Veg portage has advantages and disadvantages. But in any case, it is an interesting option when it comes to guiding you towards building a business.
Certainly, you cannot ignore the pitfalls mainly on the basis of its formality and entry ticket.
But these elements can be compensated by the fact of gaining employee status and a certain flexibility that you will appreciate on a daily basis.
Definition of pay portage
From a legal point of view, the definition specifies the relationship between the wage portage company for the benefit of the client company on the one hand. For this it is imperative to establish commercial contracts as per the mission. Second, the establishment of an employment contract between the moved employee and the salary portage company.
It was in 1980 that this hybrid form was born, rather secretly. Today, it is a real alternative to the position of employee and auto entrepreneur. This is why veg portage is booming, allowing many people to prosper in their business while still having a significant margin of safety.
Salary Portage and Benefits
Employee safety with flexibility in their work
If many people choose veg portage, it is thanks to an undeniable advantage over the specific position. In fact, you have the same real autonomy as in the position of an auto entrepreneur. But the main difference is based on the fact that you receive Social Security just like an employee.
Simply put, the moved employee is able to set his own pricing and choose his customers. This is a particularly appreciable flexibility, especially when it remains free on terms of execution. He himself decides the time required for the work and revises his schedule as per his wish.
However, this flexibility in the modus operandi also gives him the advantages of the employee position.
This is a particularly valuable safety net, especially in a new activity with income that is not always fixed. The benefits then relate to health insurance, but also to supplemental health, unemployment and retirement.
Get fully involved in your business thanks to Veg Portage
Among other advantages of wedge portage, we can cite the absence of administrative hassles. In fact, many do not dare to leave the position of an employee not because of a lack of technical ability in relation to their activity, but because of the numerous documents they have to meet and regularly follow up.
Although administrative management of an activity is mandatory, the supported employee will no longer need to worry about it. Whether for overseeing accounting, calculation of corporation tax, definition of legal structure and commercial contracts, they will be supported directly by the portage company.
A real relief to avoid administrative complications, while ensuring that the mandatory documents are kept well and truly. This includes not only administrative procedures, but also accounting and legal processes.
Of course, this service is not offered by the portage company, the management fee will be charged directly from the carrying employee.
In order to conclude a commercial contract, it is essential that it be drawn up correctly. Once again, the carrying employee will not have to worry about this, the carrying company will prepare the invoice in good and proper form with respect to the various elements of the negotiation and your point of view. Under no circumstances shall a commercial contract be drawn up against you.
Of course, you must pay Social Security contributions that will be entered directly into the company’s accounts.
But not only that, some companies specializing in wage portage go even further by offering their customers to cover even the slightest failure or slight delay in payment. Once again, it is a question of providing additional protection that would be commendable for the carrying employee.
aid to the needy
Carrying out an activity while being autonomous is the dream of many entrepreneurs. But this autonomy doesn’t mean you don’t need regular support. This is when the Veg Portage Company comes into play. The assistance provided can be given when creating your activity or when it needs to know more specific developments.
Supported staff will have direct access to workshops regarding needs, allowing them to target a more precise request or grow their network. Choosing the position of done employee also means getting the support of an active community and therefore breaking the isolation that some auto-entrepreneurs can unfortunately face.
advantage of safe position
March 2017 is a major event in salary distribution. On this date, a branch collective agreement was signed to address the expressed needs of the consultants involved.
It was thus possible to secure a professional career in a field that was desperately needed.
Once again, the benefit is obvious to the worker taking advantage, as he or she receives legal certainty through traditional rules.
Disadvantages of Veg Portage
As seen above, Veg Portage is a solid option for starting out as a freelancer. But it should be borne in mind that there are some disadvantages that should be considered immediately.
Significant Cost of Pay Portage
The first drawback relates to the cost of this legal position. Three main elements come into play, namely:
- employer contribution.
- employee contribution.
- Commission requested by the umbrella company.
In view of administrative, legal and accounting support, it is normal for the umbrella company to be remunerated in respect of the commission generated by it. Again, the rate remains free, but will typically be between 7 and 11 percent of your fee.
To this should be added the Social Security contribution which is approximately 75% of the net amount of the fee.
Simply put, if you invoice your client €20,000 in fees excluding taxes, the Pay Portage Company will deduct your commission of €2,000 based on a 10% rate.
The employer contribution would be €5,600, compared to €2,900 for the employee contribution.
As a result, you end up with a net salary of €8,500, but don’t forget that this amount will then be subject to income tax.
a formality that must be respected
Among the other disadvantages of wedge portage, is its formality. Actually, it is mandatory to sign three separate contracts:
- First, the contract for the provision of services. This umbrella allows the company to connect with the advisor and the client. In itself, this is a traditional contract defining the payment terms as well as the mission start and end dates.
- A second contract must be signed, this time in line with an employment contract. This only pertains to portage company and done employee. It is drawn up along with the contract for the provision of services, indicating a certain period during the mission period.
- Finally, you will receive a re-invoicing of the fee as well as a subscription agreement involving the same participants for additional services managed directly by the Portage Company.
Consider Admission Tickets
Another element that should not be overlooked is the presence of a minimum amount for the employee to benefit from the position. Most portage companies are reluctant to accept fees that will not exceed €1000. However, this is not a legal obligation, but an appreciation, so the entry ticket amount varies depending on the company.
Some confusion about the right to unemployment
Many people mistakenly think that salaried employee status automatically confers rights to unemployment insurance. However, certain conditions must be met, otherwise your return to work assistance benefits will disappear.
First, you should always make your monthly declaration to a Ple employee to confirm your registration. Otherwise, you will be expelled.
Part-time, it is impossible to work more than 110 hours per month, otherwise you will be laid off once again.
Our advice in choosing a legal position
Even if you have a clear idea of ​​your activity, it is important to define your legal status correctly. This is a crucial choice that will have a direct impact on your income.
So instead of taking an option that you may regret later, consider all the options and if necessary, consult an expert who will be able to provide you with a specific answer regarding your situation.