Important information: starting from 2021, employers no longer submit information on the average number of employees using the KND form 1110018. In accordance with the order of the Federal Tax Service dated October 15, 2020 No. ED-7-11 / [email protected] information on the number of employees is included in the DAM report. The information from the article below is no longer relevant.
Information on the average number of employees (ASH) is information about the number of payroll members of an organization or individual entrepreneur. The payroll includes only workers hired under an employment contract. The data is submitted on a special form (the form is called KND 1110018), approved by order of the Federal Tax Service of Russia dated March 29, 2007 No. MM-3-25/ [email protected]
Who must provide information on the number of employees
The report was approved back in 2007. The paper form is by order of the Federal Tax Service No. MM-3-25/ [email protected] dated 03/29/2007, and information in electronic form is by order of the Federal Tax Service No. MM-3-13/ [email protected] dated 07/10/2007. Information is presented on one sheet.
It would seem that it is already clear who should submit this form to the regulatory authority, however, there are some nuances here too.
Naturally, the form must be generated and submitted by all employers , which include:
- Companies that employ employees
- Individual entrepreneurs who use hired labor
Despite these obvious cases, there is a letter from the Ministry of Finance No. 03-02-07/1/4390 dated 02/04/2014, which clearly states that organizations that do not have hired employees also submit information to the tax office. The same fact is confirmed by paragraph 3 of Article 80 of the Tax Code of the Russian Federation.
If the organization does not have employees, then the information is submitted in the same form, filled out in the same way as a full-fledged report, only in the appropriate column where it is necessary to indicate the number of personnel there will be 0. Such a report is considered zero.
Methods for submitting information
This report can be generated and sent either on paper or using special computer programs.
There are several ways in which you can send a report to the Federal Tax Service:
- Submit a completed paper form to the inspector yourself, or ask your representative, for whom the appropriate power of attorney has been issued. In this case, the report itself must be drawn up in two copies, one of which is marked with acceptance, and the second remains with the Federal Tax Service;
- By means of a registered letter with the described attachment;
- Using a special telecom operator in electronic form. This method requires a qualified electronic signature.
You might be interested in:
Book of accounting of income and expenses for individual entrepreneurs on the simplified tax system: how to fill it out in 2020
In some regions, when submitting a paper version, the inspector also asks to provide a flash drive with the report file recorded on it.
Deadlines for submitting information to the tax office
The report is annual, in most cases it is submitted once a year, but there are other cases.
Let's look at the deadlines for submitting the report form in the table.
| Conditions for submitting a report | Submission deadlines |
| Generating a year-end report | Once a year, until January 20 |
| If the organization has just registered or has been reorganized | For new (reorganized) companies, the first submission of information is provided within 20 days after the month of registration . At the end of the year, such an organization will submit information on a general basis, before January 20 |
| In case of liquidation of the organization or termination of the entrepreneur’s activities | Information is submitted no later than the date of liquidation of the organization or entrepreneur |
As you can see, there are several deadlines for submission; the main thing is not to forget the dates for submitting the report in different situations.
Of course, most organizations rent once a year, but there are exceptions.
Expert opinion
Entrepreneurs who operated and had employees, but ceased their activities, are required to submit information about the number of employees to the tax office.
Deputy Director of the Department
Tax and customs tariff policy,
R, A, Sahakyan
How to calculate the number of employees to fill out the form
Information is provided only for employees who are employed under employment contracts.
Detailed instructions for calculating the number are given in the Rosstat Instructions, approved by Order No. 772 of November 22, 2017.
The main categories of workers that are not taken into account when calculating the number are the following:
- Everyone who works externally
- Employees working under civil contracts
- Women who are on maternity leave or on maternity leave with children
- Entrepreneurs themselves
- Founders who do not receive compensation from the company
|
In order to calculate the average number of employees per month, you need to calculate the number of employees for each day of the month, add these indicators and divide by the number of calendar days in the month.
Here are the formulas for calculating the average number of employees:
- The number per day consists of the number of workers who went to work and those who did not go to work for some reason
- Per month ,
where Ch1 is the number for the 1st day of the month,
n – number of days in a month
- In a year ,
where is the average number for each month of the year
As you can see, the formulas are simple. The only difficulty may arise when deciding whether to include a specific employee in the calculation or not.
If for a given period there are employees who did not work all the time taken into account, then for ease of calculation it is necessary to first determine those who worked the entire period. After this, you need to add data for those who did not work full time.
Who submits information
The average headcount is a specially calculated element that reflects the average number of employees working in a business entity in a particular time period.
This value is required to be calculated by every business entity that has hired employees. The time period for calculation, depending on the need, can be chosen in any way - month, quarter, half-year, year, etc.
But even when calculating different time periods, the technology for obtaining the indicator does not change.
