How to optimize your earnings in wage portage?
Being able to start your own business while enjoying employee status, along with great freedom, these are the main advantages of wage portage. Beyond this great flexibility, this hybrid form of status gives you multiple possibilities for optimizing your earnings. Deduction of professional expenses and fixed assets, reimbursement of VAT, possibility of establishing a company savings plan, pre-financed CESU… discover all the possible possibilities to optimize your income from wage portage!
How to optimize your wage portage income thanks to fixed assets?
From the outset, it is important to specify that fixed assets constitute goods with a value that exceeds 500 euros (in the tax sense), which must be used durably for the needs of your activity. Thanks to wage portage, you can charge them to your activity account, unlike freelancers under an autoentrepreneur scheme. Rather than being withdrawn in the form of charges, fixed assets are depreciated annually over a period defined according to the durability of the asset, which makes it possible to consider an increase in income in wage portage.
The invoice for fixed assets, to be taken into account, must be in the name of the umbrella company. Thus, whether it is a professional telephone, a computer or other equipment to be used at work, all you have to do is send the invoice to the wage portage company, which will take care of the reimbursement and to deduct the value of the acquisition made from your activity account. At the end of the amortization period, the related VAT is refunded to you.
How to increase your income from business expenses?
As a salaried employee, your activity is called upon to generate deductible expenses, subject to compliance with the tax legislation in force. These costs may relate to travel, catering, rental of workspace, business referral commissions, rental of workspace, subcontracting, or internet connection, and may be invoiced or not to the customer.
Wage portage gives you the possibility of deducting these expenses from your activity account, which is not the case in micro-enterprises (more info on Gataka). The deduction is made so that your gross remuneration is equivalent to the profit actually generated by your activity. The most interesting thing is that there are portage companies that offer a refund of the VAT relating to these costs!
Your net taxable salary can be obtained by adding the CSG/CRDS to the monthly net salary. In the context of wage portage, at the tax level, only this taxable remuneration is taken into account in the progressive scale of income tax, after a fixed allowance of approximately 10% for professional expenses in addition to the expenses which have been deducted Account.
The Company Savings Plan, what?
To optimize your income from wage portage, the Company Savings Plan or PEE is another possible solution. It allows employers to support their employees in building up a portfolio of real estate assets. As a ported employee, you can pay into it sums that you define yourself, and your wage portage company will be able to participate financially in its growth with matching contributions.
However, an important clarification must be made: your sums will remain blocked for a minimum period of 5 years if you opt for a PEE to optimize your income from wage portage. However, there are specific situations, such as marriages, divorces or even births, where this rule does not apply. Here too, this is a significant advantage of portage compared to microenterprises.
What about CESU?
The Universal Service Employment Check (CESU) can be used to optimize your earnings in wage portage by making it easier for you to hire a home employee. It is the ideal solution to dematerialize your payments if you are frequently on the move and need to have your children looked after by an employee. This is also an option to consider if you need to have your house cleaned by a cleaner. The CESU allows you to avoid a combination of complicated procedures, and is also exempt from social charges and income tax.
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wage portage, how does it work exactly?
Now that you know the advantages of this system and how to make money with the portage status. Now, let’s take a look at the few steps on how it works. The first thing to do is find a mission. For it, you have to define its natureyour price, execution terms and duration.
The next step is to find an umbrella company. You will have to sign an agreement for the portage and a CDD or CDI employment contract. Then, the umbrella company of your choice must contact your client to have a service contract signed. The price and duration of your service as well as the terms of execution must be mentioned in this contract.
You can now carry out the mission and at the end, you must send a report to the portage company so that the latter can issue an invoice to your client. Finally, your umbrella company will transform your turnover into salaries. Of course, she will deduct her management fees. Be that as it may, having a business and having the status of employee remains particularly advantageous.