Main Directorate of the STS in Ivano-Frankivsk region informed that in connection with spread of the coronavirus disease, business entities are exempted from paying certain taxes, fees and contributions, as well as from the imposition of fines and penalties, but the obligation to report and pay the debt that arose before the introduction of quarantine measures is not canceled. That is, the taxpayer’s reporting must be submitted and debts amounts must be paid.
It should be reminded that benefits for the single social contribution payment are provided to individuals – self-employed entrepreneurs, individuals pursuing independent professional activity and farm members, ie people who provide themselves with work. But those who use the labor of hired employees should understand that exemption does not apply to contributions accrued on the employees’ wages. Such charges must be declared and paid within the time limits prescribed by the legislation.
However, due to quarantine measures, from March 18 to May 31 of 2020, taxpayers were suspended from charging with fines and penalties for the non-payment (non-transfer) or late payment (late transfer) of the single social contribution.
Herewith, individuals – entrepreneurs who use the work of hired employees and have incurred debts from the SSC, including prior to the introduction of quarantine measures, specialists of the tax service form and send agreed requirements for the payment of arrears from the single social contribution to the state executive service for enforcement.
Thus, tax service of Ivano-Frankivsk region sent 4308 agreed requirements to the state executive service for the enforced collection of the single contribution totaling 63.0 million UAH.
As of 01.05.2020, the arrears on payment of the SSC in Ivano-Frankivsk region amounted 192.5 million UAH. Employers, not complying with legislation, not only violate the payment discipline, causing a lack of funds transferred for payment of pensions to current retirees, but also deprive their employees from the right for social protection in the event of an insured case.
With amendments to the legislation on pension provision, insurance experience has become important. Presence of necessary insurance years determines the individual’s pension right. According to the Law of Ukraine “On compulsory state pension insurance”, the insurance period for deducting the amount of pension includes periods for which monthly insurance premiums were paid in the amount not less than the minimum insurance premium. Only after the full employer’s calculation, these months will be included in the insurance record of the insured individual. Therefore, we warn employers who have arrears from the single social contribution, this period will not be included in the insurance period until the full debt repayment.
In contrast to hired employees for whom the employer pays the single social contribution and does reporting, individuals – entrepreneurs must take care of enrollment in the insurance period so as not to deprive themselves from future pensions and other social guarantees.
Business entities are recommended to repay arrears from the SSC payments and prevent further occurrence of debt (arrears). In order to prevent the occurrence and growth of penalties and fines, the taxpayer can find out about the presence / absence of debt at the Taxpayer Service Center at the place of registration or use your own “Electronic taxpayer’s cabinet” using personal electronic digital signature.