Confirmation of the employee's insurance record upon dismissal

14.08.2019
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3 min.

A copy of the SZV-M form is filled out and issued upon dismissal of an employee. This is a mandatory document that the former employee receives along with 2-NDFL and a work book. The need for its preparation is provided for in Federal Law-27. Its main purpose is to inform the Pension Fund about the length of service of a particular person. The requirement applies not only to employees employed on a permanent basis, but also to those who temporarily performed duties under a civil contract.

As it was before

Until 2021, all insurers were required to issue all their employees with a copy of the reports submitted for them in the SZV-M form. Organizations and individual entrepreneurs were obliged to do this by paragraph 4 of Article 11 of the Federal Law of April 1, 1996 No. 27-FZ “On individual (personalized) accounting in the compulsory pension insurance system.” It said that a copy of the SZV-M had to be given to employees within the deadline established for submitting the SZV-M. That is, employers were required to issue copies no later than the 10th day of the month following the reporting month.

In addition, previously some additional deadlines for issuing copies were previously provided for in certain cases (clause 4 of article 11 of the Federal Law of 01.04.96 No. 27-FZ):

• performers (contractors) - it was necessary to issue a copy of the SZV-M on the day of termination of the civil contract;
• for those who quit – on the day of dismissal;
• for those who retire - within 10 calendar days from the date when the employee submits an application that he requires documents to be submitted to the Pension Fund.

About the SZV-M form

A monthly report submitted to the Pension Fund of Russia in the SZV-M form only confirms the very fact of working in a company or with an individual entrepreneur. The information reflected in the document is very limited:

• employer details (name, INN/KPP, registration number in the Pension Fund of Russia);
• reporting period (month);
• surname, name, patronymic of employees;
• insurance numbers of personal pension accounts (SNILS) and TIN of working citizens.

The form is designed to track a person’s employment for the purpose of possible adjustment of pension contributions, and is submitted to the Pension Fund on a monthly basis. The document includes information about the following persons:

• working under an employment contract;
• those who have entered into GPC agreements;
• receiving royalties;
• in other cases mentioned in clause 2.2 of Art. 11 of the law on personal accounting No. 27-FZ of 04/01/1996.

In the document for the Pension Fund of Russia, all employees are listed in a single list.

What were the difficulties?

The obligation to issue copies of SZV-M to employees and contractors caused many complaints among accountants. They were connected with the fact that many issues were simply not regulated by law, for example:

• it was not said which month a copy of the SZV-M should be given to resigning employees;
• it was not specified in what form exactly copies of the SZV-M should be given to employees (considering that they contain personal data of other employees);
• it did not explain how to confirm that employees had received copies. Do I need to take receipts with it?

We discussed these issues in detail in the article “Copy of SZV-M to employees and contractors: to issue or not?”

At the same time, we note that until 2021 there was no liability for failure to issue copies of SZV-M to employees. In this regard, many policyholders simply ignored the requirement to provide employees with copies of the SZV-M.

Now we’ll tell you what to do regarding issuing copies of SZV-M upon dismissal in 2021.

Extract form from SZV-M upon dismissal in 2021.

The extract is a full-fledged form of SZV-M for the required period (form approved by Resolution of the Board of the Pension Fund of the Russian Federation dated 01.02.2016 No. 83p). Its only difference from the report submitted to the Pension Fund is that the list contains information only about the resigning employee. The form is signed by the manager or authorized person of the employer. If available, a stamp is placed. The document is dated to the last day of the contract with the employee. This is followed by the issuance of an extract from the SZV-M to the employee upon dismissal. A sample of filling out a document for an employee dismissed on September 18, 2020 is shown below:

Copies of SZV-M: what to do in 2021

The legislation was amended to paragraph 4 of Article 11 of the Federal Law of April 1, 1996 No. 27-FZ, which regulated the issue of issuing copies of SZV-M to employees. Let us explain the procedure for issuing copies of SZV-M to employees in 2021.

Copy of SZV-M upon request

In 2021, an organization or individual entrepreneur (policyholder) is obliged to issue to the insured persons copies of the SZV-M handed over for them no later than five calendar days from the date of its application. Thus, in 2021, policyholders are required to issue copies of SZV-M solely at the request of employees or contractors. There is no need to issue copies of monthly reports based on the results of each month.

