The SZV-M form, or information about insured parties – is a personnel report that all employers who have hired employees in their staff are obliged to submit. However, the question of whether to include information about foreign employees in the SZV-M and in what procedure to fill it out in case of disputes remains open. Today we will tell you about the special characteristics of forming a report when hiring foreign employees.
Each person residing or temporarily staying in a state should have a certain legal status, which in turn establishes special rights and obligations for each category of persons. In the Russian Federation, these rules are regulated by Law No. 115-FZ, which provides for three types of status of foreign persons:
In view of the above, all the above-mentioned categories of foreign citizens with whom the company has concluded the following contracts are recognized as insured parties who are covered by compulsory pension insurance (CPI) and information about whom should be included in the SZV-M form.
– labour contract
– civil law contract (Russian acronym – GPH) for the performance of works, provision of services, author’s order, etc.
Data about the specialist should be included in the report even if in the reporting month:
– the term of the contract with an employee is one day
– an employee did not receive remuneration and insurance premiums were not paid for him or her.
Foreigners who are highly qualified specialists (HQS) temporarily staying in the Russian Federation are not insured parties. Therefore, it is not necessary to enter information about them in the SZV-M form (clause 1, article 7 of Law No. 167-FZ).
The essence of the SZV-M is to inform the PFR authorities in a timely manner about the receipt of income from labour activity by individuals. In the future, this information will be used for the reassessment of pensions of employees who have ceased their labour activity owing to retirement.
The procedure for entering information about foreign employees working in the company in the SZV-M is the same as when filling out a report for employees who are citizens of the Russian Federation: it is necessary to specify three main figures – full name, personal insurance policy number (Russian acronym – SNILS) and taxpayer ID number (Russian acronym – INN).
Seemingly, no difficulties should arise. However, in practical terms, companies face situations that call into question the correctness of data recording in the document. And their inaccuracy entails the risk of administrative liability and fines. Questions may arise especially frequently in the following cases:
The report will be accepted, but it is recommended sending a letter to the Pension Fund of Russia (PFR) stating that employees do not have a patronymic name. Copies of documents that will confirm this should be attached to the letter. In case of discrepancies between the data in SNILS and passport, it is recommended to reissue SNILS to match data in the passport.
Please note that only foreign citizens permanently residing in the Russian Federation can claim a pension.
To register in the system, an employee should fill out and sign a statement in an ADV-1 form, after which the employer sends this statement to the territorial body of the PFR. It is necessary to attach to the application form an inventory of documents in the form ADV-6-1, approved by the Resolution No. 485p of the Managing Board of the PFR dated September 27, 2019. The SNILS issuance procedure is free of charge. The deadline for submitting documents for registration in the system is not set, but it is necessary to submit them in the nearest future in order to reflect information about employees in the SZV-M in a timely manner.
The document confirming the fact of registration is a notification in the ADI-REG form. It can be obtained both in paper and electronic form at the employee’s choice. If this is a paper document, it should be obtained in the territorial body of the PFR and delivered to the employee against signature. The deadline for opening an individual personal account and issuing a notification is 5 days from when the application form and documents were received by the PFR bodies.
If the deadline for submitting the SZV-M has already come, and the employee has not been registered in the system, the employer will have to submit a supplemental report form for the missing employee after receiving notification of the assignment of SNILS.
The deadline for submitting the supplemental form is 5 working days from when the notification from the PFR was received of making an error – incomplete or missing information about the employee in the report. The company can also send an updated version of the SZV-M independently, before the PFR detects the missing information about employees in the report. There should be no fine for this. More often courts take sides with employers (Rulings No. 306-ES19-23114 and No. 301-KG18-24864 of the Supreme Court of the Russian Federation dated December 20, 2019, dated February 8, 2019 and Resolution No. F03-3898/2019 of the Commercial (‘Arbitration’) Court of the Far Eastern District dated September 5, 2019).
As practice shows, even when entering simple figures in the report, employers are faced with a number of nuances, inattentive attitude toward which can lead to disputes with the PFR and further proceedings in court. To avoid this, it is necessary to observe the following rules:
If you are not sure of the correct maintaining of the SZV-M, the relevant solution is to outsource personnel functions. Acsour’s specialists are ready to assist with the preparation and submission of accounts, helping your business to develop in the field-specific direction. Preparing HR accounts in Acsour will allow you to: