Chapter 24 of the Tax Code of the Russian Federation on the payment of the unified social tax was put into effect on January 1, 2001. From January 1, 2010, the UST was replaced by insurance premiums, which are deducted to the Pension Fund of the Russian Federation, FSS, FFOMS, TFOMS.
The unified social tax is a deduction for these services, which are designed to provide social protection to citizens. On the basis of deductions to the Pension Fund of the Russian Federation, upon reaching the retirement age, a citizen has the right to receive a pension. The Federal Social Insurance Service calculates and pays benefits for sick leave, pregnancy and childbirth, childcare up to one and a half years. If the employee has lost the ability to work, a disability pension is charged.
Contributions to the Federal and Territorial Compulsory Health Insurance Service allow you to use medical care, undergo treatment on an outpatient or inpatient basis, and receive prompt or high technological assistance.
Despite the fact that the unified social tax was replaced by insurance premiums, the purpose of payments remained the same. Deductions are made for the realization of the rights of citizens to state social security, pensions and medical care.
The meaning of the introduction of a unified social tax was to simplify the procedure for the payment and calculation of social payments as much as possible, as well as to simplify the processing of financial documents and to reduce the number of employees of tax services exercising control over payments.
With the introduction of insurance contributions, the procedure has become somewhat more complicated. Accruals and payments have to be made in several social services. The processing of financial documents takes much longer. Each service to which insurance premiums are received contains its own staff of employees who control the entire financial part of the transfers.
The total transfer rates have not been changed since January 1, 2010. Working citizens have all the social guarantees that were provided to them when deducting the UST.
