you need to divide the number of days worked by the total number of days in the month and multiply this value by the tariff and the minimum wage.
In 2016, the minimum wage is 6,204 rubles. Despite the fact that since July 2016 the minimum wage was indexed to 7,500 rubles, pension contributions are calculated according to the value in effect at the beginning of the year: 6,204 rubles.
Based on the indicated value, every month the entrepreneur must transfer 1613.04 (6204 * 26%) to the Pension Fund and 316.40 rubles. (6204*5.1%) in the FFOMS.
Let us give an example of calculating insurance premiums for individual entrepreneurs for less than a full year. For example, citizen Ivanov received the status of an entrepreneur on March 12, 2016. The number of fully worked months is 9. During this period, Ivanov will have to transfer 14,517.36 rubles. (9*6024*26%) to the Pension Fund and 2747.36 rubles. (9*6204*5.1%) in the Compulsory Medical Insurance Fund. The payment calculation for March will be as follows: 6204*19/31*26%+6204*19/31*5.1%. This means that the amount payable for March will be 988.64 + 193.93 = 1182.57 rubles.
Additional deductions do not depend on the number of months worked by the individual entrepreneur, but only on the amount of revenue received.
It is worth noting that the Pension Fund usually sends ready-made payment slips to entrepreneurs with the amount to be paid indicated on them. Some Federal Tax Service issues receipts along with documents for registration of individual entrepreneurs. Therefore, the entrepreneur does not need to make independent calculations.