Payroll refers to the amount a company has to pay to employees for each period. Before running payrolls, companies should collect information about their income tax withholding exemptions if there is any.
As an umbrella company, ABC Portage will provide a payroll service to its employees. We process all the timesheets and invoices and pay a salary after deductions.
Contributions to social taxes in France
General taxation finances the social security system in France, since it is mandatory. Thanks to this payment, all employees have access to national social insurance, which covers health (maternity, disability and death), family allowances, retirement, housing benefits, and occupational accidents (including illness).
We will set all tax payments and social security contributions for you. The steps are easy to follow. First, we will deduct our fees. This new amount is subject to income tax and national insurance. The remainder is your salary.
Payment made to the employee
All umbrella companies operate under the same rules and regulations. The net payment is the one obtained after deducting taxes and social security contributions from the amount of each invoice submitted to the client.
Since the scheme considers consultants as employees with the umbrella company, the employee’s net salary is calculated based on the invoice amount or daily rate negotiated with the employee.
To calculate the payment, ABC Portage first deducts a fee for its administrative services (which varies from 10% to 3% and decreases based on the amount of the monthly turnover invoiced). After this, the new amount is subject to taxes and social security deduction. The payment is the final amount remaining after all these steps.
We can also invoice employee’s expenses if they are any.
Pay slips provided to the employee
The employee will receive a pay slip from ABC Portage. This document always includes the employee’s gross salary, net salary, social security contributions, complementary pensions and other deductible expenses.
We are in charge of calculating all the taxes including social security, unemployment and retirement rates. In essence, we act as an accountant and administrator.
In France, the Social Security Rate is a tax related with labour income charged to both companies and employees.
ABC Portage is in charge of handling contribution to unemployment benefits, retirement benefits and social security
Therefore, ABC Portage’s consultant has access to retirement benefits, unemployment benefits and social security.