New unemployment contribution

unemployment rate increase

Some elements of the new labor law are active as of the 1st of October.

One of these changes is an increase in the unemployment contributions.

Before the new law

Before October, there were 2 unemployment contributions to be paid for all employees.

The first one was of 6.40% of the gross salary up to 4 times the social security ceiling (156 912€ for 2017). The split employer/employee of this contribution was 62.5% paid by the employer 37.5% paid by the employee.

The second one was of 0.15% of the same slice of the gross salary. This contribution was paid 100% by the employer.

These contributions remain.

For short-term contracts there was one addition contribution.

This contribution was 3.00% of the gross salary up to 4 times the social security ceiling (156 912€ for 2017) for a contract of less than 1 month. This contribution was paid 100% by the employer.

For contract of between 1 and 3 months, this contribution was of 1.5% of the same slice of the gross salary. This contribution was paid 100% by the employer.

After the law

A new contribution is created for all employees.

The name is “Contribution Exceptionnelle Temporaire”. Which translates as exceptional temporary contribution.

The rate of this contribution is 0.05%. It is based on the gross salary up to 4 time the social security ceiling (156 912€ for 2017). This contribution was paid 100% by the employer.

An old contribution is canceled.

The 1.5% contribution for short-term contracts between 1 and 3 months is canceled.

In short

As of the 1st of October, the unemployment contributions are the following:

  1. 4% of the gross salary up to 4 times the social security ceiling. (2.4% for the employee and 4% for the employer)
  2. 15% of the gross salary up to 4 times the social security ceiling. (Fully paid by the employer)
  3. 05% of the gross salary up to 4 times the social security ceiling. (Fully paid by the employer)
  4. 3% of the gross salary up to 4 times the social security ceiling on short-term contracts not exceeding 1 month.

French Payroll Expert advice

It is not very common to have exceptional temporary contributions.

It appends once in 2001. A new exceptional temporary contribution was created for retirement benefits.

To this day, 16 years later this contribution is still active.

Don’t hold your breath.

 

French Payroll Expert


Source : https://www.urssaf.fr/portail/home/actualites/toute-lactualite-employeur/contributions-patronales-dassura.html

Sumer job. What you need to know.

Summer is coming. And with it many students a looking for a “petit boulot”. What are the limits and conditions for such summer jobs?

What age for a summer job?

A student can start working during school holidays at 14 years old if:

·         The holiday last at least 14 days.

·         The student must rest continuously at least 50% of the duration of the holiday.

·         The student must only do light jobs which cannot compromise his health, his safety and his growth.

What working hours for a summer job?

If the student is under 16 years old, the working hours cannot exceed 35 hours per week and 7 hours per day.

If he is under 18 years old, the working hours cannot exceed 35 hours per week and 8 hours per day.

What minimum wage for a summer job?

If the student is under 17 years old, the hourly minimum wage salary is 80% of the SMIC (7.81 € in 2017).

If the student is under 18 years old, the hourly minimum wage salary is 90% of the SMIC (8.78 € in 2017).

However, note that your collective bargaining agreement can state higher wages.

What employment contract for a summer job?

During his employment, the student is a normal employee.

Therefore, employing a student during his holidays require an employment contract. This contract is a CDD (short term contract).

The only difference with a normal CDD is that the student is not entitled to the insecurity indemnity of 10% of the gross of the contract contrary to the other CDD.

In short

Hiring a student for a summer job is the same thing as hiring a CDD (DPAE included).

The only differences are:

·         You don’t pay the insecurity indemnity

·         If the student is a minor, you have limitations for:

o   The duration of the contract

o   The working hours

o   The job description

 


Sources

https://www.service-public.fr/particuliers/vosdroits/F1649

http://rfpaye.grouperf.com/depeches/39347.html


French Payroll Expert

Income tax withholding in France

Very common in many countries, the withholding of the income tax is a new system in France.

When

The withholding of the income tax has been announced over 6 months ago, by the French government.

However, it will only become a reality in January 2018.

The is no need to stress about it yet.

Who

The withholding of the come tax will be applied to every one with a taxable income.

