PROFESSIONAL TRAINING IN COMPANIES IN THE TAX ASPECT
The purpose of this article is to present the two taxes that companies are liable to and which are intended to ensure the financing of training.
These are: -The apprenticeship tax,
-The contribution to vocational training.
Since January 1st 2019, the contribution to vocational training and the apprenticeship tax are combined in the single contribution to vocational training and work-study programs. In practice, the two taxes generally retain the same characteristics. URSSAF will collect the single tax from January 2021.
The apprenticeship tax makes it possible to finance the expenses of apprenticeship and technological and professional training by the companies.
1. Companies liable to the tax:
The apprenticeship tax is payable by any company subject to income tax or corporate tax, regardless of its status: sole proprietorship or company, commercial, industrial or craft enterprise, individual entrepreneur, association, agricultural cooperative or group economic interest (GIE).
Exempt from it:
-Companies employing apprentices and whose tax base (total remuneration) does not exceed 6 times the annual minimum wage (ie € 107 889.60 for the 2019 tax due in 2018);
-Civil societies of means (SCM), under certain conditions, when their activity is non-commercial;
-Legal persons whose exclusive object is education;
-Employers' groups composed of farmers or agricultural civil societies benefiting from the exemption themselves.
There is also an additional contribution to apprenticeship (CSA), which applies to firms with at least 250 employees subject to the apprenticeship tax and employing less than 5% (compared to the average workforce) of young people in training.
The apprenticeship tax and the CSA are based on the payroll of the previous year, i.e. the total amount of remuneration subject to social security contributions (including remunerations paid to expatriate employees) and benefits in paid by the company: salaries, allowances, bonuses, tips, etc.
The salary of apprentices is totally or partially exempted according to the size of the company.
Additional details: At the end of February 2019, employers must pay to the OPCA, progressively replaced by the operators of competences (OPCO), the apprenticeship tax due on the remuneration 2018.
In addition, in 2019, so that companies are not obliged to simultaneously finance learning on 2018 remuneration (payment on remuneration paid in N-1) and remuneration 2019 (in application of the new regime that provides for a payment in year N), no apprenticeship tax will be payable on 2019 remunerations.
The rate of the apprenticeship tax is 0.68% (or 0.44% in Alsace-Moselle) of the wage bill.
The apprenticeship tax includes:
-A fraction equal to 87% of the apprenticeship financing tax,
-A fraction equal to 13% (balance) for expenses borne by the employer.
3. Deductible expenses:
Can be deducted from the apprenticeship tax:
-Expenditures related to initial training;
-The subsidies paid to the apprentice training center.
4. Declaration and payment:
The person liable for the apprenticeship tax does not have to subscribe to a specific declaration, the declaration of remuneration being made by means of the Nominative Social Declaration (DSN).
The participation must be paid before March 1st of the year following the payment of the salary. This payment is paid to a single approved collection organization (OPCA) and designated by agreement of the branch to which the employer belongs or, failing that, to the OPCA at the inter-professional level.
From 2020, the collection will take place during the year of remunerations. The terms will be specified by decree.
From 2021, the contribution will be paid to URSSAF for the current year, in the same way as the social security contributions.
In the absence of payment in time, the company must pay before April 30th the amount of the tax increased by 100% with the business tax service.
II-CONTRIBUTION TO VOCATIONAL TRAINING:
1. Companies liable to the tax:
All employers must participate in the financing of the continuous training actions of their staff and jobseekers by paying an annual contribution irrespective of the number of employees, the nature of the activity and the legal status (sole proprietorship or company).
Like the apprenticeship tax, it is calculated on the gross payroll, i.e. on the total amount of taxable remuneration and benefits in kind paid during the year to staff: wages, employee contributions, bonuses, gratuities, allowances, tips...
Contribution rate for continuing vocational training:
Average workforce of the company:
-Up to 10 employees: 0.55%
-From 11 employees: 1%
Some professional branches may set higher rates.
Since January 1st 2019, collective agreements for companies with less than 11 employees no longer have any effect. Funds that have not been earmarked to finance the Personal Training Account (CPF) must be returned to the Corporate Tax Service (SIE).
By crossing the threshold of 10 employees, the company benefits from progressive rates during the first 5 years. These rates are as follows:
-0.55% during the first 3 years,
-0.70% during the 4th year,
-0.90% during the 5th year,
-1% from the 6th.
3. Workforce calculation:
The number of employees calculated at December 31st, for all establishments combined, is equal to the average of the number of employees determined each month of the calendar year. Months in which no employee is employed are not taken into account.
Employees excluded from the calculation:
-The holders of professionalization contracts;
-The holders of an initiative-employment contract (CIE) during the term of the agreement;
-The holders of an employment support contract (CAE) for the duration of the agreement;
-The holders of “contrats d’avenir”;
-The holders of contracts of insertion minimum income of activity (Cirma).
4. Declaration and payment:
The entire contribution must be paid before March 1st of the year following the payment of wages, to a single joint registered collector organization (OPCA) designated by the agreement of the sectorial branch to which the employer belongs.
From January 1st 2019 to December 31st 2020, the OPCAs are gradually being replaced by the Competence Operators (OPCO).
From 2020, the collection will occur during the year of remunerations.
From 2021, the contribution will be paid to URSSAF for the current year, in the same way as the other social security contributions.