In response to the crisis, the French government has announced exceptional measures, including the possibility of deferring payment of social security contributions. According to the Minister of the Economy and Finance, this assistance will be extended to salaries paid this summer, to take account of the impact of the pandemic on economic activity.
Deferral of social security contributions for employers
Companies that have been administratively closed down or have had their business restricted as a result of measures taken by the public authorities can defer all or part of the payment of their employer and employee contributions for the July 5 and 15, 2021 deadlines. All they have to do issubmit a request for deferred payment. In the absence of a reply from Urssaf within 48 hours, the request is deemed to have been accepted.
For other companies, payment of contributions has resumed. Where contributions have not been paid, they are automatically deferred without penalty. The Urssaf's role is to contact the employers concerned at a later date to suggest a debt repayment plan over a maximum period of 36 months.
As of the August 5 and 16 deadlines, there will be a change in the way contributions are paid. Indeed, contributions will once again be due on the scheduled dates, and only companies subject to restrictions will be able to request a deferral of payment of employer contributions.
Deferral of social security contributions for self-employed workers
Self-employed workers in the so-called S1 sectors (tourism, hotels, restaurants, sport, culture, air transport, events) and S1bis (whose activity is highly dependent on those in the S1 sector) will be able to benefit from an automatic deferral of their contributions for the deadlines of July 5 and 15, 2021 and those of August 5 and 16, 2021.
For self-employed workers in other sectors, the usual deductions have been resumed. The measure should be extended to all workers from September, subject to health developments.
The case of auto-entrepreneurs
In a press release published on July 6, Urssaf states that auto-entrepreneurs can continue to defer payment of their contributions this summer, when they file their monthly or quarterly returns. This measure will come to an end in October, subject to developments in the health situation.
Extension of the exceptional reduction in social security contributions
At the same time, the government is allowing self-employed workers hardest hit by the crisis to benefit from an exceptional reduction in contributions. The reduction applies to contributions outstanding in 2020 and 2021.
To qualify, the entrepreneur must belong to the S1 sector and have been banned from opening to the public in January 2021. You can also qualify if you can prove a 50% drop in monthly sales or a 15% drop in annual sales. This aid is paid only to businesses that remain administratively closed from February 2021 until the day before reopening.