What is a single social tax

Uniform social tax is deductions to these services, which are intended to provide social protection to citizens. At the expense of contributions to the Pension Fund of the Russian Federation, upon reaching the retirement age, a citizen has the right to pay a pension. The Federal Social Insurance Service accrues and pays benefits on sick leave, maternity and child care for up to a year and a half. If an employee is unable to work, a disability pension is accrued.

Payments to the Federal and Territorial Compulsory Health Insurance Service allow the use of medical care, treatment in ambulatory or inpatient conditions, $ receive prompt or high technological assistance.

Although the flat social tax has been replaced by insurance contributions, the target purpose of the payments has remained the same. Payments are made for the realization of citizens’ rights to state social, pension and medical assistance. The

meaning of the introduction of a single social tax was to maximize simplification of the procedure for payment and calculation of social payments, as well as to simplify the processing of financial documents and reduce the number of tax officers in control of disbursements.

With the introduction of insurance deductions, the procedure became somewhat complicated. Accounts and payments have to be made to several social services. The processing of financial documents takes much longer. Each service that premiums go to contains its own staff controlling the entire financial portion of transfers.

The total rates of transfers have not been changed since January 1, 2010. Working citizens have all the social guarantees that were provided to them when the ESN was deferred.