But in what form should the request come from an employee or contractor? The law says nothing on this matter. In our opinion, in 2021, an employer can issue copies of SZV-M upon oral request to employees. However, in this case, it is not entirely clear how to ensure that the employer complies with the issuance deadlines?

To protect yourself, it may make sense to ask employees (contractors) for written applications to provide them with copies of SZV-M reports. Of course, there is no form for such an appeal. Its employees have the right to draw it up in any form. A sample employee appeal, in our opinion, may look like this:

Having received such a request, the policyholder will be obliged to provide the employee or contractor with a copy of the required SZV-M report no later than five calendar days from the date of the request. Accordingly, if the employee applied on January 18, 2021, then a copy must be issued no later than January 22, 2021.

An employee has the right to submit an application for a copy of SZV-M in 2021 at any time. And he is not obliged to explain why he needed such a copy.

Copies of SZV-M upon dismissal and for contractors

The provisions of paragraph 4 of Article 11 of the Federal Law of April 1, 1996 No. 27-FZ, in force in 2021, provide that the policyholder is obliged to issue copies of the SZV-M:

• on the day of dismissal of the employee;
• on the day of termination of a civil contract for which insurance premiums are calculated.

Note that in 2021, in paragraph 4 of Article 11 of the Federal Law of April 1, 1996 No. 27-FZ, there is no provision that employers are required to issue a copy of the SZV-M to employees retiring.

In 2021, copies of SZV-M must be issued on the day of dismissal or termination of a civil contract. No applications from employees or contractors are required for this.

How to properly prepare a report

In order to correctly fill out the SZV-M report, legislators have developed unique instructions, when applied, the employer can easily fill out this document.

So, when filling out section 1 of the SZV-M report, the employer indicates the following information:

• registration number in the Pension Fund of Russia. This number is reflected in the specific Pension Fund certificate of the organization;
• Company name. The director of the company indicates the specific legal form in abbreviated form;
• TIN. The employer indicates the TIN based on the state registration document;
• The checkpoint is identical here: the head of the enterprise indicates it on the basis of the state registration document.

The employer must also fill out section 2 of the SZV-M report “Reporting period for 1 year” and section 3 “Variety of forms”.

In section 3 of the SZV-M report, the employer enters 1 of the following options:

• “outcome” - when the report is initially sent to the Pension Fund;
• “additional” - upon secondary sending, after the report for the previous reporting month has already been accepted by the Pension Fund;
• “cancel” - when canceling a previously sent report.

Section 4 of the SZV-M report is considered the main one, because it contains data on insured citizens - workers of the enterprise, as well as on the validity of employment contracts and agreements. So, when filling out section 4, the employer provides the following information:

• initials of the insured citizen. Indicates them only in the nominative case (for example, V.M. Sidorov and others);
• insurance personal personal account number (SNILS). It is reflected in the executed employment agreement;
• TIN. The employer enters the employee's TIN into the document, if one is specified in the employment contract. This is largely due to the fact that policyholders are prohibited from requiring TIN information from insured persons.

At the end of the SZV-M report, the employer indicates the following details:

• your position and initials. For example, General Director Sidorov V.M.;
• date of the report. Indicates it only in the format DD.MM.YYYY (for example, 10/19/2017);
• seal. Places a stamp on the report only if it is available.

The form can be downloaded here.

Filling example

As a result, the SZV-M report is not difficult to fill out. Every employer can handle this.

How to issue copies: procedure

Unfortunately, no innovations that would more clearly explain how exactly to issue copies of SZV-M to employees in 2021 have appeared in the legislation. In this regard, we consider it appropriate to remind you that an exact copy of the SZV-M with data on all employees of a company or individual entrepreneur cannot be issued to anyone. The fact is that the reports contain personal data (full name, SNILS and INN). This information is considered secret, which the policyholder has no right to disclose to other employees. This follows from Article 7 of the Federal Law of July 27, 2006 No. 152-FZ “On Personal Data”.

In order not to violate anything, employees can be given extracts from the submitted reports, which will relate directly to the insured persons themselves. Such statements, as a rule, allow you to create many accounting programs necessary for submitting electronic reporting. Here is a sample extract from SZV-M, which can be issued to employees as copies of the report:

If the worker quits

The employer draws up a SZV-M report, which reflects data on all employees receiving bonuses, salary and other amounts subject to insurance contributions. This document confirms the worker’s pension insurance record.

