Personal withholding tax for individual employees staggered to 2020

The withholding tax deduction will be shifted of one year for the employees of the individuals and will enter into force than in 2020. The announcement was made by the Minister of Action and Public Accounts Gérald Darmanin, in an interview published Thursday in La Croix . As a reminder, the withholding tax – effective for all other employees from January 1, 2019 – is to collect income tax when the salary is paid and not more than a year later as is currently the case. 19659003] »READ ALSO – All that changes the withholding tax for the French in 2018

Concretely, employees of private individuals will benefit from a tax deferral: they will not pay any tax in 2019 but will pay their income taxes in 2019 only the following year, in 2020. "We have decided that their withholding tax rate will be zero for all throughout the year 2019. They will therefore pay in 2020 at a time. their taxes of 2019 and 2020, "explains Gerald Darmanin in La Croix . Before detailing: "The following year, starting in January (NLDR: 2020), they will pay like other employees their withholding tax on the income collected in 2020. Then, from September to November 2020, with a payment spread over three months therefore, they will also pay their income tax of 2019 ". In total, according to the minister's figures, 2.2 million individuals employ 1 million people and of this million employees, 250,000 are liable for income tax. These employees are divided into two major sectors: home-based employment (childcare, cleaning, helping the elderly, garden maintenance, etc.) and childminders.

Finalizing reporting platforms

According to Gérald Darmanin, withholding tax for private employers is "a specific problem". Some employers actually pay their employees and pay social security contributions with the online platform of the universal service employment check (Cesu), others with that of Pajemploi and finally some with the Cesu paper.

In the face of these very diverse situations, the government has found that 'all-in-one' platforms, which will be a major simplification for all and which will make it easy to set up withholding tax, can only be launched 'in the next year'. Therefore, "this one-year gap is a simplification measure. It will give us the time to finalize the system 'all in one' which will allow from January 2020 to all the private employers to easily declare their employee and to pay at the same time the social contributions as the tax to the source ", justifies the minister.

No payment of the tax credit each month

Asked that the tax credit can be paid to individual employers each month to relieve their cash flow, as some claim, the Minister has dismissal. "This is not feasible in the short term," said Gérald Darmanin, while stating that the government had "taken into account recurring tax credits that affect the daily lives of millions of citizens, including home-based employment and childcare, by providing for the repayment of 30% of the sums by mid-January. "

» READ ALSO – Childcare, home service: the State makes a gesture for the deduction at source 2019

The government has recently made a move for households by advancing to January, instead of March, the date of payment of the 30% deposit on the tax credits for home care services and childcare as part of the withholding tax. Despite this gesture, the employer households will pay with the withholding tax each month more taxes than they really need: 30% of the tax credit for this job will be reimbursed by the State in January and it will be necessary to wait the timing of the payment of the balance of the tax so that households can receive the rest of the credit.