Payroll solutions in France

Posted by Vincent on February 11th, 2020

Portage salarial companies have flourished over the past decade in France. They provide contractors with payroll solutions and offer them a "hassle free" structure. They operate very much like UK's Umbrella companies. The number of contractors working as portage salarial employees are estimated at around 90 000 ussing the services of more than 200 portage salarial companies all over France for an estimated business of nearly 1 billion euros. 50% of portage salarial companies concentrate in and around Paris. The rest of the activity maily concerns big cities like Lyon, Bordeaux or Toulouse.  

A Portage salarial company is a company that employs contractors who work on temporary contract assignments in France. Clients prefer to issue contracts to a portage salarial company as it reduces liability, ensures full compliance and gives them flexibility over the employment of a very profesional and dedicated workfroce. A portage salarial company operates as a third party supplier acting as an "employer" on behalf of the contractor it employs.

An employment contract is signed between the portage salarial colmpany and a contractor. A service contract is then signed between the portage salarial company and the client on behalf of the contractor who will be carrying out the assignment. Every month, the contractor will issue a timesheet to the portage salarial company so that it can inoivce the client. The contactor is paid on minimum wages as soon as the invoice is issued. On payment of the invoice, the contractor gets a full salary after deducting the portage salarial's management fees (around 10%), social contributions, taxes and the salary which has already been paid. Last but not least, a contractor can also claim business expenses which are not subject to social contributions or taxes. The portage salarial company will make sure that all business expense claims comply with french laws.

There are a variety of benefits to joining a Portage salarial company. A contactor will benefit from the same protections as any other employee and may be able to claim tax relief on business expenses. Depending on the portage salarial company, a contractor could also benefit from employees tax free savings schemes and healthcare plans.

A portage salarial is a payroll service provider that has the appropriate legal and accounting staff and payroll platforms to provide professional payroll services. They also care for all professinal insurances so that the contractor is insured for any liability.

To know how much a contractor can get paid, most portage salarial companies provide online salary simulation.