Fixed payments are compulsory payments made by individual entrepreneurs to state extra-budgetary funds in order to be able to provide themselves with health insurance and pensions.
Individual entrepreneur and LLC are two organizational and legal forms of entrepreneurial activity. The difference lies in the responsibility that the individual entrepreneur and the owner (participant) of the company bear. Fixed payments are not provided for LLC, but are mandatory for individual entrepreneurs.
More recently, registering an individual entrepreneur was considered easier, less troublesome and less costly than setting up an LLC. The issue became controversial when fixed payments were established for individual entrepreneurs. These payments must be made by entrepreneurs to the Pension Fund and the Mandatory Health Insurance Fund.
Regardless of the amount of income received, whether the activity is ongoing or not, the entrepreneur, as a law-abiding citizen, must pay contributions to these two authorities.
It looks illogical from the point of view of a common man in the street, but it is quite understandable from the point of view of the letter of the law.
On the merits
At the beginning of 2014, there were once again changes in fixed payments for individual entrepreneurs. Until that time, payments were, indeed, fixed, the same for everyone and were established for a period of twelve months. When the amendments to the Law "On Insurance Contributions" became effective, a gradation appeared in the system of fixed payments for individual entrepreneurs:
- with an annual income of 300,000 rubles. and less
- with an annual income of over RUB 300,000.
If the income does not exceed 300,000 rubles, then the total amount of contributions to both funds for the year will be 20,727 rubles. 53 kopecks
With an income of more than 300,000 rubles. it is necessary to pay an additional 1% of this excess amount to the Pension Fund by April 01 of the next year, but not more than 138,627 rubles. 84 kopecks In this case, the entrepreneur does not pay the mandatory health insurance premiums.
Fixed payments are calculated based on the minimum wage, which is set as of January 01 of the current year.
It's not all bad
Even if fixed payments were, are and remain mandatory for individual entrepreneurs and are not provided for owners of limited liability companies, the main excitement is over. In late 2013 - early 2014, a large number of individual entrepreneurs closed, but closer to spring, the revival of this form of entrepreneurial activity begins again. Many positive developments have emerged, against the background of which the perceived obligation on fixed payments is not as violent as it was previously observed.
