New reporting on individuals under civil law contracts

LEGAL DIGEST, NEWS \ 27.02.2023

Starting from January 1, 2023, organizations are required to submit to the supervisory authorities a number of information about individuals with whom civil law contracts have been concluded.

Companies that have concluded civil law contracts with individuals for the performance of works or the provision of services are required to submit to the Unified Social Fund (USF) and to the Federal Tax Service (FTS) a number of information on such individuals.

INFORMATION IN THE USF

The USF is required to submit data on concluded and terminated civil law contracts as part of a single personalized reporting in the form of EFS-1. It is not necessary to fill out the entire form regarding the specified information, but only:

• subsection 1.1 (earlier the SZV-TD form);
• subsection 1.2 (earlier the SZV-STAZH form).

In subsection 1.1 of the EFS-1 form, the employer indicates:

• Full name, personal insurance policy number (Russian acronym – SNILS), taxpayer ID number (Russian acronym – INN) of an individual;
• number, date of conclusion or termination of the civil law contract;
• job function;
• the code of the job function indicating the type of contract (license, author’s order, provision of services / performance of works, etc.).

The deadline for providing information in subsection 1.1 of the EFS-1 is the day following the day of conclusion or termination of the contract. The format for providing information is electronic, if the company’s staff is more than 10 people.

Subsection 1.2 systematizes all the periods of the relationship between the company and the individual under the civil law contract, indicating the dates of the beginning and end of the work / provision of services, as well as the type of length of employment (work, maternity leave, sick leave, etc.). The subsection is filled in based on the results of the calendar year not later than January 25 of the year that follows the reporting one.

INFORMATION IN THE FTS

It is necessary to submit to the Federal Tax Service:

• settlement on insurance premiums (SIP);
• personalized information about individuals (earlier the SZV-M form).

Please note that in SIP it is not required to distribute the amount of accrued contributions by type of insurance. Now the information on them is combined and is entered taking into account a single tariff of 30%. The deadline for submitting the SIP is not later than the 25th day of the month following the reporting quarter.

Personalized information about individuals includes the front page and the “Personal Data” section, where it is necessary to specify personal information about employees working under civil law contracts, as well as information about the amounts of payments and other remuneration in favor of such employees.

In the report, it is required to specify the full name of the employee under the civil law contract, his or her taxpayer ID number (Russian acronym – INN) and personal insurance policy number (Russian acronym – SNILS). On line 070, it is necessary to specify the amount of payments and other remunerations accrued in favor of the employee for the past month. If the employee did not receive any remuneration in the past month, blanks should be placed on line 070. The deadline for submitting the personalized information is not later than the 25th day of the month following the reporting one.

The amendments are associated with a number of changes in Russian legislation.

1. Individuals who perform work / provide services under civil law contracts are insured persons for statutory social insurance in case of temporary disability and in connection with maternity. In favor of such persons, it is necessary to pay insurance premiums at a single rate of 30%.
2. Individuals working under the civil law contract were entitled to paid sick leave and a number of other social guarantees.
3. The merger of the Pension Fund and the Social Insurance Fund into a Single Social Fund, which is conditioned by the new procedure for calculating taxes, contributions, advance payments, penalties, fines with the use of a single tax payment (STP).

In the matters of drawing up and submission of reporing for employees and individuals working on the basis of civil law contracts, please contact Acsour experts.