Payroll Savings : What if we saved through the company?

By Arnaud Campion

Employee savings... Only 16.5% of employees in companies with fewer than 50 people benefit from employee savings, compared with 55% of employees in the non-agricultural market sector as a whole. The advantage? Tax-free capital within the protective framework of the company, in the medium or long term. Focus on the different employee savings solutions!

The safest: the company savings plan


Enabling employees to build up a investment portfolio through the company, the PEE is a collective savings scheme that blocks the employee's payments for at least 5 years (except in exceptional cases). Sometimes requiring a seniority condition (3 months maximum), the company savings plan can be funded by sums from profit-sharing, profit-sharing, or the transfer from other employee savings plans (except Perco) and time savings accounts. Voluntary payments by the employee are also allowed (capped at 25% of your gross annual remuneration), as well as those from the company.


Tax benefits of the EEP


As long as the regulatory caps (25% of gross annual compensation or 25% of the annual social security ceiling), the sums paid into the plan from profit-sharing, incentive schemes and the employer's contribution (if the employer does not exceed the 8% Pass limit) are exempt from income tax (as well as gains and capital gains realized after the lock-up period of at least 5 years).


The most sustainable: Retierement collective saving scheme (Perco)


A company scheme in which the sums paid out are blocked until retirement, the (€15.9 billion under management at the end of 2017 and 2.4 million employees covered) can be supplemented voluntarily by the employee (amounts capped at 25% of gross annual compensation) and the company (through contributions called "abondements", which may not exceed €6,357.12). Available in the form of life annuity acquired for valuable consideration or capital at the time of retirement, the sums paid out (from profit-sharing, profit-sharing, transfers from other employee savings plans or from a time savings account) may also be subject to exceptional releases.


Tax benefits of Perco


Like the PEE, the sums paid are tax-exempt, in the same way as the contribution if it does not exceed the 16% ceiling of the PASS (i.e. €6,357.12 in 2018, per beneficiary up to three times the payment (300%) made by the same beneficiary). The capital gains realized by the sums invested throughout the savings phase are exempt from income tax and social security contributions. On the other hand, the sums paid out in the event of annuity payments are subject to the tax regime of the life annuities for valuable consideration.


The least profitable: the blocked current account


Claim guaranteed by labour law, locked for five years at a rate, the blocked current account is net of charges and taxes. Exclusively funded by participation, the CCB has the advantage of being a relatively secure savings solution that directly benefits the company. However, it tends to run out of steam over the years and offers increasingly unattractive returns (average corporate bond yield set at 0.95% in early February).

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