Whether a private entrepreneur is an employee. Individual entrepreneur: everything about individual entrepreneurs, in clear language

There are cases when an individual entrepreneur creates a workplace for himself, for example, opens a shoe repair shop. But more often, entrepreneurs need employees. Many people are engaged in retail trade and need salespeople.

A very important point is the correct registration of an employee for work. Here errors can result in a specific amount.

Let's look at how to properly hire people for your company.

A contract must be concluded with a new employee. Depending on the working conditions, two types of contracts are concluded: Labor or Civil law.
It depends on what nature of the work is expected, permanent or temporary.

These are two fundamentally different documents with significant differences.

The employment contract stipulates:

• Making an entry in the work book
• Providing mandatory guarantees: in the form of wages, paid vacations and sick leave, severance pay.
• Certain working conditions are prescribed for this position.

All contractual relations in this case are regulated by the Labor Code

With a civil contract, you agree with the employees on all the conditions and write it down in it; you do not formalize the employment contract. In this case, you rely on the Civil Code.

In both cases, information is submitted to insurance funds. This is the Pension Fund, the Mandatory Medical Insurance Fund, and only if an Employment Agreement is concluded, data is also submitted to the Social Insurance Fund (insurance contributions: maternity leave, accidents, occupational diseases). And all these contributions, the individual entrepreneur as an employer is obliged to pay for the employee.

Another important point: sometimes entrepreneurs enter into a Civil Agreement instead of an Employment Agreement. For example, they hire a salesperson, and in order to save on deductions, they draw up a Civil Agreement. Is it dangerous. If an employee goes to court to have such a contract recognized as an employment contract, then most likely he will win. And the entrepreneur will have to pay for everything that he underpaid, even if this was an employment contract.

How to properly register an employee's appointment

I’ll say right away that in the case of an individual entrepreneur, you are not required to keep complete personnel records. There are certain unified forms that are maintained in the personnel departments of enterprises. But some documents are still worth getting.

Take from the employee a photocopy of the passport, work book and SNILS (pension insurance certificate - such a green card). As for the work record, if a person gets a job for the first time, then you are obliged to get him a work record. And the insurance certificate, by the way, is the same.
From those liable for military service, you additionally need to take copies of the document on military registration and possibly documents on education. For example, to register as a pharmacist in a pharmacy, you need a diploma and certificate. For some specialties you will need a medical book.

It is not necessary to write a job application; it is at your discretion.

How to draw up an employment contract

Article 57 of the Labor Code sets out the requirements for this agreement. The position for which the employee is applying, working hours, working conditions, and information about vacations must be specified. The terms and conditions of remuneration must be specified.

Don't forget to list your job responsibilities correctly. You can make an insert directly from the job description. The employee is not obliged to do anything that is not specified in the contract.

If there are job descriptions, the employee must sign in the contract that he has read them.
Two copies of the agreement are made, one for you and one for the employee. Have him sign on your copy that he has received the contract in hand.

Now all that remains is to make an entry in the work book about hiring.

Now the employee takes out a compulsory health insurance policy independently.

That's basically it. But I want to talk a little more about registration in social funds.

Registration in extra-budgetary funds

When you hire a person, you have thirty days to register with the pension fund as an employer (ten days in the Social Insurance Fund).
You need to come to the pension fund with documents on individual entrepreneurs (this is a certificate of registration and registration with the tax office), your passport and an employment contract for the employee. Write an application there and after registration, you will be notified that you are registered as an employer.

If you fail to submit information on time, you will be fined five thousand rubles. If this process takes you more than 90 days, then you will have to pay ten thousand.

For the Social Insurance Fund, in addition to these documents, take also the employees’ documents and a certificate of opening a bank account. There is no need to delay the same, here the fine for an Employment contract is already twenty thousand rubles, and for a civil one - five and ten, as in the Pension Fund of the Russian Federation and the delays are the same. But a civil contract is registered only if such a need is stated there. In other cases, FSS registration is not required.

Hiring employees is a big responsibility and you need to take every little detail seriously when concluding an employment relationship.

Today, many are interested in how an individual entrepreneur can hire an employee without registration. This problem is extremely sensitive, as there are many nuances in it. To understand this issue well, you need to turn to the Federal Law and study it thoroughly. Failure to comply with certain rules results in civil and criminal penalties. If the head of a company or enterprise has an individual lawyer, it is recommended to ask him for professional advice. However, such a topic requires a fairly trusting relationship, so only a few directors involve such an employee.

Hiring new employees: types of contracts

An individual who created a certain enterprise is called a businessman. During specialized training and registration with government agencies, the status of a private entrepreneur is assigned. This person creates a company that provides a specific product or service. To promote and develop the company, it is necessary to recruit a team of employees. Proper organization of the work process is the key to efficiency and improvement.

When the head of a company thinks about how an individual entrepreneur can hire an employee without registration, he must decide on the type of contract to be signed. In total, there are 2 types of such contracts: labor and civil law. They are similar in many ways, but have one fundamental difference. It lies in the fact that a civil contract allows work to be performed by an individual entrepreneur without registration. According to the employment contract, a person must be officially registered in the company’s database and provided with all state-approved benefits.

In addition, the employment contract provides for clear time frames. The standard contract is concluded between the employee and the employer for 5 years. If it is impossible to accurately determine the terms, then we are talking about concluding a fixed-term contract. A civil contract is signed for the performance of any one-time work or short-term orders. In this case, the contractor does not need to be added to the company’s database. A work book and military ID are not required.

If the head of an enterprise is looking for people for permanent employment, then he needs to formalize them by concluding an employment contract. This document is useful to both parties. The employee is protected by the state from unlawful actions of his superiors, and the businessman is confident in the honesty and decency of his employee.

It is illegal to refuse to sign both contracts when hiring a specific person for a position. If such an incident becomes known to higher authorities, the private entrepreneur will have to pay a large fine. In this case, an unofficially employed worker may be left without pay and severance pay. In other words, hiring an employee without any supporting contracts is a very risky step both for the individual entrepreneur and for the employee himself.

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Procedure and terms for registration of a new employee by an entrepreneur

If the manager does not know how to place an employee in an individual entrepreneur without registration, then it is better not to do this at all. This practice exists in the state, but it is illegal. The process of concluding a temporary contract will take a minimum amount of time. At the same time, the employer himself and his employee will be completely protected from each other’s deception and corrupt practices.

The probationary period should also take place only after the conclusion of an employment or civil contract. If a person works at an enterprise for more than 5 days and is still not officially registered, then the manager’s actions are considered illegal.

The question of whether relatives can help individual entrepreneurs without registration is also considered controversial. In fact, such a process is not prohibited by anyone. But if the tax inspectorate or other inspection authorities notice that a particular person is performing certain job responsibilities without official employment, fines may be imposed on the head of the enterprise.

Without a contract, you can perform certain functional duties for a maximum of 5 days. This will then be considered a violation. It is much easier to conclude a contract than to resolve conflicts arising from violations.

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Responsibilities of the employer specified in the contract

An employee’s contract with the management of the enterprise is a kind of guarantee of the provision of all benefits and rights provided by the state.

If you read in detail the terms of an employment or civil law contract, you can highlight the following responsibilities of a private entrepreneur:

• maintaining personnel records;
• regular contributions to health insurance;
• payment of interest on a future pension;
• good faith contributions to the income tax account;
• annual reporting of the full staff of employees.

Small businesses are not allowed to have more than 100 employees. When the need arises to hire a larger number of personnel, entrepreneurs look for all sorts of ways to cooperate without formal registration. Moreover, many potential employees also benefit from this.

In such situations, you need to be extremely careful about such offers. You can agree to perform duties without employment and hire employees only in case of complete trust and minimal risk.

There is always a risk of detection of such an offense. In this case, the entrepreneur will suffer the most. The businessman’s activities are stopped for at least 3 months, and the owner of the enterprise must pay a fairly large fine.

is a full-fledged business entity that has the same rights and obligations as the organization. However, the question of whether an individual entrepreneur can hire workers still arises.

There is indeed a reason for this, because the right of an individual to hire workers was introduced into the Labor Code only in 2006. And before this, hired employees of individual entrepreneurs were not officially registered.

Limitations on the number of employees

On the Internet you can find different answers to the question - how many people are allowed to hire in an individual entrepreneur? Usually they indicate a limit of 100 people, although some sources have information about the number of 5 people. This is, of course, not true. There are no restrictions on the number of personnel related to the legal form of the individual entrepreneur.

Another thing is that most entrepreneurs prefer to work on preferential tax systems, but here restrictions are really established. Moreover, they apply not only to individual entrepreneurs, but also to organizations.

If an individual entrepreneur and his employees have chosen a general taxation system (OSNO), which does not have such restrictions, then you can hire any number of personnel.

The number of employees is also important for classifying them as small or medium-sized businesses, which enjoy special state support. These are special grants, subsidies, quotas for participation in government procurement, etc.

A sole proprietor who wishes to receive this support must comply with these limits on the number of employees and annual income.

Can an entrepreneur hire himself?

An individual entrepreneur himself cannot get a job in an individual entrepreneur. Accordingly, he will not have any work experience. The contributions that an entrepreneur pays to his pension insurance form only the insurance period for calculating the pension.

But it will most likely differ little from the minimum old-age pension. At least, with the current point system for calculating pensions, mandatory insurance contributions for a full year form a little more than one point.

If you compare an entrepreneur who has received an income of 1 million rubles in a year with an employee who has received the same salary, then the amounts of insurance premiums will vary greatly.

So, in 2018, individual entrepreneur contributions from this income will be 32,385 + (1,000,000 – 300,000) * 1%) = 39,385 rubles. And for an employee with such a salary, the employer will pay contributions in the amount of more than 300,000 rubles. The difference is obvious.

Thus, the entrepreneur pays relatively small contributions for himself, but cannot claim a good pension. But the difference can be invested in the development of your business or put aside as a deposit.

Responsibilities of an individual entrepreneur

Russian labor legislation places almost the entire burden of maintaining employees on employers. And after a positive answer to the question whether an individual entrepreneur can hire workers, an individual is no exception in this sense. There is a slight relaxation only in the issue of payment of compensation for staff reduction - it is mandatory only for employers who are legal entities.

So, what responsibilities of an entrepreneur should you know before hiring an employee? Here are the main ones:

1. Conclusion with staff.
2. Creation of a safe workplace that has undergone a special assessment of working conditions.
3. Providing the employee with everything necessary to perform job duties.
4. Payment of wages at least twice a month.
5. Transfer of insurance contributions in the amount of 30.2% to 38.5% (in general) of the amount of wages and other payments to the employee.
6. Providing annual paid leave.

Procedure for registration of individual entrepreneurs

The employment contract for an individual entrepreneur can be labor or civil law. Read about the differences between these two types of contracts. In most cases, it is an employment contract that is concluded, therefore the registration procedure will comply with the Labor Code of the Russian Federation.

1. The employee must write a job application in any form. In addition, for employment you need a passport, education document and work book.
2. If the specialty or position requires it, the applicant must undergo a medical examination and confirm proper health.
3. The employer, against signature, familiarizes the employee with local (internal) regulations.
4. The parties sign two copies of the employment contract, one of which the employee receives in his hands.
5. Based on the contract, the employer issues an order for employment.
6. A corresponding entry is made in the employee’s work book.

An important nuance regarding the duration of the employment contract - a fixed-term contract can be concluded only in situations permitted by Article 59 of the Labor Code of the Russian Federation. In all other cases, the employee is hired for an indefinite period.

However, if the employee agrees, then the individual entrepreneur can enter into an agreement with him for a certain period. To do this, the number of individual entrepreneur employees should not exceed 35 people, and in the retail and consumer services sector - 20 people.

In connection with the expansion of business, entrepreneurs have a logical question: how to register an employee as an individual entrepreneur officially in 2019 and what will this entail? The laws of the Russian Federation provide a comprehensive answer to this topic, and their violation will lead to administrative, and in some cases, criminal liability. In this regard, in order to avoid punishment, you need to carefully study the provided material.

Rules for hiring personnel under an employment contract

How to hire an individual entrepreneur in 2019 and prepare all documents in accordance with current legislation? This question worries businessmen who are faced with this problem for the first time. And for other entrepreneurs whose staff includes several people, it will be useful to study detailed information about the admission procedure in order, if necessary, to bring all documentation in accordance with the legislation of the Russian Federation.

That the rules for registering an employee to work in an individual entrepreneur in 2019 and enterprises of other forms of ownership are unchanged.

They involve the following steps:

1. Obtaining written consent from the person being accepted for the processing and storage of personal data.
2. Conducting induction training and recording it in the journal.
3. Familiarization with the timing of salary transfers, bonus amounts and other conditions that have a significant impact on the labor process.
4. Direct conclusion of the contract.
5. Issuance of an order for the reception of an employee and familiarization with it, against signature.
6. Signing an agreement on financial liability - for citizens related to the storage of property of an individual entrepreneur.
7. Registration of a personal card and work book.
8. Registration of an individual entrepreneur as an employer in the Social Insurance Fund and Pension Fund.

Chapter 14 of the Labor Code of the Russian Federation establishes the basic rules for handling personal data of citizens. Violating them leads to unpleasant consequences. Therefore, before officially registering an employee as an individual entrepreneur, you need to obtain written consent from him for the processing and storage of information protected by law.

Article 212 of the Labor Code of the Russian Federation provides for the heads of enterprises rules and regulations in the field of labor protection, which are binding regardless of the form of ownership. This also applies to individual entrepreneurs. In order for the instruction to have legal force, the person conducting it must undergo preliminary training in specialized institutions licensed for this type of activity.

During the introductory briefing, the employee is introduced to:

• with general information about the production function of the individual entrepreneur;
• with labor safety standards prescribed in the Laws of the Russian Federation;
• with the concepts of working time and rest period;
• with working conditions and the presence of harmful factors present in the production process (if any);
• with the rules of behavior of employees on the territory of the enterprise;
• with the procedure for issuing special protective equipment;
• with the circumstances of industrial accidents and acute poisonings (if any) and the procedure for action in the event of a threat of their occurrence;
• with responsibility for violation of production discipline and labor protection rules;
• with fire safety on the territory of the organization;
• with first aid to victims.

If the production process uses equipment, electrified tools, or the work involves the use of materials and raw materials, the individual entrepreneur, according to the Laws of the Russian Federation, is required to conduct other types of instruction (initial, repeated and targeted), as well as on-the-job training and subsequent knowledge testing. All procedures performed must be documented.

If the work performed in an individual entrepreneur is not related to the listed conditions, then an exemption from primary and other types of instructions is possible; for this purpose, an appropriate order is issued.

All listed labor safety instructions must be previously developed. They are updated once every 5 years or when new equipment is introduced into the production process. A record is made of the briefings carried out in the log book.

Documentation of the reception

According to Article 67 of the Labor Code of the Russian Federation, it is possible to conclude an employment contract no later than 3 days from the actual admission to work. But, in order to avoid risks, it is recommended that this document be signed before the production tasks are completed.

Registration of an employee with an individual entrepreneur begins with the applicant providing the following list of documents:

1. Passport or its notarized copy.
2. Work book.
3. Military ID - for persons who, by age, are subject to registration in special-purpose institutions.
4. Diploma or certificate of education.
5. Pension Fund insurance certificate.
6. Medical examination (if the activities of the individual entrepreneur are related to food, work with children and other conditions defined in Article 212 of the Labor Code of the Russian Federation).
7. Certificates of absence of cases of criminal or administrative liability from a narcologist and psychiatrist (when working with minors).

It is illegal to require the presentation of other documents. When litigation arises, this issue can have a significant impact on the process.

Depending on the nature of the work, different types of contracts can be drawn up: fixed-term or concluded for an indefinite period, with or without a trial period.

If the head of an individual entrepreneur hires a new employee, planning to use his services on an ongoing basis, then it is advisable to enter into an agreement without a time limit. Conversely, if it is signed for a period of long absence of another person or for a season, then the best option would be to issue a fixed-term contract.

The presence of a probationary period provides an opportunity for an entrepreneur to evaluate the professional skills and other abilities of an employee and, if their quality is insufficient, to terminate the employment contract under the relevant article.

The agreement is concluded in two copies, one of which is given to the employee against signature, and the other remains with the individual entrepreneur.

No later than three days from the actual start of production functions by the hired person, an order is issued to hire him. It is signed by the individual entrepreneur and the person to whom he is directly related.

The conclusion of a liability agreement gives the entrepreneur the opportunity to recover damages from the employee for loss or intentional damage to the property of the individual entrepreneur. But lost profits are not compensated, and the amount of compensation is limited to the average monthly earnings of the guilty person.

Additional mandatory activities

So, how to register an employee as an individual entrepreneur?
The organizer of the individual entrepreneur must introduce the employee, but you need to remember certain rules:

1. When receiving a person for whom this procedure is happening for the first time, the individual entrepreneur must independently draw up the document, purchasing it at his own expense.
2. For the above applicants, the maximum period for filling out a work book is two weeks, for the rest - 5 days. The minimum period is not defined by law, but by default it is the day of reception.

The same requirements apply to the storage of work records as for strict reporting forms. Therefore, it is necessary to purchase a safe or a metal cabinet that eliminates the possibility of damage or loss of the document. The specified location must be closed and sealed at the end of the working day.

Entries in the work book are made with a blue, black or purple ballpoint pen. Abbreviations are not allowed. A sample filling can be found in Resolution of the Ministry of Labor of Russia dated October 10, 2003 N 69.

Registration of a personal employee card for individual entrepreneurs is not mandatory. But, to exclude additional questions from regulatory authorities, it should be created. This document, according to the legislation of the Russian Federation, is stored for 75 years, therefore it is drawn up on hard paper.

Upon written application from the employee, the individual entrepreneur is obliged to provide him with copies of documents drawn up upon hiring. They are certified by the employer’s signature and seal.

After an individual entrepreneur has hired an employee, registration with the Pension Fund and the Social Insurance Fund is required:

• in the Social Insurance Fund - within 10 days;
• in the Pension Fund of Russia - no later than a month from the time of registration;
• in the Health Insurance Fund - within 30 days.

A businessman undergoes this procedure once.

To all of the organizations listed above, according to the deadlines determined by law, the entrepreneur must pay mandatory contributions not only for himself, but also for his entire staff, and transfer income taxes to the Federal Tax Service and submit a report.

Conclusion of a contract with persons of special categories

How to hire a new employee as an individual entrepreneur in 2019 if he belongs to a group of citizens who require special attention? Before answering this question, you need to decide to whom the specific conditions in the registration procedure apply.

Such employees include:

1. Pensioners.
2. Minors.
3. Foreigner.
4. Disabled people.
5. Part-timers.

Before employing applicants who are under 18 years of age, an individual entrepreneur must know that:

• it is permissible to conclude a contract with minors 16 years of age, provided they have no medical contraindications;
• When hiring a 15-year-old, you should remember that only light work is possible for him;
• for 14 years old - the above conditions require the consent of parents and guardianship authorities, documented.

Special requirements are also put forward for working conditions - this is part-time working hours, mandatory annual medical examination at the expense of the entrepreneur and other restrictions established by Russian legislation for this category of workers.

When hiring retirees, you should follow the same rules as when hiring other applicants. There are no age restrictions specified in the Laws of the Russian Federation, except for civil servants and senior positions in higher education institutions.

Employment of persons who do not have Russian citizenship is associated with their provision of additional documents to the individual entrepreneur:

• migrant's patent;
• temporary residence permits;
• VHI policy.

The first certificate is not required for citizens who have been granted refugee status, as well as those living in Russia on a permanent basis and having a residence permit.

Due to the fact that all documents of a foreigner who needs a patent are temporary in nature, it is advisable to conclude a fixed-term employment contract with him. The end of the permitted period is a legal basis for dismissal.

Within 3 days, a businessman who has hired a person who does not have Russian citizenship must notify the Federal Migration Service at the place of registration of the individual entrepreneur by sending a registered letter to it. Information about dismissal is sent to the FMS in the same manner.

When registering disabled people officially (if they have provided the appropriate documents), one should take into account the recommendations on the nature of the work performed, indicated in their rehabilitation card. The agreement also outlines benefits and special working conditions for people in this category.

These include:

• shortened working week for disabled people of groups 1 and 2;
• 30 calendar days of regular vacation;
• additional days off without pay - up to 60 days per year;
• additional tax deduction.

Part-time work also involves a number of certain restrictions. The most significant are: the working day is no more than four hours a day and the impossibility of concluding such a contract with minors or when working related to driving vehicles or hazardous conditions.

Entries in the work book for external part-time workers, at their request, are made at the main place of work.

Hiring personnel without providing social benefits

For obvious reasons, paying for sick leave, annual leave and other guarantees is unprofitable for entrepreneurs. And the amount of insurance premiums and personal income tax transferred to the relevant organizations significantly reduces the amount of income received. To legally bypass these payments, it is enough to answer one question - how to register an employee as an individual entrepreneur?

The procedure for registering such a relationship consists of several steps:

1. Registration of an employee as an individual entrepreneur. For this purpose, documents are prepared according to the list and submitted to the tax authority.
2. Conclusion of a civil contract with an employee.

Keep in mind that if the text of the agreement indicates the working hours, information about financial responsibility, or designates a position, then any court will recognize this relationship as an employment relationship. As a result, you will be forced to pay all insurance premiums in full.

When registering relations in the option - the employee himself is an individual entrepreneur - the entrepreneur can choose a simplified taxation system and significantly reduce the amount of such payments. At the same time, the businessman does not withhold personal income tax from the staff, and mandatory contributions are not paid to the Social Insurance Fund and Pension Fund. The entrepreneur has the opportunity to regulate the amount of monetary remuneration to the employee, because he pays only for the result of the services performed. And their inadequate quality can be easily confirmed by drawing up a corresponding act signed by three persons.

All information provided explains in detail the issues of employment of citizens in individual entrepreneurs. As you can see, there are a lot of nuances in this procedure that must be paid attention to.

But proper registration of employees will protect the entrepreneur from the risks of administrative liability, and in cases of violation of labor protection - criminal liability.

Is it possible to register an individual entrepreneur while working for hire? An individual entrepreneur has a dual status: on the one hand, he is an individual, on the other, he is a subject of entrepreneurial activity. Knowing about this specificity, it can be assumed that an individual entrepreneur has the right to simultaneously run his own business and work on the staff of any organization on terms. This assumption is correct.

Is it possible to work and open an individual entrepreneur?

Individuals - with the exception of civil servants - have the right to register an individual entrepreneur and start their own business without leaving their main place of work. They can cooperate with the employer under the terms of an employment contract and provide services on the basis of civil law contracts.

The exception is those categories of workers who serve the needs of the state: officials, military personnel, employees of the prosecutor's office and security agencies. This contingent does not have the right to engage in business - it is impossible to sit simultaneously in the chair of a deputy and in the chair of one’s own office.

