Each month the employer is obliged to make deductions for pension and social insurance for their employees. It is on these amounts, you can reduce the tax on the simplified tax system. These contributions should not be confused with income tax (personal income tax of 13%) which the employer contributes to employee account. In contrast, contributions to insurance for employees the employer pays out of pocket.
The tax reduction amount acceptable to pension contributions (they are in the General case are 22% of salary), health (5.1 percent), social insurance in connection with illness, maternity and injuries (2.9 percent). You can also consider the amount of sickness benefits that were paid to employees by the employer. Finally, the last category of expenses for which reduced payment is voluntary deductions for insurance for employees.
To the company or entrepreneur had the opportunity to reduce the tax, all insurance premiums must be paid in the calculation period. This may be the quarter when the advance payments, or by payment of the annual single tax. If, for example, insurance contributions for March was paid in April, then reduce them in advance of the single tax for the first quarter is impossible.
With the advance payment (tax) cannot be reduced by more than 50%. Ie even if the amount of the tax which is subject to payment, will receive less than the total amount of contributions paid, half of the accrued tax will still have to pay. For example, single tax simplified tax system amounted to 150 thousand rubles, contributions to non-budgetary funds - 300 thousand rubles, the Tax can be reduced by only 50%, to 75 thousand.
Entrepreneurs who do not have salaried employees, opportunities for tax reduction is not limited. Such entrepreneurs can reduce the calculated tax STS or advance payment of 100% on paid premiums in a fixed size. This means that if the tax gets bigger the deduction, the tax will have to pay the difference, and if it is less, then pay nothing. For the first quarter of the tax can be reduced only paid for itself payments in the amount of 1/4 of the specified amount for the second in the amount of 1/2 the amount for the third - 3/4 of the amount, and finally the entire amount for the year. In 2014, the amount of fixed contributions to the pension Fund will be 20 727,53 R. In this case, if the entrepreneur pays voluntary contributions to the social insurance Fund or Pension Fund, to take account of these payments, he can not.
The possibility of reducing the tax on contributions provided to individual entrepreneurs and companies which use in their activities the simplified system of taxation with "income" (6%). But those who apply the simplified tax system "incomes minus expenses", do not have these privileges. But they may consider premiums as an expense when determining the taxable base.
In order to prevent overpayment of tax, ffis will need to make payment of insurance premiums during the reporting period. To make contributions in advance is not necessary, as they still will not be able to reduce the tax.