Which wage portage contract?
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When a freelancer wishes to benefit from the same advantages as an employee, he now has the possibility of considering wage portage as a solution. Employees in wage portage benefit from many advantages in terms of remuneration, insurance, training, unemployment, etc. This type of service is available under different forms of contract. So which wage portage contract should you choose for your business? What are the differences between wage portage and CDI ?
What is wage portage?
Wage portage is a solution offered to people who carry out freelance assignments so that they benefit from the same advantages as employees. Indeed, a freelancer will be able to manage his services and clients in complete freedom, but must nevertheless manage a certain number of administrative and accounting tasks as part of his activity.
What's more, he does not have to not have access to the advantages found in employment such as job security, unemployment, access to attractive health insurance, reimbursement of professional expenses, etc. If being self-employed is very suitable for some professionals, others would prefer to continue to fuel their turnover with certain advantages, and this is precisely what wage portage offers.
How it works ?
Wage portage is based on a three-way relationship between the umbrella company, the self-employed person and the client company. The freelancer continues his commercial canvassing as he is used to as well as the performance of his services. Instead of billing the client company for its mission, it is the umbrella company that will take care of it. It will then take a percentage of the figure achieved within the framework of the mission and then pay a monthly salary to the freelancer. The latter is linked to the portage company by an employment contract, which allows him to obtain the status of employee.
In other words, the self-employed person changes status by joining the holding company, but continues to carry out its activity as it sees fit. The portage company then becomes an intermediary between the self-employed person and his client to take charge of various accounting and administrative procedures and is also responsible for remuneration. The entrepreneur will therefore benefit from employee status from now on, and therefore from all the advantages that flow from it throughout the period during which he is under contract with the portage company.
Wage portage or another status?
There are different legal statuses for exercising a professional activity as a self-employed person.
SASU or wage portage
The SASU (Société par Actions Simplifiée Unipersonnelle) is a form of single-person commercial company. It is created by a single partner who holds all of the share capital and who has the quality of president of the company. The difference between SASU and wage portage is that the latter allows the person carried to work as a freelancer while benefiting employee status.
Auto entrepreneur or wage portage?
The auto-entrepreneur and portage salarial are two different statuses for exercising as a self employed. The auto-entrepreneur has his own tax system, his contributions are calculated on the basis of the turnover he generates.
Freelance or wage portage?
You can also compare the status of freelance and portage salarial, however it is different because the freelance offers its services to several clients. He manages his activity and his own customers independently. He is responsible for his social and tax protection but also for the management of his business.
What are the benefits of wage portage?
Being a freelancer gives you great freedom on a daily basis, but it also has certain disadvantages, such as being quite alone in your freelance activity, having to perform various administrative and accounting tasks, particularly related to invoicing or payment of dues, all without the advantages of a business in the traditional sense of the term. Rather than abandoning their activity, these professionals can now opt for a wage portage contract and thus see their status change to enjoy many advantages.
More safety in the context of its activity
What often characterizes self-employment is insecurity about the future and the smooth running of one's professional projects. Indeed, if the activity of a freelancer stops, it is rare that he has the resources to turn around the time to find customers or to embark on a new path. This lack of security can be difficult to live with and make it more difficult to make plans for the future.
The wage portage contract will bring a real feeling of security. Indeed, the fact of being able to benefit from unemployment, to contribute to retirement, to have rights to training or to be able to take sick leave brings real comfort and real security. Considering the future becomes much more helpful and each difficult period can be crossed with a little more serenity. You can thus perform your services with more confidence in the future and plan for the longer term from a personal and professional point of view.
A real time saver
Time is very precious when running your own business. Indeed, all accounting and administrative tasks such as invoicing, declarations and payment of contributions and others require time to be devoted to them. However, this time spent is not remunerated, which can have a certain impact. With a wage portage contract, you can finally free yourself from many sometimes very complex tasks to devote yourself fully to the exercise of your services and the development of your company with commercial canvassing for example. Indeed, the umbrella company takes care of a lot of things, which allows you to free yourself from certain obligations.
Contribution to URSSAF
The question of the link between URSSAF and wage portage often comes up before embarking on the activity . Indeed, as an employee, the person in wage portage is subject to the same tax and social obligations as any other employee, and therefore contributes to URSSAF for social security, unemployment insurance, supplementary pensions , etc.
Access to unemployment
Access to unemployment is often one of the most recognized advantages of a wage portage contract. Indeed, this allows a self-employed person to accumulate unemployment rights according to the length of the period worked and therefore to benefit from them in the event of a drop in activity. This is a very reassuring and comfortable possibility, which allows you to continue to receive remuneration and to devote yourself to commercial canvassing and the resumption of your activity, for example.
There are of course many other benefits of wage portage.
What type of wage portage contract is possible?
The wage portage contract can take different forms depending on what the company offers and the possibilities to which the self-employed person wishes to access.
Fixed-term wage portage employment contract
We can completely consider a fixed-term wage portage contract, or a fixed-term contract. This makes it possible to test wage portage over a limited period of time and to take the time to reflect before starting.
The provisions of the Labor Code therefore apply here with regard to the period of trial, compensatory indemnity for paid leave, conditions for early termination and termination indemnity. The CDD in wage portage can be renewed twice. A minimum duration must be provided for and it cannot exceed 18 months, including renewal.
Moreover, this fixed-term wage portage contract must include clauses on the relationship between the portage company and the employee carried, as well as clauses on the performance of the wage portage service.
The employment contract in wage portage for an indefinite period
The open-ended wage portage contract allows you to benefit from the same advantages as a permanent contract in a company. As its name suggests, its duration is indefinite, which allows the establishment of a long-term partnership.
As part of a permanent wage portage contract or CDI, most of the rules that apply to setting up a 'classic' permanent contract apply here. We must also find in the contract information such as:
- The method of calculating the payment of the remuneration, the business contribution allowance, the social and tax charges, the management fees and professional fees, if applicable.
- The method of deducting professional fees.
- The description of the skills and qualifications of the employee concerned.
- How to acquire, take and pay for paid leave.
- Duration of the trial period.
- Identification of the supplementary pension fund and the provident organization to which the umbrella company belongs.
- Etc.
The period without benefits from a client company is not not remunerated under a permanent wage portage contract.
The professionalization contract
Finally, it is also possible to access a professionalization contract in wage portage. This measure is implemented on an experimental basis until December 31, 2023. Here, the recruited employee is followed by a tutor in charge of his support. The latter must have a professional experience of at least 2 years.
Which contract to choose?
Apart from the professionalization contract which concerns a very specific target, i.e. students in training, it is very often between the fixed-term wage portage contract and the indefinite term wage portage contract that a freelancer will have to choose.
If he is sure of his choice and wants to fully benefit from all the advantages specific to wage portage, the CDI is most certainly the solution that will suit him best. If, on the other hand, he still has doubts about the operation of the portage, or simply about the portage company chosen, the CDD will be a good way to benefit from a test period before making his choice. It can also be renewed or you can also consider concluding a permanent contract afterwards if desired.