Social Contributions For Independent Workers In 2021

Social Contributions For Independent Workers In 2021

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SOCIAL CONTRIBUTIONS FOR INDEPENDENT WORKERS IN 2021

 

Updated on 31/03/2021   
 

Compulsory health coverage for self-employed workers is now provided for all self-employed workers by the “Caisse d’Assurance Maladie” (CPAM) of their place of residence. This specific regime is called "Sécurité Sociale des Indépendants” (SSI).

Since the start of 2020, beneficiaries must apply to URSSAF for contributions, Health Insurance for health expenses and various benefits and the retirement insurance fund for pensions except for professional liberals who continue to benefit from their usual fund.

Below are the rates of social contributions for self-employed workers at the SSI who do not fall under the micro-social system (the contribution rates of micro-entrepreneurs are indicated in our article entitled "THE MICRO COMPANY" on our website).

 

I - Family Allowances

  1. Contribution base

The basis for calculating these contributions is the total of the net professional income used to calculate income tax. This is the total profit of a sole proprietorship or the share of the profits of the insured if he is a partner of a partnership. In the case of a non-salaried manager of a company subject to corporation tax, the basis of his contributions shall be his remuneration and any dividends received exceeding 10% of the share capital, share premiums and sums paid into the company's current account (held in full ownership or in usufruct by the non-agricultural self-employed worker, his spouse or the partner to whom he is linked by a PACS or their unemancipated minor children) or 10% of the assets allocated for E.I.R.L.

  1. Calculation of contributions

At the beginning of the year, the provisional contributions are calculated on the basis of the profit for year N-2. Then, from May or June month, when the company declared the profit for year N-1, the contributions for the year N-1 are regularized and the provisional contributions for year N are recalculated on the basis of the last known result.

Note: Some URSSAF can offer self-employed workers to pay their contributions and provisional social contributions on a monthly basis established from the information communicated by the latter according to their activity or their monthly income. An annual adjustment is made once their final account has been established.

The rate of this contribution is as follows:

  • For revenues not exceeding € 45,250: 0 %,
  • For income between 45,250 € and 57,590 €: progressive rate between 0 and 3.10 %       according to the following calculation formula => (3.10 / 12 341) × (income - € 45,250),
  • For income above € 57,590: 3.10 %.

 

II - C.S.G. and C.R.D.S

It is not really a social contribution but a tax that is recovered with the contributions.

  1. Contribution base

The base of the CSG and the CRDS is identical to that used for the calculation of the family allowance contribution, but it is increased by personal contributions to compulsory social security schemes (excluding CSG-CRDS) the manager and his collaborating spouse. It is also increased, where applicable, by the amount of the sums received by the manager under a profit-sharing agreement as well as the sums paid by the company within the framework of a company savings plan or a retirement savings plan.

  1. Rate

The rate is 9.20 % for CSG and 0.50 % for CRDS. Only 6.80 % are deductible from the tax profit (2.40 % must be reinintegrated into the tax result).

 

III - Contribution to the professional training of non-employees

  1. Traders, manufacturers and liberal professions

They must pay each year in November to URSSAF at the same time as the provisional due date for other contributions, a contribution which may not be less than 0.25% of the annual amount of the social security ceiling (0.34% if the professional has declared his spouse as a spouse-collaborator).

The contribution due for 2021 therefore amounts to € 103 (€ 41,136 × 0.25%) or € 140 if the self-employed person has declared his spouse as a collaborating spouse.

  1. Craftsmen

Participation in vocational training is ensured by a contribution of 0.29% of the annual social security ceiling (i.e. € 119). The contribution is payable to URSSAF, it is added to the amount of the November due date of all social contributions.

 

IV - Health insurance contributions

  1. Basis and calculation

The basis of calculation is the same as for family allowances contribution.

As for family allowances, the first installments of the current year are calculated on a provisional basis on the professional income of the penultimate year (N - 2). Then, the provisional contributions are recalculated when the professional income for the previous year is declared. The deadlines remaining to run after the “DSI” (Déclaration Sociale des Indépendants) therefore include the provisional contributions for the current year recalculated on N - 1 income as well as the regularization of N - 1 contributions.

By way of derogation, the installments due for a calendar year can be, at the request of the insured, calculated on the basis of the income estimated by the insured.

  1. Health insurance contribution rate (excluding liberal professions under the CNAVPL and lawyers)

This rate depends on the size of the income.

There are 4 brackets, which depend on the annual social security ceiling (PASS): from 0% to 3.16%, from 3.16% to 6.35%, 6.35% or 6.50%.

