Employ Candidates Compliantly in France

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  1. Overview: France
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in France

What Is a Global PEO (Professional Employment Organization)?

PEO (Professional Employment Organisation) is an international employment service provider that allows you to outsource all the legal and administrative hiring complexities and ongoing payroll for your empyees in foreign countries. With a PEO, your company can focus on finding and hiring the best talent without worrying about administrative hassles.

A global professional employer organization (PEO) allows businesses to outsource specific tasks and processes related to employee management without establishing a locally registered entity in the target country.

A global professional employee organization (PEO) provides hiring, payroll, and benefits management services to businesses of all sizes. When you work with a global PEO, it becomes your Employer of Record for tax purposes, which allows you to save time and money on HR and payroll functions.

What Is Co-employment Model?

PEOs typically enter into a joint-employment relationship with an employer and generally operate within a single jurisdiction or country, such as PEOs located in the United States. A crucial part of PEO services is assuming responsibility for complying with the laws and regulations governing the payment and reporting of any employment taxes paid on employee wages.

In a “co-employment” arrangement, with the help of a global Professional Employment Organisation (PEO), the PEO takes on many traditional employment responsibilities. The employer retains complete control of their employees’ day-to-day management and business.

Large companies are increasingly choosing to partner with a PEO, a global employment service provider, to help them balance their workload and simplify the international hiring processes. The role of the PEO is to manage all administrative HR considerations related to your global employment journey, including onboarding and offboarding, payroll, benefits, and tax administration in Hungary. Plus, you’ll have better control over costs and can avoid non-compliance risks. A PEO has deeper expertise, is familiar with current immigration, tax, and labor laws, can identify employment and tax law issues before they escalate, and can provide expert guidance and recommendations.

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Global Payroll Management & Compliance Considerations

Global payroll management is a complex process that requires careful consideration of various factors. Payroll specialists must consider local regulations and taxation requirements, which can be time-consuming and difficult to navigate. However, by addressing some key challenges and partnering with a Global PEO, organizations can ensure compliant, accurate, and timely payments.

Co-Employment Client
Employment risks mitigation 50% 50%
Tax compliance & payroll processing
Involvement 35% 65%
Incorporation costs
Coverage client’s home country only client’s home country only
International Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs own foreign entity required
Effort 20% 80%
Coverage multinational multinational
Our Global PEO&Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs no need for own
entities
Effort 90% 10%
Coverage 190 countries 190 countries

What Services Does a Global PEO Provide?

Global Mobility Services

  • Employee Work Visa and Work Permit sponsorship for your international employees;
  • ​​Dependent Visa;
  • Visa extension;
  • Application for a sponsor license for a foreign national;
  • Relocation assistance.

Checks

  • Health checks;
  • Criminal record checks;
  • Background checks;
  • Education checks.

Onboarding

  • Employment Agreement drafting; 
  • Compliant worker onboarding on your behalf;
  • Account setup in the payroll and HR system​
  • Employee data entry and records maintenance;
  • Managing probation periods.
  • Local Employment Contracts Compliance

Payroll Administration

  • In-country registration with statutory bodies;​
  • Day-to-day payroll management;
  • Monthly pay-slips; 
  • Payroll frequency and country-specific requirements;
  • Accruals;
  • Allowances;
  • 13th and 14th Salary
  • End of financial year reporting.

Attendance & Paid Time Off Administration

  • Working hours;
  • Overtime;
  • Public holidays;
  • Annual leave;
  • Parental leave;
  • Sick leave;
  • Additional Leave.

Tax Administration & Reporting

  • Tax Reporting frequency and requirements;
  • Employer taxes & contributions;
  • Employee taxes & contributions;
  • Withholding tax;
  • Local tax payments and reporting to local authorities.

Benefits Administration

Mandatory Benefits

  • Health insurance;
  • Workers’ compensation;
  • Unemployment insurance.

Voluntary Benefits

  • Share plans for executives;
  • Expenses reimbursement;
  • Health insurance;
  • Dental treatment;
  • Cars, laptops, and cell phones provision;
  • Business trip processing;
  • Wellness programs.

Offboarding

Compliant handling of offboarding following country-specific regulations and procedures.

  1. Employment agreement termination under specific termination grounds
    • By the employer (dismissal);
    • by the employee (resignation);
  2. Notice period;
  3. Final settlement & severance payments.
  4. De-registration with statutory bodies.

Ongoing Compliance Support

  • Reporting frequency and requirements
  • Payroll regulations and legislation, including regional and local variations and updates 

Ongoing Immigration Compliance Support

Since the immigration landscape is constantly changing, Acumen Global Alliance has established strategic alliances with trusted global providers that together offer a suite of support services to help ensure companies’ continued compliance with immigration regulations worldwide.

Customer Service, Reporting, Query Management

  • Transparency,  accountability, and regular customer reporting;
  • Single agreement for all target countries;
  • 24/7 customer support;
  • A dedicated account manager to guide and assist employers and employees through every step of the employment journey;
  • A rapid response across all time zones;
  • No language barrier;
  • Handling employee requests in 190 countries.

Acumen International PEO Can Help You Eliminate Risks 

  1. Local Incorporation complexities
  2. Permanent establishment risk
  3. Employee misclassification
  4. Under-taxation risk
  5. HR & immigration compliance risk
  6. Intellectual property right risk.

Acumen International-Your Professional Employer Organization in France

Navigating the French legal system and adhering to employment and taxation regulations can be challenging for businesses, especially if you are not a native French speaker. Partnering with Acumen International as a global Professional Employer Organization (PEO) provides you with the local knowledge and support you need to conduct business in France without concern for legal and compliance risks.

Whether you represent international client companies or take your business operations to France, Acumen International’s Global PEO and payroll service allow you to hire and payroll local and ex-pat employees in France. With Acumen in your corner, you can quickly and efficiently onboard and compensate your employees without the risk of legal repercussions.

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Benefits of Partnering with a Global PEO in France

  1. Improving clients’ ability to attract and retain talent.
  2. Enabling clients to focus on their core businesses while PEOs handle HR matters.
  3. Expert HR knowledge and resources to improve their overall business performance.
  4. Reducing HR-related overhead costs.
  5. Eliminating the need to deal with legal compliance and HR issues.
  6. Legal protection
  7. Reduced payroll administration costs.

International Global Payroll and Taxation in France

With the repercussions of Brexit in mind, the French government has taken strident measures to attract disrupted businesses to their borders. They have made significant cuts in capital gains taxes and updated their employment laws and regulations to better align them with corporate business models. Nevertheless, the 2021 TMF Global Business Index rates France as the second most complex country in the world for accounting and taxation and its labor regulations highly favor employees over employers.

All accounting processes must be conducted in France, which can be a substantial hurdle for non-French companies. On top of that, France is one of the first EU countries to adopt and implement SAF-T, the EU’s electronic data exchange system that can present a steep learning curve for international businesses. France plans to conduct all future tax audits digitally eventually.

The complexities of the French payroll and taxation system can severely deter companies that want to conduct business in the European Union.

Partnering with Acumen International and leveraging our Global PEO and Payroll service in France to handle your employment details can eliminate the burden of sorting out the complexities of compensating your global employees in the country.

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Employment Taxes in France

The French payroll and taxation systems are among the most complicated in the EU.

Payroll Cycle in France

Payroll in France is usually paid monthly, with employee payments made on or by the last day of each month. French payroll is typically made up of 12 monthly payments. Some companies opt to pay wages 14 times per year, making extra payments in June and December.

13th salary in France

The 13th salary in France is customary and generally paid at the end of the year. Providing a 13th or 14th salary can effectively attract and retain the best talent in a competitive global landscape.

Employer and Employee Payroll Taxes in France

France is a founding member of the European Union (EU) and a member of the G7, G20, Organisation for Economic Co-operation and Development (OECD), and World Trade Organization (WTO). It is divided into 12 metropolitan regions, with Paris as the capital.

As of 2019, all employers must withhold monthly tax contributions from employee income and report employee earnings to the government. This change was made to improve tax compliance and ensure everyone pays their fair share. Employers in France are also required to withhold employee social insurance contributions and to contribute additional social insurance payments based on a percentage of employee income.

Employment and self-employment income in France is taxed at progressive rates, with a maximum rate of 45%. In addition, the social charges (CSG and CRDS) apply to all resident taxpayers at a rate of 9.7%, which covers French social security contributions.

International employers of French citizens who do not have a legal business entity in France must acquire a registration number called a SIRET. Employers need the SIRET to register on the French Net-Entreprises website, where they must submit tax returns and pay withholding taxes.

Global employers are also required to create an account on the impots.gouv.fr website to reference employee tax returns and payments and provide banking details for the debit of tax payments. International employers should hold a bank account in the Single Euro Payments Area (SEPA) zone for tax debt purposes.

Non-Payroll Taxes in France

The French corporate tax rate for large companies was recently reduced from 33.33% to 27.5% (for companies with an annual turnover of more than EUR 250 million) and 26.5% (for companies with an annual turnover of less than EUR 250 million), with plans for a further reduction to 25% in 2022. Value Added Tax (VAT) is set at 20%, while personal income taxes can go as high as 45%. Since 2018, savings and investment gains have been taxed at a flat rate of 30% (12.8% income tax and 17.2% of CSG/ CRDS and additional social charges). Companies in France must make nine individual tax payments per year to cover corporate taxes.

Permanent Establishment Risk in France

Once you establish a legal business entity in France, you are considered by local tax authorities to be continuously operating there, and you will become liable for all corporate taxes. Your company will be taxed for profits generated within the country and subject to interest charges and late fees on outstanding taxes.

Even if you have not established a legal entity in France, if your business grows to the extent that you are continuously operating there, you may be deemed by local tax authorities to be a permanent establishment and be subject to corporate taxes on all profits realized in the country, along with interest on unpaid taxes.

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How Acumen’s International PEO and Payroll Service: Benefits for Your Business in France

Compensating your local and foreign workforce in France and closely adhering to French taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf and take care of all the payroll details while ensuring full compliance with French labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution but only as a part of our global PEO and payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in France by officially employing and compensating your best selected global talent — both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by French laws. To get the latest updates on taxation in France and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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