All about insurance premiums: what are charged on, who pays them and when

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

Organizations need to take care of their people, and entrepreneurs also need to take care of themselves.

What are insurance premiums and what they are

Insurance works like this: a person decides to issue a policy, deposits money - one-time or periodically, and upon the occurrence of an insured event, he receives the compensation prescribed by the contract. But this is not always a voluntary procedure.

There are several types of compulsory insurance premiums in Russia:

• for pension insurance - a pension is subsequently formed from these payments;
• for medical insurance - these payments allow you to be examined and treated under the compulsory medical insurance policy;
• for social insurance - in order to receive money for sick leave or in connection with motherhood (contrary to misconceptions, the employer pays maternity out of his own pocket);
• for insurance against industrial accidents and occupational diseases.

These measures are designed to protect citizens when they are in difficult situations and in an economically vulnerable situation.

Who pays the premiums

Organizations and entrepreneurs must pay insurance premiums for hired individuals. Moreover, this applies to both employees under labor contracts and contractors, if they are not registered as individual entrepreneurs, with some nuances. Under a civil agreement, social security contributions are not assessed, and the need for payments for injuries depends on whether it is stipulated in the document.

Individual entrepreneurs, as well as lawyers, notaries and other individuals in private practice, must pay mandatory health insurance premiums for themselves.

How insurance premiums are calculated

There are nuances.

For employees

Contributions are calculated based on the employee's income. The basis for calculations consists of salaries, bonuses, allowances, vacation pay. Contributions are not charged by the Tax Code of the Russian Federation, article 422. Amounts not subject to insurance premiums for:

• financial assistance in the amount of less than 4,000 rubles;
• payments for compensation for harm to health;
• payment of the cost of relying in kind allowance;
• reimbursement of expenses for professional retraining or advanced training;
• compensation for the reduction of the company;
• financial assistance to employees in connection with the death of their family members or the birth of children (but not more than 50,000 rubles per child);
• the cost of uniforms.

The amount of contributions for employees is the Tax Code of the Russian Federation, article 425. Rates of insurance contributions:

• for compulsory pension insurance - 22% (an additional tariff is provided for harmful and hazardous working conditions);
• for compulsory medical insurance - 5.1% (1.8% for foreigners and stateless persons temporarily staying in the Russian Federation);
• for compulsory social insurance (in case of illness or in connection with motherhood) - 2.9%;
• for insurance against industrial accidents and occupational diseases - 0, 2–8, 5% depending on the employee's occupational risk class.

These rates exist by default, but there are conditions for their reduction. After the employee's annual income exceeds 1.465 million rubles, 10% of the subsequent earnings is transferred to the Pension Fund. When income reaches 966 thousand, contributions to the Social Insurance Fund for the rest of the earnings are not charged. These limits were introduced for 2021, and they are increasing every year.

Individual entrepreneurs can reduce transfers to compulsory social insurance if they paid employees sick leave or maternity money by this amount. In addition, for some categories of payers, the Tax Code of the Russian Federation, Article 427 has been introduced. Reduced rates of insurance premiums Reduced rates of insurance premiums.

To myself

Individual entrepreneurs and private practice owners are obligated to pay only contributions for pension and health insurance.

There is a flat rate for transfers to the Health Insurance Fund. For 2021 it is 8 426 rubles, for 2022 - 8 766, for 2023 - 9 119. The amount of contributions to the Pension Fund depends on income. If it is less than 300,000 rubles, then the rate is also fixed: 32,448 rubles for 2021, 34,445 for 2022, 36,723 for 2023. If you managed to earn more, then 1% of the difference between the actual income and 300,000 rubles is added to the indicated figures.

There is a limit for pension insurance contributions. It is equal to the fixed rate multiplied by 8. Accordingly, for 2021 pension contributions will not be taken more than 259,584 rubles.

There is an exception for the heads of peasant (farm) households. They pay for each type of contribution a fixed amount multiplied by the number of members of the household.

It is compulsory to pay insurance premiums even with zero income. The exemption can be obtained by entrepreneurs and owners of private practice who do not work, because:

• do military service by conscription;
• caring for a child under 1, 5 years old, or a person with a disability of the first group, or a child with a disability, or a person over 80 years old;
• moved after a spouse - a serviceman to the area where there is no opportunity to find a job;
• are abroad because of the spouse's work in a diplomatic mission, consular office of the Russian Federation or an international organization (the list of the latter is established by the government).

In order not to legally pay contributions, the specified categories of persons need to submit an application to the tax office and documents confirming the right to do so.

When and where insurance premiums are paid

Clear deadlines have been set.

For employees

Separate payments are made for each type of contribution. The money must be transferred by the 15th day of the month following the one in which the employee received payments.

Pension, health and social insurance contributions go to the tax office; for injuries - directly to the accounts of the Social Insurance Fund.

To myself

Fixed amounts must be transferred to the tax office before December 31 of the current year. Pension insurance contributions from income exceeding 300 thousand rubles - until July 1 of the next year.

How and when to report on the payment of insurance premiums

You need to submit information to the Federal Tax Service on a quarterly basis. There are 30 days for this after the end of the billing period. If no payments were made to employees for the quarter, a report with zero indicators must be submitted. Documents are accepted in electronic form. They can be returned on paper only if there are less than 25 employees.

There is no need to report on deductions for yourself.

This article was published on October 24, 2019. In September 2021, we updated the text.