Social security contributions for the self-employed are calculated and recovered by an organization called RSI (Régime Social des Indépendants). They are calculated on the basis of the information declared annually by the company.
These contributions fall into four categories for which we will indicate the bases as well as the method of calculation.
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 he has received in excess of 10% of the share capital.
Calculation: 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.
The rate of this contribution is as follows:
- For revenues not exceeding € 43,150: 2.15%,
- For income between 43 150 € and 54 919 €: Progressive rate between 2.15 and 5.25%,
- For income above € 54 919: 5.25%.
CSG and CRDS:
It is not really a social contribution but a tax that is recovered with the contributions.
The calculation base is the same as that of family allowances (tax net profit), but the amount of social contributions that have been deducted is added.
The rate is 7.50% for CSG and 0.50% for CRDS. Only 5.10% are deductible from the tax profit (2.40% must be reinintegrated).
Contribution to the professional training of non-employees:
The amount is equal to 0.25% of the annual social security ceiling, i.e. € 97 for the year 2017.
This contribution must be paid in full by the February deadline at the same time as the other monthly or quarterly contributions.
Non-employee health insurance contributions for all independent workers and old age disability or death contributions of artisans and traders:
The basis of calculation is the same as for family allowances contribution.
Calculation: 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. But pension and disability contributions can be calculated provisionally on the basis of an estimated income.
- Health insurance: From 3 to 6.50%. The rate is progressive with income. It is a maximum of 6.50% for an income equal to or greater than € 27 460 in 2017. An additional contribution at the rate of 0.70% is due for the daily allowances in case of illness or accident.
- Basic pension insurance: 17.75% up to the ceiling of social security ceiling (i.e. € 39 228 in 2017) and 0.60% beyond. The minimum annual contribution is € 801 in 2017. Business creators can be exempted from this contribution for 12 months.
- Complementary pension: 7% for revenue share below € 39 228 (year 2017) and 8% for the portion of income between € € 39,228 and 156,912. The contribution does not apply beyond this ceiling.
- Disability or death insurance: 1.30% of net income with a minimum annual contribution of € 59 and a maximum of € 510.
Pension and disability contributions for the liberal professions are not dealt with in this article because rates are different for each profession.
Payment of all contributions:
All contributions are collected at the same time by the organization "RSI / URSSAF". Payment is:
- Either monthly the 5th or the 20th of each month (in 12 deadlines),
- Or quarterly, on February 5th , May 5th, August 5th and November 5th.
Operators must declare during the month of May the income of the previous year which will serve as basis for the calculation of the contributions.
In conclusion, we specify that these contributions concern enterprises subject to a real tax system. Individual entrepreneurs under the "MICRO BIC" or "MICRO BNC" scheme make a lump-sum payment releasing their social contributions. The payment is quarterly and amounts to:
- 13.10% of turnover for sales of goods or supply of housing (excluding furnished housing: 22.7%),
- 22.70% for commercial services,
- 22.50% for liberal professions.
Below is a scale showing total proportional contributions to various levels of profit
This is given for indication, a precise calculus of your contributions should be validated by an English speaking chartered accountant