What social regime for a self-employed person?

The self-employed person, as a self-employed person, does not pay contributions to the general level of social security. However, he is affiliated with the SSI or Social Security for Independents or even with the CIPAV in the case of liberal activity. In a way, its social protection is similar to that of the employees of a company. The difference is that there is no unemployment insurance.

Thus, if you intend to become a self-employed person, you are therefore required to pay annual social charges at a variable rate depending on the nature of your activity.

Some details on Social Security for the Self-Employed

Previously Social Security for Independents, the SSI or Social Security for Independents has been in effect since 2018. And since January 1, 2020, it has joined the general Social Security regime after a transitional period of 2 years. In this context, a self-employed person who reports to the ISS or to CIPAV has only one contact: URSSAF. Declarative procedures, details of which can be found on the pole-autoentrepreneur.com site are thus simplified. For the insured, this new affiliation does not modify their rights and does not require any action. The SSI is therefore the body that now manages social protection for both self-employed and self-employed people.

The specific characteristics of the auto-entrepreneur status

It is first of all important to know that the status of auto-entrepreneur does not constitute a precise legal form. We are talking more about an individual company in which a reduced social and tax regime is applied. The aim is to encourage job creation. In general, as a self-employed person you benefit from:

  • Simplified tax regime: which means you are not required to report the profits. In this sense, you are also not required to pay the tax which is based on turnover after deduction according to the activity carried out. In other words, if you have the status of self-employed, you are not taxed if your turnover is zero.
  • VAT exemption: this means that a self-employed person can choose not to pay VAT. In this context, it is crucial that the words "VAT not applicable - Article 293 B of the General Tax Code" be present on each invoice produced.

For find out more about auto business, you can go to cersa.org. This site presents more detailed information on the subject.

Social coverage for the self-employed

It should be noted that the social scheme for the self-employed covers a number of elements. In addition, since the effective modification of January 1, 2020, the coverage has been revised according to the nature of the social contributions.

  • Health-maternity insurance which is entrusted to the Primary Health Insurance Funds or CPAM
  • The basic old age scheme entrusted to Carsat or retirement and occupational health insurance funds.
  • Disability and death
  • The right to vocational training
  • Compulsory supplementary retirement
  • Family allowances
  • CSG-CRDS

Be careful, however, an independent self-employed person does not benefit from the insurance unemployment. In addition, the daily allowances which you will be able to claim at the end of your first year of activity will become common law sickness benefits. You will be able to benefit from it in the same way as traditional company employees.

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