To put it simply if on your employee pay slip you can read an amount for the “net imposable” (taxable net), then you will need to withhold the income tax

What rate

The rate of the withholding is a personal one for each employee. Therefore, every employee must inform the employer of his rate.

The employee will be informer by the fiscal authorities of his 1st rate by the fiscal authorities in October 2017 once he has completed his 2016 income tax declaration.

If the rate changes during the year, the employer will be directly informed by the authorities.

How

In January 2018, there will be a new raw on your employee’s pay slip. It should be called “Prélèvement à la source”.

This raw will be the withholding, it will in deduction to the net to be paid.

The employer will then pay the withheld tax to the authorities. The payment period is not yet known but it will most likely be a monthly payment.

The declaration will be done via the DSN (new declaration format active in 2017), and the payment via direct debt should be recommended by the authorities.

French Payroll Expert Advises

The income tax withholding will be a non-event as long as:

  • You collect the income rate from you employees. We recommend that you add the request of this rate to your process for all newly hired employee starting October 2017.
  • You remember that the withheld tax must be paid. The fiscal authorities are even less kind about unpaid tax that the social authorities with unpaid contributions.

Source
https://www.service-public.fr/particuliers/actualites/A10458
https://www.service-public.fr/professionnels-entreprises/actualites/A10614

French Payroll Expert

Life and Health insurance – 1/3 – The Law

life and health insurance

On the 1st of January 2016 it became mandatory for every company under French social law to offer life and health insurance (called “prévoyance” and “mutuelle” in French) to its employees.

What does this means?

What will be the cost for the company and for the employees? And for what benefits?

How does the company setup these contracts?

The French labour law can appear very complex to a foreigner. Our job is to simplify it to the core issue you must deal with.

Therefore, we will see, as simply as possible, what are your legal requirements, how much will it cost you and how to best set it up.

The law

The law

Simply translating the articles of the law would be the best way to make a simple matter complicated. To make it simple here are you legal obligations.

Your company must provide a life insurance to its officers (called “cadre” in French).

Your company must provide a health insurance to all its employees.

Of course, it cannot be that simple.

As you know every company it provided an activity code (called “code APE” in French) when it is registered to the French authorities. Based on that activity code a specific collective bargaining agreement apply.

Most of the collective bargaining agreement state that the company must also provide a life insurance to the non-officers employees.


French Payroll Expert advice


You must first check you collective bargaining agreement. If it indicate a specific life insurance regulation you must apply it.

Otherwise, you must have a life insurance contract for you officers and a health insurance contract for all your employees.

 

French Payroll expert

FPExpert’s CEO sworn in as judge to the TCI.

TCI

The TCI (tribunal du contentieux de l’incapacité) is the tribunal of litigation on inability. When someone is suffering a permanent inability, he benefits of an indemnity from the social security.

If the individual disagree with the level of inability or if he disagrees on its value, he can claim an adjustment of the indemnity.

The claim is studied by the tribunal.

FPExpert’s CEO is a representative of the employer to the TCI.

The tribunal is composed of 3 judges. One is a salary designated by an employee union. The second is a professional judge. And the 3 is an employer designated by an employer union.

As member of the CNDI (employer union) Thomas BIDOU, FPExpert’s CEO, was designated to represent the employer at the TCI.

FPExpert

After a sick leave a check-up with the occupational medicine is mandatory.

occupational medicine

On the 7th of October, the cassation court judges the case of a company who did not pay one of its employee due to a lack of check-up with the occupational medicine.

The employee suffered a work related accident. After the end of his sick leave the employee did not do his medical check-up with the occupational medicine. The company did not pay the employee his time after the sick leave.

When an employee is on sick leave the employment contract is suspended. In some cases, a medical check-up is mandatory for the employee to return to work after a sick leave. Until the employee does the check-up the employment contract is suspended.

A check-u with the occupational medicine is mandatory.

Therefore, the judges considered that the employer what within his right not to pay the employee as the employment contract was suspended.

This judgment is a good reminder that some medical check-up are mandatories. Without this check-up the contract cannot be continued, changed or terminated.


Source
RF Paye : http://rfpaye.grouperf.com/depeches/35190.html

FPEx0pert