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Reporting and payment of social security contributions

Verified 30 November 2020 - Directorate for Legal and Administrative Information (Prime Minister)

Collected from the gross salary, social contributions and contributions are owed by both the employer and the employee. In practice, the contributions due by the employee are deducted at each pay by the employer. He is the one who declares and pays employer and employee contributions and contributions to the collection agencies. The employee receives the net salary, i.e. his gross remuneration deducted from contributions.

At the expense of the employee and the employer

The social protection of the employed person is financed by contributions and contributions which are calculated from the gross salary. Some of these levies are paid by both the employee (wage share) and the employer (employer share).

These include:

  • Social security contributions covering sickness, maternity, invalidity, death and basic old-age insurance (retirement from the general scheme or the agricultural social protection scheme) 
  • Unemployment insurance contributions that finance unemployment benefits (wage share only for the intermittent performers, employees working in Monaco and some expatriate employees)
  • Compulsory supplementary pension contributions, which are paid to the Arrco funds (for all executive and non-executive employees in the private sector) - Agirc (in addition to executive staff), to 60% by the employer and 40% by the employee 
  • Apec contribution (for frames only)

Once these sums are deducted, the employee receives the net salary.

Employees in the private and public sectors working overtime shall be entitled to a reduction in their old-age insurance contributions (11,31% maximum on these hours).

It is the employer who must pay the contributions and contributions (combined salary and employer share) to the collection agencies:

  • Urssaf: titleContent if the employee falls under the general social security scheme 
  • Agricultural Social Mutuality (ASM) if the employee is covered by the agricultural social protection scheme.

FYI  

the contribution of unemployment insurance is no longer borne by the employee, except for the intermittent performance, the employees working in Monaco and certain expatriate employees.

Employers only

There are other contributions that are borne solely by the employer:

Dependent on employee only

Tax levies intended to finance social security are borne only by the employee:

Until 31 December 2022, when the employer makes an electric vehicle charging station available to the employed person, the advantage in kind constituted by the use of that terminal for non-professional purposes shall not be taken into account.

The basis on which social contributions and contributions are calculated is the basis on which they are calculated.

The base includes all amounts, benefits and incidentals (in kind or in money) that are due in consideration of or in connection with an elective work, activity or mandate.

These include:

  • Gross salary, including overtime and overtime pay 
  • Premiums and allowances 
  • Supplementary social benefits 
  • Replacement income in the event of sickness, maternity or industrial accident 
  • Extraordinary family benefits 
  • Cash benefits provided by the works council 
  • Benefits in kind (e.g. food and accommodation, provision of cars for private use by employees).

Other elements of remuneration are not subject to assessment:

  • Daily allowances paid by the Social Security 
  • Replacement income: retirement and disability pensions, unemployment and early retirement benefits 
  • Bonuses related to the interest or participation of employees in the results of the undertaking (in the framework of a collective agreement) 
  • Guarantees related to the award of the medal of honor for work, up to the monthly basic salary 
  • Compensation considered as damages 
  • Employer contributions for supplementary retirement and supplementary pension 
  • Reimbursement of reasonable professional expenses.

The basis for calculating contributions may not be less than the minimum legal or conventional remuneration (minimum wage). It must be added the legal or conventional increases, premiums and allowances (except for employees paid in a package or VRP multicards).

Conversely, some contributions are capped :: beyond a certain amount or ceiling, remuneration is no longer taken into account in calculating contributions. This is the case for part of the old-age and final contributions. Other contributions are due on the full remuneration, they are said uncapped.. The social security ceilings valid for one year are defined each 1to January.

The basis for calculating the CSG-CRDS is broader than that of social security contributions. Unassessed remuneration elements shall be added.

Calculation of social security contributions for hiring a first employee

The social security ceiling for the calculation of social security contributions shall be determined in relation to the working period giving rise to remuneration. It shall be adjusted in proportion to the time actually elapsed. That is to say, according to the periodicity of the pay or, where the employee has not been present during the whole period, according to the days covered by the contract of employment over the same period. Specific rules apply to part-time employees and those excluded from the monthly payment.

Example :

In the case of the payment at the beginning of January of the salary of December, the ceiling of the Social Security applicable is that of December.

This ceiling will also be applied to remuneration related to the same pay due in other periods.

In the event of a pay gap, the reductions in social security contributions are calculated on 13 payments.

The change in the operative event for the rates and ceiling has an impact on the calculation of the general reduction in social security contributions for December and the reduction in the rate of family allowance contributions.

When calculating the reduction in the family allowance contribution rate, the remuneration for the 13 months must be taken into account and brought down to 13 monthly smic.

In case of disagreement with a social security organization, the professional can request mediation. The mediator will be appointed by the director of the organization.

FYI  

the rewarding an intern, which is compulsory from 2 months of agreed internship, is exempt from social security charges if it is less than €3.90 per hour of training. Above this threshold, it is subject to social security contributions.

Declare via DSN

The payroll (i.e. gross wages), the number of hours paid, the base and the amount of contributions must be reported each month using the registered social declaration (DSN) ::

  • by non-agricultural employers in Urssaf,
  • by agricultural employers at MSA: titleContent..

The NSB on pay must be made in the month following the period of paid employment:

  • by 5 for employers with at least 50 employees and whose pay is paid in the same month as the period of work, 
  • by 15 in other cases (employers with 50 or more employees who are not on pay, employers with less than 50 employees).

FYI  

employers who do not yet use the NSB must establish by January 31 annual social data declaration (DADS-U)..

Pay by dematerialized

Payment by dematerialized path is requiredregardless of the income from activity or turnover,

  • for self-entrepreneurs: by electronic payment or credit card
  • for the classic insured: by direct debit, electronic payment, credit card or transfer.

Monthly contributions become the rule.

Third-party filers

The employer may entrust the exercise of its rights to a third-party declarant. The third party must make the declarations by dematerialized means.

Third-party filers may be:

  • Companies that pay commissions, courtages, fees, copyright or inventor's rights
  • Pension funds that pay pensions and annuities
  • Health insurance funds that pay daily sickness and disability benefits
  • Professionals who buy metals (ferrous and non-ferrous)

Companies that own more than one establishment can centralize their social declarations and contributions in a single center in Urssaf. This device is called VLU..

VLU is mandatory for companies with 250 or more employees. It is optional for others.

The company must apply for an authorization. If the application is made before 31 October, the VLU device is then put in place thatto January of the following year. For companies that practice pay shift, the implementation of the VLU is effective at 1to December of the current year.

In order for an LCV application to be accepted, the employer must be in contact with at least 2 Urssaf centers.

He must also be up to date with his contributions and returns.

Please note

in the event of a dispute, the competent court is the judicial court of the territory where the company's (sole) social security body is located.

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