Now often people become individual entrepreneurs. But can an individual entrepreneur hire workers? This issue is discussed in detail in this article. To answer, you need to start with clear definitions, and then consider all aspects of this situation.
Who is an individual entrepreneur
IP (formerly PE) stands for individual entrepreneur. He is an individual registered as having no legal education, but possessing many rights. All IPs are subject to the laws of the civil code regarding legal entities, except for certain individual articles or acts.
Can an individual entrepreneur hire workers?
An individual entrepreneur carries out his labor activity, but can an individual employee be hired? When a business is actively developing, additional “hands” are required. It is more profitable for an individual entrepreneur to conclude transactions with organizations for the provision of various services. An individual entrepreneur may be hired. 
They will pay taxes for themselves. If an individual entrepreneur employs employees, the entrepreneur must conclude an agreement with them or draw up an employment record and subsequently submit additional reports. There is a certain “gradation” of jobs.
Limitations on the number of employees
Can SP hire workers? How many people are allowed to enroll in the state? The number of employees is the average number of employees for whom an individual entrepreneur reports in a certain period. This takes into account those who work part-time or part-time.
There are certain conditions regarding the number of employees. The smallest number of them can be hired by an individual entrepreneur who works on a patent. In this case, the IP is allowed to issue no more than five people.
Individual entrepreneurs registered as a small organization can recruit up to one hundred employees. The same rule applies to entrepreneurs working on UTII. If the number of employees exceeds 100 people even by one unit, an individual entrepreneur loses the status of a small company and becomes a medium-sized business. 
Then tax rates change. In medium-sized businesses, only up to 250 employees are allowed to work. If their number exceeds at least one unit the number of employees determined by law for an average company, the entrepreneur is equated with a large organization.
Employment Rules
Does the right of IP on a patent to hire workers? Yes, an individual entrepreneur has the right to conclude an agreement with employees, but in an amount of not more than five people. At the same time, working hours are not taken into account. After registration of employees, the individual entrepreneur transfers to the status of an employer, which must comply with the requirements of the Civil Code and TK. The employed people become workers only after the start of the execution of the activities assigned to them and in the presence of an employment contract.
Employer Registration
Can SP hire workers? Yes, but within thirty days after the conclusion of the labor agreement with the first employee, the entrepreneur must be registered with the Pension Fund. If an employee is hired by a labor contract, then the individual entrepreneur must check in within ten days from the date of signing the document with a social insurance company. 
Employee clearance
Prior to filling out an employment relationship with an individual entrepreneur, the applicant first writes a statement requesting that he be hired for a specific position. This document becomes the basis for the official registration of the applicant. An individual entrepreneur writes an order to admit an individual to a specific position, according to the Labor Code.
An employee may be admitted on a work record. It fits into:
- start date
- job title
- number of the order and the article on the basis of which registration is made.
The employment record remains with the employer. An employee’s personal card is filled out in the form of T-2. The employee is notified of the rules of the company and certifies the document with his signature. The new employee is included in the mandatory vacation schedule and staffing. The employee is given to read the job description and safety regulations. The employee assures with his signature that he is acquainted with the documents.
Can a private entrepreneur hire a contract? Registration of labor relations is mandatory. For this, an employment contract is usually concluded in a standard form. But the document before signing and acquaintance with the employee can be changed by the entrepreneur at his discretion. 
The contract must be concluded in triplicate. One remains with the accepted employee, the second with the employer, the third is sent to the employment center to register the employee with him. The contract is binding even during the probationary period. In this case, it should be spelled out in the document.
If there is such a need, then separately from the registration of labor relations an agreement is concluded on liability, non-disclosure of trade secrets of the enterprise, etc.
Responsibility of the individual entrepreneur as an employer
Is it possible to hire workers in private entrepreneurs? An individual entrepreneur is not an organization in itself. But they can hire workers to help themselves. At the same time, he receives his share of responsibility to employees and the state.
To start, an individual entrepreneur must register with a regional pension fund. The individual entrepreneur must do this within thirty days after the first registered employee. In addition, for the 10 days that follow from the moment of signing the contract with the employee, the entrepreneur is obliged to register himself as an employer in the Social Insurance Fund.
As an employer, an individual entrepreneur is required to draw up all necessary documents with an employee. If a person gets a job for the first time and does not yet have a work book, it is issued by the entrepreneur. Job descriptions must be prepared in advance. If necessary, additional agreements are separately filled out. 
After hiring an employee, an individual entrepreneur is obliged to make payments for various types of insurance provided by law. Payments must be made and paid on time taking into account income tax. Social insurance contributions are made.
Reporting
Does an IP have the right to hire workers? Yes, but at the same time, an individual entrepreneur is required to comply with strict reporting prescribed by law. The employer must submit to the FSS every year data that confirms his occupation.
Once a quarter, reports on payments made are provided to the Insurance and Pension Funds. Including annual, related to employees who are hired by an individual entrepreneur. Every 12 months they are given an extract on the number of employees currently working and working. In addition to the execution and timely submission of reports, payments of all fees and taxes must be made within the statutory deadlines. 
Penalties for informal employees
Can an individual entrepreneur hire workers under an employment contract? Maybe, but he should officially register them.Otherwise, an individual entrepreneur faces administrative liability in the form of fines due to violation of tax and labor regulations.
If the working employees of the individual entrepreneur are not registered, this threatens him with penalties from 30 to 50 thousand rubles. An alternative is to suspend the entrepreneur for three months.
In addition to violation of the Labor Code, unregistered employees do not receive taxes from the state treasury, which is also a serious misconduct. An individual entrepreneur may become a defendant in a criminal case for deliberate evasion of obligations and payments. 
How to hire workers without registration?
Can an individual entrepreneur hire workers without formalizing an employment relationship? There are two types of agreements that are fundamentally different. One of them, civil law, allows you to work with an individual entrepreneur without registration. And under an employment contract, a person must be officially registered with the company and have all the benefits approved by the state.
A civil contract may be issued for short-term orders or for one-time work. In this case, registration of a temporary employee is not required. But it must be borne in mind that under the law, if a person works for more than five days, he must be officially employed. Therefore, without a contract must be one-time or short-term.