Insurance premiums of the simplified tax system

Individual entrepreneurs' contributions to the simplified tax system are made in two versions - in a fixed amount when the entrepreneur pays contributions for himself and as a percentage of the amount of income when making contributions for employees. The amount of fixed payments does not depend on the taxation system applied (with the exception of self-employed persons who pay insurance contributions voluntarily). Individual entrepreneurs' insurance premiums on the simplified tax system for employees, as well as insurance premiums for "simplified" legal entities, were made at special reduced rates until 2019, but this mechanism was changed with the onset of 2021.

Advantages of using "simplified"

Today, the simplified tax system is the most common tax regime for individual entrepreneurs. This regime allows you to pay taxes and fees in a special manner, and also facilitates the process of keeping records both in the accounting and tax spheres. This approach greatly simplifies the life of small and medium-sized businesses.

Many individual entrepreneurs choose a simplified tax system

There are also other advantages that incline entrepreneurs to switch to a simple fee payment regime.

The entrepreneur avoids the need to submit his financial statements to the Federal Tax Service on a quarterly basis. This approach significantly saves time and money on accountant services.
The entrepreneur gets the opportunity to independently choose the object of taxation. It is important to consider that income should be 6%, and profit minus expenses should be 15%.
Three taxes, which had to be paid separately and had to be reported for each, are being replaced with one single one.
The volume of the tax base itself is reduced by the amount of funds and all tangible and intangible assets of the entrepreneur simultaneously at the time of their commissioning.
New tax period frameworks are being established. Now the Tax Code decides that reporting must be submitted once a calendar year. At this moment the declaration is submitted.
A simplified way to maintain accounting and tax records.

It is important! Entrepreneurs who have chosen a simple fee payment regime receive another bonus. They avoid paying personal income tax in the field of business activities. This approach allows you to get greater profits at the end of the year.

An undeniable advantage of the simplified tax system is that an individual entrepreneur can either immediately choose a similar mode of payment of fees or switch to it, having previously used a different mode. It is very comfortable.

The transition procedure itself, after submitting documents to the inspectorate, lasts only one calendar month, which will have virtually no effect on the level of income and the business as a whole. The legislator thought through the issue of transition in such a way as to minimize the losses of individual entrepreneurs at the time of registration. And this is another positive point.

The advantages of a simple fee payment regime are obvious. Therefore, every day an increasing number of small business representatives seek to test for themselves this opportunity provided by the state as part of the support of businessmen.

simplified tax system – reduction in insurance premiums for 2021

As a measure to support small businesses, the legislation provides for the possibility of “simplified” adjustments to the amount of tax obligations under the basic tax (STS) at the expense of insurance contributions paid during the year. A reduction in the simplified tax system for insurance premiums is provided for taxpayers using a simplified special regime with the object “income”. This norm is regulated by the provisions of Art. 346.21 Tax Code of the Russian Federation.

Insurance premiums paid for employees reduce the simplified tax system “income” by no more than half (50%), and in the period when they were transferred to the budget (clause 3.1 of article 346.21 of the Tax Code of the Russian Federation). Let's look at how tax reduction occurs using an example.

Conditions of use

Not every individual entrepreneur can work according to the simplified tax system. The Tax Code contains a number of prohibitions and special provisions that allow you to filter the list of organizations that are given such an opportunity. You can find out more about the conditions in Article 346.12 of the Tax Code.

It is important! All individual entrepreneurs who previously used the general payment mode or UTII can switch to this mode of payment of fees.

One of the most important conditions is the amount of income that an individual entrepreneur received for a particular period. This period is considered from January to September of the current year. Income from activities received by the entrepreneur must be less than or equal to the amount of 112 million rubles.

The possibility of switching to the simplified tax system depends on the income level of the individual entrepreneur

If the amount of income received exceeds the specified indicator, then the simplified taxation system cannot be applied to this business.

But, in addition to this condition, there are two more equally important requirements that apply to individual entrepreneurs. They are covered in paragraph 3 of Article 346.12 of the Tax Code:

The value of fixed assets in the balance should not exceed the amount of 150 million rubles. If the residual value is higher, the individual entrepreneur is deprived of the privilege to use the simplified tax system.
The second condition is that the number of employees should not exceed 100 people. Only those employees who carry out their activities under an employment or civil contract are considered.

If an individual entrepreneur meets all of the above requirements, he can come to the tax office and write an application to switch to the simplified tax system. However, if at least one of the criteria does not fall within the requirements established by the Tax Code, then the entrepreneur will have to either adjust his business to the requirements for the entire next year, or accept the fact that he will not be able to work according to the “simplified” approach.

The decision to switch to the simplified tax system is made exclusively by the entrepreneur himself.

The transition to the simplified tax system also, in fact, does not entail any difficulties. The actions come down to the following list:

You must notify the inspectorate of your decision. For this purpose, a notification application is drawn up in a special form number 26. 2-1. In this document, the individual entrepreneur indicates his income or income minus expenses. It is better to fill it out on a computer or by hand, but in block letters. This is necessary so that the inspection officer can familiarize himself with the information presented. The bank is filled out independently, with the help of accounting specialists or lawyers.
A package of documents is collected, which indicates the income received, as well as the date of registration of the business in the form of an individual entrepreneur.
All documents are submitted for review to the inspectorate, where after 30 calendar days registration is carried out in the simplified tax system form.

