As people say: “there is never too much money.” So, for many promising people, this phrase is simply a motto in life. And as practice shows, such people have one, two, or even three jobs, and at the same time, they additionally dream of opening their own business. It's pretty good idea, since having several jobs, initial capital will not be a problem for business, and even in case of failure, there will not be any significant losses. But there is one catch, which lies in the question: “is it possible to open an individual entrepreneur if you are officially employed?”
Before attempting to open your own business, registering a private enterprise, you should be well prepared, both morally and legally. For example, the first nuance that you definitely need to know is that being an officially employed employee, you have a certain number of obligations to your management, as well as to the state. Therefore, in case of failure to comply with them, for any reason, you will have to answer to the court.
But this criterion relates more to the question of whether : Is it possible to work and be an individual entrepreneur at the same time? As for the prohibitions on the discovery itself, the country’s legislation has a certain list labor types activities in which it is impossible to open an individual entrepreneurship.
The list of professions prohibited for individual entrepreneurs primarily includes all positions related to state or municipal service.
For example, these could be:
- lawyers;
- lawyers;
- notaries;
- employees of local or regional authorities;
- deputies (if they are citizens of their country. For persons with citizenship in another country and holding a similar position, the opportunity on the territory of the Russian Federation remains valid).
This is due to the powers of the people working in the above structures, as well as the degree of their responsibility. When occupying high positions, you should treat your work professionally, devoting all your free time to it.
But, there are exceptions to this law. For example, the court, on an individual basis, may allow the opening of individual entrepreneurs to persons belonging to the state or municipal service. Also, in some cases, the judicial authority itself may make a decision to deprive the right to engage in individual entrepreneurship, those individuals whose professions are not included in the above list.
Returning to the question of whether it is possible to open an individual entrepreneur while working officially, it should be mentioned that the considered criterion is far from the only one for banning entrepreneurship. In addition to certain officials, employees who do not have full legal capacity (that is, those under 18 years of age) cannot register as a sole proprietor. Such cases are quite possible, since according to the law, it is officially permitted to work from the age of 16.
But this limitation can also be circumvented if desired. To do this, you need to enter into an official marriage, or go through the emancipation procedure (renunciation of all factors on which you depend, including parental guardianship). Both of these options provide for the complete end of all restrictions provided by the state for persons who have not reached full legal capacity (under 18 years of age), and the acquisition of all full rights and obligations.
There is also a second side to the coin - if the incapacitated person is so not due to age, but as a result of a congenital disease or acquired injury. Such cases, of course, are not common, but they do occur in the practice of registering individual entrepreneurship.
Another criterion that undoubtedly imposes a ban on individual entrepreneurs is the presence of alcohol or drug addiction. That is, if you are registered with a narcologist due to repeated use of alcohol and drugs, then you can completely forget about such an idea. Exceptions in in this case not available.
Well, the last criterion prohibiting individual entrepreneurship refers to the category of workers who are supported by the state. But, in this case, there is some fine line. For example, private school teachers are not government employees and can easily do their own thing. This practice is very common, and allows teachers to additionally engage in tutoring or paid consultations at home.
The same applies to medical workers. If a person is officially employed in private clinic or hospital, then he has every right on IP. And in the case when the same person works in the territorial body of Roszdravnadzor, there will be no opportunity to register an individual entrepreneurship.
How registration of an individual entrepreneur can affect working relationships
Returning to the question: “can an individual entrepreneur work at another job?”, it is necessary to make a firm conclusion - yes, he can. But what if you look at the situation from the other side, from the point of view of the question: “what will be the attitude towards you at your previous place of work?”
As practice shows, all managers and bosses are, first of all, concerned about how well the employee copes with his responsibilities, and the rest of your life aspects will be of little interest to him. Thus, if your business does not interfere with your main work and does not affect your ability to act, then the attitude of your superiors towards you will not change.
Of course, if you are an excellent specialist in something, and in the future, opening your own individual entrepreneur may affect your leaving your main job, then management will be somewhat concerned about this outcome of events. But, in most cases, such situations are treated adequately and with understanding.
It is also worth noting that, if you wish, the employer may not even know that you have an individual business. After all, data about this is recorded in only one place – the Unified State Register of Individual Entrepreneurs (USRIP). And you can obtain such information from this service only for a certain fee, by submitting an application in an official form.
As for the state, it will also not change its attitude towards you after registering an individual entrepreneur. You will still be able to receive well-deserved contributions to the pension fund, go on paid leave, and be financially insured in case of any injuries or illnesses at work.
In what cases should you register as an individual entrepreneur, and what advantages can this bring you?
We have already dealt with the question: “is it possible to open an individual entrepreneur if you are officially employed?”, and now we can move on to a more interesting question: “what privileges and prospects will open up to you in this case?”
The first thing you should pay attention to is the fact that individual entrepreneurship obliges a person to fill out business reports, and also, without fail, submit them to the appropriate authorities in a timely manner. In addition to reports, a certain amount of money must be paid monthly, which completely depends on the individually established tax system.
As practice shows, such events take a lot of time, which is already a small disadvantage for an entrepreneur with official employment. Therefore, you should carefully analyze: do you absolutely need an individual entrepreneur?
After all, the goal of any individual entrepreneurship is to open your own business, which, most often, is based on the sale of any category of goods, or the provision of any services. But in most cases, this can be done without the process of obtaining an individual entrepreneur.
For example, you can open your own online store, or create your own website on which you will provide certain services online. In principle, this is the same as a full-fledged business, but with much fewer requirements.
In general, individual entrepreneurship should be opened if you:
- you sell goods, not via the Internet. To sell any category of goods, a special certificate is required, which is issued only in government agencies. And without having an individual entrepreneur, this certificate will not be issued to you;
- Are you planning large-scale marketing? This includes not only advertising on the Internet, but also on television, in local newspapers, and even on billboards in your city;
- Do you want to make a terminal for card payments? Also, this device is capable of issuing a receipt about the operation performed, which is not unimportant in this case.
If you don’t need all this, then registering as an individual entrepreneur will also not be a mandatory criterion for you. Well, if, nevertheless, you have decided that entrepreneurship is an integral part of business, then let’s consider the option of obtaining it in more detail.
Today, the procedure for registering an individual entrepreneur is very simple and will not take a lot of your time and money. For example, in order to open a business, you do not have to rent an office or any other premises to register it, since your business will be registered at your place of residence.
When drawing up an application for an individual entrepreneur, you will be required to provide a minimum package of documents, which includes:
- passport;
- a receipt from the bank, which indicates payment of the mandatory state duty (today, no more than 800 rubles);
- the statement itself;
- in the case where the business is registered in the name of a trusted person, a special document (power of attorney) certified by a notary is required.
In terms of time, this procedure takes from one to two weeks, which is also a fairly short period of time.
Also, many are interested in one important question: can an individual entrepreneur work in another organization registered as a private entrepreneur? The answer is extremely simple: naturally it can. In fact, any business that provides official places for employment is obliged to provide a full social package to its subordinates, regardless of whether he is an individual entrepreneur or not. And even more so, as was previously said, the authorities do not need to know that a business has been registered in your name.
By the way, a big plus for an individual entrepreneur is that all items purchased for the business are registered in his name, and in the event of the closure of the business, they become his private property and are not sealed. Also, in many cases, when submitting reports, you do not need to have your own seal. This is very convenient, since you do not need to spend extra money and funds on its registration.
Disadvantages of individual entrepreneurs in official employment
The question is: “is it possible to open an individual entrepreneur if you work officially, and what are the benefits of this?” - we have already considered. Now, let's look at this situation from the other side - from the side of the shortcomings.
There are practically no significant disadvantages when opening an individual business, and to be precise, there is only one. Its essence is binding to the place of residence. After all, you, as the head of your own business, are required to submit reports and revenue within a certain period of time, and only at the place of registration of the business. And if you need to go on a business trip to another city, this circumstance may cause some difficulties.
Well, other disadvantages, such as: lack of opportunity to reduce the tax base, reluctance to cooperate with others legal entities who are used to working with JSC, etc., will not play a special role. After all, sooner or later, you will have your own turnover and your own customer base.
After reviewing the above information, we were able to answer the question: “is it possible to open an individual entrepreneur if you are officially employed?” Also, we were able to soberly and adequately assess all the pros and cons of entrepreneurship, weigh them, and determine the need for opening it. So, with the acquired skills, you are unlikely to encounter any pitfalls on the way to registering as an individual entrepreneur, because you are already well acquainted with this procedure.
Did you like the article? Share with friends on social media. networks:There are often situations when officially working citizens begin to think about starting their own business. Justifiably fearing the risks of “burning out,” not everyone can afford to interrupt their employment relationship. In such cases, the question arises: can a person working under an employment contract register an individual entrepreneur.
Restrictions on registration of individual entrepreneurs
When deciding to start your own business and register yourself as an individual entrepreneur need to determine your compliance with the requirements established for opening an individual entrepreneur.
- A citizen who wishes to open an individual entrepreneur must be an adult.
- He must have Russian citizenship.
- An important condition is full legal capacity. Its restriction is established by the court and can be imposed on persons with mental disorders or suffering from alcohol, drug or gambling addiction.
- The future entrepreneur should not be prohibited from carrying out such activities.
Restrictions on age and legal capacity are imposed because entrepreneurial activity is associated with risk and a businessman must understand this well.
Is it possible for a working person to register an individual entrepreneur?
Quite often the question arises: is it possible to open an individual entrepreneur? if you work officially. The requirements for registering entrepreneurs do not include a requirement that a businessman must be unemployed.
An individual entrepreneur, unlike an LLC or OJSC, is not legal form organization, but the special status of an individual. A citizen who has received the status of individual entrepreneur can carry out commercial activities on legally. In addition to this right, the status of individual entrepreneur imposes a number of responsibilities on its owner. These include:
- payment of mandatory contributions to the Pension Fund and the Federal Tax Service;
- maintaining reports for submission to government agencies;
- bearing responsibility for assigned obligations.
After registering as an individual entrepreneur, the entrepreneur still remains an individual and does not lose the rights and responsibilities of an ordinary citizen of the Russian Federation. He retains the right to work.
The employee is an employee of a budgetary or government institution
Sometimes it is really impossible for a working person to register an individual entrepreneur. This situation arises if a person is officially employed in government or municipal institutions and is a government employee.
Necessary understand that the very fact of working in such organizations does not make a citizen a civil servant by default.
List of positions related to public service, drawn up and signed by the President of the Russian Federation. If it is necessary to expand the circle of persons who do not have the right to engage in business in a certain subject of the Russian Federation, an additional act is drawn up at the level of regional legislation. If, when applying for a job, an employee receives the status of a civil servant, then this fact is reflected in the employment contract.
General list of positions that cannot receive individual entrepreneur status:
- state and federal deputies;
- officials;
- introduced the Armed Forces and the Ministry of Internal Affairs;
- lawyers, judges and notaries;
- heads of municipal structures.
Accountant working in kindergarten, is not a civil servant, and the ban on running an individual entrepreneur does not apply to him. Teacher budgetary organization can also register himself as an individual entrepreneur. The chief physician of a municipal hospital is a representative of Russian healthcare and is considered a public servant. He is not eligible to receive the status of an individual entrepreneur.
Representatives state power restricted the right to conduct business activities to carry out productive work. Maintaining an individual entrepreneur can take a lot of time, and a person representing the state must devote all his strength to the service.
Can an individual entrepreneur work under an employment contract?
The law does not prohibit combining work and business activities. The rights of an individual entrepreneur, as an individual, are protected by the Constitution of the Russian Federation. Article 37 explains in detail that every person has the right to freely dispose of his or her work. Based on this document, an individual who has the status of an individual entrepreneur has the right to conclude an employment contract with a third-party organization.
An individual entrepreneur, unlike an LLC, even with one founder, cannot formalize an employment relationship between himself and his company.
The impact of individual entrepreneurship on labor relations
Often a working person is concerned with the question: how will the opening of an individual entrepreneur affect the already formalized employment relationship. The management of individual entrepreneurs is regulated by the norms of the Civil Code of the Russian Federation, and labor interactions by the Labor Code of the Russian Federation. These legislative directions do not intersect with each other. Consequently, individual entrepreneurship does not affect the performance of work formalized according to the Labor Code of the Russian Federation.
Mandatory insurance payments and tax payments will continue to be made for the employee. He is also entitled to a paid annual leave And sick leave. All these conditions are met when drawing up an employment contract with an individual. If the owner of his own business wants to get a job as an individual entrepreneur, then a civil contract agreement (CPA) is concluded between him and the employer. In this case, social the package, as well as tax and pension contributions are not retained by the employee. This scheme is often used by employers who want to save on taxes.
If an entrepreneur works under an employment contract as an individual, then he is not exempt from paying insurance and tax contributions. He must make payments even if the individual entrepreneur has zero income.
Whether or not to inform the employer about the registration of an individual entrepreneur is up to the entrepreneur himself. The fact of opening and running a business is not reflected in the work book. Reports on your enterprise do not intersect in any way with those issued for hired workers. Information about entrepreneurs is contained in the Unified State Register of Individual Entrepreneurs and free access to them is not provided. If the individual entrepreneur does not use advertising in the media, the employer may not know about the employee’s special status.
How to register an individual entrepreneur for a working person
The procedure for registering an individual entrepreneur for employed and unemployed citizens is identical. To obtain legal permission to conduct own business you need to collect a set of documents.
- Passport of a citizen of the Russian Federation.
- Applicant's Taxpayer Identification Number.
- Completed form P21001.
- Receipt for payment of state duty. In 2018, for opening an individual entrepreneur, its amount is 800 rubles. You will need the original and a copy of the payment document.
- Applications for transition to the simplified tax system in 2 copies. 1 of them will return back after registration of an individual entrepreneur with the Federal Tax Service mark.
The papers must be submitted to the Federal Tax Service or MFC office at the place of registration. After 3 working days, you must come to the office to receive documents. As confirmation of the existence of an individual entrepreneur, a registration certificate and an extract from the Unified State Register of Individual Entrepreneurs are issued.
How can you combine individual entrepreneurs with official work?
It is possible to combine an individual entrepreneur and a main job, but it is quite problematic. Business, especially at the development stage, requires constant monitoring of what is happening. If an individual entrepreneur runs his own business and has an employment relationship at the same time, then he needs to plan his time so that productivity at his main job does not suffer. Otherwise, difficulties may arise with your superiors.
It is convenient to combine individual entrepreneurs and main work for those who have a free or shift work schedule. If the entrepreneur is in official labor relations If he is busy full-time, then it is advisable for him to employ a person who will keep records. An alternative to this option is to search for a remote accountant.
When registration of an individual entrepreneur is necessary
In some cases, you can do your own business in order to earn additional income without registering as an individual entrepreneur. Such situations include private transportation, tailoring, or the provision of beauty services at home. It is not advisable to register an individual entrepreneur with a low income, because contributions to the Pension Fund and the Compulsory Medical Insurance Fund are mandatory and do not depend on the amount of income. In 2018 minimum size These payments amount to 32,385 rubles. With income over 300,000 rubles, this amount increases.
After registering an individual entrepreneur, you don’t have to register employees, but do all the work yourself. If you hire a person under an employment contract, then the individual entrepreneur must make insurance transfers not only for himself, but also for the worker. Additional contributions amount to about 30% of the employee’s salary.
Registration of individual entrepreneur is necessary if:
- To carry out activities, a license is required;
- there is a need for advertising;
- you need to open a current account.
The law allows combining entrepreneurial and labor activity. When deciding to obtain individual entrepreneur status without subsequent dismissal from your main job, you need to assess the possible risks. If you have enough time to run your own business, then you can safely collect documents and go to the Federal Tax Service. If a new business does not receive sufficient attention, it risks bringing losses to the owner instead of the expected profit.
An individual entrepreneur in the course of his activities is faced with a variety of complex issues. One of them is how can an individual entrepreneur formally register an employee if, for example, he had no employees until this moment? After all correct filling all documents will protect the entrepreneur and his staff from possible problems with tax or other authorities.
How to register an employee as an individual entrepreneur?
In order for an individual entrepreneur to be able to hire employees, it is required. If the activity is based on a patent, then you can hire no more than five people to cooperate as employees. Before hiring personnel under an employment contract, familiarize yourself with the relevant legislation to avoid inaccuracies and troubles associated with the preparation of personnel documentation.
If you cannot cope with hiring an employee on your own, you can contact a specialist who will help you with this issue. It will be possible to cooperate with him through a service contract if he is also an individual entrepreneur.
How to hire an employee to work for an individual entrepreneur under an employment contract?
When hiring employees, the entrepreneur not only incurs additional costs, but he also has new obligations both to the employee and to the state. The scope of these responsibilities depends on how the contract will be concluded and what clauses it will include.
The procedure for individual entrepreneurs when hiring an employee for a position
- It is necessary to conclude either an employment contract or a civil contract with the employee.
- In what case is an employment contract concluded? If the future employee will perform the same type of work for a long period of time, such as a salesperson, security guard, etc. The employment contract outlines all aspects of the work schedule, remuneration, responsibilities of the employer and employee.
- Civil law is concluded in cases where the employee will perform work one-time for a certain period of time and with a time limit for performance. For example, developing the design of an organization’s website, carrying out repair and construction work on the company’s premises, etc.
- Within ten days after the employment contract is concluded, the entrepreneur must register with the Social Insurance Fund and the Health Insurance Fund as an employer.
- Within one month after the conclusion of the employment contract, the individual entrepreneur must register with Pension Fund Russian Federation as an employer. After registration has been completed in all funds, the entrepreneur will receive special notices indicating the numbers for paying taxes on the employee. They will differ from those that were assigned to individual entrepreneurs to pay taxes and other contributions for themselves.
- We directly conclude a contract with the employee and draw it up in accordance with current legislation. We make a note about the acceptance of an employee for a certain position. Subsequently, in order to hire new staff members, there will be no need for any registrations with various funds and bodies, but simply the conclusion of an agreement between the employer and the employee and the filling out of the necessary personnel documents.
How can an individual entrepreneur register employees? What type of contract should I choose?
If there is a possibility of concluding two different types contracts between employee and employer, it is necessary to consider in what cases it is permissible to use one or another of them.
In which of the cases would it be appropriate to conclude a certain option?
If one type of work will be performed by an employee for a sufficiently long period of time, an employment contract is concluded.
If the work requires the employee to perform specific work, which is also limited in time, a civil law contract is concluded.
What legislation is regulated by?
Registration of employees as individual entrepreneurs under an employment contract is regulated by the Labor Code of the Russian Federation, and civil law, respectively, by the Civil Code.
Is information on contracts entered into the work book?
If the employee was registered by the employer under an employment contract, then information about his employment must be included in his work book. But if a civil contract is concluded between an employee and an employer, an entry is not made in the work book.
Is it necessary to pay insurance premiums for personnel to the state budget?
Health insurance, pension insurance and social insurance are mandatory contributions when registering an applicant in an individual enterprise through a contract. Also, all contributions are required to be made for the employee if cooperation takes place under a civil contract, except for social insurance payments, unless this condition is stipulated in the civil contract that was concluded.
What social guarantees are provided by the employer to staff members?
In accordance with the provisions of the contract, the following is carried out:
- regular payment to the employee of his wages,
- payment of sick leave,
- paid annual leave,
- payment of benefits in connection with the dismissal of an employee at the initiative of the employer,
- guarantee necessary conditions for work activities.
When concluding a civil contract, its terms are negotiated by the employer and the employee, and may not contain those clauses that are mandatory when drawing up the contract. That is, the contract should contain only those conditions that will suit both parties.
What documents formalize the relationship between the employer and the applicant who is hired?
When concluding an employment contract: a written application from the applicant with a request to hire him and an order from the employer to hire him for the position.
If the registration of employees with an individual entrepreneur occurs through the conclusion of a civil contract, only this document itself.
Registering employees to work as an individual entrepreneur involves signing certain documents.
Important points: legislative aspect
Before registering an individual entrepreneur, you should study the Labor Code and follow its articles. Prerequisites, which must be present in the contract in accordance with Article 57 of the Labor Code of the Russian Federation:
- Full name of the employee and employer;
- information about the identity documents of both parties;
- identification number assigned to the employer as a taxpayer;
- date of conclusion of the employment contract and place of its signing;
- job functions of personnel;
- specific place and address of work;
- in accordance with what conditions will be paid (salary amount, bonus payments, subsidies, allowances, incentives);
- employee’s work and rest schedule;
- compensation that will be paid when working in harmful or dangerous working conditions;
- conditions of compulsory employee insurance.
How to register employees as individual entrepreneurs is specified in Labor Code. But some unscrupulous entrepreneurs who want to save on the fees paid for personnel may draw it up not under an employment contract, but under a civil law one. In this case, there is a possibility that if controversial issues between an employer and an employee, this contract may be recognized as an employment contract in court. After the trial, the entrepreneur will still have to pay all the necessary contributions and taxes on the employee and ensure that his rights are preserved in accordance with the law.
The procedure for registering an individual entrepreneur is quite simple, and the entrepreneur is not required to maintain complete personnel records and personnel document flow. But you should still take care to fill out all the necessary employment forms in order to avoid inaccuracies and controversial issues with regulatory authorities and possible disputes with personnel.
What set of documents is provided from the applicant to the employer?
Before registering an employee as an individual entrepreneur, he will be required to provide the following documents:
Mandatory contributions of an individual entrepreneur
Since the IP does not receive wages, from which they subtract insurance premiums mandatory, but receives profit from his activities, then he must pay these contributions for himself in a special manner. The size of these payments directly depends on the amount of profit of the entrepreneur.
Quite often during consultations the topic comes up, Can an individual entrepreneur work at another job? Is it possible to open an individual entrepreneur if he is officially employed? Literally the question is: “I work officially, can I open an individual entrepreneur?”...
It is very easy to answer this question: yes, since neither the Civil Code of the Russian Federation nor Federal law“On the registration of legal entities and individual entrepreneurs” does not contain any restrictions or prohibitions specifically on the issue of combining entrepreneurial activity and work under an employment contract.
There are categories of citizens who, due to the specifics of their profession, have enough time at their main job to also engage in entrepreneurial activity. For them, the question of whether it is possible to register an individual entrepreneur if I work officially is the most relevant.
Does not include the fact of employment. In the work book of an entrepreneur “working for his uncle”, only those records will be kept that relate to work under an employment contract. Individual entrepreneurs do not keep work books for themselves.
Can a working person open an individual entrepreneur?
Now let's see if I can, if I officially work in the public sector. Quite often in this situation, misunderstandings arise when public sector employees begin to consider themselves civil servants. Here one should not confuse citizens who are employed in a budgetary organization and citizens who are government representatives. If you, for example, work as an accountant in a hospital, then you are not a civil servant, unlike the chief physician, who is vested with representative and managerial functions by the state.
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Another interesting question whether an individual entrepreneur can work under an employment contract in another organization. This is, in fact, a mirror situation to the one discussed earlier. You already have an individual entrepreneur, and you still want to get a job under an employment contract in any company. Please, there are no legal obstacles again.
The main thing in this problem is not whether it is possible to have an individual entrepreneur and work officially, but how to manage to find the time and energy so that the employer does not make claims, and your own business develops and makes a profit. Here you really need to be a very talented and resourceful person, which is what we wish for you!
Combining business and work is not easy, but it is possible, there are more than one or two examples of this. Many businessmen share similar experiences online, here is one of the entries:
If you are just about to go through the procedure for creating an individual entrepreneur, we also recommend reading our articles and: this information will significantly save your time and protect you from mistakes. AND special attention please refer to . Good luck to your endeavors!
If you have any questions, ask them in the comments - we won’t delay in answering! And subscribe to our newsletter to stay updated on new articles on All-for-IP:
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An individual who has been registered with the relevant authorities in accordance with the requirements of the law is an individual entrepreneur. After registration, he has the right to engage in the activities of a businessman on the basis and within the framework of the relevant legislation for an individual entrepreneur.
The activities of individual entrepreneurs are aimed at making a profit, for example, from the sale of any products, the performance of certain works or services. An individual entrepreneur is responsible for his obligations with the property that belongs to him.
Right to hire an employee
Part of the country's population, in order to provide themselves with the means of subsistence, offers their labor services for a monetary payment, called wages. The other part, for example, some businessmen, engage in entrepreneurial activity independently or by attracting other individuals with a contract (labor or civil law) – These are hired workers for individual entrepreneurs.
The legislation of the year provides for the conclusion of an employment contract for an indefinite or five-year period, for the duration of any work.
It happens that it is impossible to set a deadline for completing the upcoming work. In this case, a fixed-term contract is allowed. Civil legal acts are concluded for the performance of one-time work or those for which compliance with the working hours is not necessary. It is prohibited to accept a person even for probation without drawing up an agreement, even in cases where individual entrepreneur works on a patent. Under this taxation regime, the number of employees should not exceed 15 people.
An entrepreneur must distinguish between the legal differences between contracts. Thus, an entrepreneur can hire, for example, a salesperson, only by concluding an employment contract. Since concluding a contract on financial responsibility, which is in the interests of the entrepreneur, is possible only after the employment agreement.
The submitted application is the initial document for hiring (the position and type of work is indicated) and drawing up an employment contract in three copies: for the employee, the entrepreneur and the employment center.
When concluding a civil law contract, the extent of the employee’s financial liability is determined by the rules of civil law. The employee is not required to present the individual entrepreneur with a work book and military ID, since this employer does not make records and does not maintain military records.
Individual entrepreneur registration procedure – employer
The law establishes deadlines for registering an individual entrepreneur as an employer in the Social Insurance Fund and the Pension Fund: 10 days in the first case and 30 days in the second. Violation of registration deadlines entails significant fines.
Contributions to the Social Insurance Fund and Social Security are collected only from concluded employment contracts. The list of documents for accounting is determined by the relevant departments, but you must provide an employment contract confirming that the individual entrepreneur has employees.
The first contract on a civil law basis obliges the individual entrepreneur to register as an employer-insurant only with the Pension Fund, since the Social Insurance Fund does not charge contributions from such contracts.
Since 2006, individual entrepreneurs have been exempted from the need to register employment contracts for hire in any authority. In addition, they must not give notice of termination of concluded contracts. Thus, individual entrepreneurs and employees can complete the work without any problems. If in some cities officials require registration information, then they are committing arbitrariness.
Responsibilities of an individual entrepreneur as an employer
As soon as an individual entrepreneur has hired employees, he is obliged to:
- maintain personnel records;
- pay income tax on an employee’s salary;
- pay contributions for pension and health insurance;
- submit reports once a year – on confirmation of the type of activity, on the number of staff, a register of payments related to hired employees.
The issue of staff size is important. It is defined by law: a small enterprise does not have the right to hire more than 100 employees, including part-time and part-time workers. An individual entrepreneur begins to keep personnel records from the moment he hires at least one person. The scope of accounting is determined by the Labor Code of the Russian Federation. In the absence of personnel documentation, regulatory authorities can hold the individual entrepreneur accountable, even criminally.
Procedure for provision tax deductions and personal income tax rates are determined by the Tax Code. An individual entrepreneur, as the insurer of his employees, pays contributions to the Pension Fund, Social Insurance Fund and the Health Insurance Fund, which are regulated, starting from the year, by the Tax Code. Insurance premium rates depend on the income of the individual entrepreneur. If an unregistered employee is discovered by the regulatory authorities, the individual entrepreneur faces punishment: suspension of activities for up to three months or a large fine.