Employee savings schemes can be adapted to the company’s context

Difficulties with selection, high inflation, pressure on salaries… How do employees’ savings generate interest?

Any professional activity is subject to the introduction of these systems if they have at least one employee (full-time or part-time), separately from the manager and who does not participate in the work-study or internship program. It is worth noting that in companies with more than 50 employees, participation and the accumulation plan are mandatory. Thus, employee savings include various mechanisms of communication with the company’s performance:

– distribution of profits, which allows managers who wish to provide for the payment of bonuses to all their employees depending on the achieved performance and / or achievement of certain goals.

– On the other hand, participation allows the company to redistribute part of the profits to its employees. These are labor dividends!

– And finally, the third mechanism is a contribution to the savings plan. In companies with less than 250 employees, managers (provided) and employees are paid. A professional activity or company completes this payment with a sum of money. This is a contribution. Two savings plans are available: one is blocked for 5 years (out of 10 cases of early dismissal) and the other is blocked until retirement (out of 5 cases of early dismissal).

Are you talking about win-win arrangements that bring benefits to the employer and the employee?

The implementation of these systems is effectively accompanied by numerous social and fiscal benefits. For the employer, the distribution of income, participation and allowance are deducted from taxable income, and in many cases are exempt from social security contributions and employer’s contributions. From January 1, 2019, the Law on Social Insurance Financing reduced the application of the social package withheld from remuneration or earnings, exempt from social insurance contributions, but subject to the generalized social contribution, to 0%.

“The implementation of these systems is indeed accompanied by numerous social and tax benefits”

This applies to all employee savings schemes in companies with less than 50 employees. In addition, up to 250 employees, only a share of profits benefit from the application of this rate of 0% of the social package. These schemes are not only for employees, self-employed workers (TNS) or hired managers can use them under certain conditions. For the beneficiary (manager or employee), these schemes offer immediate or deferred additional compensation within a favorable tax framework. The employer’s payment, the known contribution to be paid into the savings plan (PEE or Pereco), is exempt from income tax. The resulting capital gain (distribution of profits, participation in savings and related contributions) is also exempt from income tax, but remains subject to social security contributions. Under Pereco, voluntary payments can also be deducted from taxable income or exempt from income tax for TNS.

How does implementing these systems help motivate employees?

These systems allow you to associate employees with the company’s results by qualitative or quantitative criteria. Terms of “launch” of the payment can really be adapted to the wishes of the entrepreneur.

“These systems allow you to associate employees with the results of the company”

This association allows you to motivate and retain employees, who can thus accumulate savings and receive additional remuneration, contributing to the development of the company in which they work.

Emmanuel Macron raised the issue of employee savings in his campaign, what do you think of his proposals?

According to the campaign, Emmanuel Macron would like to make “dividends to employees” mandatory either by paying a bonus (Macron’s bonus) or by distributing profits through employee savings to all companies that pay dividends. . But we are waiting for the final bill, which will determine the exact procedures for implementing these proposals.

What is interesting about CGP’s mediation in the advice that precedes the implementation of these systems?

Employee savings schemes can be adapted to the company’s context and to the wishes of the manager and / or shareholder. To determine the best case scenario, you need to be surrounded by good professionals. Prior to the implementation of these systems, we can determine the terms of the agreement on the distribution of profits, profit sharing and employer contributions, following the wishes of the business manager. This support also continues during the application of the system to decide whether to change it or not.

“We have chosen the consulting and management company Eres, a leader in the distribution of employee savings products, as our preferred partner.”

We also participate in the selection of the proposed savings, as well as in the monitoring of transactions (payment, withdrawal, arbitration) for savers. In order to adjust the selected employee savings solutions, we have chosen the consulting and management company Eres, a leader in the distribution of employee savings products, as our desired partner.

Lionel Lafon, Managing Partner of Finance Invest and Massalia