© - ATH all rights reserved - Edition 2024 82 EMPLOYER’S GUIDE 2024 Tools FAQ ON DEDUCTION AT SOURCE ON SALARIES What you need to know : The income tax deduction at source on salaries enables the employee to pay contemporaneous tax on collection of income. WHAT ARE THE EMPLOYER’S OBLIGATIONS IN RELATION TO THE DEDUCTION AT SOURCE ON SALARIES ? The employer has 4 obligations : • To receive the rate of deduction at source for each employee sent each month by the « Direction Générale des Finances Publiques » (DGFiP) via the « déclaration sociale nominative » (DSN), • To retain the deduction at source on the net salary to be paid to the employee for month M, by applying the rate to the net taxable salary, • To declare, via the DSN, the amounts deducted for each employee, • To pay the deductions at source for month M to the DGFiP on 5 or 15 of month M + 1 (based on the workforce). The account used for paying the deduction at source must be registered on the employer’s professional space on « impots.gouv ». The corresponding SEPA B2B mandate must be sent to the bank. CAN THE EMPLOYER AMEND THE RATE SENT BY THE DGFIP ? No, the employer must use the rate sent by the office. The employee must send any claims relating to his/her rate to the tax authority. If changed, a new rate will be sent to the employer via the DSN. The employer applies the most recent rate received. Each rate sent remains valid for 2 months. WHAT DOES THE EMPLOYER HAVE TO DO WHEN HIRING A NEW EMPLOYEE ? For a new hire, the non-personalised rate will be applied for the first salary payment since the employer will not have received the customised rate via DSN yet. However, in this case, the employer will be able to obtain its employee’s personalised rate via a specific application, called TOPAZE or via the variable data priming signal (DSN), so it can be applied from the payment of the first salary. This procedure is optional for the employer. WHAT SHOULD THE EMPLOYER DO IF THE DGFIP HAS NOT SENT THE RATE OF DEDUCTION AT SOURCE FOR ONE OF ITS EMPLOYEES ? When the DGFiP has not sent the company the employee’s personalised rate, the employer must nevertheless make the deduction at source on the salary paid using the non-personalised schedule of rates (« neutral rate ») defined each year in the finance act. This schedule is established on the basis of the income of a single person without dependants. The rate varies according to the employee’s monthly net taxable income. This situation is applicable when the employee has opted for his/ her rate not to be sent to his/her employer or if the employee has never submitted an income tax return in his/her own name. For fixed-term contracts of 2 months or less, if the employer has to use the non-personalised rate, a specific rebate of 50 % of the net taxable minimum wage (€ 725 as of 1 January 2024) is applied to the base of the deduction at source.
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