Paying employees in France can be a difficult task. Many companies choose to outsource their payroll service because of the complexities of the system, subject to constant legislative changes and different obligations according to different sectors.
Companies with employees in France are required to register them with all the obligatory social security schemes, namely URSSAF (unemployment benefit), ARRCO or AGIRC (pension), life insurance and health insurance.
URSSAF is obligatory for all. Failure to register one’s employees to URSSAF is a criminal offense.
ARRCO is the pension plan for all employees in the private sector including industry, commerce, service and agriculture. (For all non ‘cadres’ employees)
AGIRC is the supplementary pension plan for ‘cadres’ employees. Cadre = executive employee
A pension is obligatory, the size of the pension depends on the employee’s activity. The above organisations inform, collect and control the pension activity in France.
Health insurance is obligatory for all since the 1st of January 2016. The provider can be chosen by the employer. Health insurance covers the first three months of sick leave.
Life insurance is obligatory for the ‘cadres’ employees.
Paying employees in France from abroad can be tricky, but Maupard can offer a payroll system for international companies- LTS, a treasury management system. Using this, the client simply pays into a Maupard account, then we pay the employees, taking care of the distribution of wages. This makes the client’s life much easier as Maupard deals with all the administrative formalities.
It’s important not to waste time in the recruitment process trying to understand the formal process of payroll. Keeping up with the changes in social contributions regulations is too demanding for most SMEs and other companies to handle alone.
Maupard can take care of the setup, while the employer can concentrate on choosing the right employees. We then take care of the monthly and year end obligations that follow. We provide efficiency, simplicity, and confidentiality to the process of payroll.
2 min readREF: 056: After the scandals of the early 2000’s, and to prevent money laundering, a KYC (meaning “Know Your Customer”) procedure became mandatory in many countries, including France, the UK and the USA.