It's already like a tradition every year to introduce new rules on how to pay our insurance. Do I even know what and why I'm being provided with this insurance? Let me remind myself
,social security contributions are collected by some persons and are spent, in case of an insurance case, for other persons. This is also one of the reasons why insurance systems of this type are defined as social.
Are insurance taxes?Are they taxable? Are they vlog? Am I the only one who uses them?
It's important for me to know that insurance contributions are not taxes and are not taxable.This is the case, due to the social nature of the insurance and their intended purpose, the aim is to support an insured person in difficulty.
However, the insurance is not some particular savings account or other form of “accumulating white money on a rainy day.”The main reason is that the social security contributions are collected by some persons and are spent in the event of an insurance case for others.Here it is good to know that theprinciple of solidarity is in force for the insurance system.
My insurance contributions are collected monthly, regardless of whether for me an insurance case will occur or not, because our insurance system is of a cost-roof type, i.e. these funds are accrued into accounts of funds that will be paid to the persons in need.
In general, it means that the generation that we pay insurance today raises the necessary funds to support the social security of retired persons, and the generations after me will take care of me.to put a sign of equality.
Social security contributions are aimed at raising funds from which social benefits (payments) will be made, i.e. there is a “return” — I pay insurance today so that I can take insurance compensation tomorrow. all citizens and aim to raise funds for the maintenance of the state, state authorities and the implementation of some particularly significant public activities.
What is the insurance?
The law is dealing with the concept of“social security contributions”. It's that money I have to put in every month for pension and health insurance.The reason is that the insurance is monthly cash payments, which have a personal character and are defined as a percentage of the insurance income.They're monthly because I owe them every month.They are personal because they have to be imported in the private lot of the insured person, and here it is not about me going personally to the NRA, the NHIF or anywhere else.
What is insurance income?
Insurance income isthe income from labor activity, on the basis of which the amount of the insurance contribution is calculated.The amount of insurance contributions is different for each year and for each profession and is assigned to a special law.
On the Internet, everyone can freely and easily calculate the amount of their contributions according to the salary/remuneration received and individual characteristics through one of the so-called electronic calculators.
is determined annually by the legislator, for 2017it is 2600 lv. And the minimum is determined by the so-called minimum insurance thresholds on which social security contributions are made, whether or not the person's salary is fixed and whether they are paid one or not. These thresholds depend on the main economic activities and qualification groups of professions and are defined in our legal framework
,thus the cash received from the social security contributions are distributed into 5 independent insurance funds: “Pensions”, “Pensions not related to employment”, “Occupational accident and occupational disease”, “General illness and maternity”, “Unemployment”.
Who pays the insurance contributions?
When I am a self-insured person, I owe the payment of the insurance contributions in the amount of 100% i.e. I will pay the entire amount myself
. In this case, the insurer and the insured person coincide and I reconcile these two qualities simultaneously, therefore, on the one hand, I owe for example 40% as an insured person and another 60% as an insurer, so I owe 40+60 = 100% of the amount i.e. the whole amount I pay myself. To do this, I must submit a declaration with the NSI and register as such a person.
How is the amount of insurance contributions calculated?
If I am a self-insured person, I will use the income I choose, not the real one, i.e. If I have indicated that I will be insured at 2400 levs, then on this amount I will be charged insurance, not over 1000 levs, as I have earned this month. Here an important role is played by my choice to ensure myself for all social risks or just some.
In what order are the insurance paid?
As I already know, insurance is paid monthly.They shall be paid by the insurers until the 25th day of the month following the month in which the work was put in place.Thus, my insurance for August this year will have to be paid by the insurer until September 25th, but I have the choice
to do it myself or through the insurance funds on my account. Funds — “Pensions”, “General illness and maternity”, etc. This is done through payment orders from self-insurers.The body tasked with collecting the social security contributions and reallocating them is the National Revenue Agency (NRA).
Example of contribution:
— for January 2017
— the person was born after 1960
Insurance income: 800 BGN Total social contributions from the self-insured
- person — 30.30% or 242.40 BGN
- for the Pensions Fund — 13.80% or 110.40 BGN
- for the General Sickness and Maternity Fund — 3.50% or 28 BGN
- for Health Insurance Fund — 8% or 64 leva
Minimum amount of insurance income for 2017
The dimensions provided for 2017 are: monthly amount of insurance income for self-insured persons according to their taxable income for 2015 as self-insured persons is as follows:
- up to 5400 BGN— BGN 460
- from BGN 5400.01 to BGN 6500— 500 BGN
- from 6500.01 BGN to 7500 BGN— 550 BGN
- over 7500 BGN— 600 BGN