The tax authority cannot oblige individual entrepreneurs to switch to the simplified tax system, since such a transition is carried out only on a voluntary basis and at the request of the businessman himself.

Types of activities according to the simplified tax system 2021

For the current year, all types of activities that are not specified in paragraph 3 of Article 346.12 of the tax legislation fall under the simplified system. This means that an individual entrepreneur with almost any OKVED code can switch to a simple fee payment regime. Taxpayers under this system can be both individuals in the form of individual entrepreneurs and legal entities.

It is important that the activity or type of organization does not fall under the prohibition established by Article 346.12. In accordance with this rule, the following organizations cannot operate under the simple fee payment regime.

Enterprises that have branches and branches.
Companies that organize or conduct various games, including gambling.
Enterprises that participate in production sharing agreements.
Organizations whose residual value exceeds the established threshold of 150 million rubles.
Banks.
Insurers.
Investment funds.
Pawnshops.
Participants in the securities market on a professional basis.
Organizations that issue microloans.
Budgetary organizations and government institutions.
Organizations that are registered by foreign persons.
Companies in which the share of participation of other organizations is more than 1/4, that is, more than 25%.

The following are not entitled to use the simplified tax system:

Organizations and individual entrepreneurs that produce excise and excisable goods, such as cars, fuel, alcohol, tobacco, and so on;
Companies and individual entrepreneurs that have switched to a single agricultural tax;
Companies that did not promptly inform about their decision to switch to a simple fee payment regime in the manner prescribed by law;
Companies that have more than 100 employees;
Organizations and individual entrepreneurs that connect their activities with the extraction and sale of minerals.

Also, the simplified tax system cannot be applied to lawyers, jurists and notaries who have established their own offices and provide legal services.

Preferential areas of activity

Special conditions apply to certain types of activities. Federal Law No. 335 came into force on November 27, 2021. It provides a list of preferential activities in which entrepreneurs have the right to count on a discount under the simplified tax system. The discount amount is 20%. Individual entrepreneurs can pay insurance premiums at reduced rates if their activities fall under the list below.

OKVED 2 code:

10. Food production;
11. 07. Production of soft drinks;
13. Textiles and its production;
14. Clothing production;
15. Production of leather goods;
16. Wood products;
17. Paper production;
20. Chemical production substances;
21. Production of medicines;
23. Production of mineral products;
24. 34. Wire production;
25. Production of finished metal products;
28. Production of equipment for machines;
38. Collection and treatment of waste;
43. Construction work;
63. Activities in the field of information technology;
96. Personal service activities.

You can find out more about this list in Federal Law No. 335-FZ. In total, the list contains about 40 types of activities that may be eligible for benefits when paying under the simple fee payment regime.

Federal Law 335-FZ regulates all the nuances of the simplified taxation system for individual entrepreneurs

In the future, it is planned that the law on preferential activities will be completely revised due to the fact that the experience of past years has shown that citizens carrying out their activities in the format of preferential activities do not experience problems with paying the simplified tax system. As a result of this observation, the reduced payment rates will be limited to charities that operate on a not-for-profit basis.

Other types of activities will pay fees according to the simplified tax system without any concessions. This law exists as a draft and may be applied in January 2021. In the meantime, the bill continues to be amended, and there is debate about reducing the list of preferential industries.

Insurance premiums of the simplified tax system - 2021 at basic rates

Contributions must be calculated taking into account the current bases for insurance deductions.

In the pension insurance segment for 2021, an upper limit of RUB 1,150,000 has been established. The employer withdraws the amount of income accruals for each employee monthly (increasing from the beginning of the year). If a person's total earnings are below this limit, pension contributions are calculated at a rate of 22%. When the income calculated from the beginning of the year exceeds the limit, the insurance premium rate is reduced to 10%.

For social insurance contributions, there is an upper limit of RUB 865,000. If it is exceeded, insurance premiums are not charged. These standards were approved by Government Resolution No. 1426 dated November 28, 2018. There are no restrictions on the base for MHIF contributions and “injuries”.

The transition to new insurance premiums for the simplified tax system in 2021 is carried out without additional conditions. Simplified employers must close the wage year taking into account the prevailing rates in 2018, and the application of standard contribution rates begins with the salary for January 2021.

Example

The taxable payroll is 129,000 rubles. per month. In December 2018, the company on the simplified tax system, using a reduced tariff, accrued contributions to the Pension Fund of the Russian Federation in the amount of 25,800 rubles. (129,000 x 20%). Starting from January 2021, insurance premiums will have to be charged in a total amount of 38,700 rubles, of which:
“pension” – 28,380 rubles. (129,000 x 22%);
medical insurance – 6579 rub. (129,000 x 5.1%);
social insurance – 3741 rub. (1290 00 x 2.9%).

To calculate the amount of deductions, it is necessary to focus on the fact that the billing period is equal to the annual interval (Article 423 of the Tax Code of the Russian Federation). Contributions are calculated at the end of each month of the year based on income from the beginning of the year. That is, all the employee’s income from the beginning of the year is summed up, compared with the limits of the taxable base, the total amount of contributions for the year is calculated, after which the amount of previously paid contributions is subtracted from this amount.