Veg Portage VS Freelance: Which Position To Choose? This is a question that many workers have asked themselves before becoming self-employed. If you are in the middle of a reflection phase, welcome to this article!
Two positions share one characteristic for any self-employed person: autonomy! Whether you are a salaried worker or 100% freelance, you choose the range of assignments to be done, the range of clients to work with and you manage your schedule to the fullest.
However, in Match Wage Portage VS Freelance, each position has its own advantages and disadvantages. Before choosing the legal form best suited to your needs and your activity, let’s take the time to do a little analysis, criteria by criteria.
Also read: How Veg Portage Works?
first round of duel Veg Portage VS Freelance in the field of social security.
Upon building his company, Freelancer is affiliated with Independent People’s Social Security (SSI, formerly RSI). In terms of security, this means that it benefits from:
- health insurance
- Daily allowance in case of illness or accident
- allowances for parental leave
- basic pension insurance
- family allowance
- right to training
An employee in his favor does not make a company. He signs a fixed or indefinite term employment contract with a wage portage company. He benefits from the same social benefits as everyone else. And it must be said that these are often higher than those of a freelancer practicing in a more traditional legal form.
For example, the moved employee contributes more towards the supplementary pension. At the same remuneration, he will receive a higher amount than the freelancer. Also, the self-employed who have opted for SASU or EURL do not unlock any pension entitlement if they do not pay the salary themselves. Those who have opted for other positions must earn a minimum turnover (between €9,120 and €12,304 annually depending on the nature of the activity) to validate the quarters.
Also read: 9 Best Salary Portage Companies In France
right to unemployment
In addition to the achievements mentioned above, the freelancer at Wage Portage benefits from unemployment insurance which guarantees him benefits in the event of loss of activity. The amount of this compensation, as well as its duration, is determined by the last salary and the period of contribution.
In total, an employee can receive €256.96 gross per day over a period of up to 2 years.
In order to receive Self-Employed Employees Allowance (ATI), similar to employee unemployment insurance, a freelancer must also meet a number of conditions. In addition to being in business for 2 years and generating a minimum of €10,000 in business, he must find himself “unemployed” after receivership or judicial liquidation.
In terms of compensation, he will be able to claim a maximum of €800 per month (€26.30 per day) for a maximum period of 6 months.
Contribution rate and compensation
As freelancing at Waze Portage, you yourself seek clients and you negotiate the price of your services. So the remuneration depends on the missions done.
However, the carrying employee is remunerated by the carrying company which recovers the payment of invoices for each service. After deducting social and tax charges as well as management costs, this remuneration generally ranges from 45 to 60% of its turnover excluding taxes.
Being subject to a minimum wage, the self-employed can therefore receive €2,637 per month, even during off-peak periods.
A freelance micro-entrepreneur pays a percentage on his turnover, less the contribution payable to portage:
- 13.80% of the turnover for the sale of goods.
- 23.7% for commercial or craft services.
- 24.2% for generous businesses and other services.
So with the same income, they can claim higher income.
For most other positions, the URSSAF contribution rate is approximately 46% of the benefit. Here also, the remuneration received may therefore be more interesting than the salary portage with similar turnover.
Good to know: In a micro-enterprise, you must respect a maximum turnover limit (€94,300 for the sale of goods, €36,500 for the provision of services), whereas in wage portage you have no limit.
To find out what your income will be as a paid employee, simulate using our partner ITG’s income simulator.
Other fees and professional fees
In Veg Portage vs Freelance Match, let’s talk about other activity-related costs!
As we’ve just seen, the hired employee will have to make more Social Security contributions than the freelancer. Except that the latter is subject to other charges such as corporation tax (depending on the legal form chosen) and business property tax (CFE).
For professional expenses, they are deductible from the activity performed by the employee, such as by the self-employed (unless he exercises under the micro-enterprise regime). This reduces the cost to some extent.
To become a freelancer, the professional can choose between a number of legal positions, the most famous of which are:
- Individual Business
- EIRL (Individual Limited Liability Company)
- EURL (Single-Person Limited Liability Company)
- SASU (Simplified Single-Person Joint Stock Company)
Neither of these situations automatically covers professional indemnity insurance. Even though the latter is not mandatory, it is strongly recommended whether you are a consultant, developer, writer or independent graphic designer.
In fact, regardless of your expertise, you are not safe from disputes with your customers. This could be a contractual dispute or (involuntary!) damage caused in the course of your Services. In the context of creative businesses, you may also come across conflicts related to intellectual property.
Contributions for professional civil liability insurance can range from €15 to €50 per month, depending on your profession, your turnover and your place of practice.
Conversely, some umbrella companies include RC Pro membership in their management fee. The advantage is that you don’t have to worry about it. The downside is that you can’t choose your coverage and level of protection.
Veg Portage VS Freelance: What About Autonomy?
Whatever the situation, you remain self-employed. It’s up to you to choose the mission, your rates, your offers, your schedule and where you work.
Even as a carried “employee,” there is no relationship of subordination between the self-employed person and the carrying company. The latter may accompany him in prospecting or mission pursuit, but the final word is done independently. He negotiates the cost and terms of his services with the client.
Even if you decide to change your umbrella company or position (in one direction or the other), you still keep your client portfolio. You can also sell it to another professional when you cease your activity.
When you start your independent activity, apart from being your own boss, you also become your own accountant. You have to manage all administrative tasks related to your activity:
- keep detailed accounts
- Send invoices, check payments, manage unpaid reminders
- Enter your accounts in the registry once a year
- Declare your turnover to URSSAF and pay the contribution quarterly
- Declare and pay VAT monthly or quarterly
All this can be a challenge for the freelancer without the necessary skills. Not to mention that these time-consuming tasks encroach on your core business. As a result, you devote less time to tasks with real added value, such as prospecting, customer follow-up and improving your services.
For the employee done, it’s another reality! The management fees charged by Waze Portage Company are used precisely to save you all administrative procedures and bookkeeping.
The drafting of the contract is also taken care of by the portage company, as per the agreements already made with the client. And she always send invoice at the end of service and remind customer in case of late payment.
So the hired employee gives more time to complete assignments and find customers.
Veg Portage VS Freelance: Support Against Isolation
Being an independent also means you want to run your business alone. There is no superior or co-worker to advise, encourage or accompany you in reflection. Obviously, this “only master on board” side has many advantages…
Of course, nothing stops you from networking elsewhere. You can attend professional events, attend seminars, work in co-working spaces, join discussion sites dedicated to your activity on LinkedIn or Facebook, and more.
At Waze Portage, in addition to these networking actions, a dedicated consultant helps you grow your business. In addition, umbrella companies also organize training workshops and meeting sessions among freelancers, allowing you to break out of isolation. These meetings also provide an opportunity to expand your customer base.
Our tip for choosing
If you are apprehensive about your retraining as a freelancer, Veg Portage could be the solution. This hybrid position allows you to benefit from the security of an employee and the autonomy of a freelancer. Conversely, if you prefer complete freedom and you feel ready to stand on your own feet, the various legal forms that exist in France should meet your expectations.
And whether you choose Veg Portage or Freedom, you can always count on Kodur to find you a job!