💰 Social Contributions & URSSAF: Everything You Need to Know
📌 What Are Social Contributions?
Social contributions are mandatory payments that provide protection in case of unexpected events (health, retirement, maternity/paternity leave, and unemployment in some cases).
The amount and benefits depend on the business structure you choose.
🛡️ The Role of URSSAF: Why and When to Pay?
📌 What is URSSAF?
URSSAF (Unions de Recouvrement des Cotisations de Sécurité Sociale et d’Allocations Familiales) is the French organization responsible for collecting social contributions and redistributing them to fund social protection programs (healthcare, retirement, unemployment, etc.).
📌 Who has to pay social contributions to URSSAF?
✅ Micro-entrepreneurs (contributions based on revenue).
✅ EURL managers (Gérant majoritaire) (contributions based on salary).
✅ SASU presidents (if salaried) (contributions only on salary).
📌 How does it work?
➡️ Micro-entrepreneurs declare and pay their social contributions monthly or quarterly via the URSSAF website.
➡️ SASU & EURL business owners pay contributions through payroll or social security declarations (DSN - Déclaration Sociale Nominative).
📌 What are the minimum social contribution thresholds at URSSAF?
Even if you do not generate revenue or receive a salary, some minimum contributions may apply:
• Micro-entrepreneurs: No contributions if turnover = 0.
• SASU presidents: No contributions if no salary is paid.
• EURL managers (Gérant TNS): Minimum social contributions apply, even without declared income.
💡 Candosa Tip: Avoid surprises by anticipating your social contribution obligations with our expert guidance!
📊 Comparative Table: Social Contributions by Business Structure
Characteristics | Micro-entrepreneur 🌱 | SASU 🌟 | EURL 🛡️ |
💰 How Social Contributions Are Calculated | Fixed percentage of revenue: 22% (services) / 12.3% (commercial activities). | On gross salary: 65% social contributions. On dividends: 30% flat tax (PFU). | On net salary: 45-50% social contributions. |
📉 Example of Social Contributions | Revenue of €40,000 → €8,800 in contributions (22%). | Gross salary of €20,000 → €13,000 in contributions. Dividends of €20,000 → €6,000 flat tax (30%). | Net salary of €30,000 → ~€13,500 in contributions. |
🛡️ Unemployment Coverage? | ❌ No. | ❌ No, unless a high salary (€25,000-30,000+) is declared and a proper employment contract exists. | ✅ Yes, through the independent worker’s system. |
📑 Deductible Business Expenses? | ❌ No. | ✅ Yes (rent, marketing, equipment). | ✅ Yes (rent, equipment, operating costs). |
🎯 Ideal for? | Small projects, freelancers, side businesses. | Entrepreneurs looking for flexibility and tax optimization. | Entrepreneurs seeking maximum social security coverage. |
📢 How Social Contributions Work for Each Business Structure?
1️⃣ Micro-entrepreneur 🌱: Simple but Limited
Example: Lucie, a freelance graphic designer, earns €40,000 per year.
• Lucie pays a fixed percentage of total revenue, without deducting expenses.
• Even if she spends €6,000 on equipment, she is taxed on €40,000.
✅ 22% of €40,000 = €8,800 in social contributions.
❌ No unemployment coverage or deductible business expenses.
💡 Candosa Tip: The micro-entrepreneur status is great for testing a business, but if you want to deduct expenses or optimize income, switching to SASU or EURL is a smarter move.
2️⃣ SASU 🌟: Flexible and Optimized with Dividends
Example: Karim, a freelance web developer, earns €40,000 per year and chooses to split income between salary and dividends.
✅ Social Contributions on Salary:
• Gross salary of €20,000 → €13,000 in social contributions (65%).
✅ Dividends Taxed at 30% Flat Tax (PFU):
• €20,000 in dividends → €6,000 in tax (30%).
💡 Candosa Tip: In SASU, optimizing the salary + dividends split can help reduce social charges.
3️⃣ EURL 🛡️: Higher Social Contributions, but Maximum Security
Example: Sophie, owner of a hair salon, earns €30,000 in net salary per year.
✅ Social Contributions on Salary:
• 45-50% of €30,000 → ~€13,500 in social contributions.
• In return, Sophie gets full unemployment rights, a higher pension, and full health coverage.
💡 Candosa Tip: In EURL, there’s no dividend optimization, but better social protection.
📌 URSSAF & Contribution Declarations: What You Need to Know
📢 When and how do you declare your contributions?
Status | Declaration & Contribution Payment |
Micro-entrepreneur | Monthly or quarterly via autoentrepreneur.urssaf.fr. |
SASU (President, non-salaried) | No contributions if no salary. |
SASU (President, salaried) | Monthly declaration via DSN (Déclaration Sociale Nominative). |
EURL (Gérant, TNS) | Declaration via the URSSAF website or through an accountant. |
📌 Do I have to pay contributions if I don’t earn anything?
❌ Micro-entrepreneurs: No revenue = no contributions.
✅ SASU (Salaried President): No salary = no contributions.
⚠️ EURL (Gérant, TNS): Some minimum contributions may apply even if no salary is taken.
📌 What happens if I forget to declare or pay contributions?
If you fail to declare or pay contributions, late penalties will be applied.
💡 Candosa Tip: We help automate your declarations to prevent any issues!
🎯 Conclusion: Which Business Structure Should You Choose?
✔️ Micro-entrepreneur: Simple and quick setup, but limited in terms of deductions and tax optimization.
✔️ SASU: Best for balancing salary + dividends to minimize social charges. No unemployment coverage.
✔️ EURL: Higher social contributions but complete protection (health, retirement, unemployment).
📌 Need help choosing? Candosa assists you at every step, from company formation to URSSAF declarations and tax optimization. 🚀