Some people are concerned about the question: “Is it possible to register an individual entrepreneur if I officially work, and not tell my boss about it?” We answer: yes. The employee is not required to notify the employer that he has received a certificate and is now running a business in his free time from his main job. The work book contains only records of employment; data on individual entrepreneurs is contained in the state register and is available upon official request.

However, employers themselves are often interested in preferring an individual entrepreneur to a full-time employee, and, having learned about the employee’s new status, may offer him to change the format of further work. The fact is that if some work function is performed by an individual entrepreneur, the company significantly saves on so-called salary taxes - the individual entrepreneur pays insurance premiums for himself. In addition, an incoming employee with the status of an individual entrepreneur does not need to pay for vacation and sick leave, and he is also not entitled to a social package. The absence of labor guarantees does not benefit the individual entrepreneur, but his benefit is smaller deductions from his earnings. For example, under a simplified taxation system, you need to pay 6% of income to the budget, while 13% of income tax is deducted from the salary of a full-time employee.

However, having registered an individual entrepreneur, you should not rush to submit a resignation letter in order to switch to a different format of cooperation with your employer. The problem is that the above scenario is considered by tax authorities as a desire to evade taxes through the unjustified replacement of labor relations with civil law ones. Despite the fact that the judicial authorities in proceedings on this issue often side with the individual entrepreneur and his counterparty, this should not be abused.

If an individual entrepreneur works under an employment contract, he enjoys all the benefits of such cooperation. His salary is paid on time, he can count on a bonus, he takes vacations at the expense of the employer, and in the event of dismissal from his position he receives a dismissal benefit. When an individual entrepreneur works for hire, he is obliged to comply with internal labor regulations.

Can an individual entrepreneur work under an employment contract?

The opposite situation, when an individual entrepreneur decides to get a job in the state, is also legal. In this case, the applicant appears at the interview as an individual, and he does not have to “close” the individual entrepreneur.

If an individual entrepreneur works in an organization under the terms of an employment contract, his entrepreneurial status does not matter to the employer. Settlements with the employee and funds are carried out in a common manner for everyone. Among other things, the employer pays insurance premiums from the salary of the individual entrepreneur. However, the fact that an individual entrepreneur works as an employee of a company, and contributions to funds are made for him as an individual, does not relieve the individual entrepreneur from his obligations to pay for himself.

The question of whether it is possible to work and be an individual entrepreneur also affects the financial aspect. Having become a full-time employee, the individual entrepreneur continues to pay insurance premiums for himself, even if he does not devote any time to his own business and does not receive income from it.

According to the law, an individual entrepreneur is obliged to pay insurance premiums for himself throughout the entire time he is an entrepreneur, with the exception of grace periods for non-payment. Such periods include time periods when a person cannot conduct commercial activities because he is serving in the army, caring for a child under one and a half years old, a person over 80 years old, or a disabled person. Also, beneficiaries may be individual entrepreneurs' spouses of diplomatic workers or contract military personnel who are unable to get a job for five years. In other situations, insurance premiums are required to be paid; even individual entrepreneurs do this. If payments to funds seriously complicate the financial situation, it probably makes sense to initiate the procedure for deregistering the individual entrepreneur from tax registration.

In the case where an individual entrepreneur works as an employee and retains his entrepreneurial status, insurance premiums paid by both himself and his employer go to the account of the insured person. When forming a pension, all of them will subsequently be taken into account.

In 2019, an individual entrepreneur pays 36,238 rubles for himself. minimum insurance premiums. If income is above 300,000 rubles, then an additional 1% is charged above this limit (for example, with an income of 500,000 rubles per year, an additional 2,000 rubles in contributions must be paid). If an individual entrepreneur has employees, he also pays into the funds for them - in general, the amounts are calculated at 30% of payments under employment contracts (with some exceptions).

Thus, the answer to the question of whether it is possible to work and have an individual entrepreneur is most often positive. The materials on our website will help you deal with taxes and individual entrepreneur contributions. Here you can prepare documents for individual entrepreneur registration. It's free and takes no more than 15 minutes, even for inexperienced computer users.