The new 2018 legal social contributions rates.

As of January 2018 social contributions rates changed.

The employee CSG contribution increased from 7.5% to 9.2%.

The Issurance for sickness, maternity, invalidity, death 0.75% employee contribution has been canceled.

And the Unemployment employee contribution has been reduced from 4% to 0.95%

Here are the new rates:

Benefit Global rate %Employer %Employee %Base
I. URSSAF (social security)
Assurance for sickness, maternity, invalidity, death) (1)13.0013.00Total gross salary
Solidarity for autonomy0.30.3
Family allocation (2)5.255.25
Retirement2.31.900.40
Housing help (at least 20 employees)0.50.5
Union funding0.0160.016
Work related accidentVariable rate based on the company’s activity
CSG9.29.298,25% of the total gross salary (3)
CRDS0.50.5
Retirement   15.458.56.9Salary limited to 1 social security ceiling
Housing help (less than 20 employees)0.10.1
Unemployment (4) (5)54.050.95Salary limited to 4 social security ceiling
AGS0.150.15
II. Complementary retirement (ARRCO & AGIRC)
Executives offciersArrco TA7.754.653.1Salary limited to 1 social security ceiling
Minimum mandatory life insurance1.51.5
AGFF TA21.20.8
Agirc TB20.5512.757.8Salary between 1 and 4 social security ceiling
AGFF TB2.21.30.9
Apec0.060.0360.024Salary limited to 4 social security ceiling
AGFF TC2.21.30.9
Agirc TC20.5512.757.8Salary between 4 and 8 social security ceiling
CET0.350.220.13Salary up to 8 social security ceiling
Non-executives officersArrco T17.754.653.1Salary limited to 1social security ceiling
AGFF T121.20.8
Arrco T220.2512.158.1Salary between 1 and 3 social security ceiling
AGFF T22.21.30.9
III. Taxes & others
Taxe on salary (6)4.254.25Total gross salary
Construction (at least 20 employees)0.450.45
Apprentice0.680.68
Professional training (at least 10 employees)11
Professional training (less than 10 employees)0.550.55

Employee registration – REMINDER

employee registration

As you know, I have recently been sworn in as an assessor to the TASS (social security tribunal).

During the last session, I had to judge a very troubling case.

The case

An employee quite a company on a Friday without notice.

During the weekend the employer seek a new employee for an urgent job on Monday.

On Monday at 10 AM the employer finds a suitable employee. The employee start working immediately. At 10:17 AM the employer request from the accountant that the declaration of employment is done.

On the same date at 10:30 AM the labor inspection comes to the work site. They request the receipt for the employment declaration of each employee.

At 11:30 AM the labor inspectors leave the work site. They then send a notice to the police for undeclared employment.

At 12:00 AM the accountant does the declaration of employment.

A few months later the employer is in court facing jail time and a fine.

The law

For each new employee, the employer is to do with the 8 days prior to the employment a declaration to the social security.

This declaration is called the Déclaration Préalable A l’Embauche (DPAE). It can be done via the internet on this web site: https://www.due.urssaf.fr

The penalties for non-compliance

If, the employer does not comply with the law the penalties are:

  • Up to 225 000€ of fine
  • Up to 3 years of jail time

The outcome

As the employer requested the DPAE to be done by the accountant before the labor inspection’s arrival, the employer was declared innocent by the penal court.

The employer paid no fine and was not sentence to any jail time.

French Payroll Expert advice

We strongly recommend that you keep your payroll provider informed as soon as possible of any new employment. Do not wait for the first work day.

Do not hesitate to do the registration yourself on the URSSAF web site. It takes only a few minutes and google translate can help you understand the needed information.


French Payroll Expert

Thomas BIDOU has been sworn in as a new assessor at the social security tribunal

In late January our CEO Thomas BIDOU was sworn in as a new assessor at the social security tribunal.

What is the social security tribunal?

When an employer or an employee has a problem with the social security the first step is to seek an amicable recourse.

If the recourse is not satisfactory for the employer (or the employee) the next step is to go to court. This court is the social Security tribunal called TASS (Tribunal des Affaires de la Sécurité Sociale).