  • Income less than 40% of the PASS (€ 16,454): rate from 0 to 3.16%,
  • Income between 40% and 110% of the PASS (from € 16,454 to € 45,250): rate of 3.16 to 6.35%,
  • Income between 110% of the PASS and 5 times the PASS (from € 45,250 to € 205,680): the rate is 6.35%,
  • On the share of income exceeding 5 PASS (205 680 €): the rate is 6.5%.
  1. Health insurance contribution for regulated liberal professions
  • Income less than 110% of the PASS (€ 45,250): rate of 1.50 to 6.50%,
  • Income greater than 110% of the PASS (€ 45,250): rate of 6.50%.
     

V - Old age and invalidity-death contributions for the self-employed

This pension scheme only concerns self-employed workers covered by the general social security scheme (craftsmen, traders and certain unregulated liberal professions), it does not concern liberal professions falling under the CNAVPL or lawyers falling under the CNBF who are subject to a specific contribution scheme.

  1. Basis and calculation

The rules for determining the base and calculating contributions are identical to the rules for health insurance. Please refer to paragraph IV - 1.

  1. Rate
  • Basic old age insurance:
  • Income within the limit of the PASS (€ 41,136): rate of 17.75%,
  • Income above the PASS (€ 41,136): rate 0.60%.
     
  • Complementary pension:
  • Income within the limit of € 38,493 (Specific ceiling for the supplementary scheme for the self-employed): rate 7%,
  • Income between € 38,493 and € 164,544 (4 PASS): rate 8%.
     
  • Disability-death insurance:
  • Income within the limit of 1 PASS (€ 41,136): rate 1.3%, the maximum contribution is therefore set at € 535,
  • The minimum contribution is equal to € 62.
     

VI - Payment of contributions

All the contributions are paid at the same time to the "SECURITE SOCIALE DES INDEPENDANTS" according to two different deadlines at the choice of the taxpayer:

  • By monthly withdrawal.
    In the event of monthly payment, contributions are automatically withdrawn in 12 monthly installments from January to December, as desired:
  • Either the 5th of each month,
  • Or the 20th of each month.
     
  • Or by quarterly payment.
    In this case the contributions are to be paid in 4 fractions on:
  • February 5,
  • May 5,
  • August 5,
  • November 5.

In the event of payment after these dates, surcharges for late payment will be applied.

The amount of the contributions is indicated on the payment schedule sent after the income tax return.

 

VII - Amount of minimum bases and contributions for 2021

The calculation of the minimum annual amount of contributions for a trader, a craftsman or an unregulated liberal professional is as follows:

  • Illness (40% of the PASS): € 16,454 x 0.85% = € 140,
  • Basic pension (11.5% of the PASS): € 4,731 x 17.75% = € 840,
  • Supplementary pension, no minimum base (calculation proportional to income),
  • Disability-death (11.5% of the PASS): € 4,731 x 1.3% = € 62,
  • Family allowances: none,
  • CSG / CRDG: no minimum base.

Below is a scale showing total proportional contributions to various levels of profit.
 

Profits in EUROS From 0 € to 4 731 € From 4 732 € to 16 454 € From 16 455 € to 38 493 € From 38 494 € to 41 136 € From 41 137 € to 45 250 € From 45 251 € to 57 590 € From 57 591 € to 164 544 € From 164 545 € to 205 680 € Over 205 680 €
Family Allowances 0 0 0 0 0 Between 0 and 3,10% 3,10% 3,10% 3,10%
CSG-CRDS 9,70% 9,70% 9,70% 9,70% 9,70% 9,70% 9,70% 9,70% 9,70%
Health Insurance Between 0 and 3,16% Between 0 and 3,16% Between 3,16% and 5,58% Between 5,58% and 5,87% Between 5,87% and 6,35% 6,35% 6,35% 6,35% 6,50% on the income share above 205 680 €
+ 13 061 €
Daily Allowances 140 € 140 € 0,85% 0,85% 0,85% 0,85% 0,85% 0,85% 1 748 €
Basic Pension 840 € 17,75% 17,75% 17,75% 0,6% on the income share above 41 136 €
+ 7 302 €
0,6% on the income share above 41 136 €
+ 7 302 €
0,6% on the income share above 41 136 €
+ 7 302 €
0,6% on the income share above 41 136 €
+ 7 302 €
0,6% on the income share above 41 136 €
+ 7 302 €
Complementary Pension 7% 7% 7% 8% 8% 8% 8% 12 779 € 12 779 €
Disability - Death 62 € 1,30% 1,30% 1,30% 535 € 535 € 535 € 535 € 535 €
TOTAL Max.: 19,86%
+ 1 042 €
Max.: 38,91%
+ 140 €
Max.: 42,18% Max.: 43,47% Max.: 25,5%
+ 7 837 €
Max.: 28,6%
+ 7 837 €
28,6%
+ 7 837 €
20,6%
+ 20 616 €
19,90%
+ 22 364 €


This is given for indication, a precise calculation of your contributions should be validated by a French English speaking chartered accountant.