Payroll refers to the amount a company has to pay to employees during each period. Before running payrolls, companies should collect information about their income tax withholding exemptions if there is any.
As an umbrella, 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 Portage will set all the tax payment and social security contributions for you. The steps are easy to follow. First, we will deduct its fees. This new amount is subject to income tax and national insurance. The left quantity 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 the taxes and social security contributions from the value of any invoices submitted to the client.
Since the scheme considers consultants employees of the umbrella company, the salary you get is calculated based on your monthly VAT billing.
To calculate the payment, ABC Portage first deducts a fee for administrative functions (which varies from 10% to 3% and decreases according to the amount of the monthly turnover you get). After this, the new amount is subject to taxes and social security deduction. The payment is the final amount obtained after all these steps.
There are some costs can be claimed as expenses, by doing it, you can be refunded to for them.
Those are known as ‘chargeable expenses’.
Pay slips provided to the employee
As an employee, you 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 deductive 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 labor income charged to both companies and employees. The revenues obtained are important for the government because they help to pay for diverse social programs such as welfare, health care and more. It is composed by different rates including family benefits, old age insurance and others.
As a consultant of ABC Portage, your contribution to social security grants you the benefit of using it when needed.
The unemployment insurance scheme is financed by the contributions paid on earnings, subject to the limit of four times the monthly social security ceiling. This scheme is applicable to umbrellas. According to a new Order released in 2015, payroll and unemployment insurance are compatible, so as an ABC Portage consultant you can benefit from this insurance too.
In France, the basic pensions of private sector employees are topped up by the compulsory supplementary pensions ARRCO-AGIRC. The statutory retirement age is 62 and the full-rate retirement age is 67.
Any ABC Portage’s consultant has access to retirement benefits.