Adapted collection mechanisms Inn ovations for independent workers’ social
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France – Social security coverage of independent workers in the schemes RSI and MSA
The RSI also developed a series of online services for members access to payment history, benefit history, pension calculation, etc. and advisory services for entrepreneurs
Box 2. A new status for enterprise creation: the Auto-entrepreneur
In 2008, the French government passed a law on the modernization of the economy
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, which included the creation of a new status for entrepreneurs: the auto-entrepreneur. Auto-entrepreneurs are independent workers
working either in trade or service provision or, to some extent, liberal activities with a turnover lower than 81 500€ for trade activities or 32 600€ for services provision. Above those limits, the status changes and falls into
other legal status for companies and independent workers. Auto-entrepreneurs are subject to specific taxation and social contributions. Registration to social security
is mandatory for auto-entrepreneurs, and most of them have to register to the RSI excluding liberal professions, except for health. Still, people who are in parallel salaried workers keep their health insurance and
register only for the other benefits. Contributions, contrary to what applies to the rest of independent workers, are fixed as a package in percentage of revenue:
- Auto-entrepreneurs in trade sectors: 12 per cent;
- Auto-entrepreneurs in service provision: 21.3 per cent.
Auto-entrepreneurs even have the option of paying a global package as percentage of their revenues that includes both social contributions and income taxes, which is an important innovation that greatly facilitates the
accounting in the business creation phase. Auto-entrepreneur is a flexible independent worker status that aims at facilitation enterprise creation. For
instance, this status is compatible to some extent with salaried work. In many ways, it can be viewed as a tool for formalization of work that was previously undeclared for various reasons complexity of procedures,
incompatibility with other sources of declared revenues, etc., especially in services housekeeping, gardening, etc.
This initiative has been very successful in terms of enterprise creation since its launch. In 2011, it had more than 700,000 registered entrepreneurs who were active. In 2010, auto-entrepreneurs represented 25 per
cent of RSI contributors, even though only half of them declared revenues and thus actually paid.
Source: Le portail des auto-entrepreneurs, 2012.