With a one-year delay, the withholding tax will apply to private employers from January 2020. This change is all the more sensitive as the Urssaf declaration services experienced a technical “bug” in 2019 that affected the lives of thousands of families.
The last brick of the withholding tax will be put in place this Wednesday, January 1. On that date, the approximately 2.7 million individual employers will have to pay their employees after deduction of tax. This change concerns individuals who employ directly with the Pajemploi or Cesu declaration system, and not those passing through a structure (association or private company), for whom the reform was applied a year ago as for the rest of the taxpayers.
Of the million home workers (household staff, childminders, home helpers), Bercy estimates that nearly 250,000 are taxable. The entry of withholding tax into the sphere of home employment is proving difficult for several reasons. The collection of tax is entrusted to individuals whose job is not. More than elsewhere, it can pose problems of confidentiality in the relationship between the employer and the employee.
Facilitate the procedures
In order to facilitate the procedures for individuals, the Urssaf have devised an “all-in-one” declaration system, called “Cesu +” or “Pajemploi +”. Due to IT delays, this platform was not ready on January 1, 2019 when switching to withholding tax. The State therefore had to postpone its entry into force for private employers by one year.
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Note that taxable employees still had to pay their tax in 2019. Exceptionally, they paid deposits to the Public Treasury, as do the self-employed.
Two options for individuals
In the course of 2019, the “Pajemploi +” and “Cesu +” platforms came into service, which paved the way for withholding tax. However, conversion to these services remains a minority. Almost 15% of the 850,000 Pajemploi users switched to “Pajemploi +” when only 50,000 Cesu users, out of 2 million, chose “Cesu +”.
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Therefore, individuals will have two options. If they have chosen the “all in one” declaration, they will be deducted from the amount of net salary from their bank account. The Urssaf will pay the tax directly to the tax authorities and the salary, after deduction of tax, to the employee.
Deduct the tax from the salary paid
If the employer has not opted for “services +”, he must, at the time of his declaration, consult the tax owed by the employee and deduct it from the salary paid at the end of the month. The individual will then be deducted from tax at the same time as social charges. This implies, in both cases, to declare the hours worked before remunerating his employee, at the latest on the 5th of the following month.
As for the 300,000 people who still declare on paper form, they will be informed by mail of the amount to be paid to their employee.
“Technical bug” on childcare
This change is all the more sensitive as the declaration services for private employers experienced a technical “bug” in 2019. Thousands of households have been affected by a reform of the payment of the childcare supplement, initially designed to facilitate the payment. family life.
Some were unable to collect their childcare aid, a sum that can reach more than 460 euros per month for employers of a childminder, depending on their income. Among the families concerned, united in a Families in Struggle collective, some have had to separate from their nanny for this reason.
At the beginning of November, Pajemploi admitted having reimbursed 21,000 families out of 860,000 beneficiaries of the free choice of childcare supplement.
Our special file on withholding tax