Advantages and disadvantages of wage portage
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The wage portage is a. solution increasingly sought by professionals as an alternative to self-employment. Indeed, it allows you to manage your activity in complete freedom while benefiting from the status of employee like the mutual insurance company for example. In addition, it is even possible to consider international wage portage. Before getting started, it is important to understand what wage portage is and what are the advantages and disadvantages of wage portage.
What is wage portage?
Wage portage makes it possible to set up a three-way relationship between the portage company, the employee carried and the client company. The employee carried is a professional who will benefit from the status of employee by signing an employment contract with the portage company. His status is therefore no longer that of an independent or a freelancer, but rather that of a consultant. The carrier company is the one that sets up the employment contract and who is responsible for paying the salary of the consultant. The client company is the one that will call on the services of the consultant within the framework of a mission and to whom we therefore go charge for the service offered.
In other words, the consultant signs an employment contract with the wage portage company. He approaches clients and carries out missions and it is the portage company that is responsible for invoicing service to the client company. The carrier company pays then a salary to the consultant according to the turnover accomplished. The operation is therefore the same as in a company classic, with the difference that the employee manages his activity as he hear it.
This status is very often considered by people who wish to start their own business and wish to become self-employed. Most often, we will have the choice between the status of auto-entrepreneur or wage portage. If the status of auto-entrepreneur has its advantages and its disadvantages, it is also important to be aware of the advantages and disadvantages of wage portage. We can thus whether this solution actually meets their expectations for make the best choice possible in order to develop their project.
What are the benefits of wage portage?
In order to know the advantages and disadvantages of wage portage, we will start by looking at the advantages of this status. If many independents decide to turn to this solution, it is not in indeed not without reason, because there are several advantages to becoming an employee door.
Access to employee status
The status of employee has many advantages over that of of auto-entrepreneur. It gives access to unemployment, protection social with health insurance, complementary health insurance, provision, training and much more. The first advantage of wage portage is therefore to allow access to this status and everything related to it. One can thus evolve in one's activity from more serene and secure way knowing that we will benefit from appropriate support in the event of illness, loss of employment or retirement. What's more, other advantages can be added by depending on the portage company chosen, such as access to restaurant coupon.
The mutual in wage portage
The wage portage mutual is an important advantage because it provides coverage complementary health at lower cost. The self-employed often have to take out individual health insurance, which can turn out to be costly. By opting for wage portage, the employee carried can take advantage of the benefits of the collective mutual insurance negotiated by the umbrella company, and thus benefit from health coverage adapted to their needs at an advantageous rate.
A management of the activity in complete freedom
Another advantage of wage portage is that it allows management of his professional activity freely. Indeed, if we benefits from employee status, there will always be the possibility of manage its missions as we see fit. So we can choose our customers, define the missions that we wish to carry out, in what way they will be implemented, but also at what cost. The carrier company does not come to interfere in these choices which return to the consultant. We can therefore completely manage and deploy its activity as we see fit in the same way as one could do it by being freelance.
No administrative and accounting obligations
Among the avatages and disadvantages of wage portage, we can also note as an advantage the fact of not having to deal with the administrative and accounting part. Indeed, the fact of creating one's own business requires compliance with certain administrative obligations and accounting, such as generating invoices for each mission carried out, the keeping of a recipe book, the declaration of its turnover, the payment of its contributions, the opening from a professional bank account past a certain amount, etc. A consultant in carrying contract will no longer have to take charge of these different tasks since it is the umbrella company that does will load. One can thus fully devote oneself to the practice of one's profession within the scope of his employment.
Step-by-step guidance
Finally, we can also cite as an advantage of wage portage the possibility of being accompanied in a professional manner. In fact, to be consulting for an umbrella company involves joining a structure as an employee. More than collecting a salary, we will to be able to benefit from real professional support through the carrier company. This may take the form of advice in the development of its activity or the organization of meeting with other employees and other professions. This is how the opportunity to build a real network.
International wage portage
Another significant advantage over the international wage portage, it is also one of the major advantages, the employee brought to the possibility of invoicing its services abroad. This situation offers an exciting opportunity to explore new markets and expand his professional activities.
What are the disadvantages of wage portage?
It is also important to emphasize that among the advantages and disadvantages of wage portage, there are also of course disadvantages of wage portage. If for some, they can seem minor, it is still important to be able to identify to know if this solution will really correspond to his activity and his project.
The cost of wage portage
One of the disadvantages of wage portage is the cost it represents. Indeed, opting for this solution will impact its turnover. since these are several costs that will be deducted from the billing of a mission. There is the commission charged by the umbrella company, employer contributions and employee contributions. It's necessary therefore take into account this impact on remuneration, which allows in particular to finance the benefits linked to employee status.
The formalism linked to the operation of wage portage
Another disadvantage of wage portage is that it must be governed by a service contract, an employment contract and a membership agreement. These various documents make it possible to seal the agreement put in place between the supported employee, the customers and the carrier company. Most often, it is the umbrella company who is in charge of drafting these documents. However, it is recommended to ensure that you are fully in agreement with the various terms and conditions are described there.
The impossibility of developing your business
If we decide to embark on wage portage instead of becoming auto-entrepreneur for example, we choose to do without the possibility to grow their business. Thus, it can no longer be envisaged to to create a company, to hire employees or to associate by example. If for some this does not represent a disadvantage of the wage portage, others will prefer to create a structure that they can grow and develop.
The minimum turnover
Finally, to join a wage portage company, a figure minimum business is imported. The carrier company being required to pay a minimum wage to all these wage earners, it must also ensure that a minimum turnover is generated each month. It is therefore recommended to inquire to know its amount and so ensure that his activity corresponds to the wage portage.
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