In 2014, a relaxation was made for entrepreneurs - they now do not have to document information about the average number of employees if they carry out the work independently, without hiring third-party workers.
Attention: one of the important areas of application of the obtained element is the division of business entities into groups based on the number of employees involved.
And this, in turn, will determine the possibility of using one or another tax preferential regime. Also, the payroll number is used to determine the average salary for the organization. The period of storage of the report in the archive of a business entity is 5 years.
Methods for submitting reports to regulatory authorities
Like many other reports, headcount information can be sent to the tax office in different ways:
| Submission form | What we do |
| Personally | For those who do not like electronic document management and do not want to waste time and money at the post office, all that remains is to print the report and go to the tax authority in person. After communicating with a specialist, the taxpayer will become the proud owner of his copy with a mark of delivery. The specialist will accept a report on paper only if the number of employees does not exceed 25 people |
| Electronic | The most convenient way is to transmit the report via the Internet. It is fast, convenient and reliable, and in addition there is no need to keep track of the current report form. All companies with more than 25 employees must submit information electronically. |
| By mail | Well, as a last resort, there is the option of sending the report by mail. By the way, it’s not so bad if the accountant suddenly remembered to submit the report on the evening of January 20th. After all, the date of mailing will be the date the report is submitted. This opportunity applies only to taxpayers whose number of employees is less than 25 people |
Where are reports submitted?
The law states that a company must submit a report on average headcount to the Federal Tax Service located at its location. If a company has branches or separate divisions, all information is compiled into a single report, which is submitted by the parent company.
Individual entrepreneurs who have employees must send a report to the address of their registration or actual residence.
Attention: if an individual entrepreneur is registered in one subject and conducts activities in another, he must still submit a headcount report to the Federal Tax Service at his registered address.
General principles for filling out information
Filling out the information form is no different from other reports that are submitted to the tax office. The general requirements for all reports, which also apply to this form, are as follows:
- The form can be filled out either on a computer or manually
- On the computer, the information is filled out in a special program, or the data is entered into a form downloaded from the Internet. When filling out using software, you can immediately check the report for errors and make sure that everything is filled out correctly
- If the report will be submitted on paper, then fill out the form fields with a pen, the paste should be black or blue
- You cannot make corrections or blots, or use a stroke
- Each character has its own field
- Empty cells and fields are filled with dashes
- Don’t forget that the report must have the manager’s signature and seal. Otherwise, the information will be considered not provided.
As you can see, the main points are standard and apply to all reports for the tax office
Filling out the report form line by line
The report is extremely easy to fill out and consists of only 1 sheet . Let's consider row-by-row filling in the table.
| Report field | How to fill |
| INN/KPP | This information can be found in the constituent documents |
| Where is the information submitted? | In this line we write the name of the tax authority where the report is submitted. Here we indicate the digital code (4 characters) |
| Company or entrepreneur name | The line must include the full name of the organization or individual entrepreneur. Abbreviations are not allowed |
| As of what date the information is provided | This field can be filled in 3 options: 1. In general, the date is set to January 1 of the new year in which the report is compiled 2. During liquidation, indicate the date of closure of the organization or entrepreneur 3. If a company or entrepreneur has just passed state registration, then set the 1st day of the month that follows registration In order to know exactly what date to put in a particular case, there is a hint on the information form |
| Number of persons | The average number of employees is indicated according to the methodology given above |
That, in fact, is the entire report. At the bottom of the information we indicate who is submitting the form. The signature of the manager or entrepreneur, the date of provision and the seal of the organization or entrepreneur, if any, must be affixed.
The field to be filled out by the tax office employee is left blank.
Responsibility according to the form KND1110018
Since the report is as simple as possible and contains a minimum of information, draconian measures are not applied to taxpayers.
| Violation | Responsibility |
| If an error is made in indicating the number of employees | There is no liability for this violation. The information is not specified. They will need to be submitted again, since adjustments to the report are not provided. |
| If the report is not submitted or submitted late | 200 rubles per organization |
| Liability for officials (according to Article 15.6 of the Administrative Code) | 300-500 rubles |
Despite the fact that liability for violations under this form is insignificant, information will still have to be submitted. The fact is that the tax office uses the report data in its work. Sometimes the average headcount is used when calculating a particular tax, and its value is important to the tax authority. In addition, the number of employees in the company determines whether reporting can be provided on paper or only electronically. Therefore, simply taking the form and not turning it in won’t work.
Questions and answers
Question No. 1. Our current account has been blocked. Can they do this because we have not submitted the KND form 1110018?
Answer: No, failure to provide KND form 1110018 is not grounds for seizure of a current account.
Question No. 2. In the period from June to August, the number of employees in our organization exceeded 100 people. Could this somehow affect the change in the tax regime?
Answer: If the average headcount for a calendar year exceeds 100 people, this will be a reason to change the tax regime. Otherwise, you retain the right to apply special tax regimes.
