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FAQ
Payroll FAQs
√ What is the French average social costs ?
If you have one or more employees in France, you have to pay, as employer, social contributions based on wages. My Payroll in France give you a rough estimate of your costs, from gross to net.
For a Gross wage of 100, your payslip in France will show you following amounts :
- Employee contributions: 24
- Net amount (before income tax): 76
- Employer contributions: 45
In other words, you will pay :
- to your employee : 76
- to social organisations : 24+45=69
- which means a global cost of : 76 +69 = 145
Please consider these data as example. Reality may vary significantly (5 or 10%) depending on the wage amount, depending on health care insurance or other supplementary contributions. For more information, visit this site.
√ Why calculate the Net amount before income tax ?
My Payroll in France calculate a net amount before income tax because income tax is not paid by the employer in France. In fact, your employee will have to do on his own. That is a major difference with many other countries.
Please note that your employee will have to pay income tax based on 76 if he’s a french resident, from the point of view of the taxes.
√ What is the CBA or Collective Bargaining Agreement ?
Your employees in France will have to follow french rules. It will be useful to choose the Collective Bargaining Agreement matching with your activity when you will hire your first employee. A CBA is a contract on hiring, working conditions and dispute resolution between an employer and a union, the latter representing employees of a defined group.
√ French Salary Slip template
As you may be aware, the French payslip is considered as a legal document in France. He has a regulated and standardized format. Even if French government decide to create this payslip, this is one of the most complicated in the world (we frequently need 2 pages for one month payslip).
Effective at January 1st 2018, all companies (regardless of headcount) must produce and provide their employees with a new payslip format called the Payslip template.
√ What is the Minimum Wage ?
A National minimum wage exists in France, that is the minimum amount per hour, per day, or per month that employers may legally pay to workers. For example, per January 2018 :
- Gross wage (per hour) : 9.88 €
- Gross wage (per month): 1498.47€
- Net wage (per month): 1160 €
- Gross wage per year : 17,982 €
√ How does Mileage reimbursement rate work ?
The most common use of these mileage rates is to reimburse employees for expenses involving use of their own cars for business purposes. Have a look on the last official reimbursement rates 2019.
Most businesses give employees mileage reimbursement forms. These forms might ask employees the following information about their business-related drive : date, business purpose, origin, destination, miles traveled, total miles.