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Thomas LE BARS
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Zoom on the consequences of this decision, for the private-employers as well as for their employees.
A puzzler less for private individuals-employers. Bercy announced Thursday that it has decided to postpone for a year the reform of withholding tax for the home-based employment sector. In questions and answers, look at the impact of this gap, both for households employing a home-based worker and for the employees themselves.
Why have you decided to postpone it?
Because the beginning of the year 2019 was akin to a headache for private-employers. With the introduction of the withholding tax, they would have had to calculate themselves the amount of the net salary to be paid, after income tax, to their employee. With a risk, therefore, to make mistakes, and the responsibility to explain to their employee why their net pay has decreased.
The government did try to anticipate the problem by developing an "all-in-one" reporting platform, managed by the Cesu (service employment check) or Pajemploi (for childcare), which would allow individuals-employers to report only the net salary before tax. Charge to the platform to calculate the amount of tax and contributions and pay back the salary, after these levies. But this tool will not be ready for the beginning of next year. This is why Bercy preferred to delay by one year the application of the reform, the time that the system "all-in-one" is operational. Note that for households using a personal services organization, this postponement will apply when the business or badociation is a simple agent (it is the individual who is the employer), but not when she is the provider (therefore the employer), the DGFiP told us
I am a private employer, what will I have to pay to my employee in 2019?
As now, you will not have than to declare in Cesu or Pajemploi the number of hours as well as the net salary, before tax. You will then pay this same net salary to your employee.
Will this offset in the withholding tax also offset the receipt of the tax credit?
No. The tax credits granted for expenses incurred in 2018 will be paid in 2019. In addition, it should be recalled that the government has provided, for those who have already benefited from this tax credit this year, a deposit equal to 30% of the benefit is paid in January, the rest is paid in September. One way to prevent private-employer employers from advancing large sums of money to the tax authorities in the first 8 months of the year, because the tax rate at source does not take into account reductions and credits 'tax. Note that other similar tax benefits, such as those granted for donations or real estate investments, do not enjoy such a favor.
Can we hope that the tax credit will one day be monthly?
Gerald Darmanin rejected this hypothesis "in the short term". But there is no doubt that the subject will come back on the table during debates on the budget bill in Parliament this fall, because some members of the majority have made it their priority. This solution would have many advantages. On the one hand, this would spread the sums to be disbursed over the whole year, and thus avoid sudden changes in cash flow. Above all, this could be coupled with a "contemporaneisation" of the tax credit: in short, the private-employers would touch it as soon as they incur an expense, immediately reducing the amounts to be disbursed. Currently, this tax rebate is indeed perceived with a delay of a year and a half. For example, those who start using a home-based person in January 2019 will not receive the tax credit until September 2020. With a monthly payment, they would begin to receive it by January 2019.
I am a home-based employee. Does this gap mean that I will not pay tax on my 2019 income?
No, the tax payment is just off by one year. In concrete terms, in 2019, your tax rate on these incomes will be 0. From January 2020, you will pay the withholding tax on your income for 2020. And in September 2020, you will have to pay, in addition, the tax due on income 2019, either in one go if the amount is less than 300 euros, or with an automatic spread over four months, so until December, if the amount exceeds 300 euros. In addition, it is expected that employees will be able to pay, on a voluntary basis, an advance payment of the tax due on the 2019 income, as of next year, via the service "Manage my withholding tax" on the tax site. A calculator will estimate the amount of tax to be paid or provisioned.
Is it better that I pay a deposit in 2019 to avoid paying too much tax in 2020?
It all depends on your ability to anticipate the additional tax payable in September 2020. In theory, the fact that the tax does not collect you in 2019 is rather favorable: you can set aside the tax that you will have to pay, for example on a booklet , and so grow these cash. But if you do not have enough foresight, you could face a very bad surprise in the fall of 2020, when paying taxes on your 2019 earnings. If you fear such a scenario, it may be better to pay a deposit in 2019.
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