Payrolling, what is it?
Payrolling is a fairly recent form of employment. Its particularity is to provide a solution that falls between the status of a self-employed person and employee.
It is a salaried status, while enabling a contractor to manage their own projects and clients in a totally independent way. In other words, the contractor chooses their clients and negotiates their own rates, without the intervention of the payrolling company.
Payrolling involves a tripartite contractual relationship between the contractor, the payrolling company and the client company.
How payrolling works
This tripartite relationship involves two contracts:
- An employment contract between the contractor and the payrolling company
- A service provision contract between the client company and payrolling company.
The contractor therefore performs a service on behalf of the client company without being hired. This process involves outsourcing Purchasing rather than HR.
Under this model, the consultant under payrolling has the freedom to choose his clients, define the assignments and negotiate the terms and rates.
What about the salary in payrolling?
To find out more about the costs of payrolling and how to calculate your net salary, visit our payrolling salary simulation page
A contractor who opts for payrolling will become an employee of the payrolling company. This means that they will benefit from the same employment contract and the same social deductions as a normal employee.
It is the payrolling company that pays the contrator. In fact, the payrolling company will invoice the client company and then pay the consultant for the task.
The invoice is broken down into gross salary, employer charges and administration costs. This is a fixed monthly rate with no link to remuneration conditions. The salary is paid as soon as the validated timesheet is received and MITC provides the working capital.
The remuneration of the contractor under payrolling is therefore identical to that of a normal employee, with the difference that in a payrolling contract, management costs are added to the usual social charges. Consider these costs as the remuneration of the payrolling company.
To learn more about the costs of payrolling and the calculation of the net salary, go to our payrolling simulation page.
The advantages of payrolling
Visit our page dedicated to the advantages of payrolling to find out more
There are many reasons why professionals opt for payrolling. As we have just seen, this solution offers professionals the flexibility of a self-employed person and the security of an employee. But this is far from being the only advantage of payrolling.
Unlike self-employed status, being an employee of a payrolling company does not require permission from the AVS. This simplifies all the administrative aspects, which are handled directly by the payrolling company.
Its great flexibility also makes it the ideal model for starting up an independent or freelance business in a wide range of fields, such as IT, finance, business consultancy or design.
Whether you are a cross-border worker, an expatriate, a senior citizen or simply looking to kick start your business without taking too many risks, payrolling is the perfect solution.
Visit our page dedicated to payrolling to find out more
Payrolling, for whom?
Is payrolling for you? See if your profile fits the payrolling solution
For professionals throughout their working lives, payrolling is a timeless solution:
- Junior: managing your early career by choosing your assignments and working hours within a salaried structure
- Experienced: choose your assignments and, if necessary, prepare for professional conversion by planning the necessary training.
- Senior: continuing your career by removing the barriers to employment for older people
Payrolling is well suited to intellectual services (new technologies, finance, coaching, engineering, etc.).
Is payrolling for you? See if your profile fits the payrolling solution.
The appeal for the mission company
Do you represent a company and are you interested in payrolling?
Many companies have work to do but can’t always translate it into in-house jobs according to their strategy. The work is then carried out by an external consultant or freelancer. They are also looking for a flexible, sustainable solution that will enable them to optimise their business.
By using external contractors under payrolling, the mission company avoids a large number of restrictive and time-consuming administrative procedures and is able to optimise its outsourcing strategy.
All companies are concerned, whatever their size
- Start-ups: for one-off assignments or simply to give them greater freedom in their recruitment strategy
- SMEs and key accounts: for the flexibility, speed of implementation and cost control of freelance administration
Do you represent a company and are you interested in payrolling?
