Scientific Journal of KubSAU

In our country there is a system of compulsory employees’ insurance functions. First attempts to establish the responsibility of employers were taken over a hundred years ago, since then there have been significant changes. The current system of contributions to pension, social and health insurance funds has existed for about thirty years, but it constantly changes. Since 1990, the insurance functions have been shifted from the state budget to established extra-budgetary funds formed at the expense of deductions of employers. Since this system has not brought the expected results, it is repeatedly reformed. To legalize the payment of salaries and additional contributions the Unified social tax was developed in 2001, which lasted until 2010. Its purpose was to accumulate cash to realize citizens' rights for state pension, social insurance, and medical care. Its establishment did not lead to the increase of pensions and social benefits either. Nowadays, after the abolition of the Unified social tax every employer and sole proprietor in Russia has to pay insurance contributions to the Pension Fund, the Social Insurance Fund and the Health Insurance Fund. Throughout the studied period the contribution rates changed, introduced and abolished preferential tariffs. New turn of events in this sphere, specifically the introduction of Chapter 34 of the tax code, was the cause of attempt to systematize all the changes concerning payments to extra-budgetary funds for the past 26 years