Find out how to simulate your wage portage income easily and easily. Self-employed workers, freelancers or even auto-entrepreneurs, who choose to switch to wage portage, must know the various advantages it offers as well as the precautions to take to avoid any disappointment. Thanks to an online tool, calculating your net salary is now possible in just a few clicks.
What is wage portage?
Wage portage is a system in which a person works for himself and exercises his activity under the status of an employee of a portage company. Indeed, these companies allow consultants, contractors or autonomous people to carry out missions or projects for a client under temporary or permanent employment contracts. The carried employee therefore does not benefit from all the prerogatives of a self-employed person and remains subject to the legislation relating to labor law. This formula allows consultants to set up a win-win relationship with their client by freeing themselves from the constraints linked to the administrative management of their activity and benefiting from a net monthly remuneration.
Advantages and disadvantages of wage portage
Wage portage offers several advantages, in particular administrative simplification, security and the freedom offered by the auto-entrepreneur status. From a tax point of view, this makes it possible to pay a lower percentage than that applied to the usual social charges which weigh on individual entrepreneurs. You can also take advantage of social benefits such as unemployment benefits or paid holidays. Companies that use this formula can also save on costs related to professional fees, since it is the customers who make the expenses for supplies and other raw materials necessary for the exercise of the activity.
However, there are some disadvantages related to wage portage: it can be difficult to find a company or a consultancy willing to offer you this kind of employment contract, and the service is often expensive. In some cases, there may also be a certain level of uncertainty as to the duration of the contract between the employer and the employee.
How to simulate your earnings in wage portage?
The different ceilings to take into account to simulate income. To simulate your earnings in wage portage, it is necessary to take into account the annual and monthly ceilings set by law. There are different types of ceilings, including that applied to social charges (generally 8% of turnover), that applied to income tax (generally 28%) and that set for professional expenses (generally 5% ). These ceilings may vary according to the missions entrusted by the client.
Tools available to calculate your net salary according to social contributions and income tax. There are several online tools that allow you to calculate the gross or net salary in wage portage. One of the best known is the simulator of Umalis Group, which makes it possible to simulate the net salary taking into account the ceilings, the ADR (Average Daily Rate) and the percentage deducted by the portage company. This free and easy-to-use tool gives an accurate simulation of the social charges and income tax that you will have to pay each month according to your income.
What are the advantages of opting for an employment contract through wage portage?
Opt for an employment contract through wage portage and take advantage of the many advantages it offers. First of all, this type of status offers a certain freedom since it is possible to practice one’s profession without having to go through a third party employer. We are then guaranteed to have a monthly salary according to market practices, while benefiting from the advantages linked to the status of employee (CESU, gift vouchers, meal vouchers, etc.). In addition to the administrative simplification offered by this status, it can also be advantageous from a tax point of view since social charges are reduced thanks to the minimum flat rate. Finally, the management of sick leave funds and other allowances is automated.
What precautions should we take if we opt for this type of contract?
Despite the many advantages offered by wage portage, it is important to take certain precautions before opting for this type of contract. Indeed, it is advisable to require a written contract between the umbrella company and the consultant to clearly define the rights and obligations attached to the status. The consultant must also keep an exact record of the activities carried out in accordance with the laws in force. It is also important that the expertise is recognized by the customers so that the expected profitability is respected. Finally, the consultant must also take into account the taxes and social contributions in force at the time of invoicing in order to ensure that they are correctly collected by the umbrella company.
Simulating your earnings through wage portage offers a number of advantages both on the fiscal and social level, as well as on the administrative level. However, it is important to take certain precautions when opting for this status, in particular by requiring a written contract between the consultant and the portage company as well as by ensuring that the various ceilings imposed by law are respected for calculating the net salary. Also, it is recommended to use free tools like the Umalis Group simulator in order to accurately calculate his net salary and to be informed of the social charges and taxes related to his mission.