© - ATH all rights reserved - Edition 2024 51 2024 EMPLOYER’S GUIDE If provided by the agreement, in companies with 1 to 250 employees, the manager, his/her spouse or civil partner (associate or partner) can benefit from profit-sharing (under certain conditions) or incentives. ALLOCATION OF AMOUNTS The amount of sums received, for incentives or profit-sharing, is by nature variable. Profit-sharing sums paid are inprinciple unavailable for 5 years but there are cases for early release. However, for each profit-share distribution, the employee can request immediate payment. Amounts paid in the form of an incentive are either paid immediately or invested in a company savings plan. If the employee does not choose, the sums are allocated in full to the savings plan. The company may decide, under certain conditions, to allocate a supplementary profit-share or incentive to employees for a particular year. Ask us about the times to be respected for the payment of profit-sharing and incentives. TAX AND SOCIAL SECURITY BENEFITS For employees, sums received in the form of incentives or profit-sharing are exempt from social security contributions with the exception of CSG and CRDS. They are subject to income tax if they are received immediately. For the company, sums paid for incentive schemes or profit- sharing are exempt from social security contributions. The forfait social (employer’s contribution at the rate of 20 %) is not due in companies with less than 50 employees for all schemes (profit-sharing, incentives, top-ups). In companies with 50 to 249 employees, the forfait social is not due for incentives only. Sums paid in the form of incentives and profit-sharing are deductible from the company’s profit. Sums allocated in the form of incentives or profit-sharing cannot substitute any element of pay applicable in the company. EMPLOYEE SAVINGS PLANS Employee savings plans are schemes into which sums received from incentive or profit-sharing, as well as voluntary payments by the employee and the company (« top-ups »), are paid and grow. They must include a grant from the employer (payment of charges and/or top-ups). They can be set up by any company. These can be company savings plans (PEE) or a collective company pension plan (PERE-CO) (which has replaced the PERCO since 1 October 2020). The PEE gives employees the option to create a portfolio of securities. The sums paid into the PEE are frozen for 5 years (certain cases for early release apply). It is compulsory to set up a PEE for a profit-sharing agreement. The PERE-CO allow employees to create savings for themselves which are accessible when they retire. Certain cases for early release are determined. Ask us about terms under which the employer can top up savings plans. On signature of their employment contract, all employees must be informed of the employee savings schemes set up in the company and their content.
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