are you losing or winning at the end of the month?

In 2022, more than 90,000 self-employed people carried out their activity on wage portage. The rise of this new form of work attracts many freelancers who are looking for a simple, fast and secure solution to get started without the obstacles associated with setting up a business.

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Wage portage, a status based on a three-way relationship which allows an entrepreneur to launch without starting a business, to offer its services with the support of a portage company like Prium for example, to manage all administrative, financial and legal aspects. It plays the role of both third party employer for “Dala” andin between in its business relationship with its client. It invoices the client and converts the turnover generated monthly on behalf of the latter into salary.

How does wage portage work?

Each month, turnover is converted to net salary.

To calculate this net salary, the umbrella company deducts:

  1. its management fees: between 5% and 10% of turnover excluding tax;
  2. provisions: paid vacation, financial reserve and termination of contract.

which will be paid on a staggered basis.

The balance consists of payroll, which is broken down into social security contributions (employer and employee), income tax (deduction at source) and net payable.

net salary corresponds to approx 50% of turnover excluding tax. The net payment may be higher if Porté justifies the payment of his professional expenses. Other optimization mechanisms (employee savings, CESU, gift vouchers, etc.) also make it possible to reduce social and tax charges.

So, are we winning or losing in wage portage?

Social protection of the employee

Unlike other statuses (micro entrepreneur, EURL), the portage freelancer remains affiliated with the general social security system. It also benefits a both and one vision of the future negotiated with his wage portage company.

This is the only status that allows you to benefit from right to unemployment. The brought employee can benefit from the unemployment allowance if he has worked for at least 6 months in the last 24 months. The duration of compensation is a minimum of 6 months and a maximum of 36 months (depending on the number of months worked and age).

Finally, the elevator is affiliated with the general pension scheme employees and verify their quarters like any other private sector employee.

Billing management fees

Between 5% and 10% of monthly turnover excluding VAT, these management fees are deducted directly from their activity account. They include all the administrative, legal and accounting tasks carried out by the portage company.

But be careful, this rate does not always take into account all the deductions made by the wage portage company (activity charges, fiscal and parafiscal taxes). To correctly calculate this cost, it is therefore necessary to ask the portage company for a detailed simulation.

Invoicing unjustified expenses of the wage portage company and did not appear in the simulation, which we will call “hidden cost”.

We strongly advise contracting with a company with “Zero hidden cost” label of Fedep’s (consumer defense association). There are 9 in the wage portage market.

Saving time every month in administrative, legal and tax management

This time is approximately from 12h to 36h per month, right?! Well, in wage portage this time is transformed into commercial prospecting for example, and above all the employee carried focuses on the development of the activity.

And if you immediately make great resolutions for 2023 by switching to wage portage status, do you think you’ll end up a loser?

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