November’s SME Breakfast at the Chamber

Yesterday I what representing French Payroll Expert at the Franco-British Chamber of Commerce & Industry (FBCCI) for the #SMEBREAKFAST.

Olivia Portaud was the speaker. Olivia is an image management coach.

She spoke of the proper way to manage your image. It was very impressive.

I learned a lot. Including that there is no bad image, just the wrong message being sent.

Of course I also had the opportunity to meet some of my chamber’s friends Florent Baudin from BBZ Conseil, Derek Ferguson from Roaming Schoolhouse, Georgine Glaenzer, Keith Jackson from JASL – Jackson Services Linguistique and Stéphane Lorey from AMBRELIA.

And I was pleased to meet new people, Nadira Artyk, Nigel Bath from STREGO, @Kate Cranfield, Jeremy Durack from Sotheby’s, Veronique Lecompte, Mark Miller-Eloit from Lagardère Sports, Siméon MONTROSE, Gaëtan Riche from Savoir Beds Ltd, Patrice Tiolet – International VP, Performance Excellence from Réseau Oudinot, Anne-Hélène Scouarnec-Hurault from Authentic HR and 3 members of the École de Guerre.

Thanks you very much Catherine Le Yaouanc for setting this up.

Get ready for the withholding of income tax (PAS).

The withholding of income tax (Prélèvement à la source or PAS in French) on the French payroll will be a reality in January 2019.

For foreign company without a fix establishment in France, payroll providers can manage most of the process.

However, payment must be made by the company to the fiscal authorities.

For those of you who don’t know the DGFIP (fiscal authorities), it is not a very forgiving administration unlike the URSSAF (social security) or HUMANIS (retirement).

Don’t forget that you everything must be ready for January’s payroll. And it is not unheard of to have a lot of the administration staff take their Christmas vacation.

French Payroll Expert strongly recommend that you contact the SIEE (DGFIP services for foreign company) as soon as possible to confirm that your account with them is set up with the proper B2B SEPA mandate.

SERVICE IMPOTS DES ENTREPRISES ETRANGERES NOISY-LE-GRAND

10 RUE DU CENTRE

TSA 20011

93465 NOISY-LE-GRAND CEDEX

01 57 33 85 00

SIEE.DINR@DGFIP.FINANCES.GOUV.FR

 

Can the employer give free lunches to his employees?

Can the employer give free lunches to his employees?

Yes, the employer can provide free meals to the employee (or pay the meal directly).

In this case the meal is considered being worth the legal lump sum of €4.8 per meal (aka €9.6 per days for 2 meals).

However, this lump sum per meal is not exempted from social contributions.

Social security (URSSAF) considers it as a benefit in kind. Therefore, the basis of the social contributions must be increased by the number of meals paid to the employee time €4.8.

You can find the URSSAF explanation here:

https://www.urssaf.fr/portail/home/employeur/calculer-les-cotisations/les-elements-a-prendre-en-compte/les-avantages-en-nature/lavantage-en-nature-nourriture/lemployeur-fournit-gratuitement.html

Also, be extra careful. As the collective bargaining agreement can state a higher amount per lunch, you may have to pay much more than just contributions to €4.8 per lunch.

If the employee pays part of the meal, the employer part can be exempted from social contributions. However, to do so, the employee contributions must be at least 50% of the lump sum.

Here is the text from the URSSAF :

https://www.urssaf.fr/portail/home/employeur/calculer-les-cotisations/les-elements-a-prendre-en-compte/les-avantages-en-nature/lavantage-en-nature-nourriture/lemployeur-fournit-le-repas-a-pr.html

One other option is to provide lunch vouchers to the employee. This process is very common in France and well thought of.

Don’t hesitate to contact French Payroll Expert if you have any question on setting up lunch vouchers.

Boost Your Network event.

Boost Your Network

Today I went to the #BoostYourNetwork event setup by the Franco-British Chamber of Commerce & Industry (FBCCI) , ABIE France and NetworkIrlande France in Grant-Thornton France‘s office at Neuilly.

If you know speed dating, this is the same with networking.

It was my first try. I rather enjoyed it.

Not only did I have the opportunity to meet new people such as Hubert Levesque from Morgan McKinley , Frédéric Brard from Bloody Mary and Harrie Barron from Softools .

But I also meet some of my usual accomplice in such events, Anne-Cécile Bourget-Davron from Davron Translations , Thibault Vanham ◆ Bessé Ressources from Bessé , Frederic Calinaud from Calinaud David Avocats.

I hope you can join us for the next event.

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

Increase of the Legal Termination Indemnity

Labour Law

The new labor law change things slowly but steadily. One these changes is the increase of the termination indemnity.

Previously

In the previous labor law, the termination indemnity was calculated for terminated employees of at least 1 year of seniority.

The indemnity was worth 1/5 of the average monthly salary.

For employees with at least 10 years of seniority, the indemnity was increased of 2/15 of the average monthly salary per year of seniority over 10 years.

The average monthly salary was the best of the average salary over 12 months or over 3 months.

The termination indemnity is not to be paid in case of a termination for grave misconduct.


Example

An employee of 25 years of seniority was paid an indemnity of:

[25*(1/5)] + [15*(2/15)] = 7 times the average monthly salary.


With the new law

For all termination signed after the 26th of September 2017 the termination indemnity is calculated for terminated employees of at least 8 months of seniority.

The indemnity is worth 1/4 of the average monthly salary for the first 10 years of seniority. And 1/3 of the average monthly salary for the rest of the seniority.

The average monthly salary is the best of the average salary over 12 months or ,if the employee has less than 12 months of seniority, the average monthly salary over all the months previous to the termination, or over 3 months.

The termination indemnity is not to be paid in case of a termination for grave misconduct.


Example

An employee of 25 years of seniority was paid an indemnity of:

[10*(1/4)] + [15*(1/3)] = 7,5 times the average monthly salary.


French Payroll advises

There are 2 things to keep in mind:

  1. The collective bargaining agreement termination indemnity can exceed even the new legal. Have a look at your CBA before calculating your termination indemnity.
  2. Other indemnities such as retirement indemnities and mutual agreement indemnities are linked to the legal termination indemnity. Therefore, their calculation method evolves the same way.

 

French Payroll Expert


Source: https://www.service-public.fr/particuliers/vosdroits/F987

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