What does an assessor do?

The court of the social security tribunal is composed of one professional judge, one assessor from an employee union and one assessor from an employer union.

The decisions of the tribunal are taken by the majority of the three (judge + assessor).

An assessor therefore renders justice in the name of the French people. The decisions of the assessor are based on the law (social security code).


Source:

La CNDI (employers union) : http://www.la-cndi.fr/tass/


French Payroll Expert

Posted employee or employer without establishment?

posted-vs-esef

When a foreign company send an employee to work in France it has 2 possibilities. A posted employee or the ESEF system.

Posted employee “Salarié détaché”

A foreign employee can be sent by a foreign company to work in France. In this case for the employee to be considered as posted the company must:

  • Keep a relationship of subornation with its employee
  • Normally exercise an activity in the employer’s country

The employee must also:

  • Be a member of the EU
  • Be hired by the company for at least one month

If all the conditions are fulfilled the employee can be posted in France.

The standard duration of a secondment cannot exceed 24 month. Special agreement can be granted for longer periods.

When an employee is posted in France he can keep his original social security and not be subject to the French social security.

To do so he and the company must fill in an A1 form. This form is to be approved by the original social security of the employee. He is then subject to his original social security for the duration of the secondment.

In this case neither the employee nor the employer are subject to the French social security and no contributions are to be paid in France. The employee is kept in the roll of his foreign employer where is social contributions are paid.

As the employee his working in France he is subject to income tax in France.

In the case of a secondment, no pay slip is mandatory.

Employer without establishment in France “ESEF”

A foreign company can have an employee in France without setting up a company or a branch in France. The company then become an employer without establishment in France.

To do so the company must be registered to the French social security URSSAF by filling in an E0 form. The company then become an ESEF.

When an ESEF hire an employee (foreign or French national) the employment is subject to the French labor law. This implies that the employment contract between the company and the employee must be a French employment contract.

The employer and the employee are also subject to the social security and all the related contributions. The mandatory contributions include:

  • Social security (paid to the URSSAF)
  • Employment (paid to the URSSAF)
  • Legal retirement (paid to the URSSAF)
  • Complementary retirement (paid to HUMANIS)
  • Life and health insurance (paid to the insurance of your choice)
  • Professional training tax (paid to the training body you are registered to)

In the ESEF system a pay slip, quarterly and yearly declarations are mandatory.

What system should I choose?

Your choice between sending a posted employee and being an employer without establishment will depend on the goal of your activity in France.

A posted employee is a temporary solution for a specific job or operation taking place in France. It is limited in time and it cannot apply to French employees.

An ESEF is a more lasting solution. It has no time limitation. Also this system allows hiring a French employee. The cost is to be subject to the French labor and social security laws and contributions.

Due to the Brexit the posted employee system may not be available very long for UK companies.


Source :

http://www.cleiss.fr/index_en.html

https://www.urssaf.fr/portail/home/employeur/creer/quelle-urssaf-pour-votre-entrepr/firmes-etrangeres.html

 

French Payroll Expert

New social security ceiling for 2016

Social security ceiling

 

The new social security ceiling for 2016 has been published. It increases of 1,514 % to 3 218€ per month.

Reminder: It was of 3 170 € in 2015.

In 2016 we have the following values:

Time preriodCeiling value
Year38 616 €
Quarter9 654 €
Month3 218 €
Fortnight1 609 €
Week743 €
Day177 €
Hour24 €

The new monthly social security ceiling is of 3 218 €

In 2015 it was:

Time preriodCeiling value
Year38 040 €
Quarter9 510 €
Month3 170 €
Fortnight1 585 €
Week732 €
Day174 €
Hour24 €

This ceiling is used to calculate the social contributions. Usually the health insurance contribution is a fix percentage of the ceiling.

It is also used as a reference for some of the social security benefits. It is the case for the retirement benefit and the disability pension.


Source
RF Paye: http://rfpaye.grouperf.com/depeches/35512.html

Find out more on the social security ceiling in our database accessible on our site for registered members.

Database Database
FPExpert