According to Law No. 27-FZ, an SZV-M extract is issued upon dismissal of employees, or upon application by insured citizens upon retirement. In addition, the employer sends this document to the Pension Fund every month. In this case, the employer receives written confirmation from the insured citizen—his employee—that he has indeed received the SZV-M extract in hand.

Delivery confirmation

To confirm that the accounting department has issued the SZV-M form to an employee, it makes sense to take appropriate confirmation from the individual. Such a document can be drawn up in any form.

SAMPLE CONFIRMATION OF ISSUANCE OF FORM SZV-M TO AN EMPLOYEE

Also in 2021, there are other possible options for obtaining confirmation of receipt of copies, namely:

• the employee’s signature on the second copy of the SZV-M copy;
• maintaining a log of issuing copies of SZV-M.

Read more about this in the article: “Copy of SZV-M to employees and contractors: to issue or not?”

An employee resigns: employer actions

Surely, most of us wanted to find a stable job, preferably with the opportunity for career growth, and calmly conduct our working life. Unfortunately, in the current environment this is rare. Sometimes an employee quits even from a good job, where everything seems to be satisfactory. Just at one fine moment the thought comes that we need to move on and change something. As they say, fish look for something deeper, but people look for something better.

There is nothing extraordinary about an employee leaving. Let's consider dismissal in stages:

1. In most cases, the employee writes a letter of resignation of his own free will.
2. After the director has signed such a statement, a two-week period begins when the organization is looking for a new employee for the vacated position, and the employee himself finishes his current affairs. If there is already a candidate for the position, the resigning employee transfers all matters to him. It is worth noting here that an employee can withdraw his resignation if certain conditions are met.
3. The enterprise's personnel service and accounting department prepare a package of documents on the eve of the employee's dismissal. The dismissal order is printed, certificates are generated, the last entries are made in the employee’s personal card, the work book is filled out, and documents for payment of funds are prepared.
4. The day of dismissal has arrived, the last day of work at this enterprise. The employee did not change his decision and did not withdraw the application. The most important task that an employee will have to do on this day is signing personnel documents related to dismissal and receiving a package of documents in hand.

On the day of dismissal, the employee receives all payments due. In addition to wages for a month worked, this may be compensation for unused vacation or other payments provided by the enterprise.

In addition, the employee receives a whole package of documents that will be useful to him at his next job. These include:

• Help 2NDFL. Every employee needs it and confirms the amount of income received during the last year of work at the enterprise. Information from the certificate helps when calculating wages at a new place of work.
• Certificate of income of the employee for 2 years before dismissal. It will be useful when calculating sick leave.
• Extract from the SZV report – EXPERIENCE. This is an innovation of the Pension Fund. The report reflects periods of work in the organization.
• A copy of the SZV-M form. It is needed to confirm the employee’s length of service.
• Employment history.

It doesn’t matter for what reason an employee is fired, the list of basic documents for handing out does not change.

Let us reflect in the table the main articles according to which the dismissal of employees may occur.

If the dismissed person was absent on the last working day

The legislation does not define the procedure for the employer's actions if the departing employee was absent from the workplace on the day of dismissal and therefore did not receive an extract from the SZV-M. In such a situation, the following solutions are possible:

• notify the employee in writing (by registered mail with notification) of the need to appear for documents or give written consent to forward them;
• immediately send the SZV-M certificate upon dismissal by registered mail.

Using one of these methods, the employer can confirm that it has taken all necessary measures to fulfill its obligations to the departing employee.

Although no official penalties have been established for failure to issue SZV-M upon dismissal, inspectors may regard this as a violation of labor laws. In this connection, an administrative fine may be imposed on the company under Art. 5.27 Code of Administrative Offenses of the Russian Federation.

Please note that the law does not prohibit providing an employee with statements for all months of work with a given employer, but the company is not obliged to do this.

What sanctions are applied to the organization if they “forgot” to include an employee in the SZV-M report?

Sometimes, for some reason, the employee responsible for forming the SZV-M may not include information about the employee. Usually the report is sent to the Pension Fund, where it is successfully accepted and this is where the story ends for the time being. But then there comes a moment when this “unaccounted for” employee pops up and the accountant feverishly sends a report to the fund with the “additional” information type.

So, if, before sending the “supplementing” form, the Pension Fund has not identified an error in the initial report, then no sanctions will be imposed on the organization.

If the Pension Fund finds a discrepancy before the organization’s accountant, a fine will be imposed.

When working with any form of reporting, you must be especially careful and be very attentive, then problems will not arise.