How does INSS work for Simples Nacional companies?

If you are considering joining Simples Nacional for your company, it is essential to understand the eligibility criteria, how the INSS and the associated social security benefits.

In this article, we're going to detail everything you need to know to ensure that your company complies with the legislation and makes the most of the advantages of this simplified tax regime.

What is Simples Nacional?

Created in 2006, the Simples Nacional is a simplified tax regime for micro-enterprises (ME) and small businesses (EPP). Its main objective is to reduce bureaucracy and the tax burden, making life easier for entrepreneurs. In it, taxes are collected in a unified manner, covering a series of federal, state and municipal taxes.

Criteria for joining Simples Nacional

To join Simples Nacional, it is necessary for the company to qualify as a Microenterprise (ME) or Small Business (EPP), according to their annual turnover:

In addition to these categories, we have Individual Microentrepreneurs (MEIs), who are also included in the regime. For MEIs, the annual turnover cannot exceed R$ 81 thousand.

How the INSS works for Simples Nacional companies

One of the great advantages of Simples Nacional is the simplification of tax collection through the Simples Nacional Collection Document (DAS). This document brings together various taxes, providing more agile and less costly tax management for companies. Among the taxes included are:

• Corporate Income Tax (IRPJ)
• Social Contribution on Net Profit (CSLL)
• Social Integration Program (PIS)
• Contribution to Social Security Financing (Cofins)
• Tax on Industrialized Products (IPI)
• Tax on the Circulation of Goods and Services (ICMS)
• Service Tax (ISS)
• Employer's Social Security Contribution (CPP)

Read more about: All about INSS for entrepreneurs

INSS rates in Simples Nacional

The value of the INSS paid by the DAS varies according to the company's activity and its annual gross revenue. Simples Nacional is divided into five annexes, each with its own rates. Below, we explain how this works:

To calculate the amount due, the rate is multiplied by the company's monthly turnover.

Pension rights for members

The partners of companies opting for Simples Nacional also are entitled to retirementThe same applies to workers with a formal contract or who are self-employed. To guarantee this right, you need to make a monthly contribution to the Social Security system through your pro-labore, which is the remuneration you receive for services rendered to the company.

Although not compulsory, the Internal Revenue Service recommends the withdrawal of pro-labore, with at least the value of the national minimum wage being required. The social security contribution is 11% on pro-laboreThis amount is limited to the social security ceiling, to be deducted from the partner and paid via the INSS DARF. For companies included in Annex IV, the employer contribution is 20%even if they opted for Simples Nacional.

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Operation of the INSS Patronal

The employer's contribution, linked to the INSS, is collected by the Federal Revenue Service of Brazil. Companies opting for Simples Nacional pay the INSS Patronal via DAS, except for those falling under Annex IV, which includes activities such as cleaning, surveillance and construction. These companies must pay 20% of the employer's INSS on the payroll through the DARF INSS.

INSS Patronal: Calculation, rates and doubts 

Pension benefits for employees

In addition to partners, employees of Simples Nacional companies are also entitled to the social security benefits. The employer's contribution is an essential part of guaranteeing access to benefits such as retirement, sickness and death pensions. It is important for companies to keep their obligations up to date to avoid future problems with the IRS and to ensure the rights of their employees.

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Step by step to join the INSS through Simples Nacional

To ensure that your company complies with Simples Nacional and INSS requirements, follow the steps below:

• Check eligibility: Confirm whether your company qualifies as an ME or EPP based on its annual turnover.

• Register with Simples Nacional: Access the Simples Nacional Portal and register your company.

• Calculate the RatesIdentify which annex your company falls under and calculate the applicable rates.

• Collect the DASIssue and pay the Simples Nacional Collection Document every month.

• Withdrawal of Pro-LaboreEstablish and record the members' pro-labour, guaranteeing the social security contribution of 11%.

• Payment of employer's INSSFor companies included in Annex IV, collect 20% of employer's INSS on payroll via DARF INSS.
• Maintain regularityEnsure that all contributions are up to date to avoid legal problems and guarantee social security benefits.