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Finance Act and the implications for employer groups


Voted annually by Parliament, the Budget Law and Law of Funding for Social Security both have the goal of balancing the budget and financial accounts for Social Security and the State.



Of the 211 articles of the Finance Act and the 125 articles of the Law of Financing of Social Security in 2011, many measures of interest to the Labor Law and Employer Groups. It includes provisions to promote employment and to reduce tax and social niches.



Measures to promote employment:



- Testing of a Reinforced Backing Contract (RAC) for the benefit of needy people in some employment areas. The objective of this contract is to organize, to former holders of fixed-term contract (CDD) or a Temporary Employment Contract (CTT), a term which may include accompanying measures of training periods and work periods. Concluded for a period of 12 months, the RAC will also collect the allocation of re-employment and aid to which interested parties can claim the title of unemployment insurance (Article 204 of the Finance Act 2011).



- Training for employees on sick unprofessional.
Employees on sick unprofessional will have access to vocational training while continuing to collect per diem, subject to the advice of the medical board the duration of these actions is consistent with the expected duration of the stop work. The objective of this measure is to facilitate the outplacement of policyholders, including those off long illness (Article 84 of the Finance Act, Social Security to 2011);





- Extension of Act measures Modernization of the Economy (LME): Crossing the thresholds of 10 and 20 employees increases the rate of social contributions calculated by enrollment. The law of modernization of the economy of August 4, 2008 was offset these "threshold effects" by freezing for 3 years (2008, 2009 and 2010). The device is extended by one year, until December 31, 2011. These measures relate including reducing Fillon, the apprentice wage rates, overtime Act (TEPA) and the contribution to the National Fund for Housing Aid (FNAL);



- New methods for calculating the reduction Fillon Fillon Act of January 17, 2003 has created a general reduction of payroll taxes whose aim is the reduction of labor costs for unskilled jobs whose wages are lowest. Until now, the reduction was calculated by month. Now, this reduction will be calculated on annual earnings. These new methods of calculation will be specified by decree (Article 12 of the Finance Act, Social Security to 2011);




Measures to reduce tax and social niches:


- Removing the exemption of employer contributions to benefits in-kind meals in the Hotels Restaurants Cafes (Article 201 of the Act);


- Removing the exemption applied to the remuneration of seasonal agricultural under 26 years (Article 144 of the Act);


- Vote tax incentive is now reserved for SMEs with fewer than 50 employees with a rate of tax credit from 20% to 30% (Article 131 of the Act);


References:

Act No. 2010-1657 of 29 December 2010 Finance 2011, Official Gazette No. 0302 December 30, 2010 page 23 033


Act No. 2010-1594 of 20 December 2010 financing of social security for 2011