Foreign companies’ payroll in France / Titres Firmes Étrangères (T.F.E)

Article of 30/07/2018 updated on 05/11/2024

T.F.E is a French administration service which allows foreign companies who do not have any establishments in France to hire a person who is living in France and will work remotely for the company.

This device is only intended to simplify the social formalities related to the employment of workers for these companies who does not carry on business in France.

I – Conditions to use from T.F.E

The interested company must:

• Be a foreign company and not having a permanent establishment in France,
• Employ less than twenty employees in France,
• Hire or employ workers under the general social security system,
• Use this process for all workers employed in France.

The service does not handle certain specific types of hiring in France (e.g., sales representatives, artists, entertainment workers, journalists, etc.). It is possible, however, to use a payroll software to make the declaration.

II – Formalities to complete

The formalities are carried out only by internet.

Here are the necessary formalities:

• To start with, the company must obtain a French registration number called a Siret number. The company will be registered as a foreign company not registered with the RCS and will therefore not be liable for VAT or tax in France.
  Since March 1st 2024, this formality must be carried out via the INPI French administration website.
• Once the Siret number has been obtained, the company must open the T.F.E account on the dedicated website or, in the event that the company uses payroll software, it must complete the DPAE on the URSSAF website to activate its employer account with the URSSAF services in Alsace.
• An employment contract under the French labour law must be drawn up between the company and the employee in order to set out the terms and conditions of employment in France. The official version must be in French.
• Provident schemes are a social protection scheme that covers risks in addition to those covered by the social security system. It guarantees protection against the risks of death, incapacity, disability and dependency.
  
  You must join a provident fund:
  • If you are taking on an executive employee;
  • If the collective agreement for the branch in which you work provides for it.

• You must offer your employees additional health cover, in addition to the basic health insurance cover provided by the French social security system. The company must therefore also take out a collective contract for this coverage.
• If your business is in the building sector, you will also need to register the company with CIBTP for holiday pay, weather-related unemployment and workplace accident prevention contributions.
• The employer must organize the so-called medical check-up when hiring a new employee, part of its obligations under the occupational health and safety measures (art. R1221-2, 5° of the French Labor Code). You will therefore need to join an occupational health organisation in order to organise this medical check-up.
• You must proceed to France travail registration (service for unemployment)
  
  

III – Monthly payroll process

• Drawing up payslips: Each month, the employer must prepare a payslip and pay the corresponding net salary to the employee.
• Payment of social security contributions: Every month, after the salary declaration, the T.F.E provides the company with a contribution slip.
  This document shows the amount to be paid, the bank details, the bank transfer details, and the deadline for payment.
  If you use the T.F.E platform, you will only have to make one monthly payment to URSSAF Alsace, which will be responsible for redistributing the contributions to the various organisations.
  If your company uses a payroll software system to make its salary declarations, you will need to make a separate transfer for each organisation.
• Your employee is on sick leave: As soon as you receive Section 3 of the notice of sick leave sent by your employee, you must draw up a salary certificate so that your employee can receive the daily allowances paid by the Social Security office (Caisse Primaire d’Assurance Maladie).
• In case of an accident at work or during a business travel: The employer has to make the declaration within 48 hours and provide to the employee with an accident form, to enable the employee, if he needs medical treatment in connection with the accident, to not pay the medical costs in advance.
• If your employee is on maternity or paternity leave: You must draw up a salary attestation in order to provide the social security authorities with the information they need to calculate compensation.
• The annual tax income certificate: Every year, the T.F.E provides each employee with a document showing the taxable salaries received throughout the calendar year. This document enables employees to complete their tax returns in May of each year.
  
  

IV – Additional details

Via the TFE account, the company can track the declarations and payments of contributions received by URSSAF. The account also enables the company to communicate with URSSAF.

You can also contact TFE services by telephone or post using the following contact details:

• • Urssaf SFE – Service des Firmes Etrangères
    TSA 60003
    38046 GRENOBLE CEDEX
    Phone number: 0033 (0)806 802 633

You must inform the French administration of any change in your situation, in the following cases:

• Changes related to the foreign company (change of name, address, activity, etc.);
• The company has definitively ended its activity;
• You no longer employ salaried staff covered by the French social security system;
• You are setting up an establishment in France.

These formalities must be carried out using form EE2/EE4 and sent to the Service Firmes Etrangères.

The T.F.E remains a tool for producing payslips and declarations, but the company must be aware that since the applicable rules are those of French labour law, which is a complex system, it must ensure that it keeps abreast of the obligations of an employer in France, as well as recent legal changes.

We strongly recommend that you take advice from experts in this field to avoid any form of dispute with your French employees. You may also note that the communication with social organisations in France can be an issue, as most services are available in French language only.

Do not hesitate to contact us to check with us if you meet all the conditions to benefit from it, or if you need help for assistance with your formalities.