The STS advises working sole proprietors to monitor the payment of SSC by their employers.

The STS advises working sole proprietors to monitor the payment of SSC by their employers.

The new rules have been introduced for the payment of certain taxes since the beginning of 2021. For example, from January 1, an individual entrepreneur is exempt from paying a unified social contribution if he is also an employee. The State Tax Service says persons working part-time cannot take advantage of this benefit. All others, regardless of the tax system in which they are located, are exempt from paying SSC.

Despite the fact the employer must pay SSC, the individual entrepreneur must ensure the entire amount is paid on time. The amount of SSC cannot be less than the minimum insurance premium. In the event of problems or arrears in the form of non-payment of the unified social contribution, fines, sanctions and other problems can become a burden on the shoulders of the payroll. To avoid such situations, traffic police experts advise you to contact the pension fund of Ukraine on a monthly basis. It can be done in several ways:

✅ personally

✅ using the portal

You need to get a certificate of crediting payments. There are OK-5 or OK-7 documents. An obtaining such a certificate is a free service.

But with the beginning of the new 2021, the traffic police receives reports from employers not every month, but quarterly. It means you need to check the accruals every three months. The end of the first quarter will appear in the register only in the last days of May, and the second quarter – at the end of August.

If you still want to pay yourself you can do it. It will increase insurance contributions to the pension fund of Ukraine. The entrepreneur can determine the amount of payment of the unified social contribution. But it is 22% of the minimum wage is paid as a rule. The payment is approximately UAH 1300 per month, and for the quarter you need to pay about 4000 UAH.

A failure to pay or late payment may result in a fine. In the absence of a valid reason for late payment, it is necessary to pay 20% of the debt and 0.1% penalty for each day of debt. An administrative fine may also apply. If the debt is up to UAH 5,100, the amount of the fine is from UAH 700 to UAH 1,300, and more than UAH 5,100 – the fine can reach UAH 2,100.

If you have paid SSC and the bank has not transferred the funds to the tax account, you must submit a letter and attach a receipt for payment. Then the fine and penalty will be paid by the bank.