- Overview: France
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Global HR Compliance
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in France
Do you have Ukrainian workers who are planning to flee to France to escape the Russian conflict? Or have your employees already left Ukraine and arrived in France?
Acumen International can help companies like yours, including IT, to compliantly employ your Ukrainian talent in France within days. Acumen’s global PEO and Payroll solution helps you to legally relocate your Ukrainian personnel to France so you can enjoy uninterrupted workflow with employees you know and trust. Our solution enables us to arrange for global payroll, and to open bank accounts for your employees. We can also provide your talent with laptops, mobile phones, and other tools they need to perform their jobs.
Due to its rich cultural heritage and splendorous architectural achievements, France has great allure for international businesses expanding in the European Union.
The county’s close proximity to the United Kingdom makes it an attractive choice for companies whose business operations were disrupted by Brexit, the UK’s recent exit from the EU. But getting your business up and running in the French Republic can be challenging, especially if you do not speak the native language. Establishing your business entity in France is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in France, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours to smooth the way for quick, easy, and risk-free business operations in France without establishing a legal business entity.
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 abroad, Acumen International’s Global PEO and payroll service allow you to hire and payroll local and expat employees in France. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
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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 major 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 for its labor regulations that highly favor employees over employers.
In France, all accounting processes must be conducted in French, 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 eventually conduct all future tax audits digitally.
The complexities of the French payroll and taxation system can be a serious deterrent to companies who 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 having to sort out the complexities of compensating your global employees in the country.
Employment-Related Taxes in the French Republic
The French payroll and taxation systems are among the most complicated in the EU.
Payroll Cycle in France
Payroll in France is usually done on a monthly basis, with payments to employees 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 be an effective strategy for attracting and retaining the best talent in a competitive global landscape.
Employer and Employee Payroll Taxes in France
In 2019, it became mandatory for employers to withhold monthly tax contributions from employee income and report employee earnings to the government. Employers 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. For tax debit purposes, international employers should hold a bank account in the Single Euro Payments Area (SEPA) zone.
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 be subject to charges for interest 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 can Benefit Your Business in France
Compensating your